Insolvency on the rise in the South East, R3 reports
Despite a promising start to 2023, businesses in the South East have seen a recent increase in insolvency related activity, according to the trade body R3.
Their analysis of data from Creditsafe shows 230 counts of such activity in February, which includes Creditor Voluntary Liquidations, Company Voluntary Arrangements, administrations and creditors’ meetings.
This is up 14 per cent from February 2022, and is not far off the peaks seen in December and particularly November of last year.
The region has also seen increases in the number of late payments for companies awaiting money, as well as the number of companies owing money in excess of agreed credit terms.
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R3’s analysis suggests that nationwide instability is being felt particularly acutely in the South East, which had the highest number of firms in liquidation with bad debts of any UK region outside of Greater London, at 298.
Garry Lee, chair of R3’s Southern and Thames Valley region, said: “The economic situation remains volatile for businesses in the South East.
“The prospect of the UK avoiding a recession may have given business confidence a boost in the round, but many companies are still finding it tough going on a day to day basis.
“Much will depend on the Chancellor’s rapidly approaching Spring Budget and whether he feels able to announce any business friendly measures to help lift the burden on hard-pressed companies, entrepreneurs and SMEs.”
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