Rising Energy Bills and Staff Shortages Driving U.K. Companies into Insolvency

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Rising energy and fuel bills are driving growing numbers of UK companies into insolvency, as firms struggle to cope with higher costs, supply and staff shortages, and the withdrawal of Covid support packages from the government, the Guardian reported. Corporate insolvencies in England and Wales jumped by more than 80% in the past quarter from a year earlier, while the number of firms opting to be liquidated hit the highest level in at least six decades. They accounted for almost nine in 10 of the total. Insolvency experts warned of a tough autumn when even more firms could go out of business, including larger companies, as a result of falling consumer confidence and demand. There were 5,629 company insolvencies between April and June, up 13% on the previous quarter, and 81% more than in the same period last year, according to figures from the government’s insolvency service. This includes 4,908 creditors’ voluntary liquidations (CVLs), where a company that cannot pay its debts decides to fold. It was the highest quarterly figure since the start of the data series in 1960. Read more.