The latest figures from the Insolvency Service indicate that there were 1,671 company insolvencies in England and Wales in December 2025, representing a 13% decrease compared to the same month last year and a 10% decline from November, suggesting a seasonal slowdown as businesses concluded the year.
Notably, Creditors’ Voluntary Liquidations (CVLs) accounted for the majority of these cases, totalling 1,305. This data suggests that many businesses are opting to exit in a controlled manner rather than attempting to recover.
Of the 1,671 registered company insolvencies in November, there were:
Figure 1: The total number of company insolvencies in December 2025 was lower than in November 2025, driven by decreases in both CVLs and compulsory liquidations.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures).
In December 2025, CVLs accounted for 78% of all company insolvencies. The number of CVLs decreased by 10% from November 2025 and was 11% lower compared to the same month last year (December 2024). CVLs in December 2025 were at the lowest recorded levels since August 2021.
The number of compulsory liquidations in December 2025 was 4% lower than in November 2025 and 21% lower than in December 2024. In 2025, compulsory liquidations reached the highest levels since 2012, up 15% from 2024 volumes.
The number of administrations in December 2025 was 21% lower than in November 2025 and 20% lower than in December 2024. In 2025, the number of administrations decreased by 8% from 2024.
The number of CVAs in December 2025 was 17% lower than in November 2025 and 12% lower than in December 2024. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.
The six industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in the 12 months to November 2025 were:
Figure 2: For most sectors, the number of insolvencies in the 12 months to November 2025 was similar to that in the 12 months to November 2024.
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CoCredo’s MD, Dan Hancocks, says, “While company insolvencies eased slightly in December, the latest figures underline the ongoing pressures facing UK SMEs. Many businesses continue to operate in a fragile environment, shaped by high costs, tighter lending conditions, and persistent cash flow strain.
“The dominance of Creditors’ Voluntary Liquidations suggests that a growing number of directors are making difficult but pragmatic decisions to close in an orderly way, rather than risk trading on. At the same time, elevated levels of compulsory liquidations over the past year highlight tougher enforcement and reduced tolerance for arrears.”
“For SMEs and those that trade with them, the message is clear: resilience in 2026 will depend on strong financial visibility, proactive credit management and early identification of risk, rather than relying on short-term improvements in headline insolvency numbers.”
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