This is according to the Midlands branch of the UK’s restructuring, turnaround and insolvency trade body R3.

The figures comes on the back of new statistics published by the Insolvency Service which show that corporate insolvencies in England and Wales increased by 2 per cent in October to a total of 2,029 compared to the previous month, and by 17 per cent against the October 2024 figure of 1,739.

R3 Midlands Chair Stephen Rome, a partner at law firm Penningtons Manches Cooper in Birmingham, said: “These latest statistics are being published against a background of economic uncertainty, with businesses and consumers alike delaying major financial decisions until they can assess the outcome of next week’s Budget.

“This hesitancy is creating a sense of stagnation, with business owners looking to the Chancellor for measures which boost growth and spending.

“The economic pressure remains considerable, as shown by several high-profile insolvencies announced over the past few weeks, including Pizza Hut, Tomato Energy, Sheffield Wednesday FC and Petrofac.

“For every failing business that hits the headlines, there are hundreds of small and medium-sized businesses struggling for survival.  

“The recent increase in unemployment to 5 per cent indicates companies are having to make difficult decisions about hiring and, potentially, redundancy.

“With GDP growth also stagnant at 0.1 per cent last quarter, the trading environment is difficult, with higher employment, energy and materials costs.

“At the same time, creditors are becoming more proactive in forcing debts, borrowing costs remain elevated and consumer spending is subdued.

“These challenges underpin today’s insolvency rates and underline the need for positive, growth-focused measures in the upcoming Budget.

“Whatever this next Budget brings, R3 members remain committed to supporting and advocating for practical solutions which help businesses and individuals navigate these challenges. The profession plays a vital role in the economy, and these latest figures highlight just how important that role is in periods of uncertainty.”