UK
Ireland
Monthly company insolvencies increase 9% year-on-year as businesses grapple with rising costs and economic uncertainty
New data published today by the Insolvency Service shows the number of registered company insolvencies in England and Wales in March 2025 was 1,992. This was 9% higher than in the same month in the previous year (1,826). Mark Ford, Partner in the Restructuring & Recovery team at professional services firm S&W comments.
Monthly company insolvencies increase 9% year-on-year as businesses grapple with rising costs and economic uncertainty
New data published today by the Insolvency Service shows the number of registered company insolvencies in England and Wales in March 2025 was 1,992. This was 9% higher than in the same month in the previous year (1,826).Mark Ford, Partner in the Restructuring & Recovery team at professional services firm S&W comments.
“High numbers of company insolvencies relative to historical levels is indicative of the difficult trading environment many UK businesses have faced in recent years. Sluggish economic growth, high borrowing costs, high inflation and, for some businesses, tariff uncertainty together with consumers reluctant to get out and spend have left many firms saddled with debt. For some it is inevitable they will run out of cash and cease trading.
“Many businesses are continuing to face a torrid time at the moment as they grapple with higher costs from increases this month to employer national insurance contributions, the minimum wage and business rates. Businesses will often struggle to pass on these additional costs and we can expect to see many fighting for their survival in the months ahead, particularly those operating in labour-intensive industries, such as hospitality, healthcare and retail.
“In addition to increased costs, companies are also suffering from falling consumer confidence which has led to some households putting a tight lid on their spending. The threat posed by president Trump’s trade tariffs and the disruption this is bringing to the global economy is adding to the uncertainty for businesses and consumers alike with many economists suggesting that small to medium businesses, without the working capital to pay the tariffs, the hardest hit.
“The UK economy grew by 0.5% in February which was better than predicted. Unfortunately analysts fear this growth could be short-lived and its possible we are heading towards a recession. If this led to an increase of the numbers of people without a job and a fall in consumer spending, we could expect to see corporate insolvencies rise further in the coming months.
“Now is not a time for businesses to bury their heads in the sand and merely hope they will make it through the challenges that may lie ahead. Those that urgently grapple with the realities of the pressures facing their businesses will maximise their chances of staying afloat and saving jobs.”