After a worrying trend of increasing levels of insolvency-related activity across much of the UK between April and May 2024, the economic picture in June compared with the previous month was more cheering with a welcome fall in two thirds of the nations and regions, including Yorkshire and the Humber, according to the UK’s insolvency and restructuring trade body, R3.
In June 2024, just 233 businesses in Yorkshire and the Humber were affected by this type of activity (which includes liquidator and administrator appointments and creditors’ meetings), 63 less than in May – this represents a month-on-month decrease of 21.3%.
Based on an analysis of data provided by CreditSafe, the research from R3 revealed that only three of the 12 regions and nations surveyed performed more strongly. These were Northern Ireland with a fall of 54.5%, followed by Wales (down by 28.4%) and the South East (down by 25.9%).
Only four nations and regions experienced a rise in insolvency-related activity compared with the previous month. The North East saw the most stark rise, up by 48.3%, while East Anglia increased by 3.2%, the South West by 2.9% and Scotland by 2.5%.
The number of new businesses launching across the UK also showed a more positive picture than in recent months with all but one of the nations and regions seeing a rise since May. While start-ups in Scotland fell by 13.1%, numbers rose everywhere else with Northern Ireland seeing the biggest increase of 14.4%, the North East up by 8.7% and Greater London up by 7%. In Yorkshire and the Humber, there was a slight rise of 0.4%.
“Following the shallow downturn in the second half of last year amid the challenges of the cost of living crisis and higher interest rates, the UK has seen some growth and these latest figures show encouraging signs of a resurgence of economic confidence,” says Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside.
“With the General Election now firmly behind us, it is hoped that many companies which had put orders and projects on pause ahead of the outcome, will now push forward in a more stable environment.
“It is good not only to see a fall in insolvency-related activity across most of the UK, together with a rise in business start-ups, but also that our region is continuing to demonstrate Yorkshire grit by performing relatively strongly.
“However, given global uncertainty with a number of conflicts and elections around the world, we advise business owners to remain cautious – always keep a close eye on your financial statements and seek advice from an expert insolvency adviser at the first signs of trouble.”
