Number of new business start-ups lifts in Yorkshire and Humber

The increase in business start-ups in Yorkshire and the Humber, from 3,235 new businesses established in December, to 4,375 in January, comes after a 16 per cent fall in the number of new start-ups at the end of last year.

Insolvency-related activity, which includes liquidator and administrator appointments and creditors’ meetings, also fell, following a small rise, of five per cent, in December of last year.

Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, said: “This is certainly welcome news.

“It’s encouraging to see some signs of growth amid the economic uncertainty that businesses continue to face, with rising prices, increased employment costs and the threat of tariffs adding to the shockwaves from the pandemic and Brexit that are still hitting the economy.

“Needless to say, many businesses are really struggling with all these challenges and the R3 data also shows that over 47,000 firms in Yorkshire and the Humber have invoices which have gone past their due date for payment, an increase on December’s figures.

Business start-up numbers increased significantly across every region of the UK in January: by 37 per cent in the East Midlands and 36 per cent in East Anglia.

Northern Ireland saw the slowest rate of increase, at 14 per cent, and was also the only region to see a hike in insolvency-related activity, which was up by 50 per cent compared to December.

Every other region experienced a decrease in insolvency-related activity, with the East Midlands seeing the largest drop at 43 per cent.

Mr Broadbent added: “While this month’s Bank of England interest rate cut should help to give businesses some much needed breathing space and make borrowing cheaper for those firms with plans for growth, we always advise clients that it’s essential to monitor their financial position carefully and seek professional advice as soon as possible.

"In a fragile economy like this, things can rapidly take a turn for the worse.

“Help and support for businesses is out there and swift and decisive action is often what can save the day and help to turn a financially challenging situation around.”

R3 is the trade association for the UK’s insolvency, restructuring, advisory, and turnaround professionals.