In June 2024, the economic landscape in the UK showed signs of improvement compared to the previous month. According to R3, the insolvency and restructuring trade body, there was a welcome decrease in insolvency-related activity in two-thirds of the nations and regions, including Yorkshire and the Humber.
A total of 233 businesses in Yorkshire and the Humber were affected by insolvency-related activity in June, representing a decrease of 21.3% from May. This positive trend was reflected in other regions as well, with Northern Ireland, Wales, and the South East showing significant decreases in insolvency-related activity.
Despite some regions experiencing an increase in insolvency-related activity, the overall picture was more optimistic. The number of new businesses launching across the UK also showed promising signs of growth, with most nations and regions seeing a rise in start-up numbers since May.
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, commented on the encouraging economic developments, stating, “Following the shallow downturn in the second half of last year, the UK has seen some growth, and these latest figures show encouraging signs of a resurgence of economic confidence.”
With the General Election now concluded, businesses are expected to move forward in a more stable environment. While it is encouraging to see a decrease in insolvency-related activity and an increase in business start-ups, business owners are advised to remain cautious and seek advice from insolvency experts at the first signs of trouble.
