Simon Underwood, partner and business recovery specialist at Menzies said “Currency fluctuations and the challenging UK financial market have left many businesses stuck facing rising costs.The rise in voluntary liquidations is a worrying trend, in that business owners are deciding their company is not financially viable. Adopting a cautious cash management approach should ensure that businesses are in the ‘best position possible’ to handle the continuing impact of Brexit. Government should consider introducing more fiscal support and reducing regulatory controls for SMEs. Businesses could work with suppliers to alleviate pressure across their supply chains and identify the burden of additional costs with customers.”

An estimated total of 3,633 companies entered insolvency in Q3 2016, which was 2.2% higher than Q2 2016 and 1.1% higher than Q3 2015. Case numbers have been flat for the past year, proceeding a trend of decrease from 2011 through to 2015.