Overview

• The Insolvency Service recorded 2,081 company insolvencies in July in England and Wales, up 1% from June.
• Compulsory liquidations totaled 339, slightly above June, 11% higher than a year earlier and 26% above the 2024 monthly average.
• R3 said HMRC has taken a more assertive stance through the courts to recover unpaid taxes, which it links to the uptick in forced closures.
• Advisers cited higher employer national insurance and the national living wage, elevated interest rates and tight credit as intensifying liquidity pressures.
• Construction remained the most affected sector with 3,984 insolvencies in the 12 months to July (17%), followed by wholesale and retail (16%), while administrations ticked up year on year and 13 restructuring plans were registered.