EY comments on Insolvency Service July 2025 company insolvency data

Simon Edel, UK Turnaround and Restructuring Strategy Partner at EY-Parthenon, said: “Alongside the latest company insolvency data, we note there has been a significant rise in the number of restructuring plans, with more sanctioned plans in July (13) than throughout the entirety of 2024 (nine). 

“There has also been a 24% increase in administration activity compared to June, which is 5% higher than July 2024. The month-on-month rises in insolvency activity and Creditors’ Voluntary Liquidations (CVLs) last month – while small – are a further indication that companies continue to be challenged by relentless uncertainty, as geopolitical tensions and recent policy shifts hit business confidence, delaying decision-making and dampening spending. 

“In addition to formal restructuring processes, our recent Restructuring Pulse survey revealed an increase in consensual restructuring transactions to save businesses.

“Many businesses are also contending with higher costs including recent increases to employer National Insurance Contributions and the National Living Wage. With interest rates still relatively high – alongside significant working capital demands and a constrained credit environment – liquidity pressures are intensifying for more UK companies. This is causing more businesses and stakeholders to call time. 

“In the weeks and months ahead, companies should remain focused on strengthening liquidity to ease debt pressures. They need to demonstrate a reliable and measured scenario-based forecasting approach, alongside a robust trading performance, to build stakeholder confidence and avoid facing any difficulties when it comes to refinancing.”