Scilly Saw Large Rise In Business Failures Last Year
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.