Q1 of 2024 saw 554,554 companies on the verge of going bust, jumping by almost 50,000 over the space of one quarter, while year on year the figure was up by 36.9% compared to Q2 of 2023, revealed the quarterly Red Flag Alert from Begbies Traynor.

Julie Palmer, partner at Begbies Traynor, said: ‘It looks like 2024 will prove to be another tough year for UK businesses. Six months in, and we’re seeing clear signs that financial distress is growing across almost every sector.

‘It is a particularly difficult situation for businesses in consumer-facing sectors, such as hospitality.