This is an article by Liz Barclay – copyright https://business111.com/news
September’s company insolvency figures offer some encouragement. But they measure one part of business distress, rather than providing a complete verdict on the health of small firms.
There were 1,882 registered company insolvencies in England and Wales in September 2026, down 4% on August and 5% on September last year. These figures do not cover every business closure, and not every insolvency procedure ends with the business disappearing.
Starts and closures remain closely matched
Separate ONS figures recorded 79,325 business creations and 76,840 closures on the UK’s Inter-Departmental Business Register in April–June 2026. Both increased compared with the same quarter last year, by 2.2% and 2% respectively.
That leaves 2,485 more additions than removals. However, this register-based measure is not a complete count of every business operating in the country.
The pattern supports a cautious conclusion. People continue to establish businesses, while substantial numbers leave the register. It does not establish that every closure represents financial failure: owners may retire, reorganise or close for other reasons.
Keep the employment figures separate
ONS estimated 113,000 redundancies for June–August 2026. That is a rolling three-month estimate, not September’s total, and was broadly unchanged on a year earlier. ONS advises caution when interpreting short-term Labour Force Survey movements.
The redundancy survey is also different from employers’ formal notifications of proposed job losses. Employees losing jobs at small firms can appear in the survey even without a collective redundancy process.
An owner losing self-employment income, however, is experiencing a different kind of setback. No single redundancy measure captures every livelihood affected when businesses stop trading.
The human cost matters
For an owner, closure can mean losing years of effort, savings and a sense of identity. Where employees are involved, difficult decisions also affect people the owner knows personally.
Employees may face anxiety about bills, caring commitments and finding another role. In a close-knit team, the impact extends beyond contracts and final payments.
These experiences deserve recognition alongside the economic statistics. A relatively steady national figure can still contain thousands of deeply disruptive personal events.
Seek advice before options narrow
Owners facing serious difficulties should speak promptly to an accountant and, where appropriate, a licensed insolvency practitioner. The correct approach depends on the business structure, debts and ability to meet obligations.
Where redundancies are proposed, employees should be genuinely consulted before decisions are finalised. Fair selection, notice and any applicable redundancy payments also need attention, even in a small team.
Communicate clearly, retain records and get advice about tax, contracts and the correct closure process. Do not assume that simply stopping work ends the responsibilities.
Leave room for what comes next
Closing a business does not erase the skills or experience gained from building it. Some owners will start again; others will choose employment, retraining or time to recover.
The figures show continued enterprise alongside considerable turnover in the business population. Supporting founders matters, but so does helping owners and employees navigate an ending without facing it alone.
This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news
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