The worst hit sectors were construction, manufacturing and retail industries, reflecting the impact of higher interest rates and a sharp drop in residential house building.

In total, 395 construction related businesses went bust, followed by 380 catering and hospitality businesses and 352 companies involved in the motor trade, including repairs and forecourts.

However, the total number of business collapses was down 15.2% on August’s total of 2,319.

The company insolvencies consisted of 255 compulsory liquidations, 1,576 creditors’ voluntary liquidations (CVLs), 125 administrations and 11 company voluntary arrangements (CVAs).

Nicky Fisher, president of R3, the UK’s insolvency and restructuring trade body, said: ‘September 2023’s corporate insolvency figures are the highest we’ve seen for this month in four years as a combination of economic issues, director fatigue and the post-Covid insolvency lag see more firms turn to corporate insolvency processes to resolve their financial issues.

‘The