Insolvency statistics for England and Wales, for the period April to June 2016, show that total company insolvencies were lower than the previous quarter, and decreased on the year. This was mainly driven by a decrease in compulsory liquidations.
However, individual insolvencies increased for the fourth consecutive quarter, a rise of 22 per cent on the same period in 2015. This is thought to be driven primarily by an increase in individual voluntary arrangements, as well as debt relief orders (the latter due to a change in eligibility criteria).
Andrew Tate, president of R3, the trade body for insolvency professionals, cited the cheapness of the cost of borrowing and high level of creditor forbearance as key factors for a fall in corporate insolvencies, along with the work of the insolvency and restructuring profession. It is still thought to be too early to glean any ‘Brexit effect’.
There is some concern about the rise personal insolvencies, being "the most sustained rise in personal insolvency numbers since the financial crisis".
There was a 50 per cent rise in individual insolvencies in Scotland over the same period.