Business insolvencies have fallen by 13.4% year-on-year, according to the latest insolvency index from information services firm Experian.

The index shows 1,771 UK businesses failed during June 2010, 13.4% fewer than in June 2009 when 2,044 firms became insolvent. Consequently, the year-on-year insolvency rate fell from 0.10% to 0.09% in June. 

Rolf Hickman, managing director of pH Group, an Experian company, says: “June’s data indicates that the UK’s business community as a whole is stabilising, however it also points to the existence of a North versus South divide. Businesses in the North of England seem to be faring slightly worse than their southern counterparts across all industry sectors.”

“Although the data hints at some improvements, individual organisations are impacted in different ways. It is vital for businesses to understand the circumstances of those they are doing business with and the risks they could expose them to.”