New business starts-ups and insolvency-related activity fell across the UK and in Yorkshire and the Humber last month, according to the latest research from the UK’s insolvency and restructuring trade body, R3.
The findings, based on an analysis of data provided by Creditsafe, show an 18% decline in insolvency-related activity in the region in April, while the rate of new business start-ups saw a 9% drop in the same month.
Insolvency-related activity, which includes liquidator and administrator appointments and creditors’ meetings, rose in the North East (by 7%) and in Wales and the North West (by 4%) but fell in every other UK region, with the South West seeing the largest fall, at 25% lower than March’s figures.
However, business start-ups also decreased across the board, with the South West (down 10%), the South East and Yorkshire and the Humber (both down 9%) seeing the sharpest falls in the number of new businesses being registered.
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, said: “The drop in insolvency related activity in April is proof of the positivity there is among the many vibrant and successful businesses we have in the Yorkshire and Humber region, where innovation and entrepreneurship have long been hallmarks of our industries.
“Nevertheless, businesses are continuing to face a barrage of challenges, not least of which are the increase in National Insurance contributions for employers and the rise in the minimum wage, compounded by macroeconomic global pressures, slow growth and persistent inflation that continue to loom large.
“For businesses that begin to see the cracks of financial distress, R3 members are there to offer exactly the professional advice and support that can help businesses to survive and assist those that need to with restructuring or refinancing. As always, the important thing is to seek help at the very first signs of distress, rather than leaving it until it may be too late.”
