There were 3,789 company insolvencies in England and Wales in the second quarter of this year. That was 2.6% more than in the previous quarter and 9.3% more than in the same period a year ago.

However, as a percentage of the total number of companies trading in the 12 months to the end of the second quarter the number of failures represents 1.1%, exactly the same proportion that failed in the 12 months to the end of the first quarter and in the corresponding period the previous year. That would indicate the increase in failures reflects an increase in start-ups.