The number of new businesses launched in Yorkshire and the Humber fell in August, while insolvency-related activity also declined, according to new analysis from R3, the UK’s restructuring, turnaround and insolvency trade body.
R3’s latest figures, based on data from Creditsafe, show that business start-ups across Yorkshire and the Humber dropped by 11.3% in August compared to July, falling from 4,728 to 4,192.
The region mirrored a national picture of declining start-up activity. Every UK nation and region saw a fall in August, with the sharpest drops in the North West (-13.3%), East Anglia (-10.3%) and Northern Ireland (-10.2%).
Yorkshire and the Humber also saw insolvency-related activity decline by 12.8% between July and August. The downward trend was reflected elsewhere, with falls recorded in the North East (-19%), East Anglia (-18.3%) and Greater London (-14.6%). Wales was the only part of the UK to see an increase in insolvency-related activity (+22.8%).
Dave Broadbent, chair of R3 in Yorkshire and a partner at Begbies Traynor in York and Teesside, said: “It’s disappointing to see start-up numbers dip after three months of growth, although this may reflect seasonal factors as well as wider economic headwinds.
“At the same time, the fall in insolvency-related activity should be treated with caution. Many businesses are still facing significant challenges, from rising interest rates and stubborn inflation to higher employers’ National Insurance contributions and the recent increase in the minimum wage, all of which are squeezing cashflow.
“For firms in sectors with already tight margins, such as retail, hospitality and construction, these pressures remain severe.”
He added: “The withdrawal of pandemic support still casts a long shadow, with some firms carrying debts they are struggling to service. Seeking expert advice early is crucial – the sooner a company addresses the warning signs, the more options it has to resolve its problems and safeguard its future.”
