Insolvencies in the UK have surged to their highest level since the financial crisis. Over 18,000 businesses entered insolvency in the nine months to September, up more than 13% from the same period in 2022. This financial strain is due to increasing interest rates affecting the property sector and the cost of living crisis impacting consumer spending. Many companies, particularly in construction and property, are struggling with higher borrowing costs and dwindling government support.
Quotation by Nigel Holland: “Taken together with stubbornly high inflation and weak consumer confidence, many of these businesses will inevitably head towards failure.”
- Insolvencies in the UK hit the highest level since 2009.
- Over 18,000 businesses entered insolvency in the nine months to September.
- Rising interest rates have battered the property sector.
- The cost of living crisis is affecting consumer spending.
- Construction and property companies are particularly vulnerable due to higher borrowing costs.