Rate of business insolvencies steadies

The rate of business insolvencies across the UK has steadied in recent months, new figures from data information provider Experian have shown.

The overall rate of businesses failing in March was 0.11%, similar to the level recorded exactly a year ago in March 2011.

Some of the regions hit hard by the recession have seen even better figures, with the North East seeing the rate of insolvency fall from 0.22 in March last year to 0.14. The East Midlands saw the rate drop to 0.12, whilst Yorkshire, Wales and the West Midlands also saw a small decline in business insolvencies.

After it was revealed yesterday by the Office of National Statistics (ONS) that the UK had slipped back into recession, steadying levels of insolvencies even in the hardest-hit regions across the North suggest that not it's not all doom and gloom.

Max Firth, managing director for Experian’s business information services division said of the figures, “March was a positive month for businesses in the North East and an improving financial score is encouraging.

“It highlights that even in regions which have experienced some of the highest rates of insolvencies over the past year there will be potential pockets of opportunities for organisations to extend credit and increase business.