Company Insolvency Statistics: October to December 2021
Statistics on new company insolvencies in England and Wales, and related statistics for Scotland and Northern Ireland
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Annual 2021
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One in 304 active companies (at a rate of 32.9 per 10,000 active companies) entered liquidation in 2021. This was an increase from the 29.4 per 10,000 active companies that entered liquidation in 2020, but remained lower than the 41.9 per 10,000 in 2019.
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The total number of company insolvencies registered in 2021 was 14,048, which was higher than the 12,634 in 2020, but remained below pre-pandemic levels.
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The increase compared to 2020 was driven by the highest annual number of Creditors’ Voluntary Liquidations (CVLs) since 2009. However, the number of CVLs in 2021 was only slightly higher than in 2019 and was consistent with the increasing trend in CVL numbers before the coronavirus (COVID-19) pandemic.
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All other types of company insolvencies were lower than both 2020 and pre-pandemic levels. The annual number of compulsory liquidations was the lowest since the start of the series in 1960.
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Increases in insolvencies were seen across most industries in 2021 compared to 2020. Several sectors showed increases above the overall annual increase of 11%, including Professional, scientific and technical activities (up 35%) and Construction (up 25%).
Quarterly Q4 2021
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Between 1 October and 31 December (Q4) 2021, there were 4,627 (seasonally adjusted) registered company insolvencies, as shown in Figure 1, comprised of 4,175 creditors’ voluntary liquidations, 147 compulsory liquidations, 272 administrations, and 33 company voluntary arrangements (CVAs). There were no receivership appointments.
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In Q4 2021, after seasonal adjustment, the number of company insolvencies was 18% higher than in Q3 2021 and 51% higher than in Q4 2020. This was driven by an increase in CVLs to the highest quarterly level since the series began in 1960. The increase in CVLs in the second half of 2021 coincided with the phasing out of measures put in place to support businesses during the coronavirus pandemic.
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Numbers for other company insolvency procedures registered in Q4 2021 were higher than the previous quarter (Q3 2021) but remained low compared to pre-pandemic levels.