Monthly company insolvencies rise 17% year-on-year as businesses face rising costs and economic uncertainty
New data published today by the Insolvency Service shows the number of registered company insolvencies in England and Wales 2,029 in October 2025, 2% higher than in September 2025 (1,995) and 17% higher than the same month in the previous year (1,739 in October 2024). Monthly company insolvency numbers so far in 2025 have been slightly higher than in 2024, but slightly lower than in 2023, which saw a 30-year high annual number of insolvencies.
Mark Ford, Partner in the Restructuring & Recovery team at professional services firm S&W comments: “Many businesses are continuing to face a challenging operating environment, and this is reflected in the latest data published today by the Insolvency Service. The impact of budget uncertainty, high energy costs, low consumer confidence and high inflation in recent years has reduced discretionary consumer spending and left some businesses in a perilous position.
“Businesses are still facing challenges that threaten their viability and means we are likely to continue to see a steady stream of company insolvencies in the coming months. Higher costs resulting from increases to employer national insurance contributions, the minimum wage and business rates are all heaping considerable pressure on businesses, particularly those that feel they are unable to increase prices for fear of losing customers. Global economic uncertainty resulting from US trade tariff announcements is a further worry and many economists suggest that small to medium businesses, without the working capital to pay the tariffs, will be the hardest hit.
“Interestingly the number of compulsory liquidations was 8% higher than September 2025 and was higher than both October 2024 and the 2024 monthly average. Creditors, including HMRC are losing patience with defaulting debtors and taking enforcement action. However, it is worth remembering that insolvency rates per number of companies remains well down on the 2008-2009 recession peaks.
“Given the challenging economic backdrop, businesses need to urgently wake up to the risks that could affect their operations and plan accordingly. Those that take a realistic look at the pressures facing their businesses and focus on building cash reserves will maximise their chances of survival and saving jobs.”