The chairman of the nation's insolvency and restructuring trade body's Southern and Thames Valley region has is remaining optimistic despite corporate insolvencies in the UK rising.

Corporate insolvencies in the UK surged by almost 14 per cent during 2023 according to R3.

25,158 corporate insolvencies were recorded last year, a rise of 13.7 per cent from 2022's figure of 22,123.

The figure also represents a rise of 78.9 per cent from the 14,059 cases reported in 2021 and a 46.6 per cent increase compared to pre-pandemic figures of 17,163 logged in 2019.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, said: “The last year has seen a rising tide of corporate insolvencies.

“A combination of increased costs, cautious spending, creditor pressure, and the post-pandemic hangover have seen more businesses enter a corporate insolvency process to help address their financial issues than in 2022.

“If the overall economic picture improves, costs stabilise and spending picks up as consumer and business confidence increase, then the tide should start to turn.

“It is inescapable, though, that increases in creditors’ voluntary liquidations (CVLs), compulsory liquidations and administrations have driven corporate insolvencies to a 30-year high.

"More directors turned to CVLs in 2023 than in 2022 as a combination of creditor pressure, the high cost of borrowing and tough trading conditions proved terminal."

The 2023 data also highlighted a decrease in personal insolvencies – there was a 12.9 per cent dip to 103,454 from 2022's total of 118,766.

The 2023 numbers were also down 6 per cent from the 2021 figure of 110,044 and dropped by 15.3 per cent when compared to 2019's pre-pandemic total of 122,147.

Mr Stewart highlighted the resultant squeeze on personal finances as "financial distress and money worries are still serious problems in England and Wales".

He added: "Rising bills, food and fuel prices were a major concern and a major expense in 2023, while high inflation forced up interest rates and left a lot of people worrying about the cost of mortgages and loans."

R3, the trade body for the country's insolvency and turnaround professionals, provides a lifeline for individuals and businesses seeking financial advice.

Mr Stewart said: "Forgive the broken record: if you are worried about your finances, don’t wait because they won’t get better on their own.

"You might be surprised at the range of options open to you if you seek advice early, or the lack of them if you don’t.

"Most R3 members will give a free consultation to prospective clients, so they can learn more about their circumstances, and outline which options, tailored to their situation, should work best."