Company insolvencies in England and Wales fell sharply in March and recorded their lowest calendar-quarter total since the third quarter of 2022, official figures showed on Friday.

The Insolvency Service, a government agency, said 1,815 companies were declared insolvent in March on a seasonally adjusted basis, down from 2,177 in February and also 17% lower than in March 2023.

In the three months to the end of March, 5,759 companies were insolvent - 2% fewer than in the same period of 2023.

Personal insolvencies in England and Wales were down 9% on the year in March and were 19% lower than in February at 8,708, the Insolvency Service said.

British businesses have been under pressure from big rises in energy prices - which are now starting to ease - as well as higher staffing costs and official interest rates which are their highest since 2008.

"Beyond the official data, we're seeing ... more balance sheet restructurings, asset sales and a rising focus on working capital as companies look to reshape their businesses in response to a changing market," Simon Edel, a restructuring partner at EY-Parthenon, said.

"Distress is also now impacting mid-market and larger corporates, as well as smaller businesses," he added.

The rate at which companies are going insolvent is higher than in 2020 and 2021 - when the government provided emergency COVID-19 loans to businesses and there were restrictions on court-ordered liquidations - but remains well below the rates seen during the 2008-09 recession, the Insolvency Service said.

Insolvencies were commonest in the construction, retail and hospitality sectors, although the figures are not adjusted for the number of businesses in each industry. (Reporting by David Milliken, Editing by Louise Heavens)