The August figure was up from 1,941 a year ago, reflecting tougher trading conditions after pandemic support measures were removed and companies started to pay back covid loans. Together with the cost of living crisis hitting consumer spending, a tight labour market and soaring electricity and gas prices, companies are showing signs of distress.

There were 221 compulsory liquidations, which was 45% higher than August 2022 with a smaller rise in creditors’ voluntary liquidations (CVL) to 1,880, up 13%. The rise is even starker when compared with pre-covid figures when the monthly figure was 1,365 total company insolvencies.

Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in HMRC winding-up petitions to companies which owe substantial tax bills.