January 03, 2012
Despite businesses throughout the country still showing much reduced profits compared to pre-2008, those operating in the South of England are fairing “far better” with regard to insolvency rates than those in the North.
According to a recent study by Experian, insolvency rates decreased in London and the South East between October and November but increased in the North East, North West and Yorkshire.
In total, 1,736 businesses went insolvent in November this year, but the prevalence of failing businesses is far greater in the North, particularly the North West, which tops the table for insolvency rates as 0.14% of businesses in the region failed.
In the North East, 0.12% of businesses followed suit, while in Yorkshire 0.11% failed to see out the year. This compares to just 0.07% of businesses in the South East of England and Greater 0.08% in Greater London.
Overall, insolvency rates for the UK as a whole decreased by 0.01% between October and November, down from 0.10% to 0.09%. However, compared to the same period in 2010, the rate of insolvencies has shot up by 0.07% in 12 months.
"The latest insolvency index highlights that some businesses continue to need to assess the risk strategies they have in place very carefully,” said Experian’s Max Firth. “They need first to understand the risks they are exposed to and then protect themselves from debt that could be detrimental to their business on a regular ongoing basis.”
Are you worried about insolvency heading into the New Year? Contact our team today and we’ll do all we can to make sure you’re still afloat when the 2012 festive season comes around.
