Bradford has highest insolvency rate

BRADFORD had the highest business insolvency rate in the UK in the second quarter, according to new research from trade credit insurer, Euler Hermes UK.

The city topped the table with 0.6% of registered businesses in the city failing – up 45% since the first quarter (0.42%). Manchester followed closely behind with a rate of 0.57% – up 17% from 0.49% in the first three months of the year.

Andy Hodson, regional risk manager for Euler Hermes UK, said: “Towns and cities in the North of England regularly feature in the Risk Bulletin as having the highest insolvency rates in the country.

“Whilst the region as a whole has seen improvements, drilling down into specific towns and cities presents a different picture with seven of the 10 UK cities and towns with the highest insolvency rates coming from the North.”

Euler Hermes UK’s Quarterly Risk Bulletin points to insolvency rates improving in the North East, North West and Yorkshire, compared with the same period last year but public sector cuts could curb recovery prospects.

According to Mr Hodson the sectors most at risk of insolveny in the region are: furniture, print and metals and metal fabrication. Public sector cuts could hit IT contracts, general construction, waste management, office furniture, stationery and the property sector, he said.