LONDON, (Reuters) – Company insolvencies across England and Wales increased last month to the highest point since January 2019. This was higher than pre-COVID levels.

Insolvency Service is a government agency that registered 1,674 businesses as insolvent in November. That’s up from 1410 in October. It includes voluntary liquidations and companies in administration.

Last year saw a sharp drop in the volume of business closings. Many businesses were maintained on life support through government COVID support programs. The ability to sue creditors in court was restricted and the capacity of courts has been reduced, which hindered company dissolution.

Christina Fitzgerald (Vice President of R3’s Insolvency and Restructuring Trade Association), stated that the “times are hard for English and Welsh businesses as the pandemic continues taking its toll upon the economy” and added, “Times have been tough for the last few weeks.” The triple hit of increasing costs, rising supply chain issues, and rising COVID cases has been a major problem for businesses in the recent weeks.

Similar story was in Scotland where insolvencies rose to the highest point since January 2019’s monthly records.