AN OLDHAM expert has warned that businesses face a challenge to break even as the number of business insolvencies continues to rise.

The latest insolvency statistics from the government, published on Tuesday (May 17), show the number of business insolvencies reached 1,991, a 115 per cent increase from April 2021.

Allan Cadman, who is North West chair of the insolvency and restructuring trade body R3, said the numbers reflect the impact the economy is having on businesses.

He said: "The latest figures reflect the continued toll the economic turbulence is taking on the business community.

"The boom many were hoping for when pandemic restrictions ended simply hasn’t happened as the UK has moved from one damaging set of economic stressors to another without any time to draw breath."

Mr Cadman added that businesses were struggling due to the combination of rising inflation, low consumer confidence due to cost of living concerns, rising energy costs and the legacy of the pandemic.

The number of Creditor Voluntary Liquidations (CVLs), a procedure when directors of insolvent companies choose to close their businesses, more than doubled since April 2021.

Mr Cadman, who is also a partner at insolvency firm Poppleton & Appleby, said: "It suggests that large numbers of directors lack confidence in their ability to continue trading in the current climate, and are choosing to close their businesses now rather than being forced to in the future."

His advice to worried directors was to seek advice as soon as possible instead of waiting and letting the problem get out of control.