379 businesses have been declared insolvent in the East Midlands
during the third quarter of 2011 - up 10% from last year -
according to figures by RSM Tenon the UK's 7th-largest accountancy
and professional service firm.
The figure was confirmed today (4.11.11) by the Insolvency
Service, which compares data every quarter throughout the
year.
The results show an increase from the same period last year,
when 337 businesses in the east midlands declared insolvency on the
third quarter of 2010. However, the region is bucking the national
average of an 11% rise compared to the same quarter in
2010.
Commenting on the figures released today by the Insolvency
Service, Patrick Ellwood head of recovery at RSM Tenon Nottingham
said:
"The figures clearly show that its been a tough trading year for
East Midland businesses - many are battling economic
turmoil.
"The last quarter has been one of the worst for the East
Midlands, and the UK. More businesses have already failed in the
first three quarters this year than the whole of 2007 (pre-credit
crunch).
"Businesses can do a lot to help themselves survive these
difficult times. Sensible financial planning and realistic
forecasting all play a crucial role. But more Government action is
required to improve the health of the UK economy. At the moment the
Government is utterly failing to stimulate recovery and growth -
much more needs to be done to support British enterprise.
"Fears of the 'double dip recession' are mounting as Greece
continues to be the problem child of the Euro zone. Unfortunately,
the knock on affect means that businesses across the UK struggle to
obtain more funding."
Nationally the business sectors which were hardest hit include
retail which increased by 19% to 345 declared insolvencies, the
hospitality and tourism sector is up by 14% to 428 and the business
service sector peaked at 20% to 1,435. Sectors with the lowest
recorded insolvencies include the communications sector with its
insolvencies down by 18% to 63
Regionally, businesses in Wales and East Anglia fared the worst
this quarter, seeing increases in insolvencies of 40% and 34%
respectively.