Liquidations are down but administrations and CVAs rose

On top of another interest rate cut, the economy gets some more good news with the latest corporate insolvency figures for November, released by The Insolvency Service.

There were a total of 1,866 business insolvencies in England and Wales last month. This was 8% lower than the previous month and 7% lower than the same month in 2024. 

Monthly company insolvency numbers so far in 2025 with one month remaining are slightly higher than in 2024 but are lower than 2023 which saw a 30-year high annual number of insolvencies.

Analysis

Of the 1,866 corporate insolvencies recorded in November, the most frequent type remains Creditors’ Voluntary Liquidations (CVLs) with 1,461. 

This was a reduction of 118 cases from October’s total (7% lower) and is also 7% lower than the same month from a year ago. This is also the lowest monthly total of CVLs seen since December 2024. 

CVLs made up 78% of all corporate insolvencies recorded in November, the same ratio as last month. 

CVL numbers have increased from record lows in 2020 and 2021 to exceed pre-pandemic levels in 2022 while compulsory liquidations and administrations remained low. They reached a 30-year high in 2023 while 2024 saw a reduction as the decrease in CVLs outweighed increases in other types of insolvency. 

Contextually, the annual number of CVLs declined in 2024 for the first time in four years following three consecutive years of increases, peaking in 2023 with the highest annual total since records began in 1960. Between 2017 and 2019 CVLs rose at approximately 10% per year but these fell during the pandemic. 

There were a total of 250 compulsory liquidations in November. This was 51 lower (21%) than the previous month and 10% lower than in November 2024. So far this year, the average monthly number of compulsory liquidations is 17% higher than the 2024 monthly average. 

In context, in 2024 compulsory liquidations were at their highest levels for a decade having increased 14% annually. This continued an increase from the record low levels seen in 2020 and 2021 when restrictions were applied to the use of statutory demands and winding-up petitions. 

HMRC is continuing to target companies that have outstanding arrears in Corporation Tax, VAT, PAYE and National Insurance Contributions (NICs) with more resources being allocated to their investigation and recovery which will continue in 2026.

There were 136 administrations in November which was 15 higher (12%) than in October and 5% higher than in November 2024. The average monthly number of administrations this year is lower than the 2024 average. 

Administrations increased by 2% annually last year and remain slightly higher than the annual totals seen between 2015 and 2019. Administrations have increased since 2022 from their 18-year low reached during the pandemic in 2021. 

There were 18 Company Voluntary Arrangements (CVAs) in November which was one higher than last month (6% rise) and 29% higher than in November 2024. Numbers remain low by historical levels and the average monthly total is lower than in 2024 and similar to 2023. 

In 2024, the number of CVAs was 9% higher than in 2023 and 80% higher than 2022 which saw the lowest ever annual total since 1993. Despite the increase, the total in 2024 was less than the averages from 2015 to 2019. 

There was one receivership appointment in November which is only the second registered in the previous twelve months. There were two moratoriums and one restructuring plan registered at Companies House in November. Between June 26 2020 and November 30 2025, 67 companies obtained a moratorium and 56 companies had their restructuring plans registered at Companies House.

The rolling company liquidation rate in the 12 months to November 2025 was 52.9 per 10,000 companies on the effective register in England and Wales. This corresponds to one in 189 companies entering insolvency which is a slight decrease from last month (53.4 or one in 187).

Rolling insolvency rates are calculated as a proportion of the total number of companies on the effective register and more comparable over a longer period of time than absolute numbers which can be prone to short-term fluctuations. 

Scotland

In November there were 98 company insolvencies registered in Scotland. 

This was 17 fewer than the previous month and 14% lower than the number in November 2024. 

The total for November was made up of 58 CVLs (down three); 33 compulsory liquidations (down 17) and seven administrations (up three). There were no CVAs (no change) or receivership appointments. 

It’s important to note that Scotland’s insolvency regime is partly devolved. 

The Accountant in Bankruptcy (AiB) is Scotland’s insolvency service and 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 26 and November 30 2025, there were three restructuring plans and one moratorium in Scotland. The two procedures were created by the Corporate Insolvency and Governance Act 2020. 

Scotland has always traditionally recorded more compulsory liquidations than any other kind of insolvency procedure but CVLs overtook them in April 2020 and remained higher until a three month period from March 2025, when they retook the higher position.

The total insolvency rate in Scotland in the 12 months to November 2025 was 51.2 per 10,000 companies on the effective register. This was down by 1.9 from the preceding 12 months ending November 2024.

Northern Ireland

In November there were 43 company insolvencies registered in Northern Ireland which while five fewer than last month is 169% (2.7 times) higher than the same month a year ago. 

This total was made up of eight CVLs (down four); 33 compulsory liquidations (down two) and two CVAs (up one). There were no administrations (no change) or receivership appointments. 

Between June 26 2020 and November 30 2025, there was one moratorium in Northern Ireland and no restructuring plans.

The total insolvency rate in the 12 months to November in Northern Ireland was 42.8 per 10,000 companies on the effective register. This is an increase of 6.2 from the 12 months to November 2024.

The total number of company insolvencies for the whole of the UK in November 2025 was 2,007 – a month-on-month decrease of 185.

Chris Horner, insolvency director with BusinessRescueExpert, said: “While the reduction in insolvencies, coupled with a 0.25% reduction in interest rates announced this week are generally good news for the economy, their effects might take time to filter through to all the businesses that badly need them.

“After New Year’s Eve, 2026 will be on us like a January storm and if your business isn’t braced for it and ready to ride it, it could quickly get uncomfortable for directors. 

“This is why you should get some impartial, professional advice as soon as you can to give you some idea on what options will be available for you to work with that could make the next 12 months and beyond easier and more enjoyable.”

As we enter the final days and weeks of 2025, the relatively good economic news will be of cold comfort if your business isn’t feeling the effects.

But 2026 does provide several opportunities for directors who want to improve and protect their business. 

It starts with getting in touch with us for a free initial consultation about the options you could have to help you start the new year with a feasible plan and strategy.