Company Insolvency Statistics December 2025 – UK Business Failure Data

In December 2025, there were: 

• 1,671 company insolvencies in England and Wales 
• Down 10% from November 2025 
• Down 13% from December 2024 

Breakdown by procedure: 

Across the whole of 2025, there were: 

23,938 registered company insolvencies in England and Wales 

This consisted of: 

• 18,525 CVLs 
• 3,730 compulsory liquidations 
• 1,495 administrations 
• 186 CVAs 
• 2 receiverships 

• Insolvency levels in 2025 were similar to 2024 
• Compulsory liquidations rose to their highest level since 2012 
• CVLs remain near record highs 
• Administrations and CVAs both declined 

The past four years represent the highest four-year period for CVLs since records began in 1960. 

This tells us that more directors are being forced to make difficult decisions, either choosing to close their companies voluntarily or being pushed into liquidation by creditors. 

One of the most worrying trends is the sharp rise in compulsory liquidations. 

• Compulsory liquidations increased 15% year-on-year 
• They are now at their highest level since 2012 
• HMRC remains the single largest petitioning creditor 

This confirms what we see every day on our helpline:
creditors are now acting far more aggressively than during the pandemic period. 

Support measures have ended. Enforcement has returned. Patience has gone. 

Many directors are only discovering the seriousness of their position once a winding-up petition has already been issued. 

Despite a slight annual fall, Creditors’ Voluntary Liquidations still account for: 

77% of all company insolvencies 

This reflects a growing number of directors who are: 

• No longer able to trade profitably 
• Facing mounting HMRC arrears 
• Struggling with legacy Bounce Back Loans 
• Under pressure from suppliers and landlords 

A CVL remains the most common and often the most responsible way for directors to deal with an insolvent company. 

In 2025: 

• Administrations fell by 6% 
• CVAs fell by 8% 

Rescue procedures remain underused, largely due to: 

• High interest rates 
• Weak consumer demand 
• Tight credit markets 
• Landlords refusing rent concessions 
• HMRC opposition to CVAs 

For many businesses, turnaround options are simply no longer viable. 

1. Construction – 3,950 insolvencies (17%) 
2. Wholesale & Retail – 3,773 (16%) 
3. Hospitality & Food Services – 3,372 (14%) 
4. Admin & Support Services – 2,451 (10%) 
5. Professional & Technical – 1,983 (8%) Manufacturing – 1,970 (8%) 

These sectors continue to suffer from: 

• Rising wage costs 
• Energy prices 
• Weak consumer demand 
• Higher borrowing costs 
• Falling margins 

Construction and hospitality remain the most exposed industries in the UK economy. 

Scotland 

• 1,272 company insolvencies in 2025 
• December 2025 up 35% vs December 2024 
• Insolvency rate: 52.3 per 10,000 companies 

Northern Ireland 

• 351 company insolvencies in 2025 
• Up 15% year-on-year 
• Insolvency rate rose sharply to 42.6 per 10,000 companies 

Northern Ireland saw a particularly sharp rise in compulsory liquidations, confirming the return of creditor enforcement. 

The December 2025 insolvency figures show a short-term slowdown, but the wider picture is clear: 

• Insolvency remains at recession-level volumes 
• Creditor enforcement is accelerating 
• HMRC is driving record liquidations 
• Directors are running out of time to act 

If your business is struggling with: 

• HMRC arrears 
• Bounce Back Loan repayments 
• County Court Judgments 
• Winding-up threats 
• Cashflow pressure 
• Personal guarantees 

Then early advice is critical. 

The earlier you act, the more options you preserve. 

At Business Helpline, we provide: 

• Free, same-day advice 
• Confidential consultations 
• Licensed insolvency practitioners 
• Clear, unbiased guidance 
• Support across CVLs, administrations, CVAs and restructures 

We help directors understand their position before creditors take control of the process. 

Speak to a Licensed Insolvency Advisor Today 

If your company is under pressure, don’t wait until a petition arrives. 

📞 Free 24-hour helpline: 0800 088 2142
💬 Or book a confidential consultation online