Administrations reach their highest levels in ten months
The latest corporate insolvency figures for July have been released by The Insolvency Service and there have been no big shocks or surprises – just more of the same.
There were a total of 2,081 business insolvencies in England and Wales last month. This was a slight (1%) increase on June’s total of 2,043 and is only three cases higher than the total for July 2024’s 2,078.
To provide additional context, the monthly company insolvency numbers for the first seven months of 2025 are higher than the second half of 2024 but are slightly lower than the total from the same time in 2023 – which did reach a 30-year annual high.
Analysis
Of the 2,081 corporate insolvencies recorded in July, the most frequent type once again were Creditors’ Voluntary Liquidations (CVLs) with 1,583.
This is an increase of one case from June’s total and is 2% lower than the total seen in July 2024. CVLs made up 76% of all corporate insolvencies recorded in July, a 2% decrease from the ratio recorded in the previous month.
Contextually, the annual number of CVLs declined in 2024 for the first time in four years. They peaked in 2023 at their highest annual total since the series began recording in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% a year but during the pandemic they fell to their lowest levels since 2007.
There were a total of 339 compulsory liquidations recorded in July. This is a slight increase on the number of cases from last month (two more) and is an 11% increase on the total from the same month a year ago.
These figures remain elevated in the first seven months of 2025 as HMRC continues to target companies that owe Corporation Tax, VAT, PAYE and National Insurance Contribution (NICs) arrears, with increasing staff and resources being allocated to their investigation and recovery.
In 2024, compulsory liquidations were at their highest levels since 2014, increasing annually by 14%. This reversed record low levels seen in 2020 and 2021 when restrictions applied to the use of statutory demands and winding-up petitions. Numbers have increased even further this year.
There were 147 administrations in July, the highest monthly total since September 2024. This is 24% higher than last month’s total and an increase of 5% from the same month a year ago.
Administrations in 2024 are already up 2% from those in 2023 and have been slightly higher than the annual totals between 2015 and 2019. Administrations have increased overall since 2022 from the 18-year low seen during the pandemic in 2021.
The 12 Company Voluntary Arrangements (CVAs) in July are 20% down on last month and 50% lower than the total from July 2024 with numbers remaining low historically.
In 2024, the number of CVAs was 9% higher than in 2023 and over 80% higher than in 2022 which saw the lowest ever annual total in the series going back to 1993. Despite this increase, the number in 2024 was slightly less than 60% of the average from 2015 to 2019.
There were no receivership appointments in July but restructuring plans for 13 companies were registered with Companies House although there were no moratoriums registered.
Since June 2020, 62 companies had obtained insolvency moratoriums to successfully pause legal action from creditors while they restructured financially while a further 52 had their restructuring plans registered at Companies House as required under the Corporate Insolvency and Governance Act 2020.
The company liquidation rate in the 12 months to July 2025 was 52.5 per 10,000 companies which is one in 190 companies equivalent to entering insolvency. This is up slightly from last month when it was 52.4 per 10,000 companies (one in 191).
Rolling insolvency rates are calculated as a proportion of the total number of companies on the effective register and are more comparable over a longer period of time than absolute numbers which can be prone to short-term fluctuations.
Scotland
In Scotland last month there were 116 company insolvencies, which is one case lower than the total from the same month one year ago. It is an increase on the 105 recorded last month and is also the sixth month in succession that saw Scottish business insolvencies totaled over 100.
July’s total was made up of 68 CVLs (up from 62 in June); 43 compulsory liquidations (up from 37); four administrations (down from five) and one CVA (no change). There were no receivership appointments.
Scotland’s insolvency regime is partly devolved.
The Accountant in Bankruptcy (AiB), Scotland’s insolvency service, administers the Register of Insolvencies which is a publicly accessible statutory register regarding the insolvency of individuals and businesses in Scotland including company liquidations and receiverships.
Between June 26th 2020 and July 31st 2025, there were three restructuring plans and one moratorium in Scotland. Both procedures were created by the Corporate Insolvency and Governance Act 2020.
Scotland had always traditionally seen more compulsory liquidations than any other kind of insolvency process but CVLs overtook them in April 2020 and had remained higher until March 2025.
CVLs again became the most frequent form last month overturning a three-month trend when compulsory liquidations had been higher.
The total insolvency rate in Scotland in the 12 months to July 2025 was 51.4 per 10,000 companies on the effective register. This was down by 2.4 from the preceding 12 months total ending in July 2024.
Northern Ireland
In July there were 14 company insolvencies registered in Northern Ireland.
This is a 30% annual decrease from July 2024 and a monthly decrease of 11 from June.
The total was made up of ten CVLs (up from seven); three CVAs (no change) and one compulsory liquidation (down from 14). There were no administrations (down from one) or receivership appointments (no change).
Between June 26th 2020 and July 31st 2025, there was one moratorium in Northern Ireland and no restructuring plans.
The total insolvency rate in the 12 months to July 2025 in Northern Ireland was 36.96 per 10,000 companies on the effective register. This is a decrease of 3.5 from the 12 months to July 2024.
The total number of company insolvencies for the whole of the UK in July 2025 was 2,211 – a monthly increase of 38.
A sense of caution remains widespread across the UK
Tom Russell, Vice President of R3, the UK’s insolvency and restructuring trade body said: “Corporate insolvencies remained broadly stable last month, with the trends showing a rise in compulsory liquidations and a slight uptick in administrations, while CVLs and CVAs fell.
“This pattern may suggest that fewer directions are choosing to close their companies voluntarily, whether because they’re seeing improvements in trading conditions or are caught in a holding pattern, waiting to see where the economy may head next.
“Compulsory Liquidations were higher this July compared to one and two years ago. Our members are reporting that HMRC is taking a more assertive stance towards enforcement, with a greater appetite to recover unpaid taxes through the courts. Directors are feeling the impact of this firmer enforcement, which is adding pressure on businesses already navigating a challenging market.
“While corporate insolvency figures have remained relatively stable, the broader economic picture shows tentative signs of recovery. Following a week in April and May, when some spending may have been brought forward in anticipation of higher prices, economic activity picked up in June, helping Q2 GDP grow by 0.3%. While this represents only modest growth, it is encouraging to see the economy moving forward rather than stalling.
“Coupled with the recent cut to interest rates, the outlook for business appears slightly more positive, though it is too soon to gauge the full effect and above target inflation remains a concern.
“However, a sense of caution remains widespread across the UK. Many firms are sitting at a crossroads, delaying major decisions until they see which way the economy moves. Our members report a consistent picture; directors are taking stock of their position and seeking professional advice, often as part of contingency planning should expected investment doesn’t materialise, or to ensure boards are clear on their options and responsibilities should insolvency become a risk.
“They’re assessing whether trading conditions are likely to improve, and in many cases, whether the cost-saving measures they may have already taken will be enough to keep their struggling business afloat.”
As we get ready to enter Autumn, many directors are looking to make vital and valuable changes to their businesses to end the year in a stronger position.
Get in touch with us to arrange a free initial consultation about what options you could have to help your business be in the best possible shape for the last few months of 2025.