While entrepreneurial activity across most of the UK, including Yorkshire and the Humber, continued to increase in October, so too did insolvency-related activity with only one region seeing a month-on-month fall, according to the latest research from the UK’s insolvency and restructuring trade body, R3.
Although in Yorkshire and the Humber insolvency-related activity increased by 25.6% between September and October, with 309 businesses affected (63 more than the previous month), this was the third strongest performance in the UK. Only the West Midlands saw levels fall month-on-month with a drop of 1.6%, followed by the North West with a rise of 24.4%.
Looking across the rest of the 12 nations and regions, all experienced spiralling levels of this type of activity (which includes liquidator and administrator appointments and creditors’ meetings) with Wales topping the increases with a 78.4% hike, followed by the South East (69.4%), the South West (64.5%) and East Anglia (61%).
However, the research from R3, which is based on an analysis of data provided by CreditSafe, also revealed some healthier economic indicators such as the growing numbers of start-ups.
Last month, Yorkshire and the Humber saw a 7.9% rise in new businesses, reaching 4,570 start-ups – 335 higher than in September. This was reflected across all but one of the regions and nations, with only Northern Ireland seeing a month-on-month fall of 3.7%. The strongest performers were Wales (up by 22.2%), the East Midlands (up 16.6%), the South West (up by 15.5%), the North West (up by 15.2%) and the West Midlands (up by 14.9%).
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, said: “As businesses and individuals digest the latest Budget, along with the impact of the US election, it is hoped that we can all plan for a period of calm. While the upheaval and speculation of recent months has exacerbated economic jitters in the UK, it is clear that the Government’s commitment to growth is welcome.
“As ever, it is good to see that the entrepreneurial spirit is alive and well in Yorkshire and the Humber, as well as across much of the UK. However, with many businesses having been pushed to the brink following the tumultuous events of the last few years, conditions are still extremely tough for many with fears that the latest tax burdens will add to their woes. We urge any business owners concerned about their financial position to seek advice from qualified professionals as soon as possible.”
