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Company insolvency statistics - March 25

ended 25. April 2025

The number of registered company insolvencies in England and Wales was 1,992 in March 2025, 2% lower than in February 2025 (2,032) but 9% higher than the same month in the previous year (1,826 in March 2024), according to official data published this morning. Other key points below. Any thoughts send them across ASAP.

  •  Company insolvencies over the past 12 months have been slightly lower than in 2023, which saw a 30-year high annual number, but have remained high relative to historical levels.
  • Company insolvencies in March 2025 consisted of 295 compulsory liquidations, 1,543 creditors’ voluntary liquidations (CVLs), 137 administrations and 17 company voluntary arrangements (CVAs). There were no receivership appointments. The number of compulsory liquidations was 24% lower than the 10-year high seen in February 2025, but remained higher than both March 2024 and the 2024 monthly average. The number of CVLs in March 2025 was similar to both February 2025 and the 2024 monthly average. Administrations and CVAs were higher than in February 2025.
  • One in 188 companies on the Companies House effective register (at a rate of 53.1 per 10,000 companies) entered insolvency between 1 April 2024 and 31 March 2025. This was a decrease from the 55.8 per 10,000 companies that entered insolvency in the 12 months ending 31 March 2024. Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.
  • While the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. This is because the number of companies on the effective register has more than doubled over this period.

3 responses from the Newspage community

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Tony Redondo
Founder at Cosmos Currency Exchange
Company insolvencies are up 9% in the 12 months to March 2025 to hit a total nearing past crises, before the NICs and other tax increases kicked in this month so it’s hard to see how next year’s figures are not going to set a new unwanted record. Economic pressures including an inflation rate expected to hit 3.7% later this year; Trump’s tariffs and flat GDP hit all economic sectors hard. Systemic issues like wage stagnation and rising costs underscore the need for structural reforms beyond temporary creditor relief to address these persistent economic challenges. Current measures fall seriously short.
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Patricia McGirr
Founder at Repossession Rescue Network
The real question is how many more ‘resilient’ businesses need to vanish before someone admits the economy is quietly cannibalising itself. Nearly 2,000 companies went under in March and we are supposed to celebrate because it is 2% less than February. Behave. Insolvencies are still higher than last year and businesses are dropping like flies. The sheer number of CVLs shows directors are walking away before creditors force their hand. Administrations are not a lifeline, they are last rites. We are nowhere near 2008 levels, but tell that to the one in 188 companies that disappeared this year. Politicians will talk about stability while entrepreneurs are fighting to keep the lights on. We need small businesses to thrive if our economy isn't to implode.
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Keith Budden
Managing Director at Ensurety
While on the face of it, the drop in the number of insolvencies should be welcomed, I'm also reminded of the saying "A poor politician uses statistics like a drunk uses a lamppost - for support rather than enlightenment". If instead of these statistics I look at the view from business gathered from discussions with my clients and at business networking meetings, there is currently a dangerous state of hiatus - companies may not be insolvent, but they are not confident enough to spend on projects either, it is also common that 30 day payment terms are now strecthing to 60 or even 90 days.

The longer term effect of this? Those businesses which are waiting for "that great project they've proposed to a potential client" but has not yet become an order, will burn through their reserves and the long term trend of insolvencies will still be upward.

The business world needs stability, currently the political world is not delivering it.