National News: October 2025 Insolvency Data: The Numbers Every Business Should See Ahead of Next Weeks Budget...

Hospitality and Construction at Breaking Point as Insolvencies Climb, with Rachel Reeves's November Budget set to offer little comfort to businesses already feeling the strain, especially those in our region.

21st November 2025

The Insolvency Service has released the latest company insolvency statistics for October 2025, and the picture for businesses across England and Wales continues to worsen. Despite government promises of stability and “economic recovery,” the hard reality is that as per the data, more and more companies being forced to shut their doors.

Overall Insolvencies Up 17% Year-on-Year

After seasonal adjustment, 2,029 companies became insolvent in October 2025, a 2% rise on Septembers figures and a 17% jump compared to October 2024. While a 2% monthly rise may sound modest, it’s said to be figures heading in the wrong direction — and it comes at a time when consecutive-month fluctuation would normally be much higher, averaging around 10%.

In simple terms: the trend is moving consistently upward, and businesses are struggling to stay afloat.

Breakdown of October 2025 Insolvencies

• 1,592 creditors’ voluntary liquidations (CVLs)

• 301 compulsory liquidations

• 119 administrations

• 17 company voluntary arrangements (CVAs)

• 0 receiverships

  
  

Company Voluntary Liquidations, or CVLs remain by far the most common form of insolvency, now making up 78% of all cases. These are usually the result of directors themselves concluding the business can’t survive — a sign that many directors a feeling the market conditions are so volatile that their businesses are simply beyond rescue.

The number of CVLs was said to be similar to September, but 11% higher than this time last year. The consistency month-to-month shows the pressure on small and medium-sized companies is constant, & not occasional.

Firms being plunged into Compulsory Liquidation Surge 68% Compared to Last Year..

One of the most worrying statistics comes from compulsory liquidations — where the courts shut a company down, often due to unpaid debts such as HMRC arrears.

These rose 8% on September but a staggering 68% higher than October 2024. That increase strongly suggests more businesses are failing to meet tax obligations, and the government is taking a harder line on enforcement.

Administrations Fall Slightly Month-to-Month, But Still Higher Year-on-Year..

Administrations were said to be 3% lower than in September, but remain 17% higher than last year. However, across 2025, the average number of firms entering administration is still lower than in 2024 — indicating fewer businesses are able to justify attempts at restructuring or turnaround. Many simply opting for liquidation instead.

CVAs Remain Rare – But Increasing

Company Voluntary Arrangements, or CVAs — once a popular tool for struggling retail chains — remain historically low. October saw 17 CVAs, the same as September, but 42% higher than last year. Even with this percentage jump, volumes are far below what was seen pre-pandemic.

Businesses placed into Receivership: Almost Extinct

There were no receiverships in October. Only two have occurred in the past twelve months. This method of insolvency has almost disappeared from the UK corporate landscape.

Insolvency Rate: 1 in 187 Companies Failing

The insolvency rate in the 12 months to October 2025 now stands at 53.4 insolvencies per 10,000 active companies, meaning 1 in every 187 companies in England and Wales has gone under in the past year.

This rate remains high and demonstrates consistent strain across all sectors of the business environment.

Industries Worst Affected

As expected, The pattern of which business sectors are collapsing has not changed: the same industries that rely heavily on cashflow, supply chains and consumer spending continue to suffer the most, those being:

1. Construction – 3,933 insolvencies (17%)

Once again, construction tops the list. Chronic materials inflation, labour shortages, and delayed payments continue to force thousands of firms to close. Construction insolvencies have driven the national rise for over two years.

2. Wholesale & Retail Trade – 3,749 insolvencies (16%)

This sector includes shops, supply chain distributors, and motor vehicle repair businesses. With consumer spending still weak and costs rising, retail continues to shrink — especially on high streets already decimated by closures.

3. Accommodation & Food Service – 3,370 insolvencies (14%)

Bars, cafés, restaurants, hotels, and takeaways remain deeply vulnerable, especially those in the North & North East of England. Energy prices, staffing issues and reduced customer spending continue to damage profitability. Many of these businesses operate on thin margins that simply can’t survive the current economic climate.

October’s insolvency figures make one thing clear: business conditions in 2025 remain extremely challenging, and the government's promises of economic "stability" are not being reflected in the real-world data.

With insolvencies up across nearly every category and key industries continuing to lead the decline, the situation shows no signs of meaningful improvement. If current trends continue, thousands more businesses could be lost heading into winter — taking jobs, investment and economic confidence with them.