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Insolvencies update: March 2026 and the first quarter
Heading up: S&W's expert commentary on the latest company insolvency figures from the ONS.
The topline
- There were 2,022 company insolvencies in England and Wales in March 2026, bringing the total for the first quarter to 5,676
- The company insolvency rate in the last 12 months to March 2026 was 51.6 per 10,000 companies: one in 194 companies
- March insolvencies were up 7% on February, but broadly similar to March 2025
- Insolvencies in the month are back to levels seen in 2025 after four months of below-average numbers
Insolvencies by type
Following four months of insolvency numbers below 2025 averages, corporate insolvencies climbed slightly in March and were above the 1,995 in March last year. Creditor voluntary liquidations (CVLs) were similar to February but down 6% on March 2025, continuing a recent trend. Compulsory liquidations, by contrast, were up 18% on February and 4% higher than last March, as creditors take matters into their own hands rather than wait for directors to act. Administrations were up by more than half (52%) from February, and company voluntary arrangements (CVAs) doubled to 20, and were 18% higher than March 2025.
- 1,468 CVLs for March 2026 (73% of insolvencies) and 4,275 for the quarter
- 299 compulsory liquidations for the month, and 809 for Q1
- 235 administrations for the month, bringing the quarterly total to 548
- 20 CVAs and 43 for Q1
- No receivership appointments in March, with one in the first quarter
The ONS commentary
The increase in insolvencies in March was driven by a rise in compulsory liquidations and administrations. This was mostly due to more than 100 connected companies in the real estate sector entering administration.
The construction sector, meanwhile, continues to lead the way in terms of the highest number of insolvencies, accounting for 17% of all cases in the 12 months to February 2026, closely followed by wholesale and retail trade (16%).
The ONS also notes that the average number of CVLs over the last five months was 9% lower than the average monthly number in 2025. However, the past four years have seen the highest number of CVLs since the time series began in 1960.
The insolvency rate continues to show an increase on the lows seen in 2020 and 2021 (during Covid) but remains far below the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. The company insolvency rate in the last 12 months to March 2026 was 51.6 per 10,000 companies (down from 53.0 per 10,000 last March) on the effective register in England and Wales: one in 194 companies.
Hopes for further interest rate cuts have been dashed by the conflict in Iran and rising UK inflation, which is also hitting consumer spending and increasing businesses’ costs.
S&W's expert view
At the start of 2026, we predicted a challenging year for business, and the March figures bear this out. After four months of relatively low figures, insolvencies are again at levels seen across 2025.
It was hard to see the reason for the below-average number of CVLs in December and at the turn of the year beyond. Possibly, a modest improvement to business stability and sentiment prompted directors and creditors to decide to wait and see. However, the levels are now more typical (though still a fair bit below 2025’s typical level in aggregate).
It will be interesting to see whether this can persist with the continued and new headwinds facing businesses since the start of 2026. Hopes for further interest rate cuts have been dashed by the conflict in Iran and rising UK inflation, which is also hitting consumer spending and increasing businesses’ costs. Indeed, interest rate rises are now widely considered more likely.
At the same time, this month sees revalued business rate rises hitting many businesses, and the rise in the minimum wage takes effect. The figures show that construction and retail sectors may struggle, with hospitality not far behind; the accommodation and food services sector businesses account for 14% insolvencies.
All three sectors could badly use some good news, but there appears to be little of that around at the moment.
Act early to maximise your options
If your company is under pressure, talk to our experts today discuss a way forward. You can also download our guide to protecting your business from insolvency.