Monthly Business Insolvency Figures, 2024

Chapter 1

Overview

Insolvency rates provide crucial insights into the pressures UK businesses are currently navigating. November 2024 saw 2,262 companies across the UK and Northern Ireland declare insolvency—a significant 23% drop from October and a 16% decline year-on-year compared to November 2023. While the month-on-month decrease may indicate easing economic pressures, businesses continue to face significant challenges, with the construction sector particularly affected by inflationary pressures on materials and labour.

Key Findings – November 2024

Total Insolvencies: 2,262 companies declared insolvency.
Month-over-Month Change: A 23% decrease in November, suggesting some easing economic pressures as the year concludes.
Year-on-Year Change: Insolvencies fell by 16% compared to November 2023, indicating a stabilising economic environment.
Sector Impact: The construction sector represented 16% of all insolvencies in November, continuing to be the most affected by rising inflation and escalating costs of materials and labour.

For proactive insights and support, Creditsafe’s platform offers tools to help businesses manage and mitigate insolvency risks through real-time updates and advanced risk monitoring.

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Chapter 1

Insolvencies by Month

Total number of insolvencies by month.

November 2024 saw 2,262 UK and Northern Ireland companies declare insolvency—a 23% decrease from October 2024, and a 16% drop year-on-year compared to November 2023. While the month-on-month decrease suggests some easing of pressures, the year-on-year drop highlights the ongoing economic challenges businesses continue to face. Inflationary pressures and market uncertainty remain high, particularly in the construction sector, which has been hit hardest by rising costs of materials and labour.

The construction sector's challenges have intensified as supply chains are strained and contractors are adopting enhanced due diligence to safeguard against further insolvencies. Although the government's Autumn Budget allocated funds to stimulate construction activity, offering cautious optimism, the sector remains under significant pressure due to persistent financial difficulties.

For businesses looking to proactively manage these risks, Creditsafe’s platform offers real-time updates and advanced monitoring tools, providing the insights necessary to navigate an unpredictable insolvency landscape effectively.

Chapter 1

Insolvencies by Sector

The total number of insolvencies by sector YTD.

The construction sector remains a significant contributor to the UK's insolvency figures, accounting for 16% of all insolvencies in October 2024, with 356 companies in the industry entering insolvency. Despite a slight dip in numbers, the sector continues to face pressure from rising material and labour costs, which have made it difficult for many businesses to stay afloat.

The Accommodation and Food Services sector also continues to experience high insolvency rates. In November 2024, 350 companies within this sector declared insolvency. Analysts are warning that the recent Autumn Budget, though aimed at stimulating economic activity, may not be enough to alleviate the financial strain on the industry. This could potentially lead to a further rise in insolvencies as businesses struggle to cope with mounting costs.

For businesses looking to proactively manage these risks, Creditsafe’s platform offers tools to help mitigate insolvency risks through real-time updates and advanced monitoring systems, giving businesses the insights needed to navigate the challenging landscape.

The table below provides a comprehensive overview of insolvency trends year-to-date (January - December 2024) by sector. It also compares these figures with previous years (2021, 2022, and 2023), offering a clearer picture of the sector-specific shifts and changes in insolvency rates.

Want to explore the data for yourself?

Whether you want to understand the impact of Insolvencies across a group of sectors or the likelihood of an individual company becoming insolvent, you can find all of this data and more within the Creditsafe platform.

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Chapter 1

Methodology

Creditsafe uses the following statuses to determine if a company has become insolvent and will count insolvency based on its first insolvency trigger from one of the statuses below:

In Liquidation.
Administrator Appointed.
Appointment of Liquidator.
Meeting of Creditors.
In Administration.
In Receivership.
Administrative Receiver Appointed.
Administration Order.
The company is wound-up.

Research & Reports

Business Insolvency Statistics

Overview

Insolvencies by Month

Total number of insolvencies by month.

Insolvencies by Sector

The total number of insolvencies by sector YTD.

Want to explore the data for yourself?

Methodology

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