UK
Ireland
More to come? S&W expert commentary on the last company insolvencies figures from the ONS.
The topline
- There were 1,671 company insolvencies in England and Wales in December 2025, bringing the annual total to 23,938
- This represents one in every 190 (or 52.5 in 10,000) on the Companies House register entered insolvency in 2025: Broadly the same rate as in 2024
- December insolvencies were down 10% from November, and 13% lower than December 2024, but with no clear reason for the decline
- Insolvencies remain high relative to historical levels
Insolvencies by type
While total insolvency numbers in 2025 were similar to the previous year, creditor voluntary liquidations (CVLs) fell slightly, while compulsory liquidations rose to the highest level since 2012. Administrations fell 6% from 2024 levels, and company voluntary arrangements (CVAs) dropped 8%.
- 1,305 CVLs for December 2025 and 18,525 for the year (77% of company insolvencies)
- 245 compulsory liquidations for the month, and a total of 3,730 for 2025
- 106 December administrations, bringing the annual total to 1,495
- 15 CVAs and 186 for 2025
- No receivership appointments in December, with only two in total in 2025
The ONS commentary
Insolvencies didn't increase in 2025, but remain high by historical standards. The ONS points out that insolvency numbers in 2025 were still only around 5% lower than in 2023, which saw the highest level for a decade.
The number of CVLs in recent years, in particular, has been exceptionally high, but slowed significantly in December, with the lowest monthly total of CVLs since August 2021, according to the ONS.
The insolvency rate in 2025, at 52.5 per 10,000, also still remains less than half the rate at the peak of 2008-09, when it reached 113.1 per 10,000. The total number of insolvencies last year was similar to that period, but it was from a much larger pool, since the number of companies has more than doubled since then.
Overall, there remain significant headwinds for all businesses, with no obvious end to the global uncertainty around tariffs and ongoing conflicts. We expect another challenging year ahead in 2026.
S&W's expert view
The last year was difficult for UK businesses, as demonstrated by the relatively high number of insolvencies, and we expect another challenging year ahead in 2026.
Although the number of CVLs (the most common type of company insolvency) was down in December, there is no clear indication of the reason for this dramatic reduction yet.
While there are some reasons for optimism, with UK inflation and the Bank of England base rate falling, this is somewhat offset by the most recent budget and expected reduction in lower disposable incomes and reduced consumer spending.
Overall, there remain significant headwinds for all businesses, with no obvious end to the global uncertainty around tariffs and ongoing conflicts.
Bricks and mortar business, in particular, may suffer with changes to business rates, and retail businesses continue to suffer from the increases to minimum wage and employer national insurance contributions.
We therefore expect to see particular distress in the construction, retail and hospitality sectors.
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.