Yorkshire and Humber sees rise in business start-ups as insolvency pressures persist, says R3

Yorkshire and the Humber recorded a rise in new business activity in June, reflecting a broader national trend of increased entrepreneurial confidence, according to the latest figures from the UK’s restructuring, turnaround and insolvency trade body, R3. Start-up numbers rose across every region of the UK, with Yorkshire and the Humber recording a 6% increase in start-ups compared to May’s figures.

However, at the same time, insolvency-related activity, which includes liquidator and administrator appointments and creditors’ meetings, also increased by 4% in Yorkshire and the Humber, in contrast to most UK regions, including parts of the north, which saw a decrease in insolvency activity over the month.

Based on an analysis of data provided by Creditsafe, insolvency-related activity was down by as much as 27% in the South East, 21% in the North East and 20% in Scotland. Only Yorkshire, the North West (up 9%), the South West (up 11%) and the East Midlands (up 6%) saw increases.
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, said the data could be indicative of a "two-speed economy" developing across the UK business landscape.

“Yorkshire and the Humber is clearly part of the national picture when it comes to renewed start-up activity,” Mr Broadbent said. “It’s encouraging to see people in our region taking the leap and launching new ventures, which suggests there’s a degree of confidence returning to the market—despite the tough economic conditions.”

However, he warned that the increase in insolvency-related activity in Yorkshire and elsewhere highlights that many existing businesses are still facing significant financial challenges.

“We’re seeing start-ups being fuelled by stabilising energy prices and a bit more certainty around inflation, but on the flip side, firms with legacy debt from the pandemic or those struggling with rising wage costs and interest rates, remain under pressure,” Mr Broadbent explained.
“While it’s positive that insolvency activity fell in many regions, including parts of the north, it’s too early to say if this is a lasting trend or a temporary slowdown. The reality is that many businesses are still navigating a difficult operating environment.”

Dave urged Yorkshire businesses to stay vigilant and proactive. “With interest rates still high and consumer demand uneven, it’s vital that firms keep a close eye on cash flow and seek early advice if they see signs of financial distress. Early intervention can often make the difference between survival and insolvency.”