The latest Business Insolvency Index from Experian reveals that, overall, 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.
The insolvency rate fell in seven out of the 11 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. 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 among companies with six to 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 of Experian Business Information Services for the UK and Ireland, said: “May’s insolvency figures show 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, while building and construction firms can also take heart at the drop-off in insolvencies after a particularly difficult period.”
Author: Peter Kelly