Yorkshire Businesses faced record levels of ‘distress’ in final months of 2024, report shows
The report for Q4 2024 reveals that “significant” or early-stage business distress had climbed rapidly, affecting 46,000 businesses in Yorkshire and 655,000 business across the UK by the last three months of last year.
In Yorkshire, the number of companies with financial problems increased by 23 per cent since the same quarter in 2023 and by 4.2 per cent since the third quarter of 2024. Every industry in Yorkshire saw an increase in signs of distress, with the region’s food and drink sector hit particularly hard.
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Hide AdUK wide stats also painted a similar picture, with ‘significant’ distress up 3.5 per cent on the previous quarter and 21.3 percent higher than Q4 2023.


Julian Pitts, regional managing partner for Begbies Traynor in Yorkshire, said: “The fact that we are seeing unprecedented numbers of businesses across every sector of the economy struggling with the multiple challenges they face, and falling victim to financial distress, is extremely concerning.
“As we start a new year it is natural to look for some reasons for optimism, however the outlook for 2025 does look worryingly bleak as businesses face the prospect of escalating costs with rising operational costs and higher wages adding to an already difficult situation.
“This will only be compounded by the tax rises and increase in the national minimum wage levied on businesses in the Autumn Budget, placing yet more financial strain on businesses later this year, especially in labour-intensive sectors like retail and hospitality, which generally operate on very narrow profit margins.”
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Hide AdIn last year’s Autumn Budget, Chancellor Rachel Reeves announced a rise in employer’s National Insurance contributions, as well as a lowering of the threshold at which businesses begin paying the contributions.
The Government has said the changes will to help “fix the foundations of the public finances and invest in public services”, arguing that the move will raise evenue for the NHS and help to fund state pensions.
Despite some signs of a pre-Christmas sales boost which saw falls in the number of distressed businesses of 11.5 per cent for food and drug retailers and 6.5 per cent for food and drink producers, year on year the sector was hit by a surge in distress, according to the report.
Food and drug retailers saw a 44.5 per cent rise, while in food and drink production significant distress was up by 34.6 per cent compared to Q4 in 2023. General retail was also hit by a year-on-year 34.3 per cent rise in distress.
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