Insolvency levels stabilise as businesses and consumers hope for seasonal boost
Commenting on the Insolvency Service’s latest monthly statistics for England and Wales, R3, the UK’s trade association for restructuring, turnaround and insolvency professionals, welcomed a fall in corporate insolvencies in May, but warned that rising personal insolvency numbers remain a concern.
Sonia Jordan, president of R3 and partner at Knights, said: “Corporate insolvencies saw a 10% monthly decline in May, with 1,868 cases, which is welcome news given April saw numbers at their highest level since June 2024. Levels were also down by 16% on May 2025. This month’s figures consisted of 285 compulsory liquidations, 1,423 creditors’ voluntary liquidations (CVLs), 135 administrations and 25 company voluntary arrangements (CVAs).
“However, alongside these figures, new data from the Insolvency Service on business insolvency demographics highlights the longer-term pressures facing certain sectors. There were 22,455 business insolvencies in 2025, with accommodation and food services recording the highest insolvency rate not just last year, but consistently over the past decade. This underlines the sustained pressure on the hospitality sector.
“Looking ahead, the prospect of a ‘World Cup bounce’, especially if England and Scotland progress in the tournament, could provide an uplift in trade for pubs, restaurants and shops helping to improve cashflow for some sectors.
“Business owners will also be hoping for a more positive outlook following the deal reached between the US and Iran though it will take time for this to translate into better trading conditions.
“Set against this, the broader economic backdrop remains challenging. Political uncertainty in the UK continues to weigh on consumer and business confidence, offsetting the benefits of stabilising inflation and the hold in interest rates.
“At the same time, manufacturers are warning that persistently high energy costs are threatening the viability of some firms, with a growing number considering moving production overseas to remain competitive.”
What the latest insolvency stats show
Corporate insolvencies decreased by 10% in May 2026 to 1,868 compared to April 2026 with 2,087 cases. May’s figure was 16% lower than the same month in 2025 when there were 2,231 cases.