According to insolvency and restructuring trade body R3 there has been a slight fall in Insolvencies in Yorkshire between November and December 2023.
The research, based on an analysis of data provided by CreditSafe, found that insolvency-related activity reduced by 11.7 per cent month-on-month, representing 248 businesses.
Across the UK, two-thirds of the 12 regions and nations experienced a fall in this type of activity (which includes liquidator and administrator appointments and creditors’ meetings) in December compared with the previous month.
However, another indicator of economic health, the number of start-ups, recorded a more concerning picture with all regions and nations seeing a decrease month-on-month.
In Yorkshire and the Humber, 3,902 new businesses launched last month, an 18 per cent drop since November 2023.
Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, said: “While it is encouraging to see a slight fall in insolvency-related activity in the majority of regions and nations, this has to be seen in seasonal context as December is traditionally the busiest time of year for many sectors. However, it is always good news that Yorkshire and the Humber is performing relatively strongly.
“Despite some retailers reporting a busy Christmas shopping season, for many sectors, the longer-term picture remains one of little prospect of growth in the near future. The ongoing strain on households is evident as costs continue to rise, and a technical recession remains a possibility later this year.
“Amid these fairly gloomy economic prospects, businesses would be well-advised to watch cash flow closely and seek advice from qualified insolvency professionals at the first signs of problems when the most options will be available to prevent them from escalating.”
