Official statistics from the Insolvency Service have revealed an increase in company insolvencies in the third quarter of 2016.
The figures for July to September, released at the end of last week, have shown that 3,633 businesses went into insolvency nationwide.
This was a rise of more than two per cent when compared to the statistics for the previous three months.
The industry which took the biggest hit was construction, with 2,450 companies collapsing over the course of the quarter.
The wholesale trade and vehicle repairs sector were also badly affected.
There has inevitably been speculation as to whether the recent vote for Britain to leave the EU is having an impact on business owners.
Andrew Tate, the president of the insolvency trade body R3, said: “A quarterly rise in corporate insolvency numbers is not necessarily an indicator of Brexit-related financial problems for UK companies.
“While companies dependent on imports are struggling with the falling value of the pound, anecdotal evidence from our members suggests the vote to leave the EU has not led to more insolvency procedures due to factors other than the exchange rate. However, we are hearing that more companies have been coming to restructuring experts for advice.”
Clive Lewis, the ICAEW’s head of enterprise, said: “The real test for businesses will be within the next 12 months, as an increase in inflation will mean less money in consumers’ pockets. Businesses should prepare now for the continuing uncertainty over Brexit.”
Despite the increase in corporate insolvencies, the number still remains well below the level recorded during the recession.
