The number of businesses going bust rose by 11.6% to 3,560 in the three months to the end of June, according to government figures, up 15% on the same period a year ago.

Companies entering administration also increased from 859 to 938 in the last quarter, up 9.2% on the previous three months and 60% on the same period in 2007.

But the number of individuals declared bankrupt fell 2% to 24,553, which was 8.3% below the same period for 2007.

The data suggests that companies rather than individuals are bearing the brunt of the economic slowdown, although this will change should businesses slow down investment and make staff redundant.