Insolvencies update: September 2026 and the third quarter

• There were 1,882 company insolvencies in England and Wales in September 2026, down from 1,953 in August and bringing the total for the third quarter to 5,773

• The company insolvency rate in the last 12 months to June 2026 was 49.9 per 10,000 companies: one in 200 companies

• September insolvencies were down 4% on August (1,953), and 5% lower than in September 2025

• Monthly numbers of company insolvencies in the first nine months of 2026 have been lower than the average of the preceding three years

Compulsory liquidations, however, were higher than in both the preceding month and last September, up 6% on August 2026 and 25% higher than the same month in 2025 (the highest year for compulsory liquidations since 2012). Administrations fell 44% over the month and were 20% lower than in September 2025. There were 19 company voluntary arrangements (CVAs) in September 2026, as in the previous month, but up 12% on September 2025.

• 1,420 CVLs for September 2026 (75% of insolvencies) and 5,773 for the quarter, significantly up from the 4,282 in Q2

• 341 compulsory liquidations for the month, and 955 for Q3, up slightly from 944 in Q2

• 102 administrations for the month, bringing the quarterly total to 412 (down considerably from 494 in the second quarter)

• 19 CVAs and 60 for Q3, broadly the same as in Q2 (59)

• No receivership appointments in September, with none in the third quarter, and just one in the previous quarter

The insolvency rate of 49.9 per 10,000 companies between 1 October 2025 and 30 September 2026 is down from the 52.8 per 10,000 in the 12 months ending 30 September 2025. This is driven by fewer CVLs, which make up three-quarters of the total. In September, these were similar to August 2026 but 9% lower than in September 2025.

Compulsory liquidations, however, which outweighed decreases elsewhere to push the 2025 total insolvency figure slightly higher than in 2024, continue to rise. In 2025, compulsory liquidations were at the highest levels since 2012.

In the 12 months to September 2026, construction continues to lead insolvencies, as in the first two quarters, accounting for 17% with 3,873 insolvencies. It’s followed by wholesale and retail trade; repair of motor vehicles and motorcycles (3,364 – 15%), and accommodation and food service activities (3,208 – 14% of cases). Administrative and support services (10%) of cases, professional, scientific and technical activities (8%) and manufacturing (8%) were also among those with the highest number of insolvencies over the 12 months to September.

For most sectors, however, insolvencies are lower than in the previous year.

Company insolvency volumes over the past two years are at the highest levels seen since the 2008/09 recession, but that doesn’t account for the higher number of companies on the Companies House register. Recent insolvency rates remain much lower than the peak rate of 113.1 insolvencies per 10,000 companies on the effective register during the 2008/09 recession.

If no news is not necessarily good news, it certainly could be worse. Insolvency figures reflect an economy under continued strain, but far from free fall. There’s some comfort that numbers haven’t surged and, in fact, average monthly totals for 2026 remain lower than in recent years.

There are, however, some warning signs. While CVLs, which are usually director-led rather than creditor-led processes, still account for three quarters of all insolvencies, compulsory liquidations are creeping up, increasing 6% in September from August 2026 and up 25% on the same month last year reflecting, in part, HMRC’s increased appetite to enforce.

Certain sectors also continue to be under strain. Construction has led the insolvency figures every quarter this year, as it continues to suffer from the effects of inflation, increased legislation and a challenging planning environment. Retail and food, with their well-documented challenges over employment costs and business rates, and manufacturing, too, continue to suffer. Even here, though, in all these sectors, insolvencies in the 12 months to September 2026 are lower than in the same period the year before.

As much commentary has noted, despite the headwinds, the British economy has remained surprisingly robust, surprising on the upside, with the highest growth in the G7 this year. The insolvency figures reflect that robustness, with no sign of collapse.

However, they also clearly show an economy that remains vulnerable to further shocks and certain sectors in need of support – or at least a little breathing space. Whether the Budget next week provides either or both, or adds to their burden, may well help determine whether the downward trend in insolvencies can continue.