BUSINESS failures in Yorkshire leapt by 44 per cent last month - higher than the national rise - according to new figures published today by professional services firm Deloitte & Touche.

The latest statistics show that the total number of receiverships and administration appointments in the region rose to 26 in March, compared with 18 in February. Nationally, the number of receiverships rose by 23 per cent from 166 in February to 204 last month.

Angus Martin, re-organisation services partner for Deloitte & Touche said: "These figures are disappointing coming after two months of reasonably low levels of business failures.

"However, it is still too early to say whether this rise is simply a blip or something worse. Although interest rates are coming down, a number of businesses are beginning to feel the effects of the downturn in the US and this could well lead to more failures in the coming months."

He said it was worth speculating whether some of the increase was caused by the effects of foot and mouth on rural businesses.

"We shall have to wait to see the full analysis of the figures before we can be certain about this connection," he said.