INSOLVENCIES are rising across Kent and Medway even though numbers are below the national average.

According to figures produced by PricewaterhouseCoopers, the number of insolvent businesses in the county fell by 21.6 per cent in the second quarter of 2005 compared with the same period in 2004.

Nationally, insolvencies rose by 27 per cent in the same period.

A total of 106 Kent-based companies entered insolvency in the first half of 2005, up 9.3 per cent, the highest level since PwC began tracking the figures in 2000.

Karen Dukes, director of PwC’s business recovery services in Gatwick, said: "These trends are concerning.

"However, we should not forget that, first, Kent’s increase in the first half of 2005 is less than the national figure and, second, 84 per cent of these failures are liquidations, likely to be smaller companies with unviable business models."

She added that Kent’s more favourable position might be due to re-structuring and re-financing, and the willingness of businesses to contact experts at the first sign of trouble.

"As a result, the overall impact on Kent jobs and economy may not yet be material."