Company insolvencies rise 7% to 2,022 in March

Company insolvencies in England and Wales increased in March 2026, underlining the ongoing strain facing UK businesses amid rising costs and economic uncertainty.

According to new figures today from The Insolvency Service, 2,022 companies entered insolvency during the month, a 7% rise on February’s total of 1,895 and broadly in line with the 1,995 recorded in March last year. The increase follows a quieter period over the previous four months and was largely driven by a spike in administrations, particularly among more than 100 connected companies in the real estate sector.

In March, the majority of cases were creditors’ voluntary liquidations, totalling 1,468, alongside 299 compulsory liquidations, 235 administrations and 20 company voluntary arrangements. Administrations saw the most notable movement, rising sharply both month-on-month and year-on-year, while compulsory liquidations reached their highest level since October 2025.

Looking at the longer-term trend, the overall insolvency rate remains relatively stable. In the 12 months to 31 March 2026, one in 194 companies entered insolvency, equivalent to 51.6 per 10,000 businesses. This is slightly down on the previous year and remains well below the levels seen during the 2008–09 financial crisis, when insolvencies peaked at 113.1 per 10,000 companies. However, rates are still higher than the lows recorded during the pandemic years.

Tom Russell, president of R3, the UK’s trade body for restructuring, turnaround and insolvency professionals, said the figures show that the impact of sharply rising fuel and energy costs is now feeding through into business and household distress.

“Just as business and consumer confidence was starting to improve, the economic fallout from the Middle East conflict, in particular higher fuel and energy prices, are putting a financial squeeze on UK businesses and households alike.

“While it may be too early to see the full impact of the worsening economic situation in the formal insolvency statistics, energy and fuel costs have risen significantly, and for many businesses this has come at the same time as customers are becoming more cautious with their spending. That combination is extremely challenging, particularly for businesses with limited financial headroom.

“At this stage, businesses can no longer assume that conditions will quickly return to normal. Many will need to start putting contingency plans in place.”

Commenting on the figures, Derek Ryan, CEO for North West Europe at Bibby Financial Services, said the data reflects the continued pressure on SMEs.

“The latest insolvency figures show how tough trading conditions remain for UK businesses. Bad debt, late payment and tight cashflow are already causing serious problems for many SMEs. Rising energy costs linked to the Iran conflict are likely to add further strain.”

He added that many businesses are operating with increasingly fragile cashflow, with UK SMEs now owed an average of £66,770 in unpaid invoices, up 10% on last year. For some, he warned, a single missed payment could be enough to push them into difficulty.