Construction sector sees highest insolvencies for fourth consecutive year

Construction remained the hardest-hit UK sector for insolvencies in 2025, accounting for 3,931 collapses, or 17% of all cases, as labour shortages and elevated materials costs continued to strain firms, while overall company insolvencies rose 4% month over month to 1,744 in January 2026, with wholesale and retail and accommodation and food services following as the next most affected industries.

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