The number of company insolvencies remained much higher than those seen during and in the five years before the COVID-19 pandemic.

Construction is the worst-hit sector, registering the most insolvencies of any UK industry. It saw almost one in five companies go out of business, 17.3% of the total. There were 4,287 company insolvencies in the construction industry in the past year to June 2024.

Specialist construction businesses accounted for the most insolvencies, with 211 going out of business in May 2024, the month with the latest breakdown of figures.

Specialist firms include demolition and site preparation, building finishing, trades and installers, and other specialist activities.

Meanwhile, firms developing building projects and constructing residential and non-residential buildings saw 126 insolvencies in May.

Companies going bust were formed by 302 compulsory liquidations, 1,866 creditors’ voluntary liquidations (CVLs), 170 administrations, and 23 company voluntary arrangements (CVAs). All types of company insolvency were higher than in June 2023 and May 2024.

One in 179 companies on the Companies House effective register (at a rate of 55.8 per 10,000 companies) entered insolvency between 1 July 2023 and 30 June 2024.

This increased from the 55.1 per 10,000 companies that entered insolvency in the 12 months ending 30 June 2023.

Company insolvencies in 2023 and the first half of 2024 are at levels last seen during the 2008-09 recession. Insolvencies are expected to continue to rise during Q3 in 2024.