Insolvencies finally stabilising after six years of uncertainty

FOR THE first time since 2007, the rate of insolvencies in UK business has remained at the relatively low level of 0.08 per cent for a whole quarter.

It was revealed today by Experian, a global information services company, that the number of insolvent businesses had stayed unchanged between February and April, the first three month period since the financial crisis without variation.

The data released was overwhelmingly positive, with good news for large and small businesses, as well as more economically troubled parts of the country. Insolvency rates for Yorkshire, the north east and the north west all declined in April on the year. Scotland’s fell to an historic low of 0.03 per cent.

Insolvencies in the troubled construction industry dipped from 0.15 per cent to 0.14 per cent, a welcome sign in a sector that has suffered since the 2007.

Max Firth, a managing director with Experian said: “it’s particularly pleasing to see that companies at both ends of the supply chain are improving”, adding, “to see fewer failures is promising and will no doubt boost confidence”.