The falling number of corporate insolvencies between 2011 and 2015 is attributable to various factors.

Since 2008 banks have generally taken a less interventionist approach with borrowers and the cost of borrowing has fallen to an all-time low. Additionally, insolvency practitioners have focussed on an early intervention approach to struggling businesses.

The combined effect of these and, wider economic factors, has resulted in fewer businesses needing to enter into a formal insolvency process.

However, it appears that changes are afoot within the business world. According to the Association of Business Recovery Professionals (R3), the number of corporate insolvencies has risen for the first time in five years, by 12.6%.

In addition, R3’s October 2016 figures reveal that around 8% of businesses were only able to service the interest on their borrowing rather than the debt itself. These “zombie” businesses appear particularly vulnerable to any interest rate rise.

It is too early to say whether this is the start of a trend of increasing business distress; however, as 2017 progresses, there are several factors likely to impact upon different business sectors including the fall in value of the pound and rising import costs, the uncertainty and eventual outcome of Brexit, inflationary pressures and the resulting squeeze on incomes.

In addition, two factors from the Spring Budget may adversely impact businesses which are already struggling.

First, in appropriate circumstances, the current system for Corporation Tax loss relief enables businesses going through the restructuring process to off-set 100% of previous losses against any one-off profits generated during the restructuring. However, from April 1, 2017, that rate of offset will be limited to 50% of the previous losses, resulting in some restructurings no longer being viable.

Secondly, some businesses still face higher business rates, notwithstanding the Chancellor’s announcement of transitional measures designed to assist those most adversely affected by the 2017 revaluation.

It will be an interesting, and challenging, few years ahead for businesses generally, with an as yet uncertain economic landscape emerging before us as the impacts of Brexit become apparent.

•John Bradshaw, is a partner and head of business services at Barker Gotelee.