"UK businesses remained under intense financial pressure throughout 2025, with more than 28,000 insolvency-related activities recorded over the year, underlining the fragile state of the operating environment despite easing inflation. New figures from R3, the trade association for restructuring and insolvency professionals, show there were 28,616 corporate insolvency activities in 2025. While this was slightly lower than the 29,366 cases recorded in 2024, the total remains well above pre-pandemic levels."
"Construction once again accounted for the highest number of insolvency activities, with 4,584 cases recorded in 2025. Although this represented a 6 per cent fall on the previous year, R3 said the sector remains highly exposed to rising material costs, payment delays, skills shortages and subdued investor confidence. Wholesale and retail followed closely with 4,124 insolvencies, while accommodation and food services recorded 3,831 cases."
Corporate insolvency activities totalled 28,616 in 2025, slightly lower than 29,366 in 2024 but remaining above pre-pandemic levels. UK businesses experienced sustained financial pressure throughout 2025 despite easing inflation. Smaller and mid-sized firms faced prolonged stress due to limited financial buffers, higher costs, tighter credit conditions and weak demand that strained cashflow. The construction sector recorded the most insolvencies at 4,584, while wholesale and retail logged 4,124 and accommodation and food services 3,831. Manufacturing insolvencies remained historically high at 2,188, with energy prices, supply chain disruption and weaker export demand adding pressure.
Read at Business Matters
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