More businesses went to the wall in 2023 than in any year since 1993.

The shocking revelation comes from the latest figures from the government's Insolvency Service (IS) which records data on companies across England and Wales.

Some 25,158 insolvencies were recorded in 2023, registering the highest number since 1993 as firms struggled to contain rising costs and meet keep up with bruising interest rates.

As highlighted with the loss of rugby star Phil Vickery's Charlton Kings restaurant earlier this month, businesses across the county are being strangled by higher energy bills and a squeeze in consumer spending. The latest figures on the breadth of the crisis also reveal that one in 186 active firms went bust in 2023.

In outline, the IS data shows:

● 2023's company insolvencies, at 25,158, was the highest number since 1993 and 14% higher than 2022. Worse still, the number of CVLs (creditors voluntary liquidations) in 2023 was the highest annual number in the time series since records began in 1960.

● Compulsory liquidations and the number of administrations climbed against 2022 but were slightly lower than pre-pandemic levels.

● Creditors' voluntary liquidations (CVLs) were the most common company insolvency procedure (82% of cases), followed by compulsory liquidations (11%), administrations (6%) and company voluntary arrangements (or CVAs, at 1%).

The IS report said: "During the coronavirus pandemic in 2020 and 2021, when government support measures were in place, company insolvency numbers were low compared to historical levels. CVL numbers then increased in 2022, exceeding pre-pandemic levels, while compulsory liquidation and administration numbers remained lower. Numbers of all insolvency types then increased in 2023."

According to the insolvency experts Begbies Traynor, more than 47,000 businesses began 2024 on the edge of collapse.

The shocking statistics signals that cases of critical financial distress have jumped by more than 25% and the company has issued a "red Flag" report on the danger.

Begbies Traynor's analysis revealed that distress calls rose in Q4 2023 by 25.9% on the previous quarter - meaning 47,000 businesses were "near collapse in the UK at the start of 2024".

Ric Traynor, executive chairman, said this rise was the second consecutive period where critical financial distress has grown by around a quarter.

Mr Traynor said: "Across every sector monitored by Red Flag Alert, the levels of critical financial distress grew quarter-on-quarter in Q4 2023, highlighting how the current economic backdrop is having a detrimental impact on every corner of the UK economy."

Key sectors driving this increase include construction, real estate and property and support services sectors, for which critical distress incidence rose by 32.6%, 24.7% and 23.6% respectively, alongside health and education (up 41.3%).

On top of this, companies in "significant financial distress" were up nearly 13% in Q4 2023 versus the prior quarter. As at December 31st 2023, well over half a million companies (539,900) were affected. The sectors driving this increase were construction (+15.3%), health and education (+19.2%), real estate and property services (+21.3%) and support services (+9.1%).

Julie Palmer, partner at Begbies Traynor, added: "After a difficult year for British businesses that was characterised by high interest rates, rampant inflation, weak consumer confidence and rising and unpredictable input costs, we are now seeing this perfect storm impacting every corner of the economy.

"Now that the era of cheap money is firmly a thing of the past, hundreds of thousands of businesses in the UK, who loaded up on affordable debt during those halcyon days, are now coming to terms with the added burden this will have on their finances."