Published: 23/06/2025 By Andrew Bailey
The Insolvency Service has published the insolvency statistics for May 2025 which sees an increase from last month and an increase when compared to May 2024.Key Figures
• Total registered company insolvencies in England and Wales was 2,238
• This marks an 8% increase from April 2025 (2,074 cases)
• A 15% rise compared to May 2024 (1,946 cases)
Breakdown by Insolvency Type
• Creditors’ Voluntary Liquidations (CVLs): 1,734
• Compulsory Liquidations: 354
• Administrations: 136
• Company Voluntary Arrangements (CVAs): 14
• Receiverships: 0
While CVLs remain the most common form of insolvency, compulsory liquidations, though slightly down from April’s 10-year high, remain elevated compared to historical averages.
Trends and Context
• The first five months of 2025 have seen slightly higher insolvency numbers than the same period in 2024.
• The figures are comparable to 2023, which recorded the highest annual insolvency total in 30 years.
• The 12-month rolling insolvency rate (June 2024 to May 2025) was 53.0 per 10,000 companies, down from 55.6 per 10,000 in the previous 12-month period
Industry and Economic Implications
The rise in insolvencies reflects ongoing economic pressures, including:
• High interest rates
• Persistent inflation
• Reduced consumer spending
• Post-pandemic debt burdens
Industries such as retail, construction, and hospitality continue to be among the most affected.
Industry Trends in UK Insolvencies – May 2025
1. Construction
• Continues to be one of the most affected sectors.
• High insolvency rates are driven by:
• Rising material and labour costs
• Delays in project financing
• Insolvent subcontractors disrupting supply chains
2. Retail and Wholesale
Still under pressure due to:
• Reduced consumer spending
• High energy and operational costs
• Shift to online shopping impacting high street stores
• Many smaller retailers are entering Creditors’ Voluntary Liquidations (CVLs).3. Hospitality (Accommodation & Food Services)
• Facing persistent challenges:
• Staff shortages
• Increased wage bills due to minimum wage hikes
• Lower footfall in city centres and tourist areas
• Insolvencies remain above pre-pandemic levels.4. Professional, Scientific & Technical Activities
• A growing number of insolvencies, particularly among:
• Small consultancies
• Freelance and contract-based firms
• Often affected by delayed payments and reduced client budgets.5. Manufacturing
• Experiencing a moderate rise in insolvencies.
• Contributing factors include:
• Supply chain disruptions
• Export challenges post-Brexit
• Energy price volatility
These trends reflect broader economic pressures, including high interest rates, inflation, and tightened credit conditions.