The Insolvency Service released its latest figures for company insolvencies in the UK in March 2025.
The number of registered company insolvencies in England and Wales was 1,992 in March 2025, which is 2% lower than in February 2025 (2,032) but 9% higher than the same month in the previous year (1,826 in March 2024).
Of the 1,992 registered company insolvencies in March, there were:
Figure 1: The total number of company insolvencies in March 2025 was slightly lower than in February 2025, driven by a decrease in compulsory liquidations.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)
In March 2025, Company Voluntary Liquidations (CVLs) represented 77% of all company insolvencies. The number of CVLs rose by 1% from February 2025 and was 8% higher than in March 2024.
Compulsory liquidations have risen in recent months. In March 2025, the number was 24% lower than the 10-year high recorded in February 2025 but 5% higher than in March 2024 and 9% higher than the monthly average for 2024.
The number of administrations in March 2025 increased by 17% compared to February 2025 and by 30% compared to March 2024.
In March 2025, the number of CVAs was 2.4 times higher than in February 2025 and 89% greater than in March 2024. Despite this increase, the overall numbers remain low compared to historical levels. Because of the low volumes, CVAs are not seasonally adjusted.
The five industries that experienced the highest number of insolvencies in the 12 months to February 2025 were:
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CoCredo’s Managing Director, Dan Hancocks, says, “The latest insolvency statistics for March 2025 reveal an increasingly challenging environment for UK businesses. According to official figures, there were 1,992 company insolvencies in England and Wales—up 9% compared to March 2024. Although slightly down from February’s total, insolvency rates remain significantly elevated compared to pre-pandemic levels.
77% are creditors’ voluntary liquidations, which suggests that many directors are proactively winding down their struggling companies.
Several factors are fuelling this trend. Businesses face mounting cost pressures due to increased national minimum wage, rising employer national insurance contributions, and broader inflationary impacts. Global issues, including fresh tariffs imposed by the U.S., have added additional strain on margins and the flow of international trade.
Sector-wise, construction and retail remain the most affected, accounting for the highest numbers of insolvencies over the past year. Both sectors are highly sensitive to changes in consumer behaviour, material costs, and regulatory changes, making them particularly vulnerable in the current economic climate.”
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