The July 2025 Stats are in: Insolvencies have plateaued across the board. What does this mean for you?

Published on 19^th August 2025

The latest insolvency figures are in, and after an overall decrease last month, insolvencies have now plateaued.

In July 2025, 2,081 companies across England and Wales became insolvent compared to :

2,053 in June

2,078 in July 2024

Breakdown of insolvencies (July 2025)

• Compulsory liquidations: 339 (slightly higher than June and 2024 averages)
• Creditors’ voluntary liquidations (CVLs): 1,583 (stable compared to June and the 18-month average)
• Administrations: 147 (higher than June)
• Company voluntary arrangements (CVAs): 12 (lower than June)

 Key Trends (Aug 2024 – Jul 2025)

• Insolvency rate: 52.5 per 10,000 companies (1 in 190) – down slightly from 56.6 per 10,000 a year earlier.
• While numbers are lower than the 30-year peak in 2023, insolvencies remain elevated compared to pre-pandemic norms.
• Construction, retail, and professional services have consistently ranked as the top 3 most affected sectors in the past 12 months.
• Insolvency risk is most acute in sectors with high competition, tight margins, and exposure to economic cycles. Construction remains the standout area of concern, followed by retail and professional services.

The construction sector continues to be one of the hardest-hit industries for company insolvencies. According to the latest figures:

July 2025 Overview

• Total construction insolvencies: 427 cases in July
• This is slightly lower than June (447) but broadly in line with May (429).
• The sector consistently accounts for one of the highest shares of monthly company insolvencies across all industries.

Construction Insolvencies by Type

• Creditors’ Voluntary Liquidations (CVLs): 325 cases (76%)
  • By far the most common route, reflecting subcontractors and SMEs winding up after unsustainable financial strain.
• Compulsory Liquidations: 68 cases (16%)
  • Rising trend compared to 2024, showing creditors (including HMRC) are more aggressively pursuing unpaid debts.
    
• Administrations: 30 cases (7%)
  • Typically, larger or mid-tier contractors are attempting restructuring or business sales while continuing some operations.
    
• Company Voluntary Arrangements (CVAs): 4 cases (1%)
  • Rare in construction, but occasionally used by firms seeking an agreement with creditors to continue trading.

 Trend over the last 3 months

• May 2025: 429 insolvencies
• June 2025: 447 insolvencies
• July 2025: 427 insolvencies

While numbers remain volatile month to month, construction insolvencies have held steady around the 430–450 range, showing little sign of easing.

Key Insights

• Specialised trades (finishing, M&E, and fit-out contractors) remain the most vulnerable part of the supply chain, representing nearly half of all construction insolvencies.
• Civil engineering is comparatively stable, with consistently low insolvency numbers.
• Insolvency volumes are still high compared with pre-pandemic levels, underlining the ongoing financial strain across the sector from inflation, interest rates, and delayed payments.

Our Take – What Should You Do?

The July 2025 insolvency figures underline that construction remains one of the hardest-hit industries. Over 400 companies failed last month alone, with specialist trades such as plumbing, electrical, and finishing contractors most exposed.

While overall UK insolvency rates have eased slightly from last year, construction insolvencies have held stubbornly high for three months in a row. Subcontractors in particular face rising costs, late payments, and tight margins that leave little room to absorb financial shocks.

The message is clear: cashflow control, stronger credit management, and fairer payment practices are essential if the sector is to weather these pressures and protect its supply chain.

It’s time to be proactive, and that starts with information specific to your business.

👉 If you’d like to explore strategies to safeguard your business and strengthen resilience, get in touch with our team today.