PwC comments on April's insolvency statistics

Toby Banfield, Restructuring Partner at PwC UK, said:

“April’s insolvency figure of 2,177 represents a roughly 18% increase in total insolvencies compared to April 2023 and March 2024 (both 1,838). It’s noteworthy that the use of winding up petitions is ramping up again - PwC analysis shows an increase of 44% compared with April 2023. These are not just being utilised by HMRC, but also more frequently by corporates and local authorities to encourage debtors to settle their overdue accounts.

“PwC analysis also shows that sectors such as transport and logistics saw an increase in corporate failures compared to March 2024. A high inflation hangover remains a challenge across this sector. Although most contracts have a ratchet to capture fuel inflation, the competitive labour market for skilled drivers is impacting wage inflation, which is further exacerbated by shortages in warehouse operatives. In addition, investment in new technologies is essential for competitiveness and service delivery but is also costly and a drain on tight liquidity.”

Catherine Atkinson, Restructuring Director at PwC UK, added:

“More broadly, there remains a high level of insolvencies within retail and hospitality. Interest rates continue to be a challenge for many businesses - especially those needing to refinance loan facilities granted in the very low interest rate environment of 2020/21. The green shoots of economic recovery could still be a way off taking root for businesses in real terms.”