Cornwall businesses ‘fighting financial fires’, warns Truro expert

If you run a business in Cornwall and you have started watching your payment deadlines more closely than you used to, you are not on your own. The latest insolvency figures are out, and a Truro-based specialist says the pressure on firms across the county shows little sign of easing.

The latest numbers

There were 1,845 corporate insolvencies in June, four fewer than in May 2026 (1,849) and 10% down on June 2025, when the figure stood at 2,048.

Andy McGill, a restructuring and insolvency partner at Azets, a UK top 10 accountancy and business advisory firm with an office in Truro covering Cornwall, has been looking at what is driving the trouble for businesses in the county.

He said June’s figures were dominated by Creditors’ Voluntary Liquidations (CVLs). While 50 fewer of these took place compared with the previous month, and they are usually the most common insolvency process, Andy said CVL numbers remain higher than they were before the pandemic.

“Directors lack the confidence and cash to keep their firms open in a trading climate that is dominated by rising costs, shrinking margins and political and economic uncertainty,” he said.

Compulsory liquidations, meanwhile, remain higher than they were at the start of the year. Andy put that down to creditors in both the public and private sectors continuing to chase down debts through the courts.

“The patience and forbearance shown in the pandemic years is now a thing of the past,” he said.

‘Everyone is short of money’

Andy’s read on the wider picture was blunt.

“Everyone is short of money, everyone is watching their payment deadlines and chasing unpaid invoices, and it’s likely this will continue in the second half of this year,” he said.

He pointed to political, geopolitical and economic instability hitting growth, recruitment and rescue, and said the uncertainty in the UK, together with the ongoing effects of the conflict in the Middle East on costs and finance, was making it hard for businesses to make money and stay in the black.

“Times are tough for Britain’s businesses,” he said. “It costs more to hire staff, profits are falling and cashflow levels are under pressure, and firms have been fighting financial fires in one form or another since 2020.”

Increases in rents, rates, materials, products, wages and energy have all taken their toll over the past six years, Andy said, and with no let-up in sight he expects margins to keep shrinking.

Energy costs remain a particular worry, especially in sectors where they cannot be passed on to the customer. Summer bills may rise as businesses try to keep staff and customers cool, but Andy said the real impact tends to land in winter, when outgoings, margins and profits are already front of mind and extra expenses hit hardest.

The sectors feeling it hardest

From a sector point of view, Andy said costs are still hitting retailers and hospitality firms hard, and hiring is falling as a result.

“While sales appear to be rising, increases in volume don’t always translate to an increase in value, and many businesses in this sector are having to work harder to stay still,” he said. Where they can, firms avoid passing costs on to customers, but many can no longer afford to absorb them.

Construction is having its own difficulties, with delayed project starts, planning permission problems and what Andy called the triple blow of late payment, tight margins and soaring costs. Better summer weather should lift output, though whether that is enough to steady the sector remains to be seen.

Andy’s advice

For any business owner in Cornwall worried about their finances, Andy’s message was to act early.

“Our advice for anyone who is worried about their finances is to pick up the phone and speak to an advisor. It’s a hard call to make and an incredibly tough conversation to start, but doing so while your worries are new gives you more options and more time to decide your next step than if you’d waited until the problem became more severe, and usually gives you a better chance of turning your situation around.”