Published: 27/11/2025 By Hannah Duncan
UK Company Insolvencies edge higher in October 2025In October, 2,029 companies entered insolvency in England and Wales, a slight increase of 2% compared with September (1,995) and 17% higher than the same month last year (1,739 in October 2024).
Throughout 2025, monthly insolvency volumes have generally tracked above 2024 levels but remain marginally below those seen in 2023 – a year that marked the highest annual total in three decades
Breakdown by Insolvency Type
Of the 2,029 insolvencies:
- 1,592 were creditors’ voluntary liquidations (CVLs) accounting for 78% of all cases
- 301 were compulsory liquidations up 8% from September and 62% higher than a year earlier
- 119 were administrations 3% lower than September but 19% higher than October 2024
- 17 were company voluntary arrangements (CVAs) unchanged from September
- There were no receivership appointments reported in September
However, compulsory liquidations continue to show the strongest growth. Levels are now significantly above both last year and the 2024 monthly average, reflecting increasing instances of companies being forced into closure rather than opting to wind up voluntarily. The Insolvency Service notes that a transition to a new case management system at the end of October may mean the published figures are slightly understated and could be revised upward next month.
Administrations dipped slightly compared with September but remain higher than last year, while CVAs continue to operate at historically low levels but have risen compared with 2024.
12 month rolling Insolvency rate
Between 1 November 2024 and 31st October 2025, one in 187 companies on the Companies House register became insolvent which is equivalent to 53.4 per 10,000 companies. This represents a slight decline from 53.9 per 10,000 in the 12 months to October 2024. This slight decrease indicates a stabilisation in the insolvency rate, helped by continued growth in the number of active registered companies.
While the rate has risen substantially from the lows seen during the pandemic (2020–21), it remains far below the 2008–09 recession peak of 113.1 per 10,000 companies.
Industry Trends
The six sectors experiencing the highest numbers of insolvencies in the 12 months to August 2025 were:
- Construction – 3,933 cases (17%)
- Wholesale and Retail Trade – 3,749 cases (16%)
- Accommodation and Food Services – 3,370 cases (14%)
- Administrative and Support Services – 2,411 cases (10%)
- Manufacturing - 1,966 cases (8%)
- Professional, Scientific and Technical Activities – 1,964 cases (8%)
Summary
These rankings remain largely unchanged from earlier in the year, with construction, retail and hospitality continuing to account for a disproportionate share of failures. This reflects ongoing pressures from high operating costs, muted consumer demand and persistent cash-flow constraints across labour-intensive sectors.