New business start-up numbers fall across Yorkshire as insolvency activity rises, says R3
Yorkshire recorded a decrease in new business activity in October, as new figures reveal signs of declining entrepreneurial confidence across the region.
According to the UK’s insolvency and restructuring trade body R3, 4,709 new businesses were launched in Yorkshire and the Humber during October, representing a 5.6 per cent decrease on September’s total of 4,989.
The fall in new businesses, based on an analysis of data from Creditsafe, was among the steepest in the UK and highlights a wider trend of decreasing business start-up activity across every UK region, according to R3.
Other areas showing notable monthly falls included Northern Ireland (-9.9 per cent), the South West (-6.3 per cent) and Greater London (-4.4 per cent).
Meanwhile, insolvency-related activity in Yorkshire, including liquidator and administrator appointments and creditors’ meetings, increased by 34.4 per cent to 258 cases, following a general upward trend across all of the UK apart from Wales.
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, said: “These latest figures show a clear slowdown in new business launches alongside a worrying rise in signs of potential increasing insolvency levels across Yorkshire and the Humber.
“As we await the Autumn Budget later this month, our data reflects the economic pressures that businesses across the country are facing, including high interest rates, inflationary costs and ongoing market uncertainty.
“For business owners, these ongoing economic challenges underline the importance of careful financial planning, strong cashflow management, and seeking professional guidance early. While the short-term picture may seem challenging, Yorkshire’s businesses have always shown resilience and innovation, and those who combine ambition with prudent planning will be best placed to navigate these headwinds and emerge stronger.”