Fall in company collapses last year but experts warn of ongoing ‘headwinds’

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Company collapses in England and Wales fell last year, according to new official figures, but compulsory liquidations soared to a 10-year high and experts warned of more uncertainty for firms in the coming months. While the December statistics paint a picture of economic stability, they will likely buck the trend Giuseppe Parla, Menzies consultancy The figures also revealed that compulsory liquidations – where courts order firms to stop trading because they cannot pay their debts – jumped 14% to 3,230 in 2024 after a year-end surge. The new year is likely to bring in more of the same, with an increased cost of hiring and retaining staff, following the changes to employers' NIC contributions leading many into financial difficulty Giuseppe Parla, Menzies consultancy The month of December also saw a drop in companies going bust, with 1,838 insolvencies across the period – about 6% fewer than in November and 14% lower than the same month in 2023. “The new year is likely to bring in more of the same, with an increased cost of hiring and retaining staff, following the changes to employers’ NIC contributions leading many into financial difficulty.”