Business insolvency surges 28%

The number of businesses closing has increased by 28% in the last three months, according to research by information group Experian.

Since the start of the year over 16,000 firms have ceased trading, with 6,000 of these closures occurring in the last quarter.

These figures may discourage new ventures from starting trading.

This rise is being partially blamed on banks becoming increasingly aggressive, with the number of bank controlled receiverships jumping 152% this quarter compared to the same time last year.

"Banks are now taking a much more proactive role in managing their under-performing loan book," said Carl Jackson, head of business recovery at accountants Tenon.