Company insolvencies in England and Wales rose to 2,457 in March 2023 - a 37.7% increase on February's total.

According to HMRC, these figures are greater than levels seen before and during the Covid-19 pandemic.

The number of compulsory voluntary liquidations also rose last month, hitting a total of 2,011 compared to 1,842 in March 2022.

Meanwhile, there were 288 compulsory liquidations in March - more than twice the levels seen at the same time last year. However, this was partly a result of HMRC winding up more petitions.

Last month's spike can be mainly attributed to companies struggling with increasing business costs against a backdrop of soaring inflation and rising interest rates.

Some industries were affected more than others, with the construction sector hit hardest, followed by businesses in wholesale and retail, hospitality and manufacturing.

Speaking on the figures, Christina Fitzgerald, president of trade body R3 said:

"Business owners have spent three years trading through a pandemic and economic uncertainty.

"Directors need to be vigilant about the signs of financial distress and seek advice as soon as they spot issues with their business or begin to worry about its finances."

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