INSOLVENCY figures fell in May, but businesses across Wales remain under serious financial pressure, according to restructuring specialists.

Official figures show there were 1,868 corporate insolvencies in May 2026, down 10.5% from April and 16.3% lower than in May last year.

Andy McGill, restructuring and insolvency partner at Azets, which has offices in Cardiff, Swansea and St Asaph, said the fall was welcome but should not be mistaken for a sign that firms are out of difficulty.

He said: “Directors running out of fight, firepower and finance is still a problem, and creditors remain willing to turn to the courts to recover monies owed — and neither of these are going to change in the short term.

“The reality is that despite the fall in insolvencies compared to last month and last May, numbers are still high and businesses are still struggling, with many facing an uncertain future.”

Mr McGill said firms were being hit by a combination of geopolitical uncertainty, rising costs, political instability, a lack of affordable finance and creditors chasing overdue debts.

He added: “Unless the climate becomes easier and some way is found of lightening the cost load on businesses, it’s likely demand for advice and support will remain high in the coming weeks and months.”

Cost pressures continue

BUSINESSES are also facing rising employment costs, higher business rates and renewed pressure from energy bills.

Mr McGill said many firms were being “sandwiched” between their own higher costs and customers cutting back on spending.

He said the hospitality, retail and construction sectors remained among the hardest hit.

He added: “The fact that several household names have entered restructuring or insolvency processes recently shows the strain on the restaurant sector is becoming unbearable as the double blow of increased expenses and cautious consumers continues to affect it.

“Despite a rise in footfall and sales, retailers continue to be crushed by costs.”

He also pointed to the planned restructuring of TG Jones as evidence that even long-established high street names were not immune from financial distress.

Construction firms under strain

THE construction industry continues to face pressure from rising labour costs, higher material prices and late payment.

Mr McGill said tight margins and cashflow difficulties were pushing more firms towards financial distress.

He said: “Our advice to anyone who is worried about their business is to pick up the phone and speak to an adviser.

“It’s incredibly hard to voice your concerns about your finances, but the earlier you do, the more potential solutions you have open to you and the more time you have to consider how you move forward.”

Community event brought residents, businesses and town leaders together despite difficult weather

MILFORD HAVEN TOWN COUNCIL has thanked Pembrokeshire County Council for support through the UK Shared Prosperity Fund, which helped make this year’s Founders Day event possible.

The event, held in Milford Haven earlier this month, brought together residents, local businesses, community groups and civic leaders for a celebration of the town’s history, resilience and future.

Despite challenging weather, the day featured family activities, food stalls, music, entertainment, RNLI involvement and a strong community turnout.

The UKSPF support helped Milford Haven Town Council provide funding to Milford Haven Business Circle, which played a key role in delivering the event.

Town councillors said the day highlighted the strength of Milford Haven’s community spirit and gave local people and businesses an opportunity to come together, promote the town and build stronger connections.

Milford Haven Town Council said it was grateful to Pembrokeshire County Council for administering the UKSPF programme locally and for recognising the importance of events which support community development and economic growth.

The council added that it remains committed to working with partners on projects and events which benefit local people and contribute to the continued success of Milford Haven.

HOUSEHOLDS across Pembrokeshire who rely on heating oil or LPG can now apply for financial help through the Off Grid Heating Fuel Support Scheme.

The scheme, funded by Welsh Government and delivered by local authorities, provides a one-off £200 payment to help low-income households with rising energy costs.

To qualify, households must be receiving, or have successfully applied for, the Council Tax Reduction Scheme between April 1 and July 31, 2026.

Applicants must also use heating oil or LPG as their main source of heating and provide proof, such as a bill dated within the past 12 months.

The property must be the applicant’s main residence, and only one payment can be made per household.

Pembrokeshire County Council has identified households likely to be eligible and will write to them directly, inviting them to apply.

Applicants will be asked to confirm their heating fuel type, provide evidence such as an oil or LPG bill, and submit bank details so payment can be made.

Applications must be submitted by September 30, 2026.

Verified claims will be paid directly into bank accounts as soon as possible, and no later than October 31, 2026.

Further information is available on Pembrokeshire County Council’s website by searching for “help with heating oil and liquid petroleum gas”.