Business distress climbs by more than a quarter, new figures show

The figures significantly outpace the 1.6% increase nationally, according to the latest Red Flag Alert research from financial and real estate advisory group BTG.

The data shows that 3,568 businesses across the Humber region were experiencing significant financial distress at the end of September 2026.

More advanced ‘critical’ distress was also on the increase in the area, rising by 2.8% to affect 222 businesses, against a 20.7% fall across the UK.

The Humber region has seen the annual rate of increase in significant financial distress more than double, from 12.1% in Q3 2025 to 26.3% in Q3 2026.

Sectors that saw a drop in distress levels included industrial transportation and logistics (-8.2%) and manufacturing (-6.8%).

Andrew Mackenzie, partner at BTG in the Humber region, said: “The rise of more than a quarter in significant financial distress across the Humber region is concerning, particularly when compared with the much smaller national increase. Our region’s climbing critical distress levels are also in contrast to the substantial fall across the UK economy as a whole.

“Our sector figures show that pressures are not being felt evenly across the area’s economy. The sharp increases seen by professional services, property and construction are particularly striking and a rise in construction distress is always worth watching, as the sector is seen as a bellwether for the wider economy, reflecting changes in business confidence, investment and borrowing costs. However, the falls in distress among manufacturing and logistics firms offer some grounds for optimism.

“Businesses need to keep a close eye on cashflow and margins, particularly amid continued cost pressures and uncertainty ahead of the Autumn Budget. Those experiencing difficulties should seek professional advice early, while they still have options to address problems, and before they become more serious.”