Published: 25/09/2025 By Hannah Duncan
UK Company Insolvencies edge lower in August but remain historically highThe latest Insolvency Service data shows that 2,048 companies in England and Wales entered insolvency in August 2025, a small 2% decrease from July but 6% higher than in August last year. While monthly fluctuations continue, overall insolvency levels in 2025 remain broadly in line with 2023, a year that marked the highest annual total in three decades.
Breakdown by Insolvency Type
The majority of cases were creditors’ voluntary liquidations (CVLs), accounting for 78% of all insolvencies (1,600 cases). Compulsory liquidations fell by 9% compared with July but were 11% higher year-on-year, indicating a gradual return to normal levels of creditor enforcement following the pandemic.
Administrations declined by 17% month-on-month, while company voluntary arrangements (CVAs) rose by 33%, though numbers remain very low.
Rolling Insolvency Rate
Over the 12 months to August 2025, one in 190 companies entered insolvency, equivalent to 52.6 per 10,000 firms. This represents a slight improvement from 55.5 per 10,000 in the previous year, partly reflecting the growing number of active companies on the register. Despite recent peaks, insolvency rates remain well below levels seen during the 2008–09 recession.
Sector Trends
The highest volumes of insolvencies over the past year were recorded in:
- Construction (17%)
- Wholesale and retail trade (16%)
- Accommodation and food services (14%)
- Administrative and support services (10%)
- Manufacturing (8%)
- Professional, scientific and technical activities (8%)
Outlook
While the latest figures point to a stabilisation in corporate insolvencies, business conditions remain challenging amid high borrowing costs, wage pressures, and subdued consumer demand. Companies with strong cashflow management and adaptable cost structures are best positioned to navigate this environment.