UK company insolvencies fall 5% in September

Company insolvencies in England and Wales fell by 5% in September 2026 compared with the same month last year, according to the latest figures from the Insolvency Service.

There were 1,882 registered company insolvencies during September, down 4% from 1,953 in August and 5% from 1,973 in September 2025.

The figures continue a trend of lower insolvency levels during 2026, with monthly totals for the first nine months of the year remaining below the average recorded over the preceding three years.

Of the insolvencies registered in September, 1,420 were creditors’ voluntary liquidations (CVLs), 341 were compulsory liquidations, 102 were administrations and 19 were company voluntary arrangements (CVAs). There were no receivership appointments.

While the number of CVLs remained broadly unchanged from August and was lower than a year earlier, compulsory liquidations increased compared with both periods.

Administrations fell particularly sharply, declining 44% month-on-month and 20% year-on-year. However, the Insolvency Service noted that administration figures have been volatile in recent months, partly due to more than 250 connected companies in the real estate sector entering administration between March and August 2026.

The latest figures also show an improvement in the longer-term company insolvency rate.

In the 12 months to 30 September 2026, approximately one in every 200 companies entered insolvency, equivalent to 49.9 per 10,000 companies.

This compares with 52.8 per 10,000 companies in the preceding 12-month period.

Although insolvency rates have increased from the historically low levels recorded during 2020 and 2021, they remain substantially below the peak of 113.1 per 10,000 companies seen during the 2008–09 financial crisis.

The Insolvency Service noted that the number of companies on the effective register has more than doubled since that period, influencing comparisons of insolvency rates over time.

“Although the official line on the UK’s economic outlook has tended to be fairly gloomy, the decline in company insolvencies revealed by today’s statistics suggests that at least some of this pessimism is misplaced.”

Garrett highlighted several potentially positive economic developments, including improved growth forecasts, stronger tax receipts and signs of increasing productivity.

She also suggested that consumer spending over the summer and improving confidence may have contributed to the reduction in business failures.

However, Garrett warned that businesses continue to face significant risks from rising operating costs and wider economic pressures.

“The good news of increased confidence and fewer insolvencies does need to be tempered by some more concerning trends. The flows of global trade remain vulnerable to disruption and material prices, particularly fuel for energy, are being driven up which may ultimately have a knock-on effect.”

She also pointed to rising credit card defaults and the potential for inflation to exceed 3% in the coming months, raising concerns about the sustainability of consumer spending.

The latest insolvency figures suggest that business failures are easing, although continued pressure from energy costs, inflation and economic uncertainty could present challenges for companies in the months ahead.