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…

