Region's businesses see rise in 'financial distress'

Global uncertainty and US tariffs are driving rise in business distress

- COREENA FORD Business writer [e-mail]

RISING numbers of regional businesses across almost all sectors are tackling significant signs of financial distress triggered by global uncertainty, latest figures show.

Begbies Traynor has published Red Flag Alert research for the second quarter of the year, which suggests that disruption from continued conflicts around the world and the threat of US trade tariffs is impacting the North East business community.

In the North East, instances of 'significant' or early-stage business distress rose by 9.7% between Q1 and Q2 2025. With 11,711 firms in the region now affected. The level was also 3.4% higher than the second quarter of 2024.

The trend was reflected across the UK, with a 15.1% rise quarter-on-quarter and a 10.8% increase year-on-year, representing 666,876 businesses which were showing early signs of financial distress.