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The number of businesses insolvent increased by 17% last month, with experts warning that bankruptcies could become more “common” as companies grapple with rising costs and economic uncertainty.
2,029 companies were bankrupt in this England And wales In October, according to official data insolvency service,
That was 2% higher than September, and 17% higher than the same month a year earlier.
The number of companies going into administration was also almost a fifth higher than the previous year, indicating an increase in larger companies facing crisis.
According to the data, so far the monthly company bankruptcies in 2025 have been higher than in 2024.
experts Data indicate that more businesses are being threatened by cost challenges and the ongoing effects of low consumer confidence.
It also comes at a time of growing economic uncertainty as companies await new tax measures in the upcoming autumn budget.
Simon Edel, financial restructuring partner at EY-Parthenon, warned of more bankruptcies in the future.
He said the October figures were “the latest sign of the lasting effects of the ongoing economic, policy, geopolitical and earnings pressures that businesses are having to contend with”.
“Many companies are still struggling to recoup higher employment costs,” he said, and “they are now bracing themselves for another tough autumn budget”.
“Since the 2008 global financial crisis, bankruptcy has played a lesser role in complex restructurings.
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“However, with continued economic uncertainty, growing distress and challenges such as liquidity shortages and value erosion, we expect this to become more common as companies and stakeholders look for ways to protect value.”
Mark Ford, a partner in the restructuring recovery team at S&W, also warned of a “steady flow” of companies closing over the winter months.
He said: “Businesses still face challenges that threaten their viability and this means we are likely to see a steady stream of company bankruptcies in the coming months.
“Higher costs as a result of increases in employer national insurance contributions, minimum wages and business rates are placing considerable pressure on all businesses, particularly those who feel they are unable to raise prices for fear of losing customers.”
Meanwhile, data from the Insolvency Service last month showed a 14% year-on-year rise in personal insolvencies.
Some 10,552 individuals became bankrupt in England and Wales in October.
This was made up of 3,846 debt relief orders, 599 bankruptcies and 6,107 individual voluntary arrangements.