Fran Henshaw, North West Chair of R3, the UK’s restructuring, turnaround and insolvency trade body, says: 

“The number of corporate insolvencies fell in June, reaching their lowest level for this month since 2022. The yearly decline has been driven by a drop in the number of Creditors’ Voluntary Liquidations (CVLs) and Administrations, alongside a slight fall in Company Voluntary Arrangements (CVAs). Whilst a single month of data does not indicate a long-term trend, it may signal that some directors are holding back from taking formal action for now, either due to improvements in trading conditions or in the hope that the summer months bring a significant boost. 

“Compulsory Liquidations, however, have risen compared to June last year and remain significantly above pre-pandemic levels. This reflects a growing willingness among creditors to pursue debts through the courts - led by HMRC, which continues to take a more assertive approach to recovering money for the public purse. 

“Whilst a fall in formal corporate insolvencies is welcome, the broader economic mood remains subdued. Businesses and households alike are low in confidence and as a result key decisions are on hold as a ‘wait and see’ attitude is adopted. With GDP growth declining for the second month in a row in May and unemployment levels recently increasing, it remains to be seen whether this negative economic trend will continue. 

“Uncertainty around tariffs continue to be a concern. Whilst the recent UK-US trade agreement is a welcome development for some exporters, it is not a transformative deal for the wider economy. Speculation about tax increases in the autumn is also adding to the sense of uncertainty. For business owners trying to plan, hire and invest, not knowing whether or when further cost increases are coming makes decision-making far more difficult. Many feel stuck in limbo - unable to move forward confidently without a clearer view of what lies ahead.” 

Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “Looking at the personal insolvency statistics, the data shows a rise to their highest level since September last year. While the total is slightly down compared to last June - due to falls in Bankruptcies and Debt Relief Orders (DROs) - Individual Voluntary Arrangements (IVAs) have increased slightly over the same period. Add to this that the number of people entering a Breathing Space scheme has risen by 10% year-on-year, it becomes clear that many are feeling unable to manage their finances without formal support - even if only on a temporary basis. 

“For many households, the financial pressures caused by price increases in the spring are still being felt. In April alone, almost every essential bill increased, from water and council tax to gas, electricity, phone, and broadband. Inflation remains above target, and combined with already high costs for food, housing and everyday living, this wave of increases has left many households struggling. 

“Wage growth has slowed, making it even harder to unlock spending or restore confidence at a time when many households are already feeling the pressure of elevated living costs. Like businesses, consumers are waiting for greater clarity before making big financial decisions, and that cautiousness is feeding through into broader economic activity. 

“For anyone in the North West who is worried about their finances, my message remains the same: seek advice at the earliest opportunity. Talking about your concerns while they are still fresh gives you more options and more time to make an informed decision than if you had waited for the situation to spiral.”