Yorkshire businesses are experiencing a sharp increase in financial distress, with 3,303 firms classified as being at critical risk of insolvency in Q4 2023—a 32.4% rise from the previous quarter, according to Begbies Traynor’s latest Red Flag Alert report. Year-on-year, the number of distressed businesses in the region grew by 18.3%.
The financial strain in Yorkshire is more pronounced than the national average, where critical distress rose by 25.9% quarter-on-quarter and 2.6% year-on-year. Less severe financial difficulties also climbed, with Yorkshire seeing a 13.1% rise since Q3 and 9.2% over the past year, compared to 12.9% and 5.6% across the UK.
The construction sector reported the highest number of critically distressed businesses in Yorkshire, reaching 604—a 30.7% increase from the previous quarter. Real estate and property services firms in severe financial trouble rose by 35.4% to 409, while professional services businesses, including accountants, solicitors, and architects, saw a 51.5% increase, affecting 256 firms.
