Economic outlook and business closures – Ireland & UK (2025 YTD)

Businesses are under strain: Official data show a surge in closures across Ireland and the UK this year.In Ireland, over 3,250 firms have closed since Jan 2025 . Company insolvencies hit 875 in 2024 (33% up on 2023) – a 10‑year high – and Deloitte now expects over 1,000 insolvencies in 2025 . In the UK,the ONS reports 83,425 business closures in Q1 2025 (4.4% fewer than Q1 2024) . Credit‑market data confirm the trend: 2,718 UK companies went into liquidation or dissolution in Jan–Mar 2025 – the highest Q1 total since 2021 . This pressure is broad‑based: construction (17% of UK insolvencies), hospitality (15%), manufacturing (8%) and retail/wholesale (15%) are among the most affected sectors, Within Ireland, closures are concentrated in Dublin and fast‑growing commuter counties (Meath,Wicklow) , but even rural counties with traditionally stable economies (like Mayo, Kilkenny, Offaly) have seen rising attrition rates.

Weakening growth and high costs: Economic forecasts underscore a tougher 2025. Ireland’s growth isexpected to slow from 2024, with GDP ~3.7% in 2025 (down to ~2.3% in 2026) . The strong labour market and consumer spending that underpinned early 2025 have begun to wane: consumer sentiment is cautious as trade‑policy uncertainty (US tariffs, supply‑chain shifts) rises . Inflation, though moderating, is back above target (headline ~2.0–2.4% by mid‑2025) , with food, energy and wage costs all rising. Meanwhile the UK economy is sluggish – the OBR now forecasts only ~1.0% GDP growth

in 2025 (about half its prior forecast) . Inflation is sticky (~3.2% for 2025) and interest rates remain high (Bank Rate around 4.5%, easing only later in 2026). Business and consumer confidence are subdued: in March 2025 one in four UK firms reported falling turnover, and about 8% said they were unsure they could survive another three months . Cashflow and credit pressures: All of this makes cashflow management harder. Surveys highlight worsening payment behaviour: in Ireland 42% of B2B invoices were paid late in 2024, causing chronic liquidity strain . More than half of Irish companies now rely on supplier credit (overdrafts or trade credit) to bridge cash gaps . In the UK, 41% of service‑sector firms told the ONS in March 2025 that late customer payments were a growing concern . Persistent late payments are already squeezing SMEs: Francis Wilks & Jones report that smaller UK firms “can’t reinvest — simply because clients aren’t paying on time,” and many have turned to legal debt recovery tools to survive . In short, rising costs, higher borrowing rates and late receivables are stretching working capital. As one Irish finance survey puts it, delayed payments often “lead to reduced working capital [and] reliance on short‑term overdrafts” – a dangerous spiral that can push even solvent businesses into distress.

Why seek credit‑control help now: Against this backdrop, proactive credit management is no longer optional. Experts warn that with tax rises and tariffs looming, “managing [cash] flow and staying on top of the debtor ledger…must start now.” . Professional credit controllers can help firms tighten payment terms, chase overdue invoices and spot bad debts early – freeing up vital cash. In practice this means systematic invoicing and reminders, structured debt recovery plans or legal action when needed, and even rescuing accounts through negotiated payment schemes. With about 26% of Irish SME loans already classified as “at risk” (Central Bank data) , letting receivables slide is too risky. Engaging credit‑control specialists or improving in‑house processes can turn the tide: industry experts note that even well‑run companies often let receivables “slip through the cracks” until they become write‑offs .