The number of corporate insolvencies fell in 2013 to its lowest level since 2007, according to Government figures.
Last year 14,982 firms went into liquidation, a 7.3 per cent decrease compared to 2012.
The level of individual insolvency dropped to 101,049, the lowest level since 2005.
Key Government figures:
- There were 3,624 compulsory company liquidations in 2013, down 14.9 per cent on 2012
- 11,358 companies went into voluntary liquidation, down 4.5 per cent from 2012
- There were 3,552 corporate insolvencies in Q4 2013, down 7.4 per cent on Q3 2013 and 7.1 per cent on Q4 2012.
Giles Frampton, vice president of R3, the trade body for insolvency professionals, welcomed the findings but said the statistics may not paint the full insolvency picture:
“We are concerned that the official statistics are the tip of the iceberg. The government monitors only new bankruptcies, Debt Relief Orders, and Individual Voluntary Arrangements, but does not record new Debt Management Plans [DMPs].
“Until the Government begins to monitor new DMPs, the true scale of personal insolvencies in England and Wales will be hidden.
“Many people will have done their best to avoid insolvency in the run-up to Christmas, so there will be fallout from that in January and February.”