Research shows the region far exceed the national average with experts noting concern for Humber firms
Andrew Mackenzie, partner at BTG in the Humber region.(Image: Giles Rocholl Photography Ltd 2021)
The number of businesses in the Humber region facing significant or early-stage financial distress has risen sharply compared to national figures. New research looking at the second quarter of the 2026 – between April and June – shows the level across Humber jumped by almost a fifth compared to the same period last year.
More than 3,340 businesses across the region were in significant financial distress at the end of June – a 19.1% increase on the same period in 2025. The rise in distress also far outpaced the UK-wide rise of just 1.1%, For comparison, the Yorkshire region saw a fall in the levels of significant or early stage financial distress, down 0.4%
The largest rises were seen in the health and education sector (+40.4%), general retail (+40.3%) and construction (+24.6%). Those sectors reporting the largest year-on-year falls in distress across the Humber region were hotels and accommodation (-30.43%) and travel & tourism (-20%).
The findings come from the Red Flag Alert research from financial and real estate advisory group BTG. It has been benchmarking the underlying health of companies across UK regions for more than two decades, using an algorithm that takes into account corporate distress signals, company accounts and legal and financial data from other sources.
Andrew Mackenzie, partner at BTG in the Humber region, said: “The sharp annual rise in early-stage financial distress suggests that many businesses across the Humber are continuing to face extremely challenging economic headwinds. While the increase does not necessarily mean these businesses are facing immediate insolvency, it is a clear indication that more companies are coming under financial pressure as rising costs, fragile consumer confidence and ongoing uncertainty continue to weigh on trading conditions.
“It’s notable that the increase has been much steeper than the national picture, with a wide range of sectors affected. Sectors including construction and retail experienced substantial increases in distress, highlighting the breadth of the challenges businesses are facing.
“In this environment, it is more important than ever that businesses monitor cashflow closely and seek professional advice at the earliest signs of difficulty. Taking action early gives businesses far more options to stabilise their position before financial problems become critical.”
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