RE: It's getting worse30 Apr 2025 16:37
The UK economy has seen a mixed start to 2025. While the number of companies entering insolvency for the first quarter of the year was lower than in 2025, the number spiked dramatically in March, hitting the highest level for the month since 2017.
With inflation having fallen from its historic highs over the last 12 months, and relative certainty over the UK political scene having been delivered by the general election, the start of 2025 saw businesses cautiously optimistic. But a tumultuous start to the year means that this did not last for long.
Reflecting this, the latest figures from Kroll suggest that administrations spiked toward the end of the first quarter. March 2025 saw a record level of administrations since Kroll’s records began in 2017.
Uncertainty as UK insolvencies spike to eight-year high in March
Benjamin Wiles, head of UK restructuring, Kroll, commented, “March’s record number of company administrations reflects distress in the market. There are mounting pressures on all businesses – from the costs brought in with the Autumn Budget to those posed by the uncertainty of global tariffs.
Administrations are a formal insolvency process designed to rescue businesses and maximise returns for creditors. Administrations are typically utilised for larger companies where a restructure is needed to save parts or all the business. These tend to be a better barometer on the health of the economy, whereas company liquidations represent smaller businesses with very few assets and debts.
Kroll is a leading independent provider of global financial and risk advisory solutions. It has been maintaining insights on UK wide company administrations for eight years now – and according to the researchers, the number rose dramatically year on year – from 108 in March 2024, to 141 in March 2025.
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