The latest Business Distress Index from R3, the insolvency trade body, indicates that all its five key indicators of business distress are currently at or near the lowest recorded. The share of businesses experiencing at least one sign of distress is now almost half the 64% of businesses in the same position when the survey first started in March 2012.

Giles Frampton, R3 vice-president, said: ‘Business distress has tumbled over the past two years as businesses have got over the worst of the recession. This has been matched by steadily falling corporate insolvency numbers.’

R3’s survey also found that indicators of business growth remain close to the record highs hit in the last survey in autumn 2013, with 65% of businesses now showing at least one sign of growth compared to 46% in March 2012.

However, the research findings suggest that British businesses are increasingly concerned about growing amounts of government red tape, with just 11% saying the burden of business regulation has fallen since the 2010 general election compared to the 39% who report it has increased.

Frampton said: ‘Although the sentiment behind ideas like the “one-in, two-out” rule is laudable, it is not clear that the regulations being removed are being much noticed by businesses.’