UK grocery watchdog investigating Amazon over alleged supplier payment delays; company insolvencies jump – as it happened

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The number of companies collapsing across England and Wales jumped last month, in a sign of the economic pressures hitting firms.

There were 2,238 company insolvences in England and Wales during the month, which is 8% higher than in April and 15% more than in May 2024.

This latest rise in corporate insolvencies reflects the harsh reality many businesses face: fragile demand is not keeping pace with rising costs. Even the increasingly-likely prospect of rate cuts in August won't do much to fix this - insolvency levels will remain elevated for the foreseeable future.

Sectors like hospitality are having a particularly challenging time in this environment, in no small part due to the impact on labour costs of April's National Insurance and minimum wage increases. These businesses are now approaching what are some of their peak months and will be hoping for strong trading to bolster their resilience. If this doesn't materialise, then they could be facing a short road ahead.