The UK’s North-South economic divide is well documented. In recent years, thanks to the so-called Northern Powerhouse government spending has been roughly evenly split between the both the North and South of the UK. Although there are more businesses set up in the south of the country, insolvency rates are higher in the North.
If new government figures are anything to go by then it is apparent that these inequalities are still very much present, as R3, the insolvency and restructuring trade body, has found that organisations based in the North have the highest insolvency rates in the entire country.
The average percentage of companies becoming insolvent across England and Wales was 0.8% last year, whereas Yorkshire and the Humber, the North East and North West’s figures were a 1.3%, 1.2% and 1% respectively.
Interestingly, locations aside, the stats also showed that firms that are four to nine years old, have a turnover of £0.5 million to £1 million or employ 20 to 49 people are most at risk. Very small or large businesses, on the other hand, are generally in the least amount of danger. This highlights the difficulties of companies attempting to ‘scale up’ and grow.
Having worked with hundreds of organisations throughout the country assisting them with their financial problems, the insolvency practitioners at Walsh Taylor understand the potential perils of accelerating growth too quickly. Additionally, with branches in Leeds, Harrogate, Bradford and Darlington, we know the struggles of firms based in the North of England first hand.
Regardless of the cause of the monetary issue, we always advise clients to seek help as soon as the pressures are identified. This allows us to outline any immediate actions that should be taken, as well as talking clients through all the possible outcomes.
For more information on how our business recovery and insolvency services can be of assistance, please feel free to get in touch today by either calling 03300 244 660 or emailing firstname.lastname@example.org.