Corporate insolvencies fell in the UK during May 2026, as businesses saw a “welcome respite”, despite the persistence of long-term pressures. The dip in insolvencies comes at the start of a critical summer for many UK businesses, as operators across sectors including retail and hospitality eye a further boost from the 2026 World Cup.
According to statistics recently published by the government’s Insolvency Service, corporate insolvencies in England and Wales fell to 1,868 in May 2026, down by 10 per cent from April 2026 and 16 per cent year-on-year from May 2025.
Mark Davies, Chair of R3’s North West committee and Head of Restructuring and Insolvency at Aaron and Partners LLP, commented: "It’s welcome news that corporate insolvencies in England and Wales saw a 10 per cent monthly decline in May and that levels were also down on the same month in 2025.”
However, Davies cautioned that other new data from the Insolvency Service highlighted longer-term pressures facing businesses in the North of England. In a review of the last 10 years, the North East recorded the highest rate of insolvencies, with 143 per 10,000 businesses, while the North West was second, with a rate of 136 insolvencies.
These figures highlight a long-term trend of northern regions consistently seeing the highest insolvency rates since 2015, a pattern that continued into 2025, when the North West recorded the highest rate of businesses entering administration.
According to Mark Davies, the struggles of businesses in the North West, and across the North more broadly, “reflects the region’s large base of small and medium-sized businesses, as well as its exposure to sectors such as hospitality, retail and manufacturing.”
These sectors, Davies notes, have come under sustained pressure from headwinds including rising costs, shifting demand and tighter margins over recent years.
Despite these long-term struggles, Davies adds that businesses such as pubs, restaurants and shops will be hoping for a cashflow boost from the summer’s World Cup, particularly if England were to progress deep into the tournament.
Since the figures were published, the potential for such a boost has been demonstrated by the government’s decision to allow pubs to remain open until 5am on Monday, July 6, for England’s last-16 clash with co-hosts Mexico, which kicks off at 01:00 BST.
Davies also mentioned that the recent ceasefire deal between the US and Iran could bring more good news for business owners. Despite the seeming fragility of this agreement, Davies says that it could provide “a more positive outlook” for businesses, but cautioned that this will take time to translate into improved trading conditions.
He continued: "Set against this, the broader economic backdrop remains challenging. Political uncertainty in the UK continues to weigh on consumer and business confidence, offsetting the benefits of stabilising inflation and the hold in interest rates.”
Against such an uncertain backdrop, Davies emphasised the importance of businesses seeking qualified advice if they are facing financial pressure, saying that early stage support “can make a real difference to the options available and the outcomes achieved."
A World Cup trading boost would provide a welcome lift for the UK hospitality sector, which saw closures accelerate during the first quarter of the year
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