UK businesses continued to face intense financial pressure throughout 2025, with 28,616 insolvency activities recorded, while start-ups declined, according to a new report from R3.
While corporate insolvency-related activities – including administration and voluntary and compulsory liquidations, eased slightly compared with 2024, when there were 29,366 instances, they remain significantly above pre-pandemic norms, reflecting a fragile operating environment for many businesses.
Tom Russell, President of R3, the trade body for restructuring, turnaround and insolvency professionals, said, “2025 was a year in which UK businesses struggled to regain their footing after several years of economic challenges.
While inflation has eased, the cumulative impact of higher costs, tighter credit conditions and weak demand continues to place significant pressure on cashflow, particularly for smaller and mid-sized firms with limited financial headroom.”
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