More West Midlands businesses in 'significant' financial distress - report

West Midlands businesses experiencing 'significant' financial distress increased by nine per cent year on year to 14,220, according to newly published data.

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The 'Red Flag Alert' report, by financial services firm Begbies Traynor, monitors the financial health of UK companies.

It said in the final quarter of 2025 there were year-on-year increases of businesses in distress in Stafford of 21.5 per cent, Birmingham of 10.9 per cent, Walsall of 7.3 per cent and Wolverhampton of 1.2 per cent.

Real estate and property was the worst-affected sector in the West Midlands, with a 22.5 per cent rise, followed by construction at 5.3 per cent while there was a decrease in industrial transportation and logistics, down by 10.3 per cent.

Across the UK, the number of businesses in 'significant' financial distress increased 11.3 per cent year on year to 728,640 firms in the final quarter of 2025.