Corporate insolvency levels dropped by 16.6% in March 2024, while personal insolvencies also fell by 17.2% during the same period, according to new statistics from the Insolvency Service.

Corporate insolvencies decreased to a total of 1,815 compared to February's total of 2,177, and decreased by 17.2% compared to March 2023's figure of 2,193.

Personal insolvencies also dropped by 18.9% in March 2024 to a total of 8,708 compared to February's total of 10,740, and decreased by 9.3% compared to March 2023's figure of 9,598.

Tim Cooper (pictured), President of R3, the UK’s insolvency and restructuring trade body, and Partner at Addleshaw Goddard LLP, comments on the publication of the March 2024 insolvency statistics: “The biggest driver of the monthly and yearly fall in corporate insolvency numbers is a reduction in Creditors’ Voluntary Liquidations. However, numbers for this process and overall levels of corporate insolvency are still higher than they were pre-pandemic.

“High costs and constrained spending have continued to hit businesses hard in the first three months of this year. The latest available sectoral data shows that construction is currently the industry experiencing the highest levels of insolvency, and the figures for this sector for November 2023-January 2024 are slightly higher than they were in the same period last year. This is because insolvency numbers have increased amongst firms working on the construction of residential and non-residential buildings, as well as in specialist construction activities.

“While the wider trading climate is a challenging one, there are signs directors expect revenues to increase this year, and this suggests the mood among the business community is becoming more positive. However, it remains to be seen whether inflation falls quickly enough to benefit businesses, and whether the hoped-for increases in income outstrip potential rises in costs and wages.”