Corporate insolvency levels rose 73.3% from pre-pandemic levels last month, while personal insolvency levels rose 22.4% during the same period, according to new statistics from the Insolvency Service.

Corporate insolvencies increased by 18.5% in February 2024 to a total of 2,102 compared to January's total of 1,774 and increased by 16.7% compared to February 2023's figure of 1,801.

Increasing by 38.5% from February 2022's total of 1,518, corporate insolvencies also increased by 73.3% when compared to pre-pandemic levels in February 2019 (1,213).

Also on the rise, personal insolvencies increased by 25.1% in February 2024 to a total of 10,136 compared to January's total of 8,103 and increased by 23% compared to February 2023's figure of 8,239.

Personal insolvencies increased by 3% from February 2022's total of 9,837 and increased by 22.4% when compared to pre-pandemic levels in February 2019 (8,278).

Nicky Fisher (pictured), President at R3, the UK’s insolvency and restructuring trade body, commented on the publication of the February 2024 insolvency statistics: “The monthly and yearly rise in corporate insolvencies is a result of a rise in both Creditors’ Voluntary Liquidations and administrations, as more directors choose to close down their businesses or are seeking specialist help in an effort to survive.

“February’s administrations numbers were the highest level we’ve seen in February in more than four years, which is a sign that more and more businesses are at a point where a sale or a liquidation may be their only option.

“Businesses are still suffering the after-effects of last year’s economic turbulence. Rising fuel, energy and funding costs and cautious consumer spending are continuing to take their toll on bottom lines and make it harder for businesses to break even.

“While there is still some optimism among firms about what the next year has in store, the economic conditions remain a key area of concern for many and unless things improve, we could see more and more firms turning to an insolvency process to help resolve their financial issues.

“Directors and management teams need to remain vigilant and take action as soon as they spot any signs the business could be financially distressed, as doing so gives them more time to take a decision, more potential options for resolving the situation, and a greater chance the business can be rescued.”