Company insolvencies in England and Wales were slightly lower in August 2026 than a year earlier, but the headline hides a sharp rise in administrations. This article sets out what the latest Insolvency Service figures show, how the different procedures work, and how to read the numbers sensibly.
What did the August 2026 figures show?
According to the Insolvency Service, which published the data on 18 September 2026, there were 1,946 registered company insolvencies in England and Wales in August 2026. That was 1% higher than July 2026 (1,934) and 3% lower than August 2025 (2,007).
The picture over a longer period is steadier still. The rolling 12-month rate stood at 50.1 insolvencies per 10,000 companies on the effective register, about one in 200, down from 52.5 for the 12 months to August 2025. For context, the Insolvency Service notes that the peak during the 2008–09 recession was 113.1 per 10,000.
That is reported fact. The interpretation is more cautious: on this measure, the corporate sector is not in an acute wave of failure, but neither is it in a period of unusual calm.
How do the main insolvency procedures differ?
The monthly total is made up of several distinct routes, and they tell different stories. Illustrative arithmetic using the August 2026 counts shows how uneven the mix is:
| Procedure | August 2026 | Share of total (approx.) |
|---|---|---|
| Creditors’ voluntary liquidations (CVLs) | 1,431 | 74% |
| Compulsory liquidations | 314 | 16% |
| Administrations | 182 | 9% |
| Company voluntary arrangements (CVAs) | 19 | 1% |
| Receivership appointments | 0 | 0% |
| Total | 1,946 | 100% |
The counts sum exactly to the published total, which is a useful check on any breakdown. The percentages are rounded, so they may not add precisely.
In broad terms, a creditors’ voluntary liquidation is a closure that the directors and shareholders choose to begin, usually because the company cannot pay its debts. A compulsory liquidation is imposed by a court, often following a creditor’s petition. Administration is a rescue-oriented process in which an appointed insolvency practitioner takes control, with the aim of rescuing the company or achieving a better result for creditors than closure would. A CVA is an agreement with creditors to repay debts over time while the business carries on.
Why did administrations jump so sharply?
The most striking movement was in administrations: 182 in August 2026, 44% higher than July’s 126 and 60% higher than the 114 recorded in August 2025. The increase from July is 56 cases, and 56 divided by 126 is roughly 44%, matching the published percentage.
The Insolvency Service attributes the recent volatility to more than 250 connected Real Estate companies entering administration between March and August 2026. That is an important caution. When a single group of related entities moves through the system, it can push one month’s count up without any broader change in how healthy ordinary businesses are.
This is why monthly administration figures are best read alongside the rolling rate, where one group’s collapse has a much smaller effect. On the rolling 12-month measure, administrations account for 4.1 insolvencies per 10,000 companies.
Are voluntary liquidations falling?
CVLs, the largest category by far, were 4% lower than in July 2026 (1,495) and 9% lower than in August 2025 (1,579). Because they make up roughly three-quarters of the total, their movement largely explains why the overall figure was below last year’s despite higher administrations and compulsory liquidations.
Compulsory liquidations, by contrast, were 314: 8% higher than July (291) and 5% higher than August 2025 (298). CVAs were 19, compared with 22 in July and 16 a year earlier. The numbers are small, so percentage changes in CVAs should be treated lightly.
The rolling rates by procedure, per 10,000 companies, were:
- Compulsory liquidations: 7.6
- CVLs: 37.9
- Administrations: 4.1
- CVAs: 0.5
These add to 50.1, matching the published overall rate.
Which sectors have the most insolvencies?
The Insolvency Service also reports the industry of companies entering insolvency over the 12 months to August 2026, for cases where an industry is recorded. The largest groups were:
| Sector | Insolvencies, 12 months to August 2026 | Share (where industry recorded) |
|---|---|---|
| Construction | 3,866 | 17% |
| Wholesale and retail trade; motor vehicle repair | 3,395 | 15% |
| Accommodation and food service | 3,201 | 14% |
| Administrative and support services | 2,212 | 10% |
| Professional, scientific and technical | 1,913 | 8% |
| Manufacturing | 1,827 | 8% |
According to the release, all of the larger sectors recorded decreases compared with the previous 12 months, ranging from 9% in wholesale and retail to 2% in construction.
Sector counts reflect how many companies exist in each area as well as how stressed they are. Construction and hospitality have large numbers of small, thinly capitalised firms, so they tend to appear near the top of any list of totals. A high count is not the same as a high failure rate.
What do the numbers not tell us?
Several limits are worth keeping in mind.
First, these are registered insolvencies of companies, not of every kind of business. Sole traders and partnerships fall under individual insolvency statistics, which are published separately.
Second, the data covers England and Wales as a whole. London is not separated in the headline figures, so conclusions about the capital specifically would go beyond what the release supports.
Third, an insolvency is a formal event that often follows months of difficulty. The figures describe where the process has reached, not what is happening this week inside a company’s accounts. Scotland and Northern Ireland are reported separately: in August 2026 Scotland recorded 73 insolvencies (23% lower than a year earlier) and Northern Ireland 7 (42% lower), though the Northern Ireland rolling rate of 40.5 per 10,000 was 3.3 higher than in the previous 12 months.
How might boards and owners read this?
Our reading, which is analysis rather than reported fact, is that the data points to a long, grinding adjustment rather than a sudden shock. Insolvency rates per 10,000 companies are lower than a year ago, yet far from negligible, and the mix is shifting at the edges.
That fits themes we have covered elsewhere. UK boardrooms are prioritising resilience over growth, and that instinct looks sensible when one in 200 companies on the register enters a formal process over a year. Smaller firms feel it most, which echoes our look at how founders are operating in a tougher funding market. And the shrinking number of businesses on public markets, discussed in why London’s listed company count is falling, means more of the corporate economy sits in private hands, where stress is less visible until it becomes formal.
For anyone doing business with other companies, the practical lesson is about concentration. A supplier or customer representing a large share of revenue is a risk whatever the national statistics say. The aggregate rate is a weather report; it is not a forecast for any single firm.
Conclusion: steady in aggregate, uneven underneath
The August 2026 figures show total company insolvencies 3% below a year earlier, a rolling rate that has eased from 52.5 to 50.1 per 10,000, and a sharp but explainable rise in administrations linked to a connected group of property companies. The next monthly release is scheduled for 20 October 2026, and it will show whether the administration spike was a one-off or the start of a trend.
Until then, the sensible reading is measured: no sign of crisis in the aggregate, but plenty of reasons for companies to keep a close eye on cash, customers and counterparties.
This article is general information, not personalised financial advice. Rules, rates and statistics change, so check the latest official releases.
Sources: GOV.UK; The Insolvency Service
