The insolvency gap between the North and South of England has widened. Moore Stephens research shows personal insolvency rates between 2008-2013 have risen throughout Northern England but significantly fallen in London.
Though from 2008-2013 the overall national personal insolvency rate fell by 10%, this figure hides critical regional disparities. In fact, in the North East of England the personal insolvency rate increased from 29.1 to 30.6 per 10,000 people – a 5% increase – and in the North West from 24.5 to 25.6, a 4% increase.
In contrast to this, bankruptcy in London fell from 16.9 to 13.9 per 10,000, equating an 18% fall – a decrease roughly double that of the North. Now, data from Baker Tilly accountancy firm predicts there will be over 21,000 personal insolvencies in the first quarter of 2015 in England and Wales.
Moore Stephens accountants have assessed the insolvency rate divide to be both ‘wide’ and ‘stark’ and that this increase in insolvency in the Northern part of the country lies as something of a concern as it features within an overall strengthening economy.
Comparatively, the unemployment rate in the North East of England stands at 7.7%, where as in London it is significantly lower at 6.25%, and North Eastern incomes remain at the third lowest of the 12 UK regions, states Resolution Foundation data.
Wales has also experienced an increase in bankruptcy, with the rate in the county of Denbighshire experiencing a huge increase of 29.8 per 10,000 people up to 43 – a 44% increase.
Notably, on the flip side the unemployment rate in the North West of England is only 5.89%, less than that of London’s, and the overall living standards in the North East have risen by 3.9% due to job growth in the region according to the Resolution Foundation.
Overall, the data indicates one thing with clarity – that the financial gap between the North and South of England has increased following the recession, as suggested by Moore Stephens accountants.