This was a fall on December's 1,965, although it was 6.6% higher than the January 2022 figure of 1,567 insolvencies, indicating that the end of covid support, rising energy prices and hike in inflation, are taking their toll on businesses as cash flow is squeezed. Insolvencies stood at 1,502 in January 2020.

Simon Monks, restructuring & insolvency director at Azets, said: ‘While corporate insolvencies in January 2023 are lower than the previous month, there remains an upward trend on a 12-month rolling average basis, and levels are notably above pre-pandemic statistics.

‘This further confirms economic conditions remain tough, as higher interest rates make new funding more expensive. We expect this to bite corporates hard when faced with a refinancing requirement.’

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