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South West business accounted for 5 per cent of administrations in 2023, according to new analysis

Law firm Shakespeare Martineau analysed administrations in the first six months of 2023

South West business accounted for 5% of administrations in 2023(Image: PA)

South West businesses accounted for 5% of administrations in the first six months of 2023.

Analysis from law firm Shakespeare Martineau found that the region was the sixth lowest in the º£½ÇÊÓÆµ with London leading the way with 25%, followed by the North West at 15% and the South East at 11%.

Shakespeare Martineau looked at data from The Gazette Official Public Record, finding that from a total of 759 businesses, 41 administrations came from the South West between January 1 and June 30, marking a 22% increase compared to the same period last year.

Data showed that retail, manufacturing, construction, hospitality and real estate were the worst-hit sectors, accounting for 57% of all administrations. An insolvency and restructuring expert has warned more businesses will fail unless inflation is controlled and interest rates stops being increased.

Read more: Hundreds of South West businesses express interest in new investment fund

Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “Given the prolonged economic uncertainty that is plaguing the country, the increase in the number of businesses filing for administration is no surprise.

“HMRC is definitely taking a harder line than in previous periods and its threat of enforcement is certainly pushing some businesses towards considering their options, with some seeking administration as an alternative to facing a winding up petition.

“We’re seeing a steady flow of corporate failures. Should some other ‘bad news’ rear its head, then that is only likely to increase. Businesses and individuals need to see interest rates and inflation come down. With a period of stability, we will see confidence increase.”