- Business bankruptcies increased 7.2% in September 2021 to a total of 1,446 from the figure of 1,349 in August, and 55.8% from the 928 figure in September 2020.
- Personal insolvencies increased 9.2% to 9,954 in September 2021 from 9,118 in August, and were 33.2% higher than the 7,471 figure in September 2020.
Eleanor Temple, Chairwoman of the R3 Yorkshire Insolvency and Restructuring Business Body and Lawyer at Kings Chambers in Leeds, responds to today’s release of September 2021 Business and Personal Insolvency Statistics for England and Wales: “Insolvency statistics released today show the economic effects of the pandemic continuing to wreak havoc on businesses and consumers. “The dramatic increase in business bankruptcies compared to the same period last year – at the highest level since January 2020 – illustrates how crucial government support has been in keeping businesses afloat and suggests that there could be a tough road for the business world now it’s over. “The monthly increase in business bankruptcies is due to an increase in voluntary liquidations of creditors, which have increased for the third month in a row. This suggests that directors choose to shut down their businesses after judging their financial survival unlikely after 18 months of trading during a pandemic. “Despite the fact that companies have benefited from two months of unrestricted trading and the economic upturn in the summer, conditions have still not returned to what they were before the pandemic. “Consumers are now increasingly cautious about the state of the economy, their personal finances and the rising cost of living and are more careful about spending their money.
“And with widespread supply chain disruption and significant increases in wholesale energy prices accumulating between September and October, there will likely be little slack in the system for businesses and individuals who have not yet recovered from the impact of COVID.
“With regard to personal insolvencies, the increase between August and September is due to an increase in individual voluntary agreements and scrutineers. This suggests that more people are in debt and are taking action to address the issues they face with their finances, but also that the situation is still difficult for people in England and Wales. “Although September saw an increase in job vacancies and the number of employed people returned to pre-pandemic levels, a high percentage of employed people are in temporary positions, and more than a million people were still on leave when the program ended at the end. of the month.
“Government support has been a lifeline for many, and initiatives like the Breathing Space program have proven to be welcome support for people in financial distress. However, this support could not help everyone, and many people had to use their savings to cover expenses during the pandemic.
“Anyone who is worried about their finances – business or personal – should seek advice as soon as possible. When you’re worried about money, it’s hard to have that first conversation about your concerns, but doing it as early as possible means you have more potential solutions and more time to make a qualified decision on which to. of them suits you best. “
This was posted in the Member News section of Bdaily by Melanie Rice.