THE perilous state of business and household finances has been underlined by the Government’s latest annual insolvency figures.
The Insolvency Service revealed that the number of business insolvencies across England and Wales in 2018 was at the highest level for five years.
Sector-by-sector, the construction industry – still reeling from an insolvent Carillion entering administration – had the highest number of insolvencies, followed by the wholesale and retail trade (better known as the High Street) and the repair of motor vehicles.
Transportation – a sector that analysts fear may be among those most at insolvency risk as a result of Brexit – also showed a worrying upward trend continuing.
Among those buckling the insolvency trend was the water and waste management sector, where failures were at the lowest for six years.
This mirrors our own experience of supporting businesses and individuals across Yorkshire and the North East facing insolvency – including those working or living in Barnsley, Bradford, Darlington, Doncaster, Durham, Halifax, Harrogate, Huddersfield, Hull, Leeds, Middlesbrough, Newcastle, Sheffield, Sunderland, Wakefield and York.
The insolvency figures were published on the same day that a new report also revealed that Leeds has seen one of the UK’s biggest increases in business closures. A paper from the Centre for Cities think-tank claimed that the number of firms shutting down in the city jumped by a massive 43% between 2016 and 2017.
It put Leeds behind only Nottingham (47.8%) and Doncaster (47%) and was far higher than the national average (24%) for the rates of increase in closures during this period.
Meanwhile, the national statistics for personal insolvencies painted an even bleaker picture of household debt, hitting a seven-year high.
Both sets of insolvency figures come as unemployment figures are close to a record low – perhaps masking the true state of the UK economy.
At a glance, the key findings of the Insolvency Service’s annual report were:
- The liquidation rate rose in 2018
- CVLs remained the most common form company insolvency
- CVAs and administrations also increased on 2017
- All types of individual insolvency increased
- IVAs reached a record-high
- Debt relief orders (DROs) increased in 2018
- Bankruptcies also increased on 2017
In 2018 1 in 401 adults became insolvent, up from 1 in 466 in 2017.
These figures serve to highlight the extent to which businesses and individuals are suffering from financial pressures. Here at Walsh Taylor, we urge anyone needing help to seek professional advice as soon as the issues and pressure points are identified.
This will allow us to make you aware of all the potential options available to you, tailored for your situation – however complex and challenging it may seem Walsh Taylor can help to explain the routes available to you.
For more information on how our licensed insolvency specialists and business recovery team in Leeds, Guiseley, Bradford, Harrogate and Darlington can help, please call 03300 244 660.