Insolvencies fall to two-year low

The number of companies going insolvent has fallen to its lowest level in two years, official figures show.

between July and September 3,971 firms went insolvent, a 6.6 per cent decrease on the same quarter last year.

The fall in insolvency probably reflects the improved economic situation in the third quarter with the first estimate of UK GDP putting growth at a robust 1 per cent.

Nick O'Reilly, insolvency partner at the chartered accountants HW Fisher & Company, said: "This latest data is in tune with the economic growth and job creation seen in the third quarter.

"Total company liquidations have dropped to their lowest level for two years, hinting that as the recovery takes hold fewer businesses are going to the wall."

However, the personal insolvency numbers were less rosy, with 28,062 Britons either going bankrupt or entering individual voluntary arrangements during the third quarter.

This was up 2 per cent on the previous quarter but 7.2 per cent lower than a year ago.