Insolvency-related activity rose in Kent and the South East last month, says R3, the UK’s restructuring, turnaround and insolvency trade body.
R3’s analysis of data provided by Creditsafe indicated an increase in insolvency-related activities from 170 in August to 187 in September. This represents a 10% monthly increase, and September’s figure is also 8.1% above the same period in 2024.
The figures include administrator and liquidator appointments together with creditors’ meetings.
The South East figure for insolvency-related activities remains the sixth highest in the UK, behind Greater London with 392, the North West with 350, East Anglia with 271, the West Midlands with 237 and Yorkshire & Humberside with 192.
The rise in the South East is at odds with most of the rest of the UK, with decreases in eight regions and the other increases only in Wales, Northern Ireland and Scotland.
Neil Stewart, chairman of R3’s Southern and Thames Valley region, explained that while the monthly increase was disappointing, the fluctuations seen in recent months suggest that economic uncertainty remains entrenched.
He said: “While a 10% increase appears significant, it follows an 8.1% decline in August, so it is difficult to draw any firm conclusions. I suspect that many business leaders will not be making any major decisions before the autumn budget on 26 November.
“There is a hope that the Chancellor will introduce measures that encourage investment, recruitment and expansion rather than make changes to business taxation, which could dampen confidence.
“Ongoing challenges such as higher energy and materials costs, cautious consumer demand and creditor pressure have combined with slower than anticipated reductions in the cost of borrowing to leave some businesses having to fight hard to stay afloat.”
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, urged business owners across the South and Thames Valley to remain vigilant.
He said: “Our message to businesses remains the same: seek advice from a regulated professional at the first signs of financial distress. Taking action early gives you more options and more time to make a considered decision about the best way forward.
“Most R3 members offer an initial consultation free of charge, giving business owners a chance to understand their options before matters become critical.”
The latest Creditsafe data shows that number of companies with invoices that had gone past their payment date dropped slightly from 57,935 in August to 57,558 in September.
There was a decrease in the number of invoices which had gone past their due date in the region – from 528,263 in August to 519,766 in September.
The number of start-ups in the South East increased from 5,657 in August to 6,406 in September and is 15.8% up on a year ago.
Creditsafe is a multinational business intelligence provider with services including company credit scores and credit report information.
