With all but two of the regions and nations showing a rise in levels of businesses start-ups between August and September, Yorkshire and the Humber saw the fourth greatest increase, according to the UK’s insolvency and restructuring trade body, R3.
The research from R3, which is based on an analysis of data provided by CreditSafe, showed that Yorkshire and the Humber recorded a 7.7% month-on-month uplift in new businesses, rising to a total of 4,235 new businesses in September – over 300 more start-ups than in August. In contrast, levels of new businesses in the region had decreased by 3.5% between July and August.
Last month’s more optimistic picture was reflected across much of the UK with ten of the 12 regions and nations seeing rises in new business numbers since August. The most marked increases were in Northern Ireland with a 14.2% rise, followed by West Midlands (up by 8.5%) and the South East (up by 8.3%).
However, both the East Midlands and Scotland experienced falls in levels of start-ups since August, with the latter seeing a drop of 0.8% in September and the former decreasing by 3.6%.
Looking at month-on-month changes to insolvency-related activity (which includes liquidator and administrator appointments and creditors’ meetings), there was also a mixed picture.
Yorkshire and the Humber was among four regions and nations which recorded a rise last month since the previous month – up by 16.6% with 246 businesses in the region now affected. Northern Ireland saw the largest hike (up by 109.1%) with the West Midlands (up by 2.9%) and Greater London (up by 1.5%) also experiencing rises.
Wales put in the strongest performances with a drop of 30.1%, closely followed by the North East (down by 26.3%) and Scotland (down by 26.1%), while the remaining five regions and nations also saw double-digit decreases.
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, said: “After the initial feel-good factor immediately following June’s general election, it appears that business confidence is once again declining and this is having a detrimental effect of the UK economy.
“With warnings of a tough budget at the end of the month, many businesses remain cautious although some economists are still predicting growth, albeit at a slower rate than in the first six months of the year.
“Given continued high interest rates and cost of living pressures as consumers face another winter of increased energy costs, it is encouraging to see so many entrepreneurs here in Yorkshire and the Humber, as well as in many other parts of the UK, launching new businesses.
“However, with levels of insolvency-related activity also growing in many of the regions and nations, it remains a difficult environment in which to trade. Once the Autumn Budget is behind us, it will be easier for businesses to plan, but cash flow is likely to remain an issue and we urge directors to seek professional advice at the first signs of spiralling financial problems.”
