Kettering-based Azets responds to September 2026 insolvency statistics

There were 1,882 corporate insolvencies in September – 3.6% fewer than in August 2026 (1,953), and 4.6% fewer than in September 2025 (1,973).

Rob Young, Restructuring and Insolvency Partner at international accountancy and business advisory group Azets, says: “September is typically when the true picture of the summer trading period emerges, and where business owners and management teams decide whether they can keep going or need to close the doors. With the holidays ending and court time capacity returning to its usual level, it’s also a month where HMRC and other creditors resume chasing debts.

“The month-on-month fall in insolvencies is due to a fall in administrations – and numbers for those have been high of late due to more than 250 connected companies in the Real Estate sector entering administration between March and August of this year.

“Compulsory Liquidations have increased for the fourth consecutive month to the second highest figure this year as creditors in both public and private sector continue to chase down debts, and Creditors’ Voluntary Liquidations remain high as directors continue to run out of fight and funds after years of tough trading conditions.”

“Despite the monthly fall in insolvencies, this September marked the end of a chapter rather than a change of season for many businesses as the economic alarm bells continue to sound. Costs are still rising, profits are still shrinking, and vacancies are at a 12 year low as many businesses simply can’t afford to hire.

“With Christmas on the horizon, a number of firms will be hoping for an end of year boost to their finances, but in the current climate it’s hard to see where that will come from – and it could be that the final three months of this year are the final three months of trading for some.

“Costs remain the biggest issue. Increases in wages and materials have squeezed margins tighter – to a point of distress for many. These rises in outgoings, coupled with fuel prices remaining high as a result of the ongoing conflicts in the Middle East and rising energy bills have made it tougher and tougher to do business this year and there appears to be no relief on the horizon.

“From a sectoral perspective, increased retail sales over the summer have been blunted by rising energy bills and higher wages, construction continues to suffer from a lack of new work, rising material costs and ongoing issues with payment times, and property remains affected by a stagnant market, falling prices, high debt levels and rising borrowing costs.

“With the weather turning colder, households are going to have to make their money go even further in the run up to Christmas. This will cut disposable income further and be another blow to those industries who depend on discretionary spending.

“Businesses across the country will be praying that the Chancellor gives them a break at the Budget this month – even if that’s in the form of no new taxes rather than any reliefs. Right now, firms are feeling the pressures of six years of rising outgoings and economic and geopolitical volatility, and any further increases in expenses could tip more into insolvency. 

“Anyone worried about their business or its finances should seek advice as soon as possible. The warning signs are common: delays in paying invoices or taxes, shrinking cashflow, or mounting stock levels are some of the signs a firm is either financially distressed or about to become financially distressed and its management team need to seek advice before the problem becomes more serious. 

“We know it’s a hard conversation to have, but starting it when the signs of financial distress first start showing themselves gives you more time, more options and a better chance of turning your situation around than if you’d waited till the issues became more severe and potentially less salvageable.”

Azets has a Northamptonshire office in Kettering.