Almost 3,000 companies closed in the opening quarter of 2025, marking the highest number of closures since the pandemic. A total of 2,718 companies shut down between January and March, with this the highest first quarter total since 2021, when 5,133 notices of liquidation were filed. Analysis shows that 382 notices of liquidation were published in January, with 637 in February and 1,699 in March. It has been suggested that tax hikes set out in October’s Budget have played a part in the increase of corporate closures, with Daisy Cooper, the deputy leader of the Liberal Democrats, saying: “Businesses up and down the country have just been getting by for years but may now have to shut up shop thanks to the Chancellor’s misguided jobs tax.” Shadow Chancellor Mel Stride, meanwhile, said: “The Chancellor’s anti-business Budget is pushing businesses to the brink.” Sam Bidwell, director of research at the Adam Smith Institute, said the scale of closures was “shocking but not surprising,” adding that it is now “incumbent upon the Government to take action” by reducing the tax burden, cutting red tape and bringing down energy prices.
Business closures surge in Q1
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