Insolvency levels stabilise as businesses hope for World Cup bounce, R3 says
A fall in corporate insolvencies provided some welcome respite for businesses last month, with the prospect of a World Cup bounce to come.
This is according to the Eastern chair of R3, the UK’s restructuring, turnaround and insolvency association, and comes of the back of new statistics published by the government’s Insolvency Service. The statistics show that corporate insolvencies in England and Wales decreased by 10% in May to 1,868 compared to the April’s figures. May’s figure was also 16% down on the same month in 2025.
At the same time, a review of the last ten years of Insolvency Service data, shows that in 2025, the East of England had the fourth lowest rates of business insolvency in England and Wales, with 111 insolvencies per 10,000 businesses. In total, 2,380 businesses became insolvent in the region last year.
The regions with the highest rates of insolvency were the North East (143), North West (136) and Yorkshire and the Humber (136). Meanwhile, the areas with the lowest rates were the South West (105) and South East (108).
Hayley Watson, R3 Eastern chair and an appointment-taking director at FRP Advisory in Norwich, said:
“It’s welcome news that corporate insolvencies in England and Wales saw a 10% monthly decline in May and that levels were also down on the same month in 2025, but this has to be set against a backdrop of longer-term pressures facing our region.
“While all regions of England and Wales have seen insolvency rates rise over the past decade, the increase in the Eastern region has been more moderate than elsewhere. This likely reflects a more diversified business base, although firms are still being affected by many of the same pressures facing the wider economy, particularly rising costs, tighter margins and shifts in demand across sectors such as hospitality, retail and manufacturing.
“Looking ahead, the prospect of a World Cup bounce, especially with England progressing in the tournament, could provide an uplift in trade for pubs, restaurants and shops helping to improve cashflow for some sectors.
“Business owners will also be hoping for a more positive outlook following the deal reached between the US and Iran though it will take time for this to translate into better trading conditions.
“Set against this, the broader economic backdrop remains challenging. Political uncertainty in the UK continues to weigh on consumer and business confidence, offsetting the benefits of stabilising inflation and the hold in interest rates.
“In this climate, demand for qualified advice from R3 members remains high. Seeking support at an early stage can make a real difference to the options available and the outcomes achieved.”
