Audit specialist says rise is 320% on previous number

Builders merchants applied to the courts to wind up 185 construction companies over unpaid bills in 2022/23, a 320% increase on 44 companies for the year before.

Audit and tax specialist Mazers said the country鈥檚 20 largest builders merchants were having to apply to the courts to close down customers in an effort to recover debts.

debts

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Builders鈥� debts are mounting in the face of increased costs

The firm said sharp increases to the prices of building materials have meant that many construction companies are now loss-making and unable to pay their bills.

According to figures published by the Insolvency Service, 4,135 businesses in construction went insolvent in the 12 months to the end of January 2023, a rise of 49% on the 2,776 businesses that went under in the previous year.

Mazers partner Patrick Lannagan said: 鈥淩aw materials, energy, borrowing, labour 鈥� it鈥檚 all become more expensive. Add that the long-term problem of late payment and the financial stress is enormous.鈥�