Leeds accountants react to insolvency statistics out today
Leeds accountants Azets has urged businesses and individuals to seek help sooner rather than later if they face financial difficulties.
The comments come following the publication today of official insolvency figures for the month of June.
Statistics from The Insolvency Service showed that there were 1,845 corporate insolvencies in June 2026 in England and Wales – four fewer than in May 2026 (1,849), and 10% fewer than in June 2025 (2,048).
While the figures have shown a slight fall, many businesses are still struggling in the face of rising costs, energy bills and regulation.
Leeds-based Richard Oddy, restructuring and insolvency partner at Azets office in King Street in Leeds, said: “Times are tough for Leeds businesses.
"It costs more to hire staff, profits are falling and cashflow levels are under pressure – and firms have been fighting financial fires in one form or another since 2020.
“Increases in rents, rates, materials, products, wages, and energy have all affected firms over the last six years – and with no let-up in sight it looks like they’ll be operating in a world where margins continue to shrink.
“Energy costs remain a key concern for many – especially in sectors where these can’t be passed on to the customer.
“While the summer months may see bills rise as businesses attempt to keep staff and customers cool, the real impact will be felt in the winter – a time when many are most concerned about outgoings, margins and profits and when additional expenses hit the hardest."
June’s corporate insolvency figures were dominated by Creditors’ Voluntary Liquidations (CVLs).
While 50 fewer took place compared to last month, and these are usually the most common insolvency process, CVL numbers remain higher than they were before the pandemic as directors lack the confidence and cash to keep their firms open in a trading climate that is dominated by rising costs, shrinking margins and political and economic uncertainty.
Compulsory liquidation numbers remain higher than they were at the start of this year as both public and private sector creditors continue to focus on chasing down debts and turning to the court to secure the money they’re owed.
Richard said: “Our advice for anyone in Leeds who is worried about their finances is to pick up the phone and speak to an advisor.
“It’s a hard call to make and an incredibly tough conversation to start but doing so while your worries are new gives you more options and more time to decide your next step than if you’d waited until the problem became more severe – and usually gives you a better chance of turning your situation around.”