The number of UK companies entering insolvency decreased by 8% in June 2025, providing temporary relief amid economic challenges. Experts caution that this decline may be short-lived due to ongoing pressures such as rising inflation and tax burdens. The total insolvencies in June included various types, with creditors' voluntary liquidations being predominant. Despite the drop, the first half of 2025 reflects higher insolvency rates compared to the second half of 2024, indicating that significant challenges remain for businesses and the economy overall.
The fall in June should be welcomed, but it doesn't paint a full picture. The UK economy remains under significant pressure.
Insolvencies remain slightly higher than the second half of 2024. The first half of 2025 saw an overall rise compared to last year.
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