BUSINESSES in Basingstoke are being urged to seek support at the earliest opportunity if they begin to struggle, after new data has revealed some shocking revelations.

R3, the insolvency and restructuring trade body, has issued the warning after analysis of newly published insolvency figures for England and Wales.

The statistics showed that the number of insolvencies in August – 1,933 – was the third highest monthly total in three and a half years.

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Corporate insolvencies increased by 5.5 per cent in August 2022 to a total of 1,933 compared to July's total of 1,832. They increased by 43.4 per cent compared to August 2021's figure of 1,348. 

As well as tgis personal insolvencies increased by 4.1 per cent to 9,572 in August 2022 compared to 9,198 in July. They were 5 per cent higher than August 2021's figure of 9,117.

Chair of R3’s Southern and Thames Valley region, including Basingstoke, Garry Lee said: “Continued economic volatility continues to make itself felt in the latest monthly figures.

“The increase in corporate insolvencies – to the third highest set of monthly statistics since January 2019 – has mainly been caused by an increase in the number of Creditors’ Voluntary Liquidations.

“This suggests that directors remain concerned about their ability to continue to trade in the current climate, and are choosing to close their businesses before that choice is taken away from them.”

All three of the highest monthly corporate insolvency totals since January 2019 have been recorded this year, with figures of 1,990 in April and 2,120 in March.

Garry continued: “The latest figures will be a sobering reminder to government of the scale of the challenge facing the UK economy as we head into the winter months.

“Companies in Basingstoke are facing enormous running cost hikes just as household spending is facing its biggest squeeze in several decades which delivers yet another blow to business owners who were hoping to bounce back to normal trading levels post-pandemic.

“Many directors and managers are worried about the rise in prices and energy costs and the effect these will have on their margins and profits, and this is set to continue to be a concern.”

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He said he is now urging anyone in Basingstoke who is worried about their business or personal finances to seek advice from a qualified and regulated source as soon as possible.

He added: “Talking about your concerns about money is difficult, but the sooner you seek advice, the more potential options you have open to you, and the more time you have to take a considered decision about your next step.

“Most R3 members will give free initial advice to potential clients to enable them to understand more about their circumstances and explain the potential options that are open to them to help resolve their situation.”