Firms in 'holding pattern' awaiting economic signals

MANY North East firms are “at a crossroads” as they wait to see how the wider economy performs in the coming months, a regional insolvency expert has said.

- GRAEME WHITFIELD

Kelly Jordan, North East chair of the insolvency body R3, was speaking after new figures showed corporate and personal insolvencies across England and Wales rose slightly in July. R3 said the figures reflected a cautious month for businesses and households as they navigated uncertain economic conditions.

Data from the Insolvency Service showed that corporate insolvencies increased by 1.4% to 2,081 cases compared to June's total of 2,053, and by just 0.1% against July 2024's figure of 2,078.

Ms Jordan, who is a partner at Muckle LLP, said: "Corporate insolvencies across England and Wales remained broadly stable last month, with the trends showing a rise in compulsory liquidations and a slight uptick in administrations, while creditors' voluntary liquidations and company voluntary arrangements fell.