Sharp rise in West Midlands insolvency-related activity as Autumn Budget approaches – report
A hike in the monthly amount of insolvency-related activity in the West Midlands indicates the perilous state of the local economy, as owner managers nervously await this month’s Autumn Budget.
This is according to the Midlands branch of the UK’s restructuring, turnaround and insolvency trade body R3 and is based on a monthly analysis of regional start-up data from business intelligence provider Creditsafe as well as conversations with key business owners in the region.
The figures indicate that there were 268 cases of insolvency-related activity in the West Midlands in October, a 13 per cent rise on the previous month and a 10 per cent increase on October 2024.
The statistics include administrator and liquidator appointments along with creditors’ meetings.
R3’s analysis also shows a monthly increase in the number of West Midlands companies with late payments, with 48,739 businesses having unpaid invoices past their due date in October.
R3 Midlands Chair Stephen Rome (pictured), a partner at law firm Penningtons Manches Cooper in Birmingham, said: “We have seen increases in insolvency-related activity since the start of the year, but this latest rise is clearly a cause for concern.
“Trading conditions continue to be extremely challenging and business leaders up and down the country, many of whom are delaying major investment and recruitment decisions, will be hoping that the November Budget can help restore business confidence.
“Recent Insolvency Service figures already indicate a rise in directors choosing to close their companies in response to recent tax and policy changes, and the pressure on businesses remains considerable.
“At the same time, the onus is on entrepreneurs to monitor finances carefully over coming months. R3 continues to emphasise that if cash flow becomes a major challenge, it is imperative to seek professional advice sooner rather than later.
“Most R3 members will give prospective clients a free initial consultation to discuss their situation and outline possible options to improve it.”
