Insolvency levels stabilise as businesses hope for World Cup bounce, R3 says

This is according to the Yorkshire 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 per cent in May to 1,868 compared to the April’s figures. May’s figure was also 16 per cent 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 Yorkshire and Humber region had the third highest rates of business insolvency in England and Wales, with 136.2 insolvencies per 10,000 businesses and 1,930 businesses becoming insolvent. Only the North East and North West recorded higher rates with 143.1 and 136.3 respectively.

More broadly, the data highlights a longstanding trend, with northern regions consistently recording the highest insolvency rates over the past decade.

R3 Yorkshire chair, Jodie Wildridge, who is also a barrister at Kings Chambers in Leeds, commented: “While it’s welcome news that corporate insolvencies in England and Wales saw a 10 per cent monthly decline in May and that levels were also down on the same month in 2025, this has to be set against a backdrop of longer-term pressures facing our region.

“Last year, Yorkshire and the Humber had one of the highest rates of business insolvency in England and Wales, which reflects the region’s large base of small and medium-sized businesses, as well as its exposure to sectors such as hospitality, retail and manufacturing.  These sectors have faced sustained pressure from rising costs, tighter margins and shifting demand in recent years.

“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.”