Personal and business bankruptcy figures in the United Kingdom have been a major talking point over the past two years, and they continue to feature prominently in the news. What isn’t showing up quite so often, however, are the vast regional differences in insolvency rates. Many of the UK’s large towns and cities have avoided the insolvency bug entirely, while others have been hard hit.

London has been home to a greater deal of insolvencies than many smaller UK cities – a reality that many believe is due to a greater service economy within the city. Firms that specialize in marketing and advertising – two sectors that have historically seen reduced spending during recessions – have been hit harder than many in manufacturing, resulting in a disproportionate amount of insolvencies.

Then there’s the large amount of exporters and import-driven businesses throughout the UK, many of which have been caught up in major currency and demand fluctuations. What most insolvencies share is a ‘greater motion’ effect, in which the economy as a whole has seen reduced business. For a great deal of Britain’s businesses, it’s going to be important to avoid this effect in the future.