Insolvencies jump 76pc since before Covid pandemic

Company insolvencies jumped 76pc in December from before Covid as inflation and strikes put pressure on businesses, new government figures show. Rising interest rates, squeezed household budgets and economic uncertainty are increasingly weighing on companies, with 1,964 becoming insolvent in December.

This happens when a business is unable to pay its bills or has more liabilities than assets, meaning it is in danger of being closed down.

The figure, for England and Wales, is higher than December 2019 and is also 32pc higher than during the same month last year. Government intervention suppressed insolvencies during and in the immediate aftermath of the pandemic.