- Corporate insolvencies increased by 2% in October 2025 to 2,029 compared to the September 2025 figure of 1,995.
- Corporate insolvencies increased by 17% compared to the October 2024 figure of 1,739 but were down by 11% compared to the October 2023 figure of 2,284.
- Personal insolvencies decreased by 4% in October 2025 to a total of 10,552 compared to the September 2025 figure of 11,030.
- Personal insolvencies increased by 14% compared to the October 2024 figure of 9,273 and were up by 12% compared to the October 2023 figure of 9,429.
Struggling businesses will be hoping for measures that boost economic activity in next week’s Budget, R3 said, as it responded to the publication of the latest corporate and personal insolvency statistics.
Commenting on October 2025’s monthly insolvency statistics for England and Wales, Tom Russell, President of R3, the UK’s restructuring, turnaround and insolvency trade body, said: “Corporate insolvencies have increased by 2% in October 2025 compared to September and are also up by 17% on the same month last year. However, they are down by 11% compared to October 2023, which saw 30-year high annual numbers of insolvencies. The 8% increase in compulsory liquidations compared to September 2025 indicates that creditors, including HMRC, are being more aggressive in enforcing debts.
“Today’s increase in insolvencies continues a concerning trend. The figures are being published against a background of economic uncertainty with businesses and consumers alike delaying major financial decisions until they can assess the outcome of next week’s Budget. This hesitancy is creating a sense of stagnation, with business owners looking to the Chancellor for measures that boost growth and spending.
“The pressure on businesses remains considerable as shown by a number of high-profile insolvencies announced over the past few weeks including Pizza Hut, Tomato Energy, Sheffield Wednesday FC and Petrofac. For every failing business that hits the headlines, there are hundreds of small and medium size businesses struggling for their survival.
“Last week’s increase in unemployment to 5% indicates businesses are having to make difficult decisions about hiring and potentially, redundancy. With GDP growth also stagnant at 0.1% last quarter, business owners are contending with a difficult trading environment with higher employment, energy and materials costs. At the same time, creditors are becoming more proactive in forcing debts, borrowing costs remain elevated and consumer spending is subdued. These challenges underpin today’s insolvency rates and underline the need for positive, growth-focused measures in the Budget.
“Sector-specific pressures are also evident. Retailers are contending with weaker sales as consumers hold off for Black Friday discounts and save for the festive period. The British Retail Consortium has reported lower high street footfall amid fragile consumer confidence. For many retailers, the upcoming festive trading season will be pivotal, and they’ll be hoping for measures such as business rates reform and investor incentives to help stabilise their outlook.”
Tom Russell, who is also a licensed insolvency practitioner and director at James Cowper Kreston, added:
“Personal insolvency rates, while slightly down in October, compared to the previous month but increased compared to the previous two years. With one in 403 adults in England and Wales entering insolvency over the past year compared to one in 427 in the year to October 2024, the continued pressure of high living costs are all too evident. Debt Relief Orders were lower than the record levels seen in August 2025 but remain historically high, while Individual Voluntary Arrangements have also risen on average compared to the first half of this year.
“Cost of living pressures continue to weigh heavily on households, with inflation still high and essentials such as food and energy remaining expensive. Many people struggling to cover day-to-day expenses have few options beyond taking on unsustainable levels of debt.
“Another factor is the recently passed Renters Rights Bill, which, while providing welcome protections for tenants, may also increase regulatory costs for landlords, potentially leading to higher rents. With tenants already spending over a third of their income on rent on average, any rise could directly impact future personal insolvency rates.
“Whatever the Budget brings, R3 members remain committed to supporting and advocating for practical solutions that help businesses and individuals navigate these challenges. The profession plays a vital role in the economy, and today’s figures highlight just how important that role is in periods of uncertainty.”
