The rate of insolvencies among UK companies fell in July.

The rate of insolvencies among UK companies fell in July.

During the month, 1,776 companies (0.09 per cent of the business population) failed, compared to 1,962 companies (0.10 per cent) in July 2011.



The percentage of smaller companies (11 to 25 employees) failing fell from 0.26 per cent last July to 0.19 per cent this year.

Max Firth, managing director of Experian Business Information Services, UK&I says, 'Since March this year, when the insolvency rate peaked at 0.11 per cent, it has remained fairly stable – between 0.08 per cent and 0.09 per cent. The lack of any real increase is clearly welcome and this picture is unlikely to change in the near future.

'The figures continue to underline the importance of good insight into the financial risks associated with insolvencies among both clients and suppliers and how these issues can affect their business.'



Scotland has historically held some of the lowest insolvency rates, but after January 2012, the country's rates were higher and more in line with the rest of the UK.

During July 2012, however, Scotland saw the biggest month-on-month fall in its insolvency rate, from 0.09 per cent in June to 0.05 per cent in July, and is now at its lowest point since July 2010. 



The non-food retail sector saw the rate of insolvencies fall the furthest, from 0.15 per cent in July 2011 to 0.10 per cent in July 2012.

See also: Insolvencies hit new high