West Mids insolvencies drop 22 per cent
The number of companies declared insolvent in the West Midlands fell by more than a fifth (22 per cent) in 2010. That’s according to accountant RSM Tenon’s latest research, which suggested that businesses in the region are failing at a slower rate than the UK average.
Statistics from Tracker, RSM Tenon Recovery’s early warning system, show that the average number of corporate insolvencies by quarter was 699 in 2009 which reduced to 549 per quarter in 2010.
The number of insolvencies in the UK dropped by 20 per cent last year, compared with 2009.
The year-on-year drop shows “the strong entrepreneurial leadership skills within the business community”, said RSM Tenon.
Bev Marsh, RSM Tenon’s director of recovery based at the firm’s Birmingham office, said: “Businesses throughout the region fared far better in 2010 than the previous year drawing on their experiences and working hard to protect their livelihoods. However, 2011 is not likely to be plan sailing with the rise in VAT, impending rise in interest rates, public sector cutbacks, increasing inflation, and the scrapping of the government’s Time To Pay scheme.
“It is shaping up to be a challenging year for many businesses and it is imperative that entrepreneurs seek professional advice at an early stage.”
