Company Insolvencies Rise 8% in May Across England, Wales

Company insolvencies in England and Wales rose to 2,238 in May 2025, marking an 8% increase from April and a 15% rise compared to May 2024, reflecting the highest monthly total in 11 months. The increase has been largely attributed to the Labour government’s tax hikes implemented in April, including higher employer National Insurance contributions and an increased minimum wage, which have added to rising operating costs and pressured businesses, especially in sectors like construction and manufacturing. The majority of insolvencies were creditors’ voluntary liquidations, alongside compulsory liquidations, company administrations, and voluntary arrangements. Experts warn that these new economic challenges threaten business viability and likely signal a continuing trend of insolvencies as companies struggle with higher costs and cautious consumer sentiment amid a sluggish economic outlook. Despite the rise, insolvency rates remain significantly lower than the peak levels seen during the 2008-09 recession, partly due to the larger number of companies currently registered. Additionally, personal insolvencies also increased by 5% year-on-year in May, underscoring broader financial pressures.