18 August 2010 | Angeline Albert

The number of UK firms going out of business fell by more than 30 per cent in July, compared with the same month last year.

Some 1,542 companies were declared insolvent last month, 33 per cent fewer than the 2,312 insolvencies recorded in July 2009.

The year-on-year drop in business failures was reported in the latest Insolvency Index produced by credit data firm Experian.

Every region in the UK has witnessed a fall in the number of insolvencies, according to the research. And all business segments bar the largest companies (501 or more employees) saw insolvency rates fall year-on-year. Businesses with 501 or more employees recorded 10 insolvencies last July and 16 this July.

The biggest improvement was in companies with 101-500 staff, which experienced 30 insolvencies in July 2010, an improvement on the 68 declared in July 2009.

Max Firth, managing principal of pH, an Experian company, said: “July’s data indicates that the SME population is faring much better in terms of insolvencies than it did this time last year. However, increasing failures at the top end of the market demonstrates clearly that there is a still a great deal of uncertainty. Given this ever changing picture, it is vital organisations ensure they understand and proactively manage the risk that those they do business with expose them to.”