In Yorkshire, insolvency activity has increased significantly, with cases rising to 284 in March, up from 248 in February. This marks a notable increase in financial distress within the region, reflecting broader economic pressures affecting businesses nationwide.
The Yorkshire & Humberside region now ranks fourth in the UK for insolvency activity, behind Greater London, the North West, and East Anglia. The data, analysed by R3, highlights a continued upward trend in insolvencies across all regions of the UK, pointing to a challenging financial landscape.
Rising costs, economic volatility, and reduced consumer spending have been major factors contributing to the region’s insolvencies. Many businesses are struggling with cash flow issues, and creditor actions have become more assertive in response. Inflationary pressures and uncertainty over future economic performance compound these difficulties.
While insolvency numbers have risen, Yorkshire has also seen an increase in new business activity, with a rise in startup registrations. However, the overall outlook for businesses remains cautious, as financial instability continues to impact established companies and new ventures in the region.
