Bankruptcies Up 20% Under Brown

1.36.23pm UTC (GMT +0000) Mon 3rd Nov 2003

Latest figures published today by the Bank of England show that the number of businesses failures by liquidation or bankruptcy grew by almost 20% between 1997 and 2002. And the trend continues with an 11% rise in the last 3 quarters of 2003 over the same three quarters of 2002. Some regions suffer badly.

• East Midlands business failures up 30% 1997-2002 and growing by 8.7% first three quarters 2003.

• West Midlands business failures up 40% 1997-2002 and growing by 7.9% first three quarters 2003.

• North West business failures up 34% 1997-2002 and growing by 1.8% first three quarters 2003.

• North East business failures up 46% 1997-2002 and growing 13.8% first three quarters 2003.

Brian Cotter MP, the Lib Dem Small Business Spokesman said, "Small business are the life-blood of the economy. Many towns and villages rely on them completely for services and jobs."

"With bankruptcies up by 1/5th under Gordon Brown, business needs a break from the red tape and tax hurdles that are crushing their drive."

"The giant Whitehall machine is simply not delivering for businesses especially in Northern, Eastern and Midland regions where bankruptcy and liquidation figures are dreadfully high and getting worse."

ENDS - Notes to Editors

Brian Cotter is responding to figures from Dun and Bradstreet shown in Table 8, p.20 of the Bank of England's Quarterly Report on Small Business Statistics, published today. A full copy of the report can be accessed at www.bankofengland.co.uk/qrsboct03.pdf