Insolvency trade body R3 has warned firms in the north west are being “pushed to the brink” by rising costs and diminishing footfall, with “insolvency-related activity” in the region up 20.4 percent on last year.

In April alone, 473 individual creditor meetings or liquidator appointments took place, with R3 chair Fran Henshaw stating the increase is “a stark reminder of just how tough trading conditions have become.”

“Levels are now higher than they were for much of 2023 and for 2024, when many businesses were grappling with the aftermath of COVID and the impact of the cost-of-living crisis,” said Henshaw, who is also head of corporate recovery and insolvency at Beever and Struthers.

“A number of factors are likely contributing to the increase we’re seeing, including a rise in MVLs from directors choosing to close their businesses in response to recent tax and policy changes, such as the increases to Employers’ National Insurance and the minimum wage.”

Henshaw added that insolvency-related activity in the North West outpaced every other part of the UK last month, including London.

“This reflects the significant pressures businesses in the region are facing, especially in sectors like hospitality, where rising costs and shrinking margins, combined with it being one of the first areas to be cut from consumer spending, are pushing many to the brink.”