RECOMMENDED READING:Nationally, UK businesses experienced a rise of just 0.3% in early-stage distress since the previous quarter, and a year-on-year increase of 11.3%, with a total 728,640 firms affected. In Yorkshire, six out of the 22 industry sectors tracked saw a drop in levels of significant distress in Q4 2025 compared with the previous quarter. Among sectors faring less well in Yorkshire, where distress levels had risen since the previous quarter, were health and education, which includes care homes, nurseries and all educational institutions, (+16.6%, 3,887 businesses affected). Additionally, 4,579 businesses were experiencing advanced or ‘critical’ distress across Yorkshire, up 27.6% on the previous quarter and 43.5% on Q4 2024. “Businesses in Yorkshire and across the UK are still contending with reduced consumer demand, persistent cost pressures and high interest rates.