Seeds of recovery sown for East Anglian economy in 2024 – R3 Eastern

A sharp rise in the number of start-ups in East Anglia and a fall in insolvency-related activity are sowing the seeds for economic growth in the region as businesses head into the first quarter of 2024.

According to the Eastern branch of R3, the UK’s insolvency and restructuring trade body, there were 6,524 businesses set up East Anglia in December, which is almost a third (30.22%) higher than twelve months previously and is the largest number outside Greater London.

R3’s figures, which are based on an analysis of data from business intelligence provider Creditsafe, also show that levels of debts owed by businesses in liquidation in the region fell by 14.5% over the same period, and by the same percentage between November and December last year.

At the same time, insolvency-related activity in East Anglia – which includes liquidator and administrator appointments as well as creditors’ meetings – fell by 15.32% in December compared to the previous month.

R3 Eastern Chair Hayley Watson, associate director at East Anglian business rescue and insolvency practice McTear Williams & Wood, said: “These are encouraging statistics and are welcome reading at a time when local companies are facing significant and longstanding economic challenges.

“We should be in no doubt, however, that a sizeable percentage of our region’s businesses continue to struggle, and we are very likely to see corporate insolvencies rise in the coming months.

“The focus now has to be on maintaining these positive figures over the longer term, stimulating further growth and facilitating recovery for those businesses which are struggling.

“Key to this is the ability and willingness of business owners to monitor their company’s finances carefully and to plan ahead. As soon as cash flow becomes a major challenge, professional advice should be sought.

“Crucially, there is a significant amount which can be done to rescue and support businesses if help is taken early enough.”

Image: R3 Eastern Chair Hayley Watson

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