The Insolvency Service revealed that corporate and personal insolvencies rose by 2.9 per cent and 4.1 per cent respectively in February compared to January.
Kelly Jordan, North East chair of R3, the UK’s insolvency and restructuring trade body, said: “The monthly increase in corporate insolvencies is driven by a rise in compulsory liquidations, which are at their highest level in more than five years.”
She explained that compulsory liquidations are often initiated by HM Revenue and Customs or local authorities as a last resort.
The increase indicates a toughening stance towards debts owed by companies to the public sector.
Ms Jordan said: “A number of economic and political issues are continuing to drive…
