Azets warns of continued business pressure despite fall in insolvencies

Azets has warned that UK businesses remain under significant financial pressure despite a fall in corporate insolvencies last month.

The response from the business advisory group follows the release of official figures showing 1,882 corporate insolvencies in September 2026.

The figure is 4% fewer than in August, when 1,953 insolvencies were recorded, and 4.6% fewer than in September 2025 when the total stood at 1,973.

Monthly insolvencies in the first nine months of 2026 were also below the average of the preceding three years.

Creditors’ voluntary liquidations (CVLs) made up 1,420 of September’s cases.

There were 341 compulsory liquidations, 102 administrations and 19 company voluntary arrangements. No receiverships were recorded.

CVLs were similar to August and lower than in September 2025, while administrations were 44% lower than in August and 20% lower than in September 2025.

Commenting on the official figures, Azets Restructuring and Insolvency joint head Louise Brittain said: “September is typically when the true picture of the summer trading period emerges, and where business owners and management teams decide whether they can keep going or need to close the doors.

“With the holidays ending and court time capacity returning to its usual level, it is also a month where HMRC and other creditors resume chasing debts.

“The month-on-month fall in insolvencies is due to a fall in administrations – and numbers for those have been high of late due to more than 250 connected companies in the Real Estate sector entering administration between March and August of this year.”

Brittain added that compulsory liquidations rose for a fourth consecutive month to the second-highest figure this year with public and private sector creditors continuing to chase debts.

“Despite the monthly fall in insolvencies, this September marked the end of a chapter rather than a change of season for many businesses as the economic alarm bells continue to sound. Costs are still rising, profits are still shrinking and vacancies are at a 12-year low as many businesses simply can’t afford to hire,” Brittain added.

She added that businesses are looking to the Chancellor for relief in this month’s budget.