PwC comments on November's insolvency statistics

David Kelly, Head of Insolvency at PwC UK, said:

“A 13% increase in insolvencies in November, compared with October, highlights the challenging financial landscape businesses are still grappling with as we approach the close of 2024. Notwithstanding some stabilisation in inflation and interest rates, many companies are still facing persistent liquidity challenges, and total insolvency figures are on average still at similar levels to last year, the highest on record since 1993.

“This is a sobering statistic as businesses prepare for 2025. The year ahead is poised to bring fresh challenges, including navigating the implications of the Autumn Budget measures and responding to the evolving actions of clients and suppliers. Ongoing resilience is needed across the corporate sector to weather these pressures.”

Commenting on the ongoing impact on the retail and hospitality sector, Zelf Hussain, Restructuring Partner at PwC UK said:

“The retail and hospitality sector has consistently seen some of the highest levels of insolvencies over the past two years, and 2025 is unlikely to bring it much respite. With tax increases due to take effect from April, businesses are already planning how they will tackle higher National Insurance contributions, an increased minimum wage threshold, and a reduction in the Retail, Hospitality and Leisure Business Rates Relief scheme.

“Businesses will be evaluating the results of their Golden Quarter performance in the new year, and will have to decide how they can weather these incoming changes. As a result, we expect to see a marked increase in restructurings, as companies pivot and reorganise to retain value and continue as a going concern.”