THERE has been a huge fall in the number of insolvencies across the East Midlands, according to new figures.
The statistics, revealed by business consultancy firm RSM Tenon, show the region’s insolvencies fell by 22 per cent in 2010 by comparison with 2009.
The average number of corporate insolvencies in the East Midlands was 423 per quarter in 2009 but reduced to 329 per quarter in 2010.
Paul Finnity, RSM Tenon director, said: “Businesses throughout the region fared far better in 2010 than the previous year, drawing on their experiences and by working hard to protect their livelihoods.”
But he added that businesses were expected to face fresh challenges in 2011 with the rise in VAT, an impending rise in interest rates, increasing inflation and public sector cutbacks and RSM Tenon warned businesses to seek guidance.
Industry and finance experts have also warned Britain’s economy has shrunk in the last three months of 2010 as the Government continues to press ahead with its austerity programme.
Mr Finnity added: “It is shaping up to be a challenging year for many businesses and it’s imperative entrepreneurs seek professional advice at an early stage.”
RSM Tenon’s Tracker showed annual nationwide corporate insolvencies over 2010 dropped by 17 per cent from 25,432 in 2009 to around 21,000 in 2010.