Societal Impact Report 2025-26: Harnessing the UK’s Strengths in a Challenging World

Today The IFT publishes our Societal Impact Report covering 2025–2026, Harnessing the UK’s strengths in a challenging world.

You can find the full report here.

This is The IFT’s seventh Societal Impact Report, bringing together insights from members and partners on the pressures facing UK businesses and the value of turnaround support.

 With 185,231 UK companies in distress in Q2 2026, businesses continue to face sustained pressure. Despite these challenges, IFT members have delivered significant positive outcomes for UK businesses. Key findings are:

• An estimated £4.046 billion increase in shareholder value by independent IFT members 2025–2026
• An estimated 93,972 jobs preserved by independent IFT members 2025–2026
• An estimated £4.6 billion in new money brought in to support business turnarounds by IFT independent members.
• 90% of IFT independent members reported that the market was busier or at a similar level to 2025.
• 67% of IFT independent members changed a business’s organisational structure in their most recent successful assignment.
• The most common interventions reported over the last year were cost reductions (74%), cash flow forecasting (71%) and helping boards create strategic change (67%).

As The IFT marks 25 years since its first AGM, the report also reflects on the longer-term contribution of turnaround: an estimated 1.1 million jobs saved and more than £50.5 billion in value preserved, in today’s prices, by IFT accredited members over that period.

IFT independent members consider inflationary pressures, leadership bandwidth and energy prices as the top three challenges for distressed but viable businesses in 2026 and going into 2027.

Regional and sector trends show a mixed picture. Regions including Wales, the West Midlands, London, Northern Ireland and Yorkshire showed small increases, whilst Scotland, the South West, North East, East Midlands, East Anglia and North West saw small decreases in the number of distressed companies.

Over the same period, distress rose most in public administration, defence and social security (11%), followed by financial and insurance activities (8%) and manufacturing (5%). It fell in accommodation and food services (1%), arts, entertainment and recreation (3%) and education (5%).

When asked why businesses in distress fail to seek support early, 84% of IFT independent members cited cultural or psychological resistance to external advice. This was followed by a lack of understanding of turnaround (57%) and businesses recognising problems too late (51%).

The report also includes deep dive chapters on three themes: the value of operational transformation in overcoming uncertainty; world-leading professional and financial services; and innovation, design and cutting-edge industries.