Keir Starmer took office on 5 July 2024, and the period in question spans from 5 July 2024 to 27 March 2025. The data primarily comes from the Insolvency Service, which tracks company insolvencies in the UK, with separate statistics for England and Wales, Scotland, and Northern Ireland.

Research suggests that monthly insolvency figures for England and Wales were compiled from official statistics, and estimates for Scotland and Northern Ireland were derived using a ratio based on January 2025 data. The UK total was approximately 5.2% higher than the combined figures for England and Wales alone.

The evidence suggests a total of approximately 18,356 insolvencies covering the entire period, prorated for March 2025 based on average monthly figures, acknowledging potential variations due to economic trends.

This report provides a comprehensive analysis of UK business insolvencies from July 5, 2024, when Keir Starmer assumed the role of Prime Minister, to March 27, 2025. The focus is on formal company insolvencies, which include procedures such as compulsory liquidations, creditors’ voluntary liquidations (CVLs), administrations, and company voluntary arrangements (CVAs). Given the decentralised nature of insolvency data across the UK, the analysis relies on official statistics from the Insolvency Service for England and Wales, supplemented by estimates for Scotland and Northern Ireland.

The primary source for this analysis is the monthly company insolvency statistics published by the Insolvency Service, available on the Insolvency Service Official Statistics website. These statistics, merged into a monthly format since April 2024, provide seasonally adjusted numbers and rates per 10,000 companies, offering a reliable basis for tracking trends. Specific monthly releases for England and Wales were accessed for July 2024 to February 2025, with URLs such as Company Insolvency Statistics July 2024 and Company Insolvency Statistics February 2025.

The main reports did not readily provide data for Scotland and Northern Ireland; however, the commentary sections, such as the Commentary Company Insolvency Statistics January 2025, provided figures for January 2025, showing 75 insolvencies in Scotland and 28 in Northern Ireland, totalling 103. This allowed for an estimation ratio to be applied to other months.

Monthly Insolvency Figures for England and Wales

The following table lists the seasonally adjusted company insolvencies for England and Wales from July 2024 to February 2025, as extracted from individual monthly statistics:

The total for these eight months sums to 15,674, calculated as follows: 2,191 + 1,953 = 4,144; 4,144 + 1,973 = 6,117; 6,117 + 1,747 = 7,864; 7,864 + 1,966 = 9,830; 9,830 + 1,838 = 11,668; 11,668 + 1,971 = 13,639; 13,639 + 2,035 = 15,674.

Estimating for Scotland and Northern Ireland

Given the lack of monthly data for all periods, an estimation was made using the ratio observed in January 2025. That month, the UK total was 2,074 (England and Wales: 1,971, Scotland: 75, Northern Ireland: 28), indicating that the UK total was approximately 1.052 times the England and Wales figure (2,074 / 1,971 ≈ 1.052). This ratio was applied to each month’s England and Wales figure to estimate the UK total:

Jul 2024 - 2,191 - 2,305

Sep 2024 - 1,973 - 2,076

Oct 2024 - 1,747 - 1,838

Nov 2024 - 1,966 - 2,069

Dec 2024 - 1,838 - 1,934

Jan 2025 - 1,971 - 2,074

Feb 2025 - 2,035 - 2,141

Summing these estimates: 2,305 + 2,055 = 4,360; 4,360 + 2,076 = 6,436; 6,436 + 1,838 = 8,274; 8,274 + 2,069 = 10,343; 10,343 + 1,934 = 12,277; 12,277 + 2,074 = 14,351; 14,351 + 2,141 = 16,492.

As of March 27, 2025, the full-month data for March 2025 was unavailable. To estimate, the average monthly insolvency for February 2025 (UK estimate: 2,141) was used, prorated for 27 days out of 31 (proportion: 27/31 ≈ 0.871). Thus, the forecast for March up to the 27th is 2,141 * 0.871 ≈ 1,864. Adding this to the previous total: 16,492 + 1,864 = 18,356.

This estimate assumes a consistent ratio for Scotland and Northern Ireland across all months, based on January 2025 data, which may not hold due to regional economic variations. Additionally, the Creditsafe figure for February 2025 (2,364) was higher than the estimated 2,141, suggesting potential differences in methodology or coverage, such as including voluntary closures not captured in official insolvency statistics. The report from The Expose claimed that 203,000 businesses have closed since Labour took office, likely including voluntary closures, not just insolvencies, which explains the significant discrepancy.

Economic factors, such as the £25 billion National Insurance hike announced in the October 2024 budget and flatlining economic growth in Q3 2024, may influence insolvency rates; however, the precise impacts are not quantifiable without further data. The hospitality, retail, and construction sectors, which are particularly affected, could push numbers higher, but current estimates reflect the available statistics.

Based on the analysis, it is estimated that approximately 18,356 UK businesses have gone broke since July 2024, focusing on formal insolvencies. This figure accounts for the period up to March 27, 2025, with necessary prorations and regional adjustments. Users seeking exact figures should await the Insolvency Service’s Q1 2025 report, expected later in 2025, for more precise data.