Deloitte's James Anderson blamed rising insolvencies on higher costs for small and medium-sized businesses and limited access to working capital
Company insolvencies reached 875 in 2024, up a third on the previous year and the highest number since 2016, according to a report from accountantsHospitality businesses, shops and builders, all of which suffered in 2024, are likely to remain most at risk this year, Deloitte warns.Young people are rejecting work.
While Deloitte maintains that the process works well when businesses use it, the accountants’ firm says that few of the companies that found themselves in difficulty in 2024 actually opted for it. “This is based on the average annual increase of insolvencies from 2022 to 2024 being 30 per cent, applying a 15 per cent increase to 2024 figures brings the total to 1,006,” he explained.