Company Insolvencies Edge Up In July 2026
Company insolvencies in England and Wales increased slightly in July 2026, with 1,931 companies entering formal insolvency such as administration or liquidation. This was 5% higher than in June 2026, but 5% lower than in July 2025. Creditors’ voluntary liquidations (CVLs) continued to make up the bulk of company insolvencies, accounting for 78% of all cases in July. The number of CVLs was 9% higher than in June, but remained 3% lower than in July 2025. Compulsory liquidations also increased slightly in July, rising by 4% compared with June, although they were 11% lower than in July 2025. Administrations fell sharply, dropping 33% compared with June and 19% compared with July 2025. This was mainly because June’s figures were affected by around 60 connected companies in the property sector entering administration. Administration numbers have been unusually volatile this year. Around 260 connected real estate companies entered administration across March, April and June, which has had a substantial impact on the headline totals. There were 22 company voluntary arrangements in July. This was 57% higher than in June and 83% higher than in July 2025, although CVA numbers remain very low by historical standards.What Is The Trend? Taken as a whole, the figures do not suggest that insolvencies are beginning to rise again. The 5% increase from June is within normal monthly variation and the total was still 5% lower than a year earlier. There are also some signs that insolvency volumes are easing compared with the very high levels seen in recent years. The average monthly number of CVLs during the first seven months of 2026 was 7% lower than the 2025 average, while compulsory liquidations were 6% lower. More broadly, average monthly company insolvencies during 2026 have been 6% lower than the monthly average recorded over the preceding three years. This has mainly been driven by lower numbers of CVLs. So, while insolvency levels remain high, the current picture looks more like a period of stabilisation than a renewed upward trend. The wider business environment has not changed significantly. Many companies continue to face pressure from employment costs, energy prices, borrowing costs, weak demand and historic debt. However, these pressures are not currently translating into a fresh surge in formal insolvencies. Our experience earlier in 2026 was that HMRC had increased enforcement activity against companies with tax debts that had been allowed to build up over a long period. This included winding-up petitions and greater use of enforcement officers. Such action can often become the immediate trigger for either a compulsory liquidation or for directors to place a company into creditors’ voluntary liquidation. For now, the July figures suggest that insolvency levels remain relatively stable, with some evidence that the very high levels of company liquidation seen in recent years are gradually beginning to come down.
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