Experts have warned this may only be a temporary reprieve and a challenging economic climate.

The monthly total comprised 62 creditors’ voluntary liquidations, 37 compulsory liquidations, five administrations, and one company voluntary arrangement. Over the 12 months to June 2025, the insolvency rate was 51.6 per 10,000 active companies, a slight decrease from the preceding year.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, described the monthly fall as a “glimmer of relief”, noting that hospitality and retail businesses are currently benefiting from record hot weather.

Ms Elliot added: “However, we’re still in tough territory. Consumer confidence remains stubbornly low, growth is stuttering – with the UK’s GDP dipping again in May. June’s unexpected jump in inflation will only serve to continue eroding profit margins and consumer demand.

“This environment is forcing businesses to fight on multiple fronts. Many will likely only be experiencing breathing space after dramatically paring back costs. Until demand shows a more sustained recovery and input costs ease further, there’s a risk that this reprieve is just a pause rather than a turning point.”