Business bankruptcies stabilised in 2025
Business bankruptcies held broadly steady in 2025, maintaining a three‑year plateau of between 24,000 and 25,000 cases, reported annually according to new analysis from Dun & Bradstreet, a leading global provider of business data and analytics. While failures remain significantly above pre‑pandemic averages, the levelling‑off marks a period of relative stability following the sharp adjustments seen after Covid‑19.
Half of all UK bankruptcies last year occurred across three sectors – business services, eating and drinking places, and construction – highlighting where financial pressures remain most acute. Although hospitality and construction saw modest reductions in failures, the number of bankruptcies across both sectors is still markedly higher than at any point before the pandemic.
The prolonged plateau comes against a backdrop of two consecutive years of Bank of England rate cuts. Despite reductions totalling 150 basis points across 2024 and 2025, the impact on business borrowing costs has been muted, with uneven economic growth leading lenders to ease standards cautiously.
The UK trend aligns with a wider slowdown in the pace of bankruptcy increases across Western and Central Europe. Although regional bankruptcies rose 5.4% in 2025, this was a marked moderation compared to the sharper climbs recorded over the previous two years. However, the picture remains mixed: France reported record-high failure levels in 2025 (69,912), while bankruptcies in Germany rose to their highest level since 2014. Several smaller markets, by contrast, saw declines compared with 2019.
David Marshall, Senior Director of Finance Solutions at Dun & Bradstreet said“While bankruptcy levels have stabilised, they remain high compared with pre-pandemic norms. Reliable data helps businesses and lenders understand where pressures are easing and where risks persist so they can make informed decisions in a challenging market.”
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