Company insolvencies in England and Wales have hit their highest level since the aftermath of the financial crisis.
The Office for National Statistics reports that 5,629 companies collapsed across England and Wales in the second quarter of 2022, the most since the third quarter of 2009.
Persistently high energy prices, difficulties in meeting debt obligations, rising costs of raw materials, and supply chain disruption all contributed to the jump.
Construction firms made up 20% of all the insolvencies, followed by the wholesale and retail trade industries at 14%.
Worryingly, more than 1 in 10 UK businesses said they faced a “moderate-to-severe” risk of insolvency in August.
Over a fifth (22%) of businesses said energy prices were their main concern, up from 15% in late February 2022.
Thirty percent of small firms (with 10 to 49 employees) cited energy as their top worry.