➡ Corporate insolvencies decreased by 8.3% to 1,866 in November 2025 compared to October’s figure of 2,034
➡ November 2025’s figure was 6.7% lower than November 2024’s (2,001)
Matthew Richards, Joint Head of Restructuring and Insolvency at UK top 10 accountancy firm and business advisory group Azets, has commented on November’s insolvency figures.
He said: “Despite the month-on-month fall, corporate insolvency numbers for the year to date are higher than they were this time last year, which reflects the ongoing pressures faced by firms and the toll it’s taking on their ability to stay solvent. Liquidations make up the overwhelming majority of these, as firms are either being wound-up by those they owe money to or because their directors can’t see any way of turning their situation around. With little sign of any relief for the business community on the horizon, it’s highly likely insolvencies will increase in the new year and that 2025 will see higher numbers than 2024.
“Corporate insolvencies are being driven by a triple whammy of economic issues, creditor pressure and management fatigue. Businesses have spent years attempting to trade through rising costs, shrinking margins, and a customer base that is spending reluctantly. Many management teams have simply run out of steam and are ready to either sell up or shut the doors. On top of this, creditors continue to chase down debts in an attempt to balance their own books, with HMRC leading the charge as they attempt to recover funds for the public purse.
“Many businesses were hoping for some form of relief from the Chancellor last month, but the announcement of the increases to the National Minimum Wage and the planned changes to employment rights will make it harder for firms to retain, recruit and grow.
“For firms in the retail and hospitality sector, the Chancellor has taken the sparkle out of Christmas. Both industries were hit hard by the changes to Employer National Insurance and National Minimum Wage last year and further increases to the National Minimum Wage will put further strain on a sector which has many firms near breaking point. This time of year is a critical one for both industries, but only time will tell whether it provides a badly needed boost or the final blow for businesses.
“While we appreciate the Chancellor has a tough line to walk when it comes to managing the economy and bringing down the national debt, the reality is that any change in economic policy affects business confidence and firms’ profits and plans. We suggest that should be considered as the key criteria for any future fiscal policy proposals, especially after the impact the last two Budgets had on business growth, health and confidence.
Anyone who is worried about their business and its finances should seek advice as soon as possible. This is such a hard topic to raise – let alone discuss – but speaking to an advisor at a time when your worries are new gives you more options, more time to take a decision about your next step and a better chance of overcoming your issues than if you’d waited and the problem had snowballed.
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