Insolvencies hit record high

Nearly 5,000 companies in England and Wales went into liquidation and a record number of people succumbed to insolvency in the first three months of the year, official data showed yesterday.

The Insolvency Service said company liquidations rose 56 per cent from a year ago to a seasonally-adjusted 4,941. Personal insolvencies rose 19 per cent to a seasonally-adjusted 29,774, the highest since records began in 1960.

The figures show the continuing pressures facing businesses and consumers as Britain suffers its sharpest economic decline in decades. Analysts expect conditions to remain tough for many months to come, especially as it can take time for insolvency data to reflect the wider economic situation.

"As company insolvencies typically lag behind overall economic performance, it is safe to say that we haven't seen the worst," said Malcolm Shierson, Partner at Grant Thornton's Recovery and Reorganisation practice.