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Regional businesses continue to suffer

THE North East saw the highest rate of insolvencies for the third consecutive month in April, new figures show.

The latest Insolvency Index from global information services company Experian has revealed a year-on-year fall in business insolvencies during April in the UK.

The total number of insolvencies fell by 15.1% during April compared to the same month last year - from 2,274 in April 2009 to 1, 818 in April 2010.

As a result, this brought the year-on-year insolvency rate down from 0.11 per cent to 0.10 per cent in April.

Rolf Hickmann, managing director of pH, an Experian company, said: “Our analysis shows that it continues to be vital for businesses to understand the circumstances of those they are doing business with and the risks they could expose their company to.”

“It is easier for the smallest businesses, with just one or two employees, to make adjustments to their operations and pull in the reins when times are challenging. For the largest business, there is the flexibility that comes with economies of scale, so insolvency rates among these extremes of business type are also low. Mid-sized businesses do not typically have the luxury of either of these benefits and can face the most pressure.”

The North East, alongside Yorkshire and the West Midlands, had an insolvency rate of 0.13% in April.

The East Midlands was the region to see the highest improvement, from an insolvency rate of 0.11% in April 2010 compared to 0.15% in April 2009.

Scotland remained the region with the lowest rate of insolvency, although did see a slight increase on last year’s figure up to 0.07 per cent from 0.05 per cent in April 2009.

This was posted in Bdaily's Members' News section by Ruth Mitchell .