UK Agency Insolvency Index
UK agency insolvencies rose 83.6% between 2016 and 2025
A sourced, monthly read on agency company insolvencies across the UK, isolated to the exact 7-code agency SIC cluster (not a broader section approximation), drawn from Insolvency Service public records. Updated Jun 2026.
Key findings
- Agency insolvencies rose 83.6% from 550 in 2016 to 1,010 in 2025, the highest annual total in this series.
- In the trailing 12 months to Jun 2026, 965 agencies across the 7-code cluster entered insolvency, 3.9% of all 24,768 SIC-classified company insolvencies captured in the same window.
- IT consultancy (SIC 62020) is the single largest contributor at 371 insolvencies in the trailing 12 months, 38.4% of the whole agency cluster. Market research (73200) is the smallest, at just 12.
- The 5 creative-cluster codes (advertising, media representation, PR, design, market research) account for 16.4% of all Section M (Professional, Scientific and Technical) insolvencies, while the 2 tech-cluster codes account for 42.3% of Section J (Information and Communication), the two broader sections these agency codes sit within.
Source: Insolvency Service, Company Insolvency Statistics (record-level data), under the Open Government Licence v3.0. England, Wales and Scotland. Figures may be cited with attribution to Agency Founder Finance.
Agency insolvencies by year
Each bar shows the total number of agency-cluster company insolvencies registered in that calendar year (complete years only), summed across all 7 SIC codes. The rise from 2020 reflects both the unwinding of pandemic-era restrictions on winding-up petitions and underlying growth in the number of active agencies.
The monthly trend
Monthly agency-cluster insolvency registrations from January 2016 to Jun 2026. Month to month figures are noisy at this volume (a few dozen events a month across the whole UK), so the annual view above is the more reliable trend read.
Breakdown by exact agency SIC code
The table ranks the 7 agency SIC codes by trailing-12-month insolvency count, the same exact cluster used throughout this site's agency research.
| SIC code | What it covers | TTM insolvencies |
|---|---|---|
| 62020 | Information technology consultancy activities | 371 |
| 62012 | Business and domestic software development | 255 |
| 73110 | Advertising agencies | 126 |
| 74100 | Specialised design activities | 118 |
| 70210 | Public relations and communications activities | 45 |
| 73120 | Media representation | 38 |
| 73200 | Market research and public opinion polling | 12 |
| All 7 codes (union) | Every agency SIC code in the cluster | 965 |
Breakdown by procedure
The chart shows the mix of insolvency procedures agencies went through each year. CVL dominates throughout; compulsory liquidation and administration are smaller but persistent categories.
| Procedure | 2025 count | % of total |
|---|---|---|
| Creditors Voluntary Liquidation (CVL) | 758 | 75.0% |
| Compulsory Liquidation | 172 | 17.0% |
| Administration | 62 | 6.1% |
| Company Voluntary Arrangement (CVA) | 5 | 0.5% |
| Administrative Receivership | 0 | 0.0% |
| Total | 1,010 | 100% |
Agencies in context: Section J and Section M
Every agency SIC code sits within one of two broader Insolvency Service sections: Section J (Information and Communication) for the 2 IT-consultancy codes, and Section M (Professional, Scientific and Technical Activities) for the 5 creative-cluster codes. These section totals include many companies that are not agencies at all, telecoms firms and software houses in Section J, or veterinary practices and legal firms in Section M, so they are backdrop context only, not agency-specific figures.
| Section | Section TTM total | Agency-cluster TTM within it | Agency share |
|---|---|---|---|
| J: Information and Communication (divisions 58-63, all companies) | 1,481 | 626 (62012 + 62020) | 42.3% |
| M: Professional, Scientific and Technical Activities (divisions 69-75, all companies) | 2,066 | 339 (creative cluster) | 16.4% |
Methodology and sources
Data source. Counts are drawn from the Insolvency Service record-level data file, published as part of the Company Insolvency Statistics release on gov.uk. Each record is a single insolvency event registered with Companies House or the Insolvency Service, tagged with a 5-digit SIC code where available. We filter to the exact 7-code agency cluster: 73110, 73120, 70210, 74100, 73200, 62012, 62020.
Why 5-digit matters. Most sector-specific insolvency research settles for a section- or division-level cut (a whole SIC letter or 2-digit code) because that is the finest breakdown many government releases publish. The Insolvency Service record-level file carries a 5-digit SIC field, so this index is an exact match to the same SIC codes used in the UK Agency Formation Index, not an approximation.
What is counted. Each figure is the number of procedure entries registered in that period, not the number of unique companies. A company that enters administration and subsequently converts to CVL appears twice: once for each procedure. This differs from the Insolvency Service's own headline convention, which counts a company entering multiple procedure types only once, so totals here can run slightly higher than the official headline series.
Caveats. Counts are not rates: an increase may partly reflect growth in the number of active agencies rather than a worsening of sector conditions. Section J and Section M context figures are not agency-specific and should not be read as agency insolvency counts. CVA, receivership and moratorium counts are low and should be read as indicative only.
Updated. Data through Jun 2026 (latest Insolvency Service release, published 2026-07-23). Generated 2026-07-23.
- Company Insolvency Statistics -- Record-Level Data (The Insolvency Service)
Download the insolvency data (CSV)
Free to cite and republish with attribution to Agency Founder Finance. This page is a data summary and does not constitute insolvency or tax advice on any individual situation.
Running an agency? Protect your cash position before a client or supplier failure hits you.
Rising insolvency in the agency cluster affects the whole payment chain, not just the company that fails. Understanding your cash-flow buffer, client concentration and tax position is a practical defence. Book a free health check with an agency specialist accountant.
Frequently asked questions
What does the UK Agency Insolvency Index measure?
It counts UK company insolvencies registered each month under the exact 7-code agency SIC cluster used throughout this site's research: 73110 (advertising agencies), 73120 (media representation), 70210 (PR and communications), 74100 (specialised design), 73200 (market research), 62012 (business and domestic software development) and 62020 (IT consultancy). Counts come from the Insolvency Service's record-level data, which carries a 5-digit SIC field, so this is an exact match, not a division- or section-level approximation.
Which part of the agency cluster has the most insolvencies?
Information technology consultancy (SIC 62020) is consistently the largest single contributor, 371 insolvencies in the trailing 12 months, roughly 38.4% of the whole agency cluster. Software development (62012) is second. Advertising agencies (73110) and specialised design (74100) each run a similar, smaller volume, and market research (73200) is consistently the smallest, reflecting how few market research companies exist relative to the other categories.
What is a Creditors Voluntary Liquidation (CVL)?
A CVL is the most common insolvency procedure among agencies in this data. The company's own directors resolve to wind up the business voluntarily once they conclude it cannot pay its debts, and a licensed insolvency practitioner is appointed to realise assets and distribute proceeds to creditors. Across the agency cluster, CVLs consistently account for the large majority of all insolvency events, directors choosing voluntary wind-up far more often than a creditor forcing a compulsory liquidation through the courts.
What does 'share of captured' mean?
The Insolvency Service record-level file tags every registered company insolvency with a SIC code. In the trailing 12 months, 24,768 insolvencies were captured with a usable SIC classification across all of England, Wales and Scotland, and 965 of those were in the agency cluster, 3.9% of the total. This is a share of classified insolvencies, not a share of the whole UK economy.
Are Section J and Section M the same as the agency figures?
No. Section J (Information and Communication) and Section M (Professional, Scientific and Technical Activities) are included only as broader backdrop context, and cover every company in those SIC sections, including many with nothing to do with agencies, such as telecoms firms in Section J or veterinary practices in Section M. The agency-specific figures are the 7-code union and per-SIC breakdown, isolated to the exact SIC codes above.
Where does this data come from?
All insolvency counts come from the Insolvency Service's record-level data file, published as part of the Company Insolvency Statistics statistical release on gov.uk, under the Open Government Licence v3.0, covering England, Wales and Scotland. Figures are updated as the Insolvency Service publishes new monthly releases.
Does rising insolvency affect my agency directly?
It can, particularly if you rely on a small number of large clients or subcontract work to other agencies. If a client or supplier agency enters insolvency, unpaid invoices and work in progress are often difficult to recover in full. Reviewing your own cash-flow position, credit control and client concentration is a practical response regardless of the wider trend. Our team works with agency founders on exactly this kind of financial resilience planning.