Construction Continues to Have the Highest Number of Insolvencies

THE CONSTRUCTION INDUSTRY had the highest insolvencies of all UK industries in the 12 months to March 2023, according to the latest data from the Insolvency Service.

UK construction lodged 4,165 insolvencies in the first three months of 2023 – accounting for almost a fifth of the total number (19% of cases with industry captured).

Construction was followed by the wholesale and retail trade and repair of vehicles (3,518 insolvencies, 16% of cases) and accommodation and food (2,951 insolvencies, 13% of cases).

The construction industry continued the trend of having the highest quarterly number of insolvencies of any industrial grouping.

Overall, total company insolvencies increased by 18% compared to the same first quarter (Q1) period last year.

Total Company Insolvencies

The January to March 2023 (Q1) company insolvency statistics for England and Wales, together with figures for Scotland and Northern Ireland show total company insolvencies in Q1 2023 decreased by 4% from Q4 2023.

After seasonal adjustment, the figures show a total of 5,747 company insolvencies in England and Wales in Q1 2023.

In Scotland, there were 297 company insolvencies, 41% higher than the same quarter in 2022.

Northern Ireland fared better in Q1 2023, when there were 40 company insolvencies, a decrease of 29% compared Q1 2021.

Across the 12 months ending Q1 2023, a ratio of 1 in 197 companies were liquidated and was higher than in the 12-month periods ending Q4 2022 and Q1 2022.

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