Yorkshire and the Humber delivered a resilient economic performance in August, showing the third greatest decrease in levels of insolvency-related activity across the UK since the previous month, according to the latest research from the UK’s insolvency and restructuring trade body.
In August, Yorkshire and the Humber saw 211 businesses impacted by insolvency-related activity, down from 256 the previous month. This 17.6% drop was surpassed only by Northern Ireland with a decline of 26.7% and the North East which saw a 19.1% decrease.
In contrast, five of the nations and regions witnessed an increase in insolvency-related activity, which includes liquidator and administrator appointments and creditors’ meetings. The East Midlands showed the greatest rise with an increase of 33.3%. Other regions with increases were the South West (15.4%), East Anglia (12.8%), the South East (10.1%), and Wales (2.8%).
The research from R3, based on an analysis of data provided by CreditSafe, also highlighted a less encouraging sign of economic well-being. Every one of the 12 nations and regions saw a decrease in the number of start-ups between July and August. Yorkshire and the Humber was among the best performing in this regard with a month-on-month fall of just 3.5%. In July, there were 4,076 new businesses in the region, and this number fell by 142 to 3,934 in August.
Other regions that experienced only slight drops in the number of start-ups included the East Midlands (-1%), Scotland (-1.1%), East Anglia (-1.5%), and Greater London (-3%). Regions with the greatest month-on-month fall in new businesses were Northern Ireland, with a significant 26.9% decrease; the West Midlands with a drop of 10.6%; and the North East, down by 9.7%.
Dave Broadbent, chair of R3 in Yorkshire, commented: “After the initial euphoria of getting the General Election behind us, it looks like there are still some tough decisions ahead before the UK economy can return to pre-Covid growth. Unfortunately, there are no easy fixes for businesses as households continue to struggle under the strain of increased living costs. However, it is encouraging to see many of the nations and regions experiencing decreases in levels of insolvency-related activity in August compared with the previous month and for Yorkshire and the Humber to be amongst the strongest performers. With poor forecasts for growth in the short term, businesses should be prepared for the difficult conditions to continue and would be wise to seek professional advice at the first sign of financial pressure when problems have the best chance of being contained.”
In summary, Yorkshire and the Humber displayed one of the most marked decreases in insolvency-related activity in the UK for August. Although new business start-ups have slightly declined, the region remains relatively resilient amidst challenging economic conditions. Businesses are encouraged to remain vigilant and seek early professional advice to navigate ongoing financial pressures.