The British Independent Retailers Association (BIRA), which works with over 6,000 independent businesses of all sizes across the UK, has said it's 'saddened' to see the latest insolvency figures showing worst year since 2009.
The figures, released by The Insolvency Service show that insolvencies rose 10% from a year ago in the three months to the end of September.
Statistics for July to September 2023 show that there were 6208 registered company insolvencies. comprising 4,965 creditors’ voluntary liquidations (CVLs), 735 compulsory liquidations, 466 administrations, 41 company voluntary arrangements (CVAs) and one receivership appointment.
After seasonal adjustment, the number of company insolvencies in Q3 2023 was 2% lower than in Q2 2023, but 10% higher than in Q3 2022. The last two quarters saw the highest quarterly insolvency numbers since Q2 2009 and the highest numbers of CVLs since the start of the series in 1960.
Andrew Goodacre, CEO of Bira, said: "This news is very worrying. Our members are telling us all the time how difficult it is on the high street.
"Comments that are coming through to us and I'm hearing all the time from our indie retailers are that its 'tougher than Covid' and that they are feeling 'worn out'. Indie retailers are resilient and will keep going but they need some support, something to help them through this difficult period.
"It is why we are calling on the Chancellor to use his Autumn statement to retain the retail discount on business rates at 75%. Any increases in this tax burden will push more businesses into closure and there will be many more empty units on the high streets throughout the UK. We have submitted this proposal to the Treasury, along with other ideas such as increasing the employer’s national insurance allowance and reducing corporation tax to help the smaller retailers," he added.