Tough autumn ahead for businesses and households R3 says as insolvency figures released
Commenting on the Insolvency Service’s latest monthly statistics for England and Wales, R3 president, Sonia Jordan, a restructuring and insolvency partner at Knights, said: ‘These insolvency figures reflect a mixed economic picture with 1,946 companies entering insolvency in August, a similar figure to the previous month. There was a monthly spike in businesses entering administration of 44%, particularly in the real estate sector, which is likely due to the continuing fallout from the collapse of mortgage provider Market Financial Solutions. However, administrations typically result in better returns being made to creditors.
‘The summer heatwave and World cup provided a boost for some sectors such as retail and the wider economy has also been supported by growth in the services and technology sectors, but many businesses continue to face rising costs. With oil and fuel prices increasing, pressure is growing on transport and energy intensive sectors and directors remain cautious about investing or expanding.
‘Recent employment figures suggest hiring activity is slowing and announcements such as Jaguar Land Rover’s planned reduction of around 4,000 roles could have wider implications for businesses further down their supply chain and create knock-on effects in many regions. Where firms are heavily dependent on a single customer or sector, adapting quickly and seeking new opportunities will be critical.
‘Directors will also be closely watching the latest inflation figures and the Bank of England’s warning that interest rates may need to rise. Higher borrowing costs continue to affect investment decisions and cashflow planning, particularly for small and medium sized businesses that rely on external finance.’
Turning to personal insolvencies, Sonia commented: ‘For households with little financial resilience, increases in the cost of essentials like fuel, food and energy can quickly become unmanageable and this is reflected in the persistently high levels of personal insolvency we are seeing.
‘Further pressures on household budgets lie ahead. Many homeowners coming to the end of fixed-rate mortgage deals and hoping rates would have dropped are instead facing higher monthly repayments. The Food and Drink Federation has warned that the drought and conflict in the Middle East could push food inflation to 6% next year, which will worry many individuals struggling with debt.
‘Anyone experiencing financial difficulties should seek professional advice as early as possible. Qualified R3 members can help individuals and businesses understand the options available to them and identify the best route forward.’
What the latest insolvency stats show
Corporate insolvencies in August 2026 increased by 1% compared to the previous month, with 1,946 cases compared to 1,934 in July. August’s figure was 3% lower than the same month in 2025, when there were 2,007 cases.
Personal insolvencies decreased by 2% in August 2026 compared to the previous month, with 11,644 people entering insolvency compared to 11,873 in July. Personal insolvencies were 3% higher than in August 2025, when the figure was 11,324.