Low wages and a large number of people working in the military sector have contributed to Plymouth having the highest number of insolvencies in the UK, according to new figures.

Academics at the University of Plymouth's Business School analysed the latest insolvency figures for their South West Economic Review.

They found there were a total of 819 cases of bankruptcy in Plymouth in 2006 - equivalent to 0.43 per cent of the population.



Torbay came second, followed by Kingston Upon Hull, Eastborne and Basildon.

Professor Peter Gripaios, editor of the review, said staff were investigating reasons for Plymouth's place at the top of the league table.

He said low wages and a high number of people employed by the military appeared to be big factors in the ranking.

The credit crunch is not being blamed, as the figures are two-years-old.

But Prof Gripaios predicted there would be more insolvencies to come as a result of the current economic downturn.

"These figures are going to go up across the board, they won't go up more just in Plymouth. Rates are starting to rise - that's something we're starting to see already," he said.

Steve Meakin, money advice coordinator for Devon and Cornwall Citizens Advice Bureau, said 40 per cent of people asking for advice from the CAB had debt problems.

"Clearly, the South West has had some of the highest bankruptcy rates for a number a number of years. Plymouth, Torquay and Truro have all recorded very high rates of bankruptcy," he said.

Mr Meakin urged anyone worried about debt to seek advice.

But he stressed this should be from a free, independent and impartial source rather than from a company which has a financial interest in debt management.

"We see too many people who have who have tried to get help, and they have just been ripped off by these companies and it's ended up compounding their problems," he said.


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