Statistics of registered companies in the UK that filed for insolvency dropped to 1,992 in March in the latest 2025 figures. Compared to February, this is a 2% decrease.
However, many small- and medium-sized businesses (SMEs) have not felt the release of this marginal drop. The UK economy remains challenging with continuing inflation, rising costs and global uncertainty.
Stephen Goderski, a partner at PKF Little John Advisory, a nationally based advisory firm providing economic advice for larger scale businesses in the UK, has recently spoke of these persistent international and domestic challenges. Goderski commented on the US administration building onto global uncertainty, suggesting that US policies are:
“Pushing many businesses that rely on international trade to re-evaluate their credit and operational strategies.”
There are also a number of key domestic concerns that UK businesses are required to stay in touch with. The new tax year this April has brought about changes to taxes and wages, with inflation, increased employer National Insurance contributions and rising minimum wages to contend with.
While inflation has also dropped slightly toward the end of the year’s first quarter, this continues to be a key concern.
However, in spite of slightly falling inflation and insolvency rates, economic experts such as Goderski expect many UK companies to remain vulnerable to the various pressures facing them.
At AJL Finance, we provide personalised economic advice in our open and honest SME business loans process, so that business can not only meet debt payments, but feel confident and informed about their finances.
