Business failures in the North East of England have more than doubled in the past two months, according to the latest Insolvency Index from information services company Experian.

The index reveals insolvencies in North-East rose from 0.06% in August to 0.15% in September.

Yorkshire was the only region to see an improvement in insolvencies between August and September, while insolvency rates for the East Midlands, West Midlands and Eastern England remain static.

Insolvencies rose from 0.07% in August 2010 to 0.08% but September did see a year-on-year decrease in insolvencies (0.09%).

Max Firth, managing principal of pH, an Experian company, says: “The North East of England’s business population is one of the smallest so every insolvency can dramatically affect the rate, which explains why we have seen a big variation between August and September.  

“This underlines why businesses must be vigilant and closely monitor the financial health of every organisation they do business with.”