Corporate insolvency levels are set to rise, warned accountants...
Corporate insolvency levels are set to rise, warned accountancy firm PKF.
It said the latest government figures indicated that the decline in insolvency numbers could to begin to reverse, and it advised company directors to budget for higher costs.
The number of corporate liquidations in England and Wales decreased by 4.6% on the previous quarter, said PKF, a decrease of 14.3% on the same period in 2003.
PKF head of corporate recover Philip Long, said: “The decline in corporate insolvencies is good news but I am concerned that the rise in interest rates, which are likely to increase even further, together with the high oil price may halt or reverse this decline.
“Directors should budget now for higher costs.”
The number of individual insolvencies in England and Wales decreased by 0.5% compared with the previous quarter, an increase of 26.8% on the same period for the previous year.
Long said: “The rise in personal insolvencies is worrying and is a further reflection that consumer debt is unsustainably high.
“I expect personal insolvencies to rise further, as individuals take advantage of the changed, and more favourable, bankruptcy regime introduced in April, by the Enterprise Act 2002.”
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