Last year more than 17,000 companies entered insolvency in England and Wales, the highest since 2013.

The four per cent year-on-year rise to 17,243 was driven by two bulk insolvencies caused by a change to tax rules, the Insolvency Service said.

Excluding those, 15,112 companies entered insolvency last year, up 2.5 per cent from 2016, which was still the highest since 2014.

“Even stripping out the distorting effects of the two spikes triggered by law changes, the overall trend is up, with the number of companies going to the wall rising steadily throughout 2017," said Brian Johnson, insolvency partner at chartered accountants HW Fisher & Company.

“While November’s interest rate rise will turn the screws on struggling companies, its full impact has yet to be fully felt."

Johnson said the retail and construction sectors in particular are on "high alert".

"Many high street brands suffered a poor Christmas amid lower levels of consumer spending and continued Brexit uncertainty, and the sharp slowdown in construction is putting extreme stress on building subcontractors – thousands of whom face taking a large hit following the collapse of Carillion."

Personal insolvencies rise nine per cent

Meanwhile, personal insolvencies hit a three-year high of 99.196, up 9.4 per cent compared with the previous year.

This was down to the combination of shrinking real wages and the rise in interest rates, which is stretching the finances of many Britons, Johnson said.

Alec Pillmoor, personal insolvency partner at audit, tax and consulting firm RSM, added: "Over the last two years, there’s been a 23 per cent increase in the number of people entering an insolvency process. This is despite employment levels being at a record high.

"Instead, high levels of indebtedness – even for those with regular incomes - is such that they have no option but to enter one of the insolvency routes."

Last year more than 17,000 companies entered insolvency in England and Wales, the highest since 2013.

The four per cent year-on-year rise to 17,243 was driven by two bulk insolvencies caused by a change to tax rules, the Insolvency Service said.

Excluding those, 15,112 companies entered insolvency last year, up 2.5 per cent from 2016, which was still the highest since 2014.

“While November’s interest rate rise will turn the screws on struggling companies, its full impact has yet to be fully felt."

Johnson said the retail and construction sectors in particular are on "high alert".

Personal insolvencies rise nine per cent

Meanwhile, personal insolvencies hit a three-year high of 99.196, up 9.4 per cent compared with the previous year.

This was down to the combination of shrinking real wages and the rise in interest rates, which is stretching the finances of many Britons, Johnson said.

"Instead, high levels of indebtedness – even for those with regular incomes - is such that they have no option but to enter one of the insolvency routes."

Last year more than 17,000 companies entered insolvency in England and Wales, the highest since 2013.

The four per cent year-on-year rise to 17,243 was driven by two bulk insolvencies caused by a change to tax rules, the Insolvency Service said.

Excluding those, 15,112 companies entered insolvency last year, up 2.5 per cent from 2016, which was still the highest since 2014.

“While November’s interest rate rise will turn the screws on struggling companies, its full impact has yet to be fully felt."

Johnson said the retail and construction sectors in particular are on "high alert".

Personal insolvencies rise nine per cent

Meanwhile, personal insolvencies hit a three-year high of 99.196, up 9.4 per cent compared with the previous year.

This was down to the combination of shrinking real wages and the rise in interest rates, which is stretching the finances of many Britons, Johnson said.

"Instead, high levels of indebtedness – even for those with regular incomes - is such that they have no option but to enter one of the insolvency routes."

Company insolvencies in England and Wales hit a four-year high in 2017

Company insolvencies in England and Wales hit a four-year high in 2017

Personal insolvencies rise nine per cent

Personal insolvencies rise nine per cent

Company insolvencies in England and Wales hit a four-year high in 2017

Personal insolvencies rise nine per cent