The Isle of Wight has retained its title as the area with the highest insolvency rate in Hampshire and is the joint 18th worst region in the country, alongside also being in the top 10 places in the UK with the highest number of Debt Relief Orders.
The Southern Committee of the insolvency trade body R3, which brings together insolvency specialists from across Hampshire, says the statistics indicate significant differences in individual finance for residents across various local authority areas.
The regional insolvency statistics show the rate of individual insolvencies per 10,000 adult population and are broken down into local authority areas. An individual insolvency is counted as a person who has either entered bankruptcy, a Debt Relief Order (DRO) or Individual Voluntary Agreement (IVA).
The Isle of Wight has the highest rate (32.8) and has the joint 18th rate in the UK overall. In addition, it is the 9th highest local authority area in the UK for its rate of Debt Relief Orders (DROs).
Portsmouth and neighbouring areas have seen significant change this year. Fareham has seen the most significant drop, with rates falling from 19.4 to 14.4. Portsmouth itself has seen a small decrease, possibly as more people seek debt advice, as has nearby Gosport, although Gosport has the highest rate of individual insolvencies in mainland Hampshire.
After seeing the highest drop in insolvency rates in Hampshire last year Southampton has seen a small increase, rising from 17.8 to 19.5. However, its rate is still lower Portsmouth’s. In Eastleigh there has been the most significant drop in individual insolvencies in Hampshire. It is a stark contrast to last year, when the local authority areas was one of the few places in the county to see its rate rise from 2012-13.
Andrew Watling, Chairman of the Southern Committee of R3 and a partner at Quantuma in Southampton, said:
“These new figures really do show that individual insolvency rates can be dramatically different in areas that are very close to one another. Each local authority area has its own economic, social and geographic factors that have an impact on individual insolvencies, which is why even some neighbouring areas can have huge differences.
Article continues below this advertisement “One trend we have identified nationally is that seaside and coastal areas tend to have higher individual insolvency rates and this is evident in the Isle of Wight’s ranking nationally.
“This is most likely because unemployment is much higher in coastal towns, which rely on the unpredictable tourism sector for jobs and growth.. Similarly a high number of jobs in this sector are short-term or low paid, giving residents there less security and stability in their individual finances.
“While this year’s figures may seem to paint a bleak picture for the Isle of Wight, it’s encouraging to see that its individual insolvency rate has decreased, albeit slightly. The creation of new and stable jobs on the island will play a major part in the individual finance of its residents over coming years.”
