Glimmer of hope for North East businesses says R3 as it responds to government insolvency statistics
A fall in the number of company insolvencies, as well as drops in the inflation and interest rates, bode well for North East businesses as they move into 2026.
This is according to R3, the UK’s restructuring, turnaround and insolvency trade body and comes on the back of statistics published by the government’s Insolvency Service, which show that corporate insolvencies in England and Wales decreased by eight per cent in November 2025 to 1,866 compared to the previous month, and by seven per cent against the November 2024 figure of 2,001.
They were also down by 18% compared to the November 2023 total of 2,273.
Kelly Jordan, North East Chair of R3, the UK’s restructuring, turnaround and insolvency trade body and partner at Muckle LLP, said: “When considered alongside the drop in the inflation rate to 3.2% and the recent cut in the interest rate to 3.75%, these statistics may give a glimmer of hope to struggling businesses and offer some cautious optimism that conditions may begin to improve this year.
“That said, company insolvency levels remain stubbornly high compared to five years ago, reflecting difficult trading conditions.
"In addition, the unemployment rate has reached a near six-year high of 5.1% as employers have been delaying recruitment and investment decisions.
"Sustained progress on inflation and employment will be key to restoring confidence in the long term.
“At this time of year, many hospitality businesses face a sharp drop-off in trade after the festive period, with January bringing cashflow pressures caused by the rent quarter and potentially larger supplier, VAT and payroll tax payments reflecting a busy December.
"Our members typically see an increase in enquiries and distress calls from this sector in the New Year.
“Retailers also face challenges, including high levels of returned goods at a time when wages and other costs still have to be met.
“R3 members remain committed to supporting businesses and individuals through these challenges and to advocating for practical solutions which help ensure long term economic resilience.”