Glimmer of hope for businesses says R3 as insolvencies fall

Corporate insolvencies fell by 8% to 1,866 in November 2025, compared to the October figure of 2,034. They were also down by 7% compared to the November 2024 figure of 2,001 and by 18% compared to November 2023’s 2,273 figure.

Jodie Wildridge, deputy chair of the UK’s insolvency and restructuring trade body R3 in Yorkshire and a barrister at Exchange Chambers in Leeds, said: “Considered alongside a drop in the inflation rate to 3.2% and the recent cut in the interest rate to 3.75%, the fall in corporate insolvencies may give a glimmer of hope to struggling businesses in the run up to Christmas and offer business owners some cautious optimism that conditions may begin to improve next year.

“That said, company insolvency levels remain stubbornly high compared to five years ago, reflecting difficult trading conditions. In addition, the unemployment rate has reached a near six-year high of 5.1% as employers have been delaying recruitment and investment decisions. Sustained progress on inflation and employment will be key to restoring confidence in the long term.

“For hospitality businesses especially, the next few weeks could make or break their business. Many face a sharp drop-off in trade after festivities end with January bringing cashflow pressures caused by the rent quarter and potentially larger supplier, VAT and payroll tax payments reflecting a busy December. Our members typically see an increase in enquiries and distress calls from this sector early in the New Year.

“Retailers also face post-Christmas challenges, including high levels of returned goods at a time when wages and other costs still have to be met.”

She added: “R3 members remain committed to supporting businesses and individuals through these challenges and to advocating for practical solutions that help ensure long term economic resilience.”