The number of companies going bust has hit a 30-year high, according to official figures.

A total of 25,158 firms across England and Wales became insolvent last year – an increase of 14% compared with 2022, and the highest annual number since 1993.

In the final three months of 2023, the number of bankruptcies reached a peak not seen since the financial crash of the late 2000s.

It was last year that high street retailer Wilko collapsed, leading to the loss of more than 12,000 jobs.

Read more: Money latest – Primark ‘sorry’ over new accessible lingerie range availability

Please use Chrome browser for a more accessible video player

Businesses faced tough economic conditions as energy costs soared and inflation remained in double digits for a quarter of the year.

Chancellor Jeremy Hunt urged not to cut taxes by International Monetary Fund

Average new mortgage rate falls for first time since 2021

HSBC hit with £57m fine over deposit protection

The high interest rates, hiked to bring down price rises, piled on pressure as borrowing became more expensive.

Average wage rises overtook the slowed pace of inflation too, further bringing costs up for employers.

Measures of consumer confidence remained low as the cost of living crisis hit domestic and commercial consumption.

Records were also broken in other forms of winding up a company.

The number of creditors’ voluntary liquidations, when a company can’t pay its debts, rose 9% on 2022 numbers to 20,577 – the highest since records began in 1960.

Be the first to get Breaking News

Install the Sky News app for free

In addition, there was:

• A 44% increase in compulsory liquidations to 2,827
• A 27% rise in administrations to 1,567
• A 67% increase in company voluntary arrangements to 185
• Two receivership appointments

Related posts:

From PPI and the Priory to pride at exiting bailout: Lloyds’s £60m boss signs off US giant REEF Technology tables bid to park next to NCP Inflation rates, quantum computing and coronavirus restrictions Saudi state fund buys McLaren stake in £550m deal Era of feeding a family of four with a £3 chicken coming to an end, says poultry boss British Gas chief to waive £1.1m bonus as households face bill surge SWIFT sanctions could hurt Russia – but pain would also be felt by the West Tax rises or spending cuts needed to avoid ‘unsustainable’ public debt, watchdog warns British Airways check-in staff strike suspended as company makes improved pay offer, union says Manchester United shares tumble following report that bidders have fallen short Veteran M&C Saatchi chief to step down after 28-year stint Ocado soars on £200m Autostore patent battle settlement