Insolvency-related activity drops in South East

R3’s analysis of data provided by Creditsafe indicated a drop in insolvency-related activities from 262 in March to 233 in April.

The figures include administrator and liquidator appointments together with creditors’ meetings.

The South East figure for insolvency-related activities is the fifth highest in the UK, behind the North West with 473, Greater London 436, East Anglia 345 and the West Midlands, 236.

The fall in the South East mirrors the national picture where there were month-on-month falls in every region apart from the North East, where there was a 6.6% increase, and the North West where there was a 3.5% rise.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, noted that economic issues may reverse this trend in future:

“The rise in both Employers’ National Employer Contributions and National Minimum Wage from April will undoubtedly increase financial pressure on businesses in the short to medium term.

“Despite the Bank of England lowering the base rate to 4.25% and a surprise drop in inflation to 2.6% in March, both business and consumer confidence remain fragile.

“The International Monetary Fund’s recent downgrade of the UK’s 2025 growth forecast from 1.6% to 1.1% alongside continued US tariff policies, reflects a volatile economic landscape.

"Ongoing uncertainty, combined with the impact of new legislation and cash flow attrition, continues to pose a risk, particularly for businesses lacking the resources to invest, grow and make headway in these challenging conditions.”

R3’s Southern & Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.

Neil, a Regional Associate Director at insolvency litigation financing company Manolete Partners Plc, said: “There is a way forward for businesses that seek advice early when signs of financial stress appear.

“Exhausted credit lines, cash flow problems, supply chain disruptions, delayed wage payments, overdue invoices and HMRC demands are all red flags.

“Early intervention opens up more avenues for recovery. Most R3 members offer an initial consultation free of charge, giving business owners a chance to increase their understanding of their situation and explore practical solutions before problems worsen.”

The latest Creditsafe data shows that the number of start-ups in the South East fell from 6,482 in March to 5,894 in April. The number of companies with invoices that had gone past their payment date fell slightly from 59,822 in March to 59,796 in April.

There was an uptick in the number of number of invoices which had gone past their due date in the region – from 537,984 in March to 545,735 in April.

Creditsafe is a multinational business intelligence provider with services including company credit scores and credit report information.