Fresh research on insolvency in the South West records a rise of almost 40%.

The data from insolvency and restructuring trade body R3, relating to new figures from July, recorded the significant step up in insolvency against the same month in 2022.

Using data from Creditsafe, R3's analysis shows there were 166 cases of insolvency-related activity in the South West in July, which amounted to 39.5% more than July 2022's total of 119.

Including liquidator appointments, administrator appointments and creditors' meetings, the South West marked the largest yearly rise in insolvency-related activity when set against all UK regions and nations, leading against rises in the South East (33.3%) and Scotland (30.8%).

Charlotte May, Chair of R3 in the South West, said: "The yearly rise in insolvency-related activity in the South West reflects the ongoing mix of challenges businesses are currently facing.

"Inflation and interest rates are still high, consumer spending is low and wage pressure keeps mounting, which is taking a toll on business confidence and meaning more firms are turning to an insolvency process to resolve their financial issues."

Ms May, who is also associate director for South West and Wales at Manolete, added: "In times like these, it's crucial business owners and directors keep a close eye on their finances and act quickly to as soon as they become concerned.

"If you're noticing early warning signs like declining sales, cash flow problems, or not being able to pay bills on time, that's the time to seek advice from a qualified source.

"Taking action at an early stage opens up more potential solutions and gives you greater control over your situation than if you'd waited for issues to escalate."

Nationally, R3's analysis showed that:

● Corporate insolvencies decreased by 20.4% in July 2023 to a total of 1,727 compared to June's total of 2,169, and decreased by 5.7% compared to July 2022's figure of 1,831.

● Corporate insolvencies also increased by 57.6% compared to July 2021 and increased by 19.9% compared to July 2019

● Personal insolvencies increased by 1.7% in July 2023 to a total of 8,268 compared to June's total of 8,131, and decreased by 10.1% compared to July 2022's figure of 9,202.

● Personal insolvencies decreased by 9.1% from July 2021's total of 9,092, and also decreased by 32.5% compared to pre-pandemic levels in July 2019 (12,254).