Number of UK administrations falling, says Deloitte

According to professional services firm Deloitte LLP, the number of UK businesses falling into administration fell by 35 per cent in 2010 from 2009 levels.

Last year, a total of 2,086 firms went into administration, as opposed to 3,188 in 2009. As in 2009, businesses linked to property and construction fared worst, accounting for one in five of all administrations.

Last year, 438 firms fell into administration in the period October to December, which was six per cent less than the 467 which fell in the third quarter.

Deloitte said, "Risk of insolvency plays a big part in the property and construction industry because of its heavy reliance on supply chain relationships.

"Whilst many of the smaller property and construction firms would have been affected in 2008 during the early stages of the downturn, the sector still remains the largest to be hit by the market slow down, accounting for one in five administrations in 2010," Deloitte added.

The number of retail firms falling into administration fell by 43 per cent last year to 165 from 290 in 2009. However, despite these positive figures, Deloitte expects retailers to struggle with the VAT rise, which will affect consumer spending.

Share this article

Latest Businesses for Sale

View more businesses for sale