The number of UK companies falling into insolvency dropped sharply in June, offering a moment of respite for businesses after months of economic turbulence.
But experts have warned that the decline may be only temporary, with ongoing pressures threatening a renewed wave of financial distress later this year.
According to the Insolvency Service, there were 2,043 registered company insolvencies in England and Wales in June 2025, down 8% from May (2,230) and 16% lower than June 2024 (2,430).
The drop in insolvencies may ease some concerns over the health of the UK economy, which continues to grapple with rising inflation, tax pressures, and a fragile global backdrop. But figures for the first half of 2025 show that insolvencies…