September 2025 insolvency statistics point to persistent cost pressures
The latest insolvency figures released for September 2025 reveal a complex picture of resilience and strain across the UK business landscape. While corporate insolvencies fell slightly compared to the previous month, they remain higher than the same period last year - highlighting the ongoing financial pressures many firms continue to face.
Headline figures
- 2,000 corporate insolvencies were recorded in September 2025
- This marks a 2.2% decrease from August 2025 (2,046)
- However, it represents a 1.7% increase compared to September 2024 (1,967)
The year-on-year rise has been driven primarily by liquidations, as more businesses either choose or are forced to close. Notably, Compulsory Liquidations and Creditors’ Voluntary Liquidations (CVLs) are both up compared to last year, while administrations have declined - suggesting fewer businesses are in a position to be rescued.
Cost pressures remain the dominant force
The data continues to reflect the toll of nearly five years of economic turbulence. Businesses are still grappling with:
- COVID-era debt
- Persistent inflation
- Rising operating costs
- Geopolitical uncertainty
- Reduced consumer spending
- Limited access to finance
These factors have squeezed margins and left many firms with little room to manoeuvre. In addition, creditor pressure is intensifying, with private sector creditors increasingly adopting HMRC’s assertive approach to debt recovery - including issuing winding-up petitions.
While HMRC’s stance is driven by Treasury recovery goals, private creditors are often acting out of necessity, trying to stabilise their own finances in a volatile environment.
SMEs: Resilient but under strain
Many SMEs remain resilient, thanks to their agility and the close involvement of directors in day-to-day operations. However, we’re seeing a growing number of fundamentally sound businesses seeking support or entering insolvency processes - businesses that, pre-pandemic, would likely have weathered these challenges.
This shift underscores the cumulative impact of the past five years and the fragility that now exists across sectors.
Winter pressures and Budget concerns
Looking ahead, the combination of seasonal cost increases and ongoing economic uncertainty suggests insolvency numbers may rise in the lead-up to Christmas.
Key concerns for directors include:
- The upcoming Autumn Budget, with fears that further cost increases could push more businesses into insolvency
- Maintaining/growing revenues
- Persistent inflation
- Lack of consumer confidence
Many firms have already begun raising prices after years of absorbing costs, but this strategy has limits - especially in price-sensitive markets.
When to seek support
If your business is experiencing early signs of financial distress- such as difficulty paying staff, taxes, or suppliers, or accumulating unsold stock - it’s vital to seek advice early.
Early intervention offers more options and a greater chance of recovery. Waiting until problems escalate can limit your choices and increase the risk of insolvency.
We’re here to help
At Azets, our insolvency and restructuring specialists are here to support you. Whether you need a confidential conversation, a financial health check, or help exploring your options, we’re ready to assist.
If you’re concerned about your business’s financial position, get in touch today.
