Aug 24

2026

Northern Ireland insolvencies fell in Q2 2026, but start-ups fell faster: what the R3 figures mean for local directors

Northern Ireland recorded a 14.3% year-on-year fall in insolvency-related activity in Q2 2026, according to R3’s Q2 2026 Business Health report. At the same time, new company registrations fell 15.7%, the steepest decline of any UK region.

Across the UK, there were 6,854 insolvency-related activities during the quarter, down 6% from Q2 2025, while 184,873 new companies were registered, also 6% lower year on year. The figures point to easing insolvency activity but weaker business formation rather than a straightforward recovery.

What Q2 2026 looked like

The Northern Ireland picture should also be viewed alongside the longer trend discussed in why company failures fell while personal insolvencies climbed.

Which sectors remain under pressure?

Construction recorded the highest level of UK insolvency-related activity in Q2, with 1,177 cases. Accommodation and food services followed with 935, while wholesale and retail recorded 885. Financial and insurance activity increased 19% year on year to 194 cases, while real estate insolvency-related activity rose 16% across the first half of 2026.

That matters for businesses already dealing with construction cost inflation and margin pressure and the continuing late payment problem.

Personal insolvencies are moving differently

Official Insolvency Service figures show that Northern Ireland recorded 30 company insolvencies in May 2026, 43% fewer than in May 2025. However, there were 140 individual insolvencies, 37% more than a year earlier.

For directors with personal guarantees, that distinction matters. Company borrowing secured personally can move financial exposure from the business to the individual. SCC’s business recovery and restructuring team can review those risks alongside how recovery accountants improve cash flow.

What should directors do now?

Reforecast using current costs rather than historic assumptions. The approach in reforecasting for rates and inflation can help.

Recheck major customer credit risk, monitor the early warning signs of financial distress and review director loan balances in light of the changes from April 2026.

Where insolvency becomes a realistic possibility, early advice matters because directors’ duties increasingly require them to consider creditors’ interests. Our guide to what an insolvency accountant does in distress cases explains the available options.

The Republic of Ireland remains relatively stable

PwC recorded 232 corporate insolvencies in Q2 2026 and 444 in H1, compared with 436 in H1 2025. Deloitte recorded 429 insolvency appointments in H1 and projected around 850–900 for the full year, compared with 812 during 2025. Liquidations accounted for 85% of H1 insolvency activity.

Companies operating on both sides of the border can use SCC’s cross-border accounting and tax specialists to assess which entity carries the greatest exposure.

Frequently asked questions

Are Northern Ireland business insolvencies falling?

R3’s Q2 data shows insolvency-related activity fell 14.3% year on year, although this does not mean every sector or business is improving.

Why does the fall in start-ups matter?

New registrations fell 15.7% in Northern Ireland, which suggests weaker business formation and potentially more cautious entrepreneurial confidence.

Which sector had the most insolvency activity?

Construction remained the largest UK sector for insolvency-related activity in Q2 2026, with 1,177 cases.

When should a director seek restructuring advice?

Seek advice when cash-flow forecasts show persistent shortfalls, creditors are being stretched, HMRC arrears are increasing or personally guaranteed borrowing is becoming difficult to service.

Reliable proper monthly management accounts can help directors identify problems earlier. SCC’s SME business advisory team and forensic accounting specialists can also assist where figures require deeper review.

If trading conditions are becoming harder, speak to SCC Chartered Accountants while there are still options available.