Rising costs sees construction firm insolvencies hit record high

CONSTRUCTION business insolvencies have surged to an all-time high, according to an analysis by City AM, as escalating costs continue to push many in the sector towards collapse.

- SIMON HUNT

The study of corporate filings revealed that up to 840 construction firms appointed liquidators or administrators in the first four months of the year, marking an increase of over 5% compared to last year and nearly double the pre-pandemic levels.

Data from the Insolvency Service indicates that the sector remains the most affected by insolvencies, accounting for 19.5% of all UK company failures in February, a rise of around three percentage points compared to last year and the highest proportion in three years.