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South West company insolvencies are expected to rise this year as businesses grapple with economic uncertainty and new US tariffs, according to experts.

During the first quarter of the year the number of West Country firms filing for administration was relatively flat when compared to figures from 2024, but advisory firm Interpath said there was a risk of a "sharp rise" in businesses collapsing.

Analysis of Companies House data by Interpath found there were 34 administrations in the South West in the first three months of the year, showing almost no change on the same period 12 months ago, and only a marginal fall against the final quarter of 2024 (39 cases).

But Gareth Slater, managing director and head of Interpath in the South West, warned that challenges arising from the Autumn budget and economic uncertainty following the ongoing tariff war could bring businesses to the brink.

“The universal tariff imposed by the US has sent shockwaves round the globe and has knocked corporate confidence," he said. "Quite simply, businesses in the region are unnerved. We’ve already seen that come through in volatility in the markets nationally and internationally."

Mr Slater said company expansion plans are being deferred and many were reducing in capital expenditure and technology investment.

"Management teams are concerned by the effect these changes will have on their own trading and margins, but also the stability of supply chains and medium-to-longer term health and demand within economy," he said.

"All this puts real emphasis on the basics of cash management, performance improvement and lender engagement to build resilience."