R3’s analysis of data provided by Creditsafe indicated a rise in insolvency-related activities from 212 in February to 262 in March.
The figures include administrator and liquidator appointments together with creditors’ meetings.
The South East figure for insolvency-related activities is the sixth highest in the UK, behind Greater London, which has 560, the North West 457, East Anglia 387, the West Midlands 309 and Yorkshire & Humberside 284. There were increases in every region.
Neil Stewart, chairman of R3’s Southern and Thames Valley region, described March’s figures as concerning, particularly as they confirm the continuation of February’s downturn.
“Economic volatility shows no sign of abating and the escalation of global trade tensions through tariffs adds complexity to an already fragile landscape. As a result, business confidence remains subdued.
“Factors such as slowing consumer spending hitting revenues and causing cash flow problems, combined with more assertive creditor action, intensifies the risk of business insolvencies.
“The Chancellor’s Spring Statement failed to support businesses, leaving directors and business leaders grappling with the financial impact of this month’s increase in the National Minium Wage and Employers’ National Insurance Contributions.
“Additionally, the latest Office for Budget Responsibility forecast – predicting UK gross domestic product (GDP) growth of just 1.0% in the 2025 fiscal year and a modest rise to between 1.7% and 1.9% until 2029 – offers little reassurance for the years ahead.
“My concern is that this continued economic uncertainty puts more businesses at risk, leading to director fatigue and insolvencies, which could result in higher unemployment and a challenging cycle that is difficult to break.”
R3’s Southern & Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.
Neil, a Regional Associate Director at insolvency litigation financing company Manolete Partners Plc, added note of reassurance: “Even for struggling businesses there is still hope.
“Our message to directors is this: stay alert to the warning signs of financial distress and seek advice as early as possible.
“These signs might include maxed-out borrowing facilities, persistent cash flow problems, supply chain disruption, delayed wage payments, overdue invoices and pressure from HMRC on tax arrears.
“Most R3 members offer an initial consultation free of charge, giving business owners a chance to increase their understanding of their situation and explore practical solutions before things escalate.”
The latest Creditsafe data shows the number of companies with invoices that had gone past their payment date has risen from February’s 59,411 to 59,822 in March.
Meanwhile, the number of invoices which had gone past their due date in the region has decreased from 562,619 in February to 537,984 in March.
The number of start-ups in the South East has increased dramatically from 5,559 in February to 6,482 in March. April 2024’s 8,050 was the year-high.
Creditsafe is a multinational business intelligence provider with services including company credit scores and credit report information.