York business failures double, while North Yorkshire is more stable

The data, released by the BBC’s Shared Data Unit, comes as North Yorkshire has suffered high-profile business failures such as Ripon butcher Farmison and the Masham-based Black Sheep brewery, both of whom now have new owners.

In 2019, according to the London Gazette, York reported 80 business failures, followed by 60 in 2020, with numbers surging to 102 in 2021 and 125 last year.

North Yorkshire was more stable, with 42 business failures recorded for 2019, 50 in 2020, 45 in 2021 and 64 last year.

The East Riding saw 51 business failures in both 2019 and 2021, dropping to 45 in 2021 and doubling to 91 last year.

Dave Broadbent partner at business advisory and restructuring company Begbies Traynor in Yorkshire said insolvency rates are rising due to firms unable to repay loans obtained during the pandemic, and the cost-of-living crisis hitting people’s spending.

He explained: “Worst hit have been small owner-managed businesses in general, with hospitality and construction the two key areas most severely affected. Not surprisingly, those businesses with significant online competition also tend to be struggling financially.”

There was no sign of improvement, especially with HMRC increasing collection processes that were on hold during the pandemic.

“And further Government loans would only serve to exacerbate the situation, driving firms into even greater financial difficulties.”

Mr Broadbent added business owners facing difficulty should seek help and advice, which could lead to structures put in place to turn things around.

Similarly, Mark Casci, Head of Policy and Representation of the West and North Yorkshire Chamber of Commerce, confirmed such trends.

The chamber sought more progressive tax changes, government investment in infrastructure and skills, increased devolution and more support for firms with energy costs.

Local government operates many initiatives to support businesses, with the new North Yorkshire Council saying it is “committed to promoting economic growth.”

Cllr Derek Bastiman, executive member for open to business, added: “Work has already started on a new economic development strategy which will help to build on previous successes for the county.”

Cllr Pete Kilbane, deputy leader of City of York Council says the city council has helped firms by distributing the Covid grant allocation, helping business access energy support schemes and lobby government for greater energy cost support.

“We continue to support businesses, whether that be through specific projects such as the recently launched Knowledge Hub with York Mind or direct support from our Economic Growth Team helping businesses start-up and grow.”

He added: “We will work alongside businesses and residents alike, to find the solutions that ensure businesses in all parts of the city can thrive in the future”.

A government spokesperson said: “The Government has taken decisive action to support small and medium-sized businesses deal with cost pressures, including reducing the burden of business rates for SMEs through the £13.6 billion package of support for businesses over the next five years, announced by the Chancellor at the Autumn Statement.

“This is in addition to an unprecedented package of support which enabled many businesses to pay around half of predicted wholesale energy costs last winter, and we have also acted to protect businesses from rising inflation by freezing the business rates multiplier for another year, which is worth £9.3 billion over the next five years.”