Home / Insolvency numbers stabilise, but the pressure is far from over…
28th July 2026
Dermot Preston, Senior Lawyer
The company insolvency figures for June 2026 offer a degree of cautious relief. But scratch beneath the surface, and the picture facing businesses and individuals remains as challenging as it has been for some time.
There were 1,845 company insolvencies in England and Wales in June 2026, broadly similar to May and 10% lower than the same month last year. The breakdown consists of 1,364 creditors’ voluntary liquidations, 276 compulsory liquidations, 191 administrations, and 14 company voluntary arrangements. The administration figure stands out, up 45% on May, though this is largely explained by around 60 connected companies in the real estate sector entering administration during the month, a continuing ripple effect from the collapse of mortgage provider Market Financial Solutions.
The broader context is less encouraging. R3, the trade body for insolvency professionals, welcomed the stabilisation in company numbers but drew attention to the personal insolvency figures, which tell a different story. Personal insolvencies rose 5% in June to 11,871 cases, 16% higher than June last year. With the energy price cap having risen 13% in July and reports that workers are cutting back on pension contributions just to cover everyday costs, the squeeze on household finances is real and getting tighter.
For the hospitality sector specifically, accommodation and food services has recorded the highest business insolvency rate consistently for the past decade; a pattern that points to deep structural pressures rather than a short-term blip. There are reasons for cautious optimism. The summer heatwave and the World Cup have provided a welcome boost for pubs and restaurants, and Andy Burnham announced on 23 July that business rates will be cut by 20% for pubs, clubs and live music venues across England from April 2027, a measure expected to benefit nearly 32,000 hospitality businesses.
The announcement has been welcomed by much of the sector, though restaurants and hotels have raised concerns that the relief does not extend to them. For businesses not covered by the cut, cost pressures show little sign of easing.
The message from insolvency professionals is consistent: the earlier advice is taken, the more options remain available. Whether you are a director watching margins tighten, a creditor with outstanding debts, or a landlord dealing with a tenant in financial difficulty, waiting rarely improves the position.
Our teams across commercial litigation, corporate, and commercial property advise on exactly these situations. If you are concerned about your business’ position, it is worth having that conversation sooner rather than later. Get in touch with our restructuring and insolvency team on 0161 832 3434, or at [email protected].
Contributors: Sean Sloane