A report published by Allianz Trade predicts that higher wages, costs and tax challenges (such as the rise in National Insurance Contributions) are set to prolong high levels of insolvencies for UK businesses into 2027.
Although insolvencies are slowly stabilising after a 12-year high in 2024, by the end of 2025 nearly 28,000 businesses are expected to have become insolvent this year. The hardest-hit sectors include manufacturing, wholesale and agriculture, construction, retail and hospitality.
The UK is however faring better than many of its global counterparts where insolvencies are forecast to rise by 6 per cent in 2025 and 5 per cent in 2026.
The upcoming Autumn Budget 2025 is poised to be a critical moment for the UK government as it navigates many economic and social challenges. UK businesses will certainly hope that some relief is granted to them. However, the recent increase in employer National Insurance Contributions would suggest this may be optimistic.
For now, it seems that the high level of UK business insolvencies is unlikely to change any time soon.
Source: Allianz Trade Insolvency report https://www.allianz-trade.com/en_GB/newsroom/2025-allianz-trade-insolvency-rreport.html
………………………………………
Founded in 2011, Netchwood Finance specialise in insolvency and restructuring solutions.
Our team are all professionally qualified and have many years’ experience advising directors and individuals.
Contact us today for a free, confidential consultation – 0161 399 2985
Email: help@netchwood.co.uk
