The number of company insolvencies in the UK rose 7% month-on-month in March to 2,022, according to the Insolvency Service. The increase was driven by a surge in administrations, which jumped 52% from February to 235, and were 82% higher compared to March 2025. Compulsory liquidations rose 18%, while company voluntary arrangements (CVAs) doubled to 20.
Experts warn that rising costs from the Iran war and soaring wage bills are putting businesses under severe pressure. Fuel and energy costs have increased significantly, hitting sectors such as manufacturing. Renowned ceramics manufacturer Denby called in administrators late last month, citing sky-high energy prices as a key factor.
The Insolvency Service noted that administration figures were partly skewed by a one-off event, with over 100 connected companies in the real estate sector collapsing in March. However, Tom Russell, president of restructuring professionals trade group R3, said: “While it may be too early to see the full impact of the worsening economic situation in the formal insolvency statistics, energy and fuel costs have risen significantly, and for many businesses this has come at the same time as customers are becoming more cautious with their spending. That combination is extremely challenging, particularly for businesses with limited financial headroom.”
Fuel and transport costs, along with big increases in wage bills, are also seen as financial threats. Sarah Rayment, co-head of global restructuring at Kroll, said: “As we saw after the beginning of the Ukrainian conflict, when fuel prices surged, there was a direct impact on logistics, haulage and delivery businesses. There are already big companies saying that they will have no choice but to pass costs on to customers. It’s a lot more challenging for small and mid-sized companies and may sadly push many to the edge.”
