Company insolvencies rose sharply last month as businesses were faced with higher inflation and a rise in winding-up petitions from HMRC.

The Times reported that the number of corporate insolvencies increased by 38 per cent year-on-year from 1,410 to 1,948, according to figures from the Insolvency Service.

The numbers were driven by 1,594 so-called creditors' involuntary liquidations.

Compulsory liquidations rose by 357 per cent annually to 242. The service said this was partly due to HMRC issuing more demands for repayment from companies.

HMRC was barred from issuing winding-up petitions during the pandemic as businesses were forced to shut down by the government.

However, these restrictions were removed on April 1 this year, leading to an increase in activity against companies.

Joules became the latest casualty on the high street this week as it called in administrators.