The latest corporate insolvency figures demonstrate that businesses in the UK are still under financial pressure despite some signs of stability last year. Whilst the numbers are no longer rising sharply, they do still remain high by historic standards with certain sectors continuing to struggle.
The Insolvency Service’s latest results show that there were 2,022 registered company insolvencies in England and Wales in March 2026, a 7% increase from February but similar to levels seen in March 2025.
Creditors’ Voluntary Liquidations (CVLs) continue to dominate the picture accounting for around 73% of all cases in March 2026. This shows that a large number of directors are proactively deciding to wind up their business when they face financial pressures.
Administrations saw a sharp month on month increase of 52% which were largely due a one-off cluster of over 100 connected real estate companies entering into administration.
Once again, the construction under was the most affected with around 17% facing an insolvency procedure. The main pressures include labour and materials costs, extended payment terms, impact of bounce back loans and interest rates.
Accommodation and food services (14%) and wholesale and retail trade (16%) also continue to be hit hard reflecting weak consumer demand, increasing costs and staffing issues.
These statistics only tell part of the story, in our experience business owners who engage with us early will have far more options. With the war in Iran, interest rates expected to remain higher for longer, inflation increasing the economy in the UK is still unstable.
