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The October 2025 Stats Are In: Insolvencies Are Rising Again — What Does This Mean for You?
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After a brief period of stability, corporate insolvencies have begun to climb once more.
In October 2025, England and Wales recorded 2,029 company insolvencies —
🔺 2% higher than September 2025 (1,995)
🔺 17% higher than October 2024 (1,739)
While 2025 remains slightly above 2024 levels, activity is still below the 30-year high seen in 2023.
Breakdown of Insolvencies
- Compulsory liquidations: 301
Up 8% from September and above 2024 averages — showing creditors (including HMRC) are taking a firmer stance. - Creditors’ voluntary liquidations (CVLs): 1,592
Stable and still the dominant insolvency route, accounting for almost 80% of all cases. - Administrations: 119
Down from September. - Company voluntary arrangements (CVAs): 17
Flat month-on-month.
Construction Sector Breakdown
Total construction insolvencies: 436
(Up slightly from 421 in September, and broadly aligned with the 3-month range of 420–450)
Insolvency types within construction
- Creditors’ Voluntary Liquidations (CVLs): 333 cases (76%)
Smaller contractors and specialist trades continue to dominate failures, driven by cashflow compression and late payment culture. - Compulsory Liquidations: 71 cases (16%)
A steady rise through 2025, signalling tougher action from creditors — especially HMRC. - Administrations: 28 cases (6%)
Larger firms attempting rescue, restructuring, or pre-pack sales. - Company Voluntary Arrangements (CVAs): 4 cases (1%)
Still rare but used occasionally to secure breathing space.
Construction-Specific Trends You Need to Know
- Finishing trades, M&E, joinery, and fit-out contractors remain the most vulnerable — together accounting for almost half of October’s construction failures.
- Delayed payments continue to be one of the primary triggers of insolvency, particularly for subcontractors with projects that involve a high volume of materials.
- Inflation easing hasn’t translated to relief, as financing costs and retentions continue to pressure margins.
- Tender prices remain competitive, putting further strain on firms unable to absorb fluctuations.
- Civil engineering stays comparatively stable — fewer failures, larger firms, and more predictable pipelines.
Our Take — What Should You Do?
October’s figures confirm that construction remains one of the most distressed industries in the UK. Insolvencies have risen again, and pressures on subcontractors and specialist contractors are intensifying.
While national insolvency rates have softened slightly over the past year, the construction sector has not benefited from the same easing. Cashflow volatility and late payments continue to put contractors at risk.
The message remains clear: Stronger credit management, early risk detection, and tighter cashflow control are essential to protect your business.
Being proactive begins with understanding the risks specific to your customers, projects, and supply chain.
👉 If you’d like tailored strategies to safeguard your position and build resilience, our team is here to help.
