Azets

September 2025 insolvency statistics for England and Wales, Azets response

• There were 2,000 corporate insolvencies in September 2025 [gov.uk] – 2.2% fewer than August 2025 (2,046) and 1.7% more than September 2024 (1,967).

Richard Oddy, a partner, licensed insolvency practitioner and business restructuring, turnaround and rescue expert at international accountancy and business advisory group Azets, who is based in Yorkshire, says: 

“Liquidations have driven the year-on-year increase in corporate insolvencies as a greater number of businesses face enforced or chosen closure and fewer are in a position to be rescued than they were 12 months ago. Compulsory Liquidations and Creditors’ Voluntary Liquidations are higher than they were in September 2024 and Administration numbers have fallen since this time last year.

“Without question, costs continue to be the biggest driver of corporate insolvencies. Businesses have had almost five years of dealing with rising expenses, COVID-driven debt, uncontrollable inflation and a series of economic and geopolitical issues – all of which have hit margins, clients’ willingness to spend, and access to finance.

“On top of this, creditor pressure has increased as businesses in the private sector follow HMRC’s assertive stance on chasing down debts and issuing winding-up petitions. While HMRC’s approach is rooted in a desire to recover money for the Treasury, private sector creditors are driven by a battle to balance their own books and meet their own payment commitments in the turbulent business climate.”

“While our SME clients remain resilient due to their directors’ closeness to the coalface and willingness and ability to act quickly, we’re seeing and hearing reports of a number of fundamentally sound businesses seeking support or entering insolvency processes. Many of these businesses wouldn’t have been in this position before the pandemic, and this shows the toll the last five years has taken on firms across the UK.

“Given the ongoing issues faced by the business community – issues which can’t and won’t be resolved overnight – and the increase in operating costs associated with the winter months, it’s likely that insolvency numbers will rise in the run-up to Christmas.

“Looking at the market more widely, worries about expenses and the health of the economy remain front of mind for many directors. There’s no denying that the changes to Employer National Insurance have increased costs for businesses and these have all had a negative effect on profits, pay, and growth, and, in many cases, have led to firms increasing their prices as they finally ran out of road after years of absorbing costs.

“Businesses are also worried about the economy and the ongoing impact of tax burdens on their ability to break even. With the Budget very much on the horizon, firms up and down the country are praying that the Chancellor won’t introduce measures that will increase costs even further. If she does, it’s likely corporate insolvencies will rise further.”

Richard, who is based in Azets’ Leeds office in King Street, added: “Anyone in Yorkshire worried about their finances should seek advice as soon as possible. It’s an incredibly difficult conversation to have, but doing so when your problems are at an early stage gives you more options and a better chance of addressing your issues than if you’d waited till the problem became more serious. If you’ve started to have problems paying staff, taxes or invoices or if stock is starting to mount up, that’s the time to speak to an advisor and explore your options.”