The UK witnessed a promising shift in business insolvencies, marking the first year-on-year decrease in three years.
Allianz Trade's latest Global Insolvency Report reveals that the UK registered 26,708 insolvency cases in 2024, a 5% reduction from the previous year. This decline follows significant rises that brought insolvencies to a 10-year record high in 2023.
For a comprehensive understanding of the forecasts and sector-specific trends, download Allianz Trade's Global Insolvency Report.
The UK bucks both global and US trends, where insolvencies continue to rise. By the end of 2024, UK business insolvencies began to show signs of a downward trend reversal. This slight decrease comes after three consecutive years of strong rises, driven by challenges such as Brexit-related issues, Covid-19, strong monetary tightening, sticky inflation, and weak economic momentum.
Looking ahead, headline inflation is expected to ease towards the end of 2025, aided by a loosening labour market and government spending. These factors will contribute to declining insolvencies. However, the UK's growth momentum is unlikely to recover significantly before 2026. Businesses will continue to face challenges, including costs, wages, and tariff threats, keeping insolvency levels high despite the decline. A mild decrease of 3% is anticipated in 2025, reducing cases to 25,900, followed by a larger relief in 2026 with a 7% drop to 24,000 cases.
Allianz Trade is the global leader in trade credit insurance and credit management, offering tailored solutions to mitigate the risks associated with bad debt, thereby ensuring the financial stability of businesses. Our products and services help companies with risk management, cash flow management, accounts receivables protection, Surety bonds, Business Fraud Insurance, debt collection processes and e-commerce credit insurance ensuring the financial resilience for our client’s businesses. Our expertise in risk mitigation and finance positions us as trusted advisors, enabling businesses aspiring for global success to expand into international markets with confidence.
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