Rising costs and creditor pressure are driving up corporate insolvencies.
According to Hampshire-based firm Azets, all three main corporate insolvency processes saw increases in January 2026 compared to December 2025, despite an overall year-on-year decline.
Chris Tate, partner in restructuring and insolvency at Azets, said: "More broadly, it’s a case of new year, same problems as rising costs – notably purchasing, staff and energy – continue to erode margins and shrink profits."
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January 2026 recorded 1,744 corporate insolvencies, up 3.6 per cent from December but 14 per cent lower than January 2025.
Mr Tate highlighted that economic uncertainty and political factors are compounding challenges for businesses.
He said: "The uncertainty that characterises the national and global political and economic climate is making it harder to take strategic business decisions and secure funding for rescue or expansion."
