Scilly Saw Large Rise In Business Failures Last Year

hugh town from BuzzaThere was a large rise in the rate of business failures in Scilly in 2014.

Data just released by the government’s Insolvency Service show that seven island firms went bankrupt or entered into a voluntary insolvency arrangement during the last year.

That’s a rate of just under 37 per 10,000 population and puts us tenth highest out of all 347 Local Authority areas in England and Wales in 2014.

It’s a big increase on 2013, when there was just a single firm went bust here.

Executive Director of the Islands’ Partnership, David Jackson, says the figures are concerning, but it could simply represent the higher number of businesses that operate here, compared to on the mainland.

David says there’s a large proportion, for our small population, of sole traders or companies employing just a few staff.

That means we’re likely to see more failures than other areas.

The report from the Insolvency Service says that overall, bankruptcies have decreased in the country over the past two years.

David feels the spike in numbers in Scilly could be the “back end” of the decline, which started around twelve years ago and included the biggest recession the country has seen in decades.

And since early 2014, he says, the “green shoots of recovery” have been appearing in the local economy.

3 Responses to Scilly Saw Large Rise In Business Failures Last Year

  1. High Noon July 18, 2015 at 8:08 am

    I think you find that data covers several years not just 2014, it’s just that they stopped trading over the last 2-3 years and happened to become bankrupt in 2014.

    • Adam Morton, St.Martins July 22, 2015 at 7:43 am

      I think you will find the data is manipulated at all times, The Duchy pretend things are looking up so that rents can rise, the SSco so that fares can do the same and IP to justify its existence! A few years back it was reported that the average earnings in Scilly was £16600 yet last month the Councils local plan puts them at £13660 ! Just because Scilly is doing cheap deals to fill the place up doesn’t mean its profitable. There is a luxury hotel doing rooms at £50 a night in July! Word is that Tresco estate is shut down this winter, these are the real indicators, not the spin put about to let the LA off the hook!

  2. Adam Morton, St.Martins July 16, 2015 at 1:00 pm

    You keep believing it David! Any green shoots you see are the result of 10 years of prices hardly moving to try and stay competitive with the mainland whilst costs have risen by 50-100% Costs here are 30-40% higher than mainland and people don’t want to pay it. Businesses simply can’t absorb the difference. We now have the living wage coming in which will drive out all but the highest priced and sole traders with no employees. This isn’t new, the decline was five years before the recession.