The latest figures released by the Insolvency Service showed 2,114 company insolvencies were filed in March, a 599 increase on February.
It was reported that 1,844 creditors' voluntary insolvencies took place, which totalled a 109% rise compared to the same time last year.
The first quarter of 2022 saw a total of 5,197 company insolvencies, the highest quarterly figure since Q3 in 2017.
As interest rates rise, many companies which borrowed from the Government due to the pandemic are now struggling to repay their outstanding loans.
The rise in insolvencies is likely to have been caused by inflation, the increase in energy and utility bills for businesses as well as the extra strain caused by the increase in the national living wage.
HMRC figures state that 633 bankruptcies were registered in March, 39% lower than the same time in 2021 and 59% lower than in March 2019.
The stats show 2,512 debt relief orders (DROs) were issued in March, which was 58% higher than in March 2021. This is the first time since the start of the pandemic the number of DROs was higher than pre-pandemic months.
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