Insolvency-related activity in the South East decreased by 6.2% last year says R3, the UK’s restructuring, turnaround and insolvency trade body.
R3’s analysis of data provided by Creditsafe indicated a fall in insolvency-related activities from 2,519 in 2024 to 2,363 in 2025.
The figures include administrator and liquidator appointments together with creditors’ meetings.
The South East figure for insolvency-related activities is the sixth highest in the UK year-on-year, behind Greater London with 5,684, the North West 4,880, East Anglia 3,812, the West Midlands 3,152 and Yorkshire & Humberside 2,709.
As well as the South East, many other UK regions including Greater London and Yorkshire & Humberside recorded decreases with a few areas such as the West Midlands and East Anglia showing increases.
Neil Stewart, chairman of R3’s Southern and Thames Valley region, welcomed the 2026 figures, but emphasised that business conditions remained difficult across many sectors.
“Without doubt, 2025 was a year in which UK businesses struggled to regain their footing after several years of economic challenges.
“While inflation has eased, the cumulative impact of higher costs, tighter credit conditions and weak demand continues to place significant pressure on cashflow, particularly for smaller and mid-sized firms with limited financial headroom.”
Neil added: “In 2025, UK businesses continued to experience significant financial strain, with insolvency levels remaining elevated and start-up growth slowing.
“The amount of insolvency-related activity, including liquidator and administrator appointments and creditors’ meetings in the South East reflected ongoing strain from elevated borrowing costs, persistent inflation, and subdued consumer demand.
“While the year marked an improvement from 2024, levels of business distress remain well above pre-pandemic norms, underscoring a fragile operating environment.”
“Many businesses continue to fight for their very existence – and we at R3 will continue to support them wherever we can.”
Neil’s analysis comes on the back of R3’s Business Health report for 2025 looking at trends in insolvency and start up activity.
R3’s Southern & Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.
Neil, a regional associate director at insolvency litigation financing company Manolete Partners Plc, encouraged business owners across the South and Thames Valley to remain vigilant.
He said: “As we move into 2026, it is evident that many businesses are operating with limited financial resilience amid tough market conditions.
“While margins remain under pressure, seeking professional advice at an early stage from an R3 member can make a critical difference, giving viable businesses the best chance of survival and recovery.”
The number of start-ups in the South East decreased by 1.9% over the year from 70,577 in 2024 to 69,213 in 2025.
Creditsafe is a multinational business intelligence provider with services including company credit scores and credit report information.
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