Insolvency levels stabilise as businesses hope for a World Cup bounce, North West business experts say
There has been a welcome drop in North West businesses going bust and if England go far in the World Cup that could help the situation further.
A fall in corporate insolvencies provided some welcome respite for businesses last month, with the prospect of a World Cup bounce to come.
This is according to the North West chair of R3, the UK’s restructuring, turnaround and insolvency association, and comes on the back of new statistics published by the government’s Insolvency Service.
The statistics show that corporate insolvencies in England and Wales decreased by 10 per cent in May to 1,868 compared to the April’s figures. May’s figure was also 16 per cent down on the same month in 2025.
At the same time, a review of the last 10 years of Insolvency Service data, shows the scale and persistency of business insolvencies in the region. In 2025, the North West had the second highest rate of business insolvency in England and Wales, with 136 insolvencies per 10,000 businesses and 2,830 businesses becoming insolvent.
This was behind only the North East which recorded a rate of 143.
More broadly, the data highlights a longstanding trend, with northern regions consistently recording the highest insolvency rates in every year since 2015. The North West also had the highest rate of businesses entering administration last year.
Mark Davies, chair of R3’s North West committee and Head of Restructuring and Insolvency at Aaron and Partners LLP, said:
“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, alongside these figures, new data from the Insolvency Service on the past decade of insolvency statistics highlights the longer-term pressures facing our region.
“The North West has one of the highest rates of business insolvency in England and Wales, which 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 have faced sustained pressure from rising costs, tighter margins and shifting demand in recent years.
“Looking ahead, the prospect of a World Cup bounce, especially if England and Scotland progress in the tournament, could provide an uplift in trade for pubs, restaurants and shops helping to improve cashflow for some sectors.
“Business owners will also be hoping for a more positive outlook following the deal reached between the US and Iran though it will take time for this to translate into better trading conditions.
“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.
“In this climate, demand for qualified advice from R3 members remains high.
“Seeking support at an early stage can make a real difference to the options available and the outcomes achieved.”