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Insolvency figures reveal North South divide

THE North East had the highest level of business insolvencies in June, new figures have revealed, as the national average experienced a year-on-year decline.

At 0.14%, the North East had the highest insolvency rate of the regions in June according to global information services firm Experian, with Yorkshire (0.12%) close behind.

In contrast, at the opposite end of the country businesses in the South West saw a UK low of 0.07%, while Greater London had an insolvency rate of 0.08%.

1,771 UK businesses failed during June 2010, 13.4% fewer than in June 2009 when 2,044 firms became insolvent.

The overall financial strength score of UK businesses also improved, from 80.83 in June 2009 to 80.66 in June this year.

Rolf Hickman, managing director of pH Group, an Experian company, said: “June’s data indicates that the UK’s business community as a whole is stabilising, however it also points to the existence of a north versus south divide.

“Businesses in the north of England seem to be faring slightly worse than their southern counterparts across all industry sectors.”

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