By Marcus Leach

Figures released today (Friday) by the Insolvency Service have revealed that the number of companies that went insolvent in England and Wales in the first three months of the year rose by 10%.

However, despite this rise, the total was down 1% from the previous quarter. There were 4,303 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the first quarter of 2012.

“Small businesses in the UK are living in an incredibly difficult environment, and these figures reflect that," Nicola Connop, spokesperson for Business Debtline, said.

"The danger is that there can be a domino effect of one struggling small business knocking over several others. Many of the thousands of small businesses that contact our advisers every month cite trade shortfalls, late payers and supplier issues as the reason for their difficulties.”

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