Continuing high levels of corporate insolvencies in England and Wales indicate a sense of ‘stable stress’ across the local economy, with latest figures highlighting only a marginal decrease in numbers.
This is according to the Midlands branch of the UK’s restructuring, turnaround and insolvency trade body R3 and comes on the back of new statistics published by the Insolvency Service which show that corporate insolvencies decreased by 2% in September to a total of 2,000 compared to the previous month. There was also a marginal fall in August of 1.7% against July’s total of 2,083.
R3 Midlands chair Stephen Rome, a partner at law firm Penningtons Manches Cooper in the region, said: “We may be seeing some small decreases in insolvency levels, but activity remains high, impacting heavily on businesses and households alike.
“With the November budget around the corner, many business leaders are nervous about what lies ahead and are putting off making major recruitment or investment decisions. They will be hoping that the Chancellor introduces confidence building measures to encourage investment, recruitment and expansion rather than further increasing the tax burden and worsening cashflow problems.
“Ongoing challenges such as higher energy and materials costs, cautious consumer demand and creditor pressure have combined with slower than anticipated reductions in the cost of borrowing to leave some businesses fighting hard to stay afloat.
“This pressure is reflected in the latest Office for National Statistics data, which revealed that around one in six [17%] trading businesses reported having no cash reserves in late September 2025 – the highest proportion since the question was introduced in June 2020.
“This is deeply concerning, as a lack of cash reserves leaves businesses particularly vulnerable to even small financial shocks, such as a bad debt or loss of a customer, challenges which they might previously have been able to weather. It suggests insolvency activity is likely to stay at the current level for some time.
“R3’s message to businesses and individuals, therefore, remains the same: seek advice from a regulated professional at the first signs of financial distress. Taking action early gives you more time, more options and a greater chance of achieving a positive outcome.”
