Administrations and CVAs are also up monthly
The new corporate insolvency figures for September have been released by The Insolvency Service and they remain a mix with slight fluctuations without any big shocks.
There were a total of 2,000 business insolvencies in England and Wales last month. This was a slight decrease (2%) on the previous month’s total of 2,046 but was 2% higher than the total from September 2024.
This was the eighth consecutive month when overall business insolvencies have been over 2,000 and the current total number for 2025 were higher than their 2024 equivalent.
Analysis
Of the 2,000 corporate insolvencies recorded in September, the most frequent type were Creditors’ Voluntary Liquidations (CVLs) with 1,578.
This is a decrease of 21 cases from August’s total (1%) but is also 1% higher than the same month a year ago. CVLs made up 79% of all corporate insolvencies recorded in September, a 1% increase on the ratio from the previous month.
For additional context the annual number of CVLs declined last year for the first time in four years after three years of increases – peaking in 2023 at the highest annual total since the time series began in 1960. CVLs had been rising at approximately 10% a year but during the pandemic they fell to their lowest levels in 2007.
There were a total of 281 compulsory liquidations recorded in September. This was a 9% reduction in the number of cases from last month but a 17% increase on the total from the same month a year ago.
Contextually, these figures remain elevated in the first nine months of 2025 as HMRC continues targeting companies with outstanding Corporation Tax, VAT, PAYE and National Insurance Contribution (NICs) arrears, with increasing resources being allocated to investigating and recovering arrears.
In 2024, compulsory liquidations were at their highest levels in a decade with an annual increase of 14%. This was a reverse of the historic low levels recorded in 2020 and 2021 when government restrictions stopped the use of statutory demands and winding-up petitions. Numbers have been increasing and catching-up this year.
There were 124 administrations in September, which was 2% higher than August’s total but was 17% lower than the same month last year.
The number of administrations increased annually by 2% in 2024 and were slightly higher than the annual totals seen between 2015 and 2019. The number of administrations have been increasing since 2022 from an 18-year low seen during the pandemic in 2021.
There were 17 Company Voluntary Arrangements (CVAs) in September which was a 2% increase on last month’s total and no change from September 2024.
CVAs numbers have remained relatively low compared to historic trend but increased by 9% from last year from 2023. They have increased by 58% from 2022 which saw the lowest ever annual total since the series began in 1993. Despite these rises, the 2024 total was slightly less than 55% of the 2015 to 2019 annual average.
There were no receivership appointments in September with only four being recorded in the year to date. There were two restructuring plans registered with Companies House in September but no moratoriums.
Since June 2020, 64 companies obtained insolvency moratoriums that enable them to pause legal action from creditors while they restructured financially while a further 55 had their restructuring plans registered at Companies House as required under the Corporate Insolvency and Governance Act 2020.
The rolling company liquidation rate in the 12 months to September 2025 was 52.9 per 10,000 companies which is equivalent to one in 189 companies entering insolvency. This is a slight increase from last month (52.5 or one in 190).
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 more prone to short-term fluctuations.
Scotland
In Scotland last month there were 103 company insolvencies, which was eight more than last month. It is also 41% higher than the same month last year.
September’s total was made up of 50 CVLs (up from 47 in August); 48 compulsory liquidations (up from 43) and five administrations (no change). There were no CVAs (no change) or 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 September 30th 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 September 2025 was 52.2 per 10,000 companies on the effective register. This was up by 1.2 from the preceding 12 months ending September 2024.
Northern Ireland
In September there were 28 company insolvencies registered in Northern Ireland. This was more than double the number of cases from last month (12) and is the same total from September 2024.
September’s total was made up of ten CVLs (no change); 15 compulsory liquidations (up from one); two administrations (down from three) and one CVA (up from zero). There were no receivership appointments recorded.
Between June 26th 2020 and September 30th 2025, there was one insolvency moratorium recorded in Northern Ireland and no restructuring plans.
The total insolvency rate in the 12 months to September 2025 in Northern Ireland was 37.3 per 10,000 companies on the effective register. This was a slight increase (0.1) from the 12 months to September 2024.
The total number of company insolvencies for the whole of the UK in September 2025 was 2,131 – a month-on-month decrease of 22.
One in six businesses have no cash reserves
Tom Russell, President of R3, the UK’s insolvency and restructuring trade body said: “Corporate insolvencies have decreased slightly in September 2025 compared to August and have increased by 2% in the same month last year.
“However, overall insolvency activity remains high, with a sense of stable stress continuing across businesses and households alike.
“With the November budget around the corner, many business leaders are nervous about what lies ahead and are putting off making major recruitment or investment decisions.
“They will be hoping that the Chancellor introduces confidence building measures that encourage investment, recruitment and expansion rather than further increasing the tax burden which could worsen cashflow problems for businesses which might already be struggling.
“Ongoing challenges such as higher energy and materials costs, cautious consumer demand and creditor pressure have combined with slower than anticipated reductions in the cost of borrowing to leave some businesses fighting hard to stay afloat.
“This pressure is reflected in the latest Office for National Statistics business insights data, which revealed that around one in six (17%) trading businesses reported having no cash reserves in late September 2025 – the highest proportion since the question was introduced in June 2020.
“This is deeply concerning, as a lack of cash reserves leaves businesses particularly vulnerable to even small financial shocks, such as a bad debt or loss of a customer, challenges which they might previously have been able to weather. It suggests insolvency activity is likely to remain at the current level for some time.
“Sector-specific pressures are also evident. The hospitality sector continues to face difficulties, with the hotel sector being a case in point. Whilst specialist spa or wedding venues remain busy, for independent and regional hotels the higher staff, maintenance and food costs are impacting margins.
“While many hospitality businesses have managed through the summer months and are looking ahead to the festive season, they will need to plan carefully for the traditionally quieter months of January and February.
“Supportive measures in the November budget, such as positive transformation of business rates would be particularly welcome. The latest wage growth and unemployment figures suggest the labour market stabilised. However, young people who are often employed in hospitality firms have been disproportionately affected with higher rates of unemployment.”
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