UK Company Failures Rise Amid Debt Concerns

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Insolvencies,UK Economy,Debt

Official data reveals a 13% surge in UK company insolvencies in November, reaching 1,966. Experts express worries about businesses grappling with unsustainable debts, predicting continued high insolvency rates in 2025. Factors contributing to the situation include rising inflation, interest rates, and increased national insurance contributions.

The number of UK companies going bust increased last month, official data shows, as experts warned that more businesses face a “perilous financial position” as they remain weighed down by debts.

This included an 8% month-on-month increase in the number of creditors’ voluntary liquidations , at 1,565. “Insolvency levels have remained high throughout the course of the year and, despite improving economic conditions – including lower levels of inflation and rate cuts – we anticipate them remaining so in 2025 as firms continue to carry unsustainable levels of debt.

This was followed by wholesale and retail trade, and accommodation and food services, according to the data.

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