The number of businesses going bust surged by 17% last month, with experts warning insolvencies could become more “common” as firms grapple with rising costs and economic uncertainty.
There were 2,029 company insolvencies in England and Wales in October, according to official data from the Insolvency Service.
This was 2% more than in September, and a 17% jump compared with the same month a year ago.
The number of firms falling into administration was also nearly a fifth higher than last year, signalling a rise in larger firms facing distress.
Monthly company insolvencies have so far been higher in 2025 than in 2024, according to the data.
Experts said the figures indicate that more businesses are being threatened by cost challenges and the ongoing effects of lower consumer confidence.
It also comes at a time of heightened economic uncertainty as firms await new tax measures in the upcoming autumn Budget.
Simon Edel, financial restructuring partner at EY-Parthenon, warned of more insolvencies on the horizon.
He said the October figures were the “latest signals of the enduring effects of ongoing economic, policy, geopolitical and earnings pressures that businesses are having to content with”.
“Many firms are still struggling to offset higher employment costs,” he said, and were “now bracing themselves for what could be another difficult autumn Budget”.
“Since the 2008 global financial crisis, insolvency has played less of a role in complex restructurings.
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“However, with persistent economic uncertainty, rising distress, and challenges like liquidity constraints and value erosion, we expect it to become more common as companies and stakeholders seek ways to protect value.”
Mark Ford, partner in the restructuring at recovery team at S&W, also cautioned of a “steady stream” of firms going bust in the winter months.
He said: “Businesses are still facing challenges that threaten their viability and means we are likely to continue to see a steady stream of company insolvencies in the coming months.
“Higher costs resulting from increases to employer national insurance contributions, the minimum wage and business rates are all heaping considerable pressure on businesses, particularly those that feel they are unable to increase prices for fear of losing customers.”
Meanwhile, the Insolvency Service’s data also showed a 14% year on year increase in personal insolvencies last month.
Some 10,552 individuals entered insolvency in England and Wales in October.
This was made up of 3,846 debt relief orders, 599 bankruptcies and 6,107 individual voluntary arrangements.
