YORKSHIRE and the North East are the only regions of the UK where the number of business insolvencies increased last year.

The combined data for the regions shows they saw 305 business failures in 2012, up 9% from 280 in 2011.

All other regions experienced a drop in administrations, with England as a whole seeing 1,833 businesses enter administration, down from 2,009 businesses in 2011.

Neil Matthews, restructuring services director at Deloitte in the North East, said: “The year-on-year figures for the North East are particularly bleak, and are a stark reminder of the difficulties which continue to face businesses.

“Constrained budgets and the challenges facing all sectors mean it is certain that we will see further distress next year.”

Matthews said the retail sector would continue to face a particularly challenging time in 2013.

“For retailers, Christmas trading appears to have been reasonable, though not spectacular and not enough to prevent insolvencies in the first quarter of 2013,” he added.

“It is also notable that high-profile, nationwide chains continue to be among the casualties despite the shake-up seen in the sector since 2008.

“Last year alone we have seen Peacocks, La Senza, Blacks, Game, Clinton Cards, JJB Sports and Comet enter administration.

“Consumer confidence remains fragile and where we have seen some respite through lower inflation, this has not translated into increased spending, many consumers preferring to pay down existing debt or save.”

Nationally, the number of retailers falling into administration in 2012 increased by 6% compared with 2011.