Building sector reports drop in insolvencies
Published: 29 December, 2010
UK: Fewer construction companies became insolvent in November 2010 than in the same month a year earlier, research has revealed. But the North/South divide is still dramatic.
The industry's insolvency rate was however higher than the national average, according to the figures released from Experian. In the building and construction sector, 227 companies became insolvent in November 2010, down from 246 in November 2009.
Company failures in the North of England are running at significantly higher rates than in the rest of the UK, said Experian. In its latest report business insolvencies fell to 0.07% in November 2010 – down from 0.09% in same month last year.
But, businesses in southern England appear to be faring better than their northern counterparts.
The report backs up the most recent figures from the Insolvency Service which suggests companies are enjoying better trading conditions than a year ago, but with a wide regional variations.
Experian reports that business in the South East, South West, Greater London and eastern England were the four regions that recorded the lowest failure rates of 0.06%.
Companies in Yorkshire, the North East and the North West have been failing at much higher rates – of between 0.09% and 0.1%. Scotland is the only area where more businesses have failed this year than in 2009.