Insolvency-related activities fell sharply across the country in November, according to the latest research from the UK’s insolvency and restructuring trade body, R3.
In Yorkshire and the Humber, insolvency-related activities, which includes liquidator and administrator appointments and creditors’ meetings, were down by almost a third (29%), falling from 309 in October to 220 in November.
Insolvency-related activities dropped across every English region as well in Northern Ireland, which saw a 53% fall, with only Scotland seeing an increase (of 9%). Outside of Greater London, the North West had the highest number last month, at 382 - a figure that was down 13% on the previous month.
While insolvency-related activities decreased in November, R3’s analysis, which is based on data from business intelligence and credit checking provider Creditsafe, also revealed a decrease in the number of start-ups across the country in the same month.
In Yorkshire and the Humber there was a 16% decline in the number of start-ups, at 3,843, compared with 4,570 in October. Northern Ireland saw the highest percentage decrease in entrepreneurial activity with a fall of 28%, while the South West saw a drop of 22%.
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, said: “The fall in the numbers of start-ups is concerning, and is likely to be an extension of the general business confidence plunge that we have witnessed in the aftermath of the Autumn Budget.
“While entrepreneurs and businesses take time to absorb the consequences of the Budget for their future plans, the hope is that announcements early in 2025 on tax reform, industrial strategy and infrastructure may help boost growth and provide a lift to start-up numbers too.”
He added: “In the meantime, for businesses facing financial problems, whether as a result of the Chancellor’s Budget announcements or otherwise, we would always urge them to seek advice from qualified professionals to achieve the most positive outcome possible.”
