Insolvency-linked activities in the South East have escalated, with figures rising from 246 in February to 261 in March, according to R3.

This is minimal drop from the 12-month high of 277 recorded in March 2023.

The analysis also reflects a relatively stable number of firms in liquidation owing money to creditors, from 376 in February to 377 in March.

The South East has the fourth highest insolvency rate in the UK, surpassing Yorkshire & Humberside and the West Midlands.

Nationally, insolvencies increased by 17 per cent compared to March 2023, though start-ups in the South East have lessened this year, dropping from 7,150 in February to 6,311 in March.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, said: "Although we see signs of recovery as spring kicks in, it remains tough for many businesses.

"March’s figures reveal that economic challenges remain, with, again, an increasing number of companies being pushed into insolvency by multiple causes.

"The good news is that inflation, now at 3.4%, is expected to continue a downward trajectory, the OECD (Organisation for Economic Co-operation and Development) forecasts UK GDP to grow by 0.7 per cent in 2024 and by 1.2 per cent in 2025 and the Growth Guarantee Scheme was boosted with a further £200m by the Chancellor."