THE number of insolvent companies in the region increased by 45 per cent in the fourth quarter of 2005 compared to the same period in 2004.

That's according to figures released by PricewaterhouseCoopers LLP which says that Yorkshire and the Humber had the highest increase in the number of insolvent companies in the country.

In total, 295 companies in Yorkshire and Humber entered insolvency in the fourth quarter of 2005, compared with 203 in the same period in 2004.

In 2005, the number of insolvent companies in Yorkshire and the Humber increased by 36.77 per cent in comparison with 2004. This was the third highest rise behind the South East and North West, which recorded rises of 37.53 per cent and 37.19 per cent respectively.

Steve Ellis, business recovery services partner at PricewaterhouseCoopers, said: "The increase in corporate insolvencies in 2005 reflects the gradual slowdown in the economy generally."

Updated: 15:23 Wednesday, February 08, 2006