Insolvency rates among pubs and restaurants remained stabile in June, although there was a slight increase in the likelihood of failures in the sector, according to a new report. The latest Insolvency Index from Experian shows the proportion of firms in the leisure and hotels sector, which includes pubs and restaurants, that failed in June 2011 was 0.16%, the same proportion as in June 2010. This is still significantly higher than the overall failure rate of UK businesses, which also remained unchanged at 0.09%, although the failure rate for firms employing 51-100 staff fell from 0.23% in June 2010 to 0.19% last month. However, the leisure and hotels sector’s “financial strength” score, which predicts the likelihood of business failure in the next 12 months, with 100 being the least likely to fail, fell from 78.97% to 78.56% over the period. The score for UK businesses generally fell from 80.83 to 80.06. Meanwhile, the breweries sector saw statistically zero insolvencies in June 2011, the same as in June 2010, although its financial strength score fell from 79.42 to 77.64. Elsewhere, failure rates among businesses employing 101-500 staff more than halved, from 0.17% to 0.08%. The East Midlands was the most improved region in June 2011, with the rate dropping from 0.11% to 0.09%. The South West had the lowest rate of failures (0.07% in June 2011, unchanged from June 2010). In contrast, two area that both saw a further increase in insolvency rates were the North West (0.11% to 0.12%) and Scotland (0.08% to 0.1%). The building materials industry had the highest rate of failure, 0.27%, followed by building and construction, with a rate of 0.18%. Max Firth, managing director for business information services at Experian, said: “June’s data indicates that the UK’s business community as a whole is generally stable, however it also points to a change in circumstances for different sized businesses. “The largest companies have experienced a turnaround in fortunes and now the larger mid-sized businesses are following suit with a significant improvement since last year. Our analysis also shows that businesses in the north seem to be faring slightly worse than their southern counterparts. “Although the data shows improvements in some regions and sectors, individual organisations are impacted in different ways. It is vital for businesses to understand and monitor the circumstances of those they are doing business with and the risks they could expose them to.”