A “marked decrease” in new business start-ups, and a “small rise” in insolvency-related activity, both occurred in the Yorkshire and the Humber region in December compared to the previous month, according to a trade body.
R3, the insolvency and restructuring trade body, has suggested that insolvency-related activities, which include liquidator and administrator appointments and creditors’ meetings, increased by 5 per cent, from 220 to 231, between November and December.
Business start-ups fell by 16 per cent in the region between November and December.
According to R3, insolvency-related activity increased in December across every UK region apart from Scotland, which saw a 32 per cent drop, and South East England, which saw a 4 per cent drop.
While insolvency-related activity was largely on the rise in December, R3’s analysis, which is based on data from business intelligence and credit checking provider Creditsafe, also suggested a decrease in the number of start-ups across the country.
Mirroring the falls in entrepreneurial activity in Yorkshire and the Humber, every UK region was affected by double-digit percentage declines in the number of new start-ups in the final month of 2024, from a 10 per cent fall in the West Midlands to a 17 per cent fall in the East Midlands.
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, said: “December’s double whammy of increased insolvency-related activity and the falling numbers of new business start-ups is extremely concerning and comes as we are also seeing levels of UK business confidence plummet to their lowest since the 2022 mini-budget.
“Rising costs and taxes are putting firms under immense pressure and unfortunately that increased burden looks to be already having a negative effect on hard-pressed businesses as well as deterring new start-ups.
“While there may be a period of readjustment to new measures such as the hike in employers’ National Insurance contributions announced in the Government’s Autumn budget, we always advise any businesses that have financial issues that are becoming a problem to seek professional help earlier rather than later to ensure the best outcome possible.”
For more information, please visit www.r3.org.uk
