CORPORATE insolvencies fell in June compared to May but were still significantly up on 2021, according to R3, the trade body for restructuring and insolvency professionals in the South and Thames Valley.

The latest statistics for England and Wales revealed a month-on-month fall for both corporate and personal insolvencies.

The figures from The Insolvency Service showed that:

•Corporate insolvencies decreased by 7.2 per cent in June 2022 to a total of 1,691 compared to May's total of 1,822, but showed an increase of 40.1 per cent compared to June 2021's figure of 1,207.

•Personal insolvencies decreased by 6.4 per cent to 9,824 in June 2022 compared to 10,497 in May, and decreased by 0.3 per cent compared to June 2021's figure of 9,852.

Garry Lee, chair of R3’s Southern and Thames Valley region, said: “At first glance the latest figures give a glimmer of hope.

“The latest figures match May’s unexpectedly positive GDP figures and follow a trend of falling corporate insolvencies over recent months.

“However, a bleaker picture emerges in corporate insolvencies when compared with June 2021 with 40.1 per cent more corporate insolvencies this June.”

The monthly fall in corporate insolvencies was mainly driven by a reduction in Creditors’ Voluntary Liquidations (CVLs), a procedure initiated by directors of insolvent firms to close their company.

In personal insolvencies, the monthly and yearly falls were driven by a reduction in all forms of personal insolvency process.

Garry, who is an associate director in the recovery and restructuring services department at professional services group Evelyn Partners’ Southampton office, added: “This could be the calm before the storm.

“Ongoing economic pressures will start to be felt in both corporate and personal insolvencies in the coming months.

“Anyone who is concerned about their business or personal finances should seek professional advice from a qualified and regulated source as soon as possible.

“Talking about your money worries can be a challenging conversation to have, but seeking early advice gives you more potential options and more time to make a decision about what’s best for you.”