Insolvencies inch up in South East – but better than last year, says R3

Insolvency-related activity has risen slightly in the South East, says R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe showed a slight increase in insolvency-related activities from 178 in July to 196 in August – these include administrator and liquidator appointments together with creditors’ meetings.

This number remains significantly lower than a year ago, when 264 insolvency related activities took place in the region in August 2023.

The findings also revealed the number of firms in liquidation which owed money to their creditors in the South East has dropped again from 310 in July to 298 in August.

The South East figure for insolvency-related activities remains the sixth highest in the UK – behind Greater London, which has 471, as well as the North West, East Anglia, West Midlands, and Yorkshire and Humberside.

Neil Stewart, chair of R3’s Southern and Thames Valley region, said month-by-month fluctuating figures made it tricky to identify positive trends, but that relative stability in regional insolvency-related activities over the summer was a good sign.

He added: “The traditional summer slowdown tends to intensify economic challenges, but this year’s summer of sport, including the Euros and Olympics and, at times, some good weather have helped to reduce the problem.

“There is also, following July’s General Election, a feeling of more stability for businesses and the likelihood of better trading conditions, especially for retail, hospitality and construction businesses.

“Government plans for 1.5 million new homes, reform of planning regulations and lifting of the ban on onshore wind farms will also give the construction sector – and its supply chain – a further lift, but will take time to have any significant impact.”

R3’s Southern & Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.

Neil added that ongoing economic challenges – pay settlements, cautious customer spending, extra costs, supply issues, poor cashflow management – may still be decisive.

“More positively, an improved economic and business climate should also result in greater acceptance and success of rescue proposals, and businesses of various sizes are showing a growing interest in restructuring plans, which is encouraging news for the profession.”