Business insolvency rate maintains low level
THE business insolvency rate for the UK maintained its low level of 0.08% for the fourth month running, down from 0.09% in May 2012, according to figures released today.
The Business Insolvency Index from Experian, the global information services company, reveals that the insolvency rate fell in seven out of the eleven government regions in May 2013 – a major improvement on the same month in 2012, when just one region, Yorkshire, saw an improvement on the previous year.
In Yorkshire, 125 insolvencies were recorded in May this year compared to 136 in the same period last year.
Insolvencies in the North East fell from 0.14% in May 2012 to 0.11% in May 2013 and Scotland also continued its recent form as insolvency rates stayed at 0.03% for the sixth month in a row.
Looking at insolvencies by company size, smaller businesses, which represent the vast majority of UK companies, have again done well.
The best performance compared to last May was amongst companies with 6-10 employees (down from 0.20% to 0.16%). In fact, the insolvency rate amongst all companies with less than 10 employees (representing 1.8 million businesses) hasn’t risen for the last four months.
Max Firth, managing director, Experian Business Information Services, UK&I said: “What a difference a year makes – May’s insolvency figures has shown improvements across many areas of the UK. What’s particularly pleasing is that insolvencies among smaller businesses, which are the backbone of the UK economy, are showing a longer-term change for the better, whilst building and construction firms can also take heart at the drop off in insolvencies after a particularly difficult period.”
