David Kelly, Head of Insolvency at PwC UK, said:
“The number of insolvencies in March 2024 declined by 17% compared to the same month last year. However, this decrease has had a marginal impact on the overall number of insolvencies for the first quarter (Q1) of 2024, where there were 5,759 total insolvencies compared to 5,747 in Q1 2023.
“PwC analysis shows the retail sector continues to grapple with challenges including rental inflation, the wider cost-of-living impacting consumer spending, and inflationary pressures on input costs and wages. The analysis also shows a 20% rise in technology sector insolvencies compared to Q1 2023, which as an area traditionally heavily reliant on funding, is coming up against investors who are showing less risk appetite.
“Winding Up Petitions (WUPs) have jumped 17% in Q1 2024 over Q1 2023, with suppliers taking a harder line to recover their debt, despite the associated expense and potential impact on business relationships. We are also hearing that claim volumes for protecting goods and services from non-payment are the highest they have been in recent memory.
“There are emerging signs of economic recovery with inflation easing to 3.3%. However, new measures effective from April 2024 introduce new hurdles for some businesses - with increased salary expenses, an approximate 6.7% increase in business rates, and additional costs associated with a transition to net zero. 2024 looks to remain a challenging year for many.”
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 149 countries with more than 370,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
© 2024 PwC. All rights reserved.
