The latest statistics from the Insolvency Service confirm that corporate insolvency levels remain elevated and are increasing, reflecting ongoing economic challenges across many sectors. Whilst the levels have not returned to the record peaks of 2023, businesses are starting to feel the pressure as we end 2025.
The total number of registered company insolvencies in October 2025 was 2,028 which was 2% higher than September 2025 and a big jump of 17% more than October 2024. The monthly totals for 2025 remain similar to the elevated levels in 2023 which saw a 30-year peak.
Creditors’ Voluntary Liquidations (CVL’s) were the highest proportion of corporate insolvencies at 78% and a total of 1,592 CVL’s. They are usually initiated by the business who seek to close down a business that is facing financial difficulties.
Next up is Compulsory Liquidations which accounted for 15% with 301 cases and a year-on-year increase of 11%, usually driven by creditors petitioning the court to wind up a company.
Administrations were slightly lower that July 2025 sitting at 119 and Company Voluntary Arrangements (CVA’s) had just 17 reported in October 2025 accounting for a very small proportion of the total company insolvencies.
The sectors that remain under pressure are consistent with Construction accounting for 17% of all cases, Wholesale and Retail at 16% and Accommodation and Food Services at 14% so nearly half of all company insolvencies are within these three sectors.
The persistent challenges facing these businesses are high borrowing costs, the increased cost of employment with NI and National Wage increases this year and customers spending less due to the cost of living. These pressures are further compounded by economic uncertainty around the budget announcements. Rigorous cashflow management and seeking professional advice early is essential for business to adapt to the continued cost pressures they are facing at the moment.
