The number of UK companies falling into insolvency dropped sharply in June, offering a moment of respite for businesses after months of economic turbulence.
But experts have warned that the decline may be only temporary, with ongoing pressures threatening a renewed wave of financial distress later this year.
According to the Insolvency Service, there were 2,043 registered company insolvencies in England and Wales in June 2025, down 8% from May (2,230) and 16% lower than June 2024 (2,430).
The drop in insolvencies may ease some concerns over the health of the UK economy, which continues to grapple with rising inflation, tax pressures, and a fragile global backdrop. But figures for the first half of 2025 show that insolvencies remain slightly higher than the second half of 2024, despite being below the 30-year annual high recorded in 2023.
In June, the breakdown of insolvency types included 1,585 creditors’ voluntary liquidations (CVLs), 332 compulsory liquidations, 111 administrations, and 15 company voluntary arrangements (CVAs). There were no receivership appointments.
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