Insolvency rates drop but start-up numbers increase

NORTH

- COREENA FORD

East businesses have weathered a challenging year with the region chalking up a drop in insolvency-related activity, a new report suggests.The latest annual report from R3the trade body for restructuring, turnaround and insolvency professionals also shows an increase in the number of new startups.

Supported by data from CreditSafe, R3's reports examine insolvency and startup activity, highlights sectors under financial stress, and explores key business pressures.

The 2025 figures for the region show a 9.3% decrease in insolvency-related activity, which includes administrations and creditors' meetings as well as voluntary and compulsory liquidations from 863 cases in 2024 to 783 last year.

However, levels of insolvency activity still remain much higher than five years ago. There was a 3.3% increase over the same period in the number of startup businesses which rose from 16,897 to 17,455.