UK Business Insolvency Rates Drop
Experian report reveals North West region and mid-sized businesses show biggest decrease in failure rates
Analysis released today revealed that insolvency rates in the UK dropped for the first six months of the year from 0.47% in 2013 to 0.44% in 2014, with the North West, East Midlands and Wales showing the biggest turnaround.
The report by Experian, a global business information service, found that most businesses experienced a fall in liquidations, with mid-sized businesses (100-500 employees) seeing the biggest improvement – from 0.72% to 0.51%. The North West led the decrease in business failures rates, with only 0.46% insolvency rates this year compared to 0.56% the previous. Furthermore only micro businesses (one-two employees) failed to experience a drop, remaining at 0.32%.
Regionally only two areas witnessed an increase in business bankruptcies, Scotland jumped 0.10% to 0.28% in the year and the South East saw a slight rise, increasing from 0.41% to 0.42%.
Experian’s managing director, Max Firth, discussed the overall positive results:
“The fall in insolvencies is in line with the more positive economic backdrop. Improving business confidence and rising market demand is underpinning a greater willingness among firms to employ more people, which is good news across the UK.
“Insolvencies among the UK’s smallest firms – one and two man bands – did not worsen, but did not improve either. A key component to surviving as a small business is to keep an eye on the fortunes of their biggest customers and key suppliers. If either of these go out of business then the impact will reach them too.”
Check out the breakdown of rates in regards business size and regional in the tables below.