Struggling businesses in Yorkshire and across the UK will be hoping for measures that boost economic activity in next week’s Budget, R3 said, as it responded to the publication of the latest corporate and personal insolvency statistics.
Jodie Wildridge, deputy chair of the UK’s insolvency and restructuring trade body R3 in Yorkshire, said: “Corporate insolvencies have increased by 2% in October 2025 compared to September and are also up by 17% on the same month last year. However, they are down by 11% compared to October 2023, which saw 30-year high annual numbers of insolvencies. The 8% increase in compulsory liquidations compared to September 2025 indicates that creditors, including HMRC, are being more aggressive in enforcing debts.
“Today’s increase in insolvencies continues a concerning trend. The figures are being published against a background of economic uncertainty with businesses and consumers alike delaying major financial decisions until they can assess the outcome of the Budget. This hesitancy is creating a sense of stagnation, with business owners looking to the Chancellor for measures that boost growth and spending.
“The pressure on businesses remains considerable as shown by a number of high-profile insolvencies announced over the past few weeks including Sheffield Wednesday FC, Pizza Hut, Tomato Energy, and Petrofac. For every failing business that hits the headlines, there are hundreds of small and medium size businesses struggling for their survival.
Ms Wildridge, who is also a barrister at Exchange Chambers in Leeds, added: “The latest increase in unemployment to 5% indicates businesses are having to make difficult decisions about hiring and potentially, redundancy. With GDP growth also stagnant at 0.1% last quarter, business owners are contending with a difficult trading environment with higher employment, energy and materials costs. At the same time, creditors are becoming more proactive in forcing debts, borrowing costs remain elevated and consumer spending is subdued. These challenges underpin today’s insolvency rates and underline the need for positive, growth-focused measures in the Budget.
“Sector-specific pressures are also evident. Retailers are contending with weaker sales as consumers hold off for Black Friday discounts and save for the festive period. The British Retail Consortium has reported lower high street footfall amid fragile consumer confidence. For many retailers, the upcoming festive trading season will be pivotal, and they’ll be hoping for measures such as business rates reform and investor incentives to help stabilise their outlook.
“Whatever the Budget brings, R3 members remain committed to supporting and advocating for practical solutions that help businesses and individuals navigate these challenges. The profession plays a vital role in the economy, and today’s figures highlight just how important that role is in periods of uncertainty.”
