The number of UK companies falling into insolvency over the past year has surpassed the levels seen during the 2008 global financial crisis.
According to the latest figures from the Insolvency Service, 25,551 companies went under in the year leading up to the end of July, a 1.4% increase compared to the 25,186 insolvencies recorded during the same period in 2008-09.
These figures highlight the mounting pressure on businesses as a result of the sharp rise in interest rates since 2021. Although the Bank of England has been raising borrowing costs for nearly three years, the impact on business failures had been somewhat subdued—until now. The latest data suggests that the strain on corporate finances is becoming increasingly…
