Construction was the most dominant industry, in terms of corporate insolvencies, during this period.

In May 2024, corporate insolvencies in England and Wales were actually 6% lower than the preceding month and down 21% from the previous year.

However, these figures - with 2,006 insolvencies in May alone - remain higher than the levels seen during the pandemic and between 2014 and 2019.

Kelly Boorman, national head of construction at RSM UK, said: “Funding is still tight for construction businesses, especially as interest rates haven’t come down as quickly as needed, which alongside rising labour costs, means margins are smaller than ever.

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“With pipelines continuing to grow, there’s an increasing tension from managing lack of access to working capital to deliver projects and the time taken to mobilise, both key contributors to the number of construction insolvencies.”

Looking ahead, Kelly expects this to worsen due to geopolitical uncertainty negatively influencing the market in terms of infrastructure and funding spend.

RSM UK forecasts construction insolvencies to worsen in the third quarter of 2024 as labour becomes harder to access in the summer months.

As a result, RSM UK is calling for planning reform from the future government.

Kelly added: “The next government must therefore prioritise de-risking the supply chain, reducing payment terms, and provide clarity on infrastructure planning and spend, enabling businesses to make more informed and long-term growth decisions when bidding for projects.”