UK insolvency trends 2026 – latest updates

Restructuring and Insolvency team

A comparative review of the UK insolvency data for July 2025 and July 2026 provides a powerful insight into the current UK restructuring landscape. While total insolvency appointments fell by 8% year-on-year to 2,108 cases, the headline decline masks a more significant shift in the nature of distress facing UK businesses.

The most notable trend is the continued increase in administrations and CVAs, which rose to 146 appointments in July and are running 120 cases ahead of the same period in 2025 on a year-to-date basis. At the same time, creditors’ voluntary liquidations and other routine insolvency procedures have fallen. This suggests a market where fewer businesses are simply closing their doors, but a greater proportion are entering more complex restructuring processes requiring active stakeholder engagement and rescue planning, such as CVAs.

Sector data reinforces this theme. Although the food and beverage sector remain the largest insolvency category, areas such as building construction, real estate, financial services, manufacturing and education have seen increased insolvency activity compared with 2025. The prominence of construction and property related cases reflects ongoing pressures in this sector.

The decline in overall appointment numbers may therefore be less significant than the growing prevalence of restructuring led solutions such as CVAs and formal restructuring plans. This is a trend that may continue in 2026 as businesses navigate a challenging economic environment.

Dermot Preston, senior solicitor at Kuits, says; “These statistics do confirm our own recent experiences and are confirmed anecdotally by Insolvency Practitioners and Agents locally. It is likely that this trend will continue, at least in the short term”

For insolvency practitioners, lenders and investors, the key takeaway is that distress has not disappeared. If you would like any restructuring or insolvency support, contact our team at [email protected] or call 0161 832 3434.