The number of company insolvencies during October was 2,315 – a figure which was 18% higher than in the same month 2022 (1,954 in October 2022).

Latest figures released this morning by the government's Insolvency Service show that the rise was higher than levels seen while government support measures were in place in response to the Covid 19 Pandemic – and also higher than pre-Pandemic numbers.

The company insolvencies recorded for the month included 256 compulsory liquidations, 1,889 creditors' voluntary liquidations (CVLs), 146 administrations, 23 company voluntary arrangements (CVAs) and one receivership appointment.

Totals for compulsory liquidations, CVLs, CVAs and administrations were all higher than in October 2022.

A spokesman added: "The increase in company insolvencies was driven mostly by CVLs, while compulsory liquidation and administration numbers increased from historically low numbers seen during and immediately after the Pandemic, returning to close to 2019 levels."

Drilling down into the data, the tally of individual insolvencies in October came to 9,881, which was 6% lower than in the same month in the previous year (10,528 in October 2022).

The individual insolvencies consisted of 703 bankruptcies, 3,245 debt relief orders (DROs) and 5,933 individual voluntary arrangements (IVAs). The lower number of individual insolvencies compared to October 2022 was driven by a 27% decline in the number of IVAs. IVA numbers in 2023 to date have been lower than the record-high numbers in 2022. DRO and bankruptcy numbers were higher than last year, with DROs in October 2023 being 71% higher than in October 2022, although the number of bankruptcies remained well below pre-2020 levels.

Of the 2,315 company insolvencies in October 2023, which was 18% higher than for October 2022, there were 1,889 CVLs, which is 19% higher than in October 2022,

256 were compulsory liquidations, which is 2% higher than October 2022, 23 were CVAs, which is more than four times higher than in October 2022. It total there were 146 administrations, which is 36% higher than October 2022. One receivership appointment was also recorded.

David Hudson, restructuring advisory partner at business advisory firm FRP told the Guardian newspaper: "Inflated input costs and higher interest rates have pushed many firms over the edge in recent weeks. However, this data is the result of pressure built up in businesses over months and years, so the likelihood is that we haven't seen the true extent of this wave of insolvencies yet."