Restructuring experts urge Reeves to avoid hiking corporate costs further
The Chancellor must avoid piling further pressure on British businesses at her upcoming Budget after another 2,000 firms went bust last month, restructuring experts have warned.
A sharp rise in labour costs, stubbornly high inflation and weak consumer confidence have contributed to monthly company insolvency rates being at 30-year highs since 2023.
And official figures from the Insolvency Service published on Friday show no signs momentum is shifting, with 2,000 registered company insolvencies across England and Wales in September 2025.
This compares with 2,046 in August and 1,967 over the same period last year.
Last month's figure comprised 281 compulsory liquidations, 1,578 creditors' voluntary liquidations (CVLs), 124 administrations and 17 company voluntary arrangements.
Joint head of restructuring and insolvency at accountancy and business advisory group Azets Matthew Richards said: 'There's no denying that the changes to employer National Insurance have increased costs for businesses and these have all had a negative effect on profits, pay, and growth, and, in many cases, have led to firms increasing their prices as they finally ran out of road after years of absorbing costs.'
Closing down: UK firms are shutting down at a rate of around 2,000 per month
He added that 'firms up and down the country are praying' Rachel Reeves' November budget will avoid measures that 'increase costs even further'.
'If she does, it's likely corporate insolvencies will rise further,' Richards said.
David Hudson, restructuring advisory partner at FRP, warned Reeves her November Budget will be 'decisive in shaping the near-term operating landscape'.
'Anything that further dampens consumer confidence or raises business costs would be the final straw for companies currently on the edge, particularly hospitality firms that have been particularly hard hit after employer tax rises,' he added.
It follow forecasts from the IMF predicting Britain will face the highest rate of inflation among G7 nations next year.
'This would keep consumer demand low and borrowing costs high - maintaining the acute squeeze on margins and revenue currently challenging UK firms,' Hudson said.
Insolvency rates have jumped from their 2020 lows
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