Corporate insolvencies in England and Wales jumped by more than 80% last quarter compared to a year earlier, while the number of businesses opting for liquidation reached its highest level in six decades. They made up almost nine out of 10 of the total. Insolvency experts have warned of a difficult autumn, when even more companies could go out of business, including larger ones, as a result of falling consumer confidence and demand. There were 5,629 company bankruptcies between April and June, up 13% on the previous quarter and 81% more than the same period last year, according to figures from the government’s insolvency office. This includes 4,908 creditors’ voluntary liquidations (CVLs), where a company unable to pay its debts decides to fold. It was the highest quarterly rate since the data series began in 1960. The number of compulsory liquidations also rose to 368, but remained below pre-pandemic levels. John Cullen, business turnaround partner at accountancy firm Menzies, said: “This is an indication of the severe cash flow pressures facing many businesses, exacerbated by rising energy and fuel costs. Inflation is testing the viability of businesses across all industry sectors and with interest rates expected to rise again this week, borrowing costs are also expected to rise. “At the same time as they face significant cost increases, many businesses are hampered by supply and staffing shortages, which are limiting revenue at a critical time as demand levels recover or return to pre-pandemic levels.” Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk Samantha Keen, corporate insolvency and restructuring consultant at consultancy EY-Parthenon, warned that this was just the beginning. “The record levels of CVLs are the first installment of bankruptcies we have expected to see involving companies that have struggled to stay afloat without the bailout of government support provided for the pandemic. We expect further insolvencies next year among larger firms struggling to adjust to tough trading conditions, tighter capital and increased market volatility. “The impact of the slowdown in consumer spending is likely to be felt in the autumn as many retail and hospitality businesses prepare for the all-important ‘golden quarter’. These businesses, which are particularly sensitive to fluctuations in consumer demand, will be more vulnerable.” Christina Fitzgerald, chair of insolvency and restructuring trade body R3, said: “Many directors are choosing to close their businesses as they lack confidence in their trading prospects in the current climate.” He said a fall in household disposable incomes for an eighth straight month in June would fuel business, along with rising costs, supply chain problems and a tight labor market. “This has meant an uphill battle for many businesses, especially those still suffering from the pandemic,” he added.