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Business insolvencies at post-pandemic high as higher rates and energy costs add to inflation pain

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A 16% leap in the number of corporate insolvencies last month follows warnings from business groups that rising costs have become unbearable, with many firms choosing to throw in the towel

Why no economic growth is a problem

David Kelly, head of insolvency at accountants PwC, said:"Businesses are struggling to secure financing and pay off their loans due to high interest rates and the wider impact inflation and consumer sentiment is having on sales and cash flows." PwC suggested some of the hardest-hit sectors, such as hospitality, would likely see pressures ease due to stronger sales as the weather improved.

 

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