Company insolvencies jump; Royal Mail takeover would face security review; energy cap to fall in July – business live | Business

Companies continue to weather the storms of Brexit, labour shortages and high inflation, often with balance sheets that are struggling to recover from the hit of the economic climate, and with the cost-of-living crisis hitting employees and customers alike.

Now, a prolonged higher interest rate environment is chipping away at margins and threatening to pick companies off as they need to refinance or reconsider their survival-based options.

Directors of struggling companies need to be aware that there are many options now available to them to save or rescue their businesses, as long as they get the right advice as early as possible and engage with key stakeholders. The longer this is delayed, the fewer options remain.”

Newsflash: More companies and individuals across England and Wales fell into insolvency last month, as high interest rates continue to weigh.

Company insolvencies jumped by 18% in April to 2,177, the Insolvency Service has reported.

This included 300 compulsory liquidations, 1,715 creditors’ voluntary liquidations (CVLs), 144 administrations and 18 company voluntary arrangements (CVAs).

Companies are being hit by high borrowing rates, rising costs, and higher staff wages, explains David Hudson, restructuring advisory partner at FRP:

“Last week’s GDP figures suggests that the UK economy is finally emerging from its lengthy post-Covid hangover. But while there is optimism this growth can be sustained, the coming months will continue to be turbulent with more business faltering as they weather the legacy of high interest rates, input costs and wage growth.

“Indeed, while we anticipate monthly fluctuations as insolvency levels settle, our own data suggests the profile of firms going into administration is increasingly that of larger employers which will ultimately have a more pronounced effect on supply chains and the labour market.”

Seperate data shows that 9,651 individuals entered insolvency in England & Wales in April 2024, 10% higher than in March and 5% higher than in April 2023.

The Bank of England is expanding its Leeds office, in a drive to enhance its staff presence across the country.

It aims to have a headcount of at least 500 staff in Leeds by 2027, or around one in ten of its workforce. This will be done through voluntary internal relocations and new Leeds-based recruitment.

The BoE says:

The increased office space in Leeds aims to improve trust and wider understanding of the Bank’s work across the UK, ensure as an organisation it better represents the people it serves, help tap into wider talent pools across the UK, and retain talented colleagues.

Three years ago, the Bank announced it would create a new northern hub in Leeds. But in November 2022, it put the plans on ice as it tried to examine ‘post-pandemic ways of working’.