Increase in firms facing difficulties

> Exeter has seen a decline in the number of businesses in financial trouble, defying the trend across Devon

- WILLIAM TELFORD

MORE than 8,500 Devon businesses are in financial trouble, with the number having risen sharply in the past year.

The latest Red Flag Alert report shows that, across the South West, more firms are facing difficulties. Plymouth has seen a rise year on year, but Exeter has seen the number drop compared to last year and the previous quarter.

However, across the South West, there has been a general sharp rise in business distress, according to the report by business consultancy Begbies Traynor, which monitors the financial health of UK companies.

The new figures, for the first three months of 2025, show that 41,164 South West businesses are in "significant" financial distress a 4.9% annual increase, despite being a 14.4% decrease in the first quarter of the year. Devon had 8,554 businesses classified as in "significant" distress, a jump of 5.2% on the same quarter in 2024.