New figures released by the Insolvency Service show that corporate insolvencies in quarter three jumped by 19.3% (4,308 companies), compared with the same quarter last year.
The figures were published as Chancellor Philip Hammond proposed new rules at the Budget that could lead to lenders and trade creditors receiving lower returns in the event of a company going bust.
The Insolvency Service reported that company liquidations in Q3 were up 20.7% and administrations jumped 25.9% versus the same period in 2017.
Companies in the construction and wholesale/retail sectors continued to be among those experiencing the greatest levels of distress.
Graham Bushby, head of RSM’s restructuring team, said: “Nervousness around Brexit, high business rates and international trade tensions all seem to be having an effect on the level of corporate insolvencies.”