'Glimmer of hope' for businesses says R3 as November insolvencies fall
A fall in the number of corporate insolvencies towards the end of 2025 may provide hope to struggling businesses, according to a leading industry professional.
Official data revealed that corporate insolvencies in the UK fell by 8 per cent to 1,866 in November 2025.
They were also down by 7 per cent compared with the November 2024 figure of 2,001.
Jodie Wildridge, deputy chair of the UK’s insolvency and restructuring trade body R3 in Yorkshire and a barrister at Exchange Chambers in Leeds, said: “Considered alongside a drop in the inflation rate to 3.2 per cent and the recent cut in the interest rate to 3.75 per cent, the fall in corporate insolvencies may give a glimmer of hope to struggling businesses and offer business owners some cautious optimism that conditions may begin to improve next year.”
“That said, company insolvency levels remain stubbornly high compared to five years ago, reflecting difficult trading conditions. In addition, the unemployment rate has reached a near six-year high of 5.1 per cent as employers have been delaying recruitment and investment decisions.
"Sustained progress on inflation and employment will be key to restoring confidence in the long term.”
She added: “For hospitality businesses especially, the next few weeks could make or break their business. Many face a sharp drop-off in trade after festivities end with January bringing cashflow pressures caused by the rent quarter and potentially larger supplier, VAT and payroll tax payments reflecting a busy December.”