Company insolvencies climb in April as business pressures intensify

The number of registered company insolvencies in England and Wales rose again in April 2026, highlighting continuing pressure on businesses from inflation, weak consumer spending and wider market uncertainty.

According to the latest figures from The Insolvency Service, there were 2,085 registered company insolvencies in April 2026, up 2% from March 2026 and 3% higher than the same month last year.

The total included 371 compulsory liquidations, 1,510 creditors’ voluntary liquidations (CVLs), 183 administrations, 20 company voluntary arrangements (CVAs) and one receivership appointment.

Monthly company insolvencies by type, England and Wales, April 2021 to April 2026, seasonally adjusted

Compulsory liquidations were above the monthly average seen during 2025, while administrations increased sharply year-on-year, rising 78% compared with April 2025. The Insolvency Service noted that administration figures for March and April were affected by around 200 connected companies in the real estate sector entering administration during the period.

Over the 12 months to 30 April 2026, one in 193 companies on the Companies House register entered insolvency, equivalent to 51.8 per 10,000 companies. While this represented a slight improvement on the previous 12-month period, insolvency levels remain well above the lows recorded during 2020 and 2021.

“It’s no surprise that insolvencies have risen. Economic conditions, geopolitical disruption and market volatility continue to grind businesses down and the cost of living inevitably suppresses spending,” she said.

Garrett pointed to a combination of higher inflation, the risk of further interest rate rises, and disruption from artificial intelligence and changing business models as adding to the strain on companies.

She said retail and hospitality businesses were continuing to face significant pressure as consumer spending weakens, while the real estate sector is also showing signs of distress.

“There are also the potential vulnerabilities in private credit identified by the Bank of England,” she added.

Garrett noted that while some sectors, particularly services, had shown resilience in recent UK growth figures, no business was immune from current market conditions.

“Being in the wrong business cycle, or needing funding at an inopportune time, can create pinch points. It’s a simple equation, if overheads are higher than revenues, then the business loses money,” she said.

The figures also highlighted increased enforcement activity from HMRC, which Garrett said was becoming more active in administrations, winding-up petitions and voluntary liquidations.

“With less certainty in the market, HMRC is less predictable and so requires greater attention from firms,” she said, warning that changes in approach to enforcement and tax treatment could create additional risks for businesses already under pressure.

Garrett also said businesses and creditors were becoming increasingly willing to challenge counterparties as financial pressures intensify, with insolvency situations exposing more complex disputes and fraud-like behaviour.

Looking ahead, she warned that insolvency levels are likely to rise further in the coming months.

“The natural lag between statistics and the reality of the market right now means yet worse figures in the coming months is likely,” she said. “Rising insolvency levels for now are here to stay.”