Corporate failures 'rose by 10.7% in 2006'

News Article - 02 January 2007
Category:

Corporate failures in the UK rose by more than ten per cent in 2006, a survey has shown.

The study, conducted by information and analysis firm Experian, found that the number of commercial failures had increased to 20,067 last year, with the business services sector experiencing the largest increase of almost 25 per cent to 4,202, reports the Western Mail.

London was named as the area with the highest number of businesses going into administration, seeing a rise of 243 per cent, while Scotland's failed companies increased in number by 88 per cent.

Jo Howard, marketing director for Experian's business information division, told the publication: "Business failures fell in 2003 and 2004, then rose again in 2005 - also by 10.7 per cent - but it looked as though there were signs of improvement in the third quarter of 2006 when business failures fell by 4.1 per cent.

"Despite this, our predictions for an overall increase in corporate failures have sadly rung true."

The increase in company bankruptcies in Wales was 22.8 per cent - double the UK's average.

Earlier in 2006, Experian predicted that corporate failures would rise during the year and encouraged businesses to protect themselves against insolvency and cashflow problems.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »