Accountants are warning of a rise in insolvencies as the prospect of a recession looms and businesses struggle to recover from Covid.
Responding to recent data from The Insolvency Service, accountants Bath and elsewhere have expressed fears for the future for many businesses. The recent figures suggest that October alone saw 2,029 corporate insolvencies in England and Wales.
Rising Numbers
The October numbers showed a 1.7% increase in insolvencies compared to the 1,995 seen in September. More worryingly, figures for October 2025 were 16.7% higher than the same month a year before, when 1,739 corporate insolvencies were recorded.
Lack of Covid recovery
Accountants such as those at //chippendaleandclark.com/accountants-near-me/bath/ have seen a rise in liquidations, contributing to the boom in corporate insolvencies. Businesses have been closed due to a lack of funds or motivation of management and owners to continue, with many failing to ever recover adequately from the Covid pandemic.
Many businesses have also struggled for half a decade with political and economic uncertainty in Britain, compounded by creditor pressure, rising costs, and limits on spending. Soaring expenses and shrinking profits have left many hanging on by a thread or folding under the pressure.
Particular pressures
Accountants warn that businesses in the hospitality, retail and construction industries in particular will continue to struggle, largely due to cautious client and customer spending and increased costs. Employer NI and National Minimum Wage increases have also added to the issues being faced by many businesses, along with sluggish economic growth and rising unemployment.
