October 2025 UK Corporate Insolvency Data: The Rise Of Creditor Enforcement  

The latest insolvency figures for October 2025 show a worrying rise in the number of UK businesses running into serious financial trouble. 

Using data from CreditSafe, Bell & Company has looked beyond the headlines to understand what’s really driving this increase – and what it means for business owners. 

While one month’s data doesn’t tell the whole story, the trend over the past year is clear: many businesses have run out of room to manoeuvre. Financial reserves have been used up, cash flow is tight, and more companies are now being pushed into formal insolvency. 

Government Pressure and Creditor Action

One of the biggest changes this year is the sharp rise in Winding Up Petitions, the legal step that begins the process of forcing a business into liquidation. 

This isn’t just a sign of economic strain; it also reflects how government bodies are now taking a much harder approach to unpaid debts. 

Here’s what’s happening: 

• HMRC petitions have increased by 372%: The tax office has clearly shifted focus – moving away from leniency and back to active debt collection. This colossal increase signals a definitive shift from forbearance to aggressive debt enforcement as the political priority. 

• Council petitions are also on the rise: Almost ten times higher than last year. Councils, under pressure to balance their own budgets, are taking stronger action on unpaid business rates and other debts. 

• Other Petitioners: Creditor pressure from non-state bodies (suppliers, landlords, lenders) also jumped significantly, showing a 108% increase. This is a powerful sign that the cascading effect of cash flow failure is now running through the entire supply chain. 

Unprecedented Corporate Collapse and Director Liability

Beyond initial creditor pressure, the data on formal insolvency procedures point to a crisis of corporate viability. 

The surge in Administrations is perhaps the most alarming figure – up 1,129% from 7 to 86 – pointing to the distress of larger, more complex enterprises.

An increase of this magnitude suggests that a substantial number of medium to large businesses – once considered resilient – are now succumbing to high interest rates, inflationary costs, and sustained low demand, forcing a sale or winding-down under licensed practitioner control. 

The parallel explosion in cases involving Directors’ Loan Accounts (DLA) carries a grave message for directors. 

Having jumped 775% from 12 to 105, this increase foreshadows an era of severe regulatory and statutory scrutiny of directors’ conduct. Cases involving overdrawn DLAs are often central to disqualification investigations and potential personal liability. Directors must recognise that the environment for insolvent trading is now highly unforgiving. 

The New Restructuring Landscape

Amidst the failures, there is evidence that businesses are actively seeking formal rescue. The 600% increase in Company Voluntary Arrangements (CVA) demonstrates a growing, albeit necessary, reliance on formal restructuring tools. 

This jump indicates that viable businesses are proactively engaging with creditors to secure their future, rather than waiting for forced liquidation. 

Bell & Company: Navigating the Policy-Driven Debt Storm

The October 2025 CreditSafe data confirms a dangerous economic shift, driven by both market pressures and explicit policy choices by politically-run bodies like HMRC and local councils. The message is unambiguous: HMRC have ramped up enforcement, setting the tone for how the rest of the creditor market is responding. 

With Administration up over 1,100% and the threat of personal liability for directors skyrocketing, expert restructuring advice is paramount. 

Bell & Company stands at the forefront of this challenging environment. Our deep expertise in formal restructuring, complex Administrations, and director advisory is essential for businesses navigating these unprecedented pressures. Whether seeking a proactive restructuring through a CVA or guiding directors through the inevitable scrutiny associated with an Overdrawn Director’s Loan account case, we provide the authoritative counsel needed to secure the best possible outcome. 

In a market where creditor action is up 226% and regulatory scrutiny is up 775%, expert advice is not a luxury – it is a necessity. 

If these statistics resonate with the financial reality of your business, contact Bell & Company today for a confidential consultation on safeguarding your interests.