• Swindon & Wiltshire Economy
• Tuesday October 20 2026

Corporate insolvencies fall but businesses face tough winter

Corporate insolvencies fell by 4.6 per cent in September compared with a year earlier, but businesses are being warned that mounting costs and pressure from creditors could threaten their survival this winter.

There were 1,882 corporate insolvencies during the month, down from 1,973 in September 2025 and 3.6 per cent below August’s total of 1,953.

The monthly decline was driven by fewer administrations, following unusually high numbers linked to more than 250 connected property companies entering administration between March and August.

However, compulsory liquidations rose for the fourth consecutive month to their second-highest level this year, suggesting creditors are continuing to pursue unpaid debts despite the overall fall.

Rob Young, restructuring and insolvency partner at accountancy and business advisory group Azets, which has Berkshire offices in Newbury and Theale, said September often exposed the reality of summer trading.

“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,” he said.

“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.”

Rob warned that the headline improvement masked continuing financial distress, with creditors’ voluntary liquidations remaining high as directors exhausted their resources after years of difficult trading.

“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,” he said.

He said higher wages, material costs, energy bills and fuel prices were squeezing margins, while businesses across several sectors faced additional challenges.

Retailers had seen stronger summer sales undermined by rising overheads, construction firms were struggling with weak demand and payment delays, and property businesses faced high debt and borrowing costs.

Colder weather could further constrain household spending before Christmas, putting additional pressure on companies reliant on discretionary purchases.

Rob urged business owners to act early if they noticed warning signs, including delayed invoice or tax payments, shrinking cashflow and mounting stock.

“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,” he said.