The latest statistics from the Insolvency Service show the number of corporate insolvencies has fallen by 11.7% between July and September 2014 compared to the same quarter last year.
While the number of administrations increased by 16.9% since last quarter, figures show there is an overall decline in company administrations since the same time last year (18.8%).
Revealing a similar trend, there has been a slight rise in CVLs (Creditors Voluntary Liquidation) but overall a fall of 13.3% since Q3 2013.
Interestingly, the number of company voluntary arrangements increased too since last quarter but by only 1.4%. Since Q3 2013, the number has fallen by 5.3%.
Source: Insolvency Service and Companies House.
As the economy improves, it’s no surprise that the number of insolvencies is falling, despite an increase in some insolvency procedures along the way. Looking at an example of administration figures in Q3 2008 (in the middle of the recession), the number rose to 1,700. Now in Q3 2014, the number of administrations stands at 492, a substantial fall!
It will be interesting to see what the end of the year figures will show come 2015.