A combination of Brexit and squeezed personal finances is putting pressure on the UK economy and could even signal a recession is on the way, according to experts citing the latest insolvency data which shows the number of UK companies collapsing is increasing.

The number of corporate insolvencies in England and Wales rose to 16,090 in 2018, the highest level since 2014, while personal insolvencies jumped to a seven-year high of 115,229, according to the Insolvency Service.

The figures showed retail insolvencies rose by 9 per cent, with 1,211 retailers collapsing last year.

Michael Mulligan, insolvency and restructuring partner at law firm Shakespeare Martineau, said it was important to note that the 2018 figures did not take into account the “exceptionally grim Christmas trading figures” released by retailers earlier in January.

Data showed UK shops endured the worst Christmas in a decade as sales flatlined.

Death of the British high street? The retailers affected Show all 9 1 /9 Death of the British high street? The retailers affected Death of the British high street? The retailers affected Toys 'R' Us Customers shop at a Toys 'R' Us store. The retail chain announced plans to shut all of its US stores, becoming one of the biggest casualties of the retail shakeout amid the rise of e-commerce. The debt-plagued company announced that it has filed a motion for bankruptcy court approval to liquidate its US operations, a move that could hit 33,000 jobs. The UK retailer failed to find a buyer and said their 105 Toys R Us stores would remain open until further notice, with administrators appointed to begin "an orderly wind-down". AFP/Getty Death of the British high street? The retailers affected New Look New Look announced it will shut 60 stores and cut 980 jobs as part of a restructuring plan agreed with its creditors. PA Death of the British high street? The retailers affected Maplin A Maplin store displays closing down notices after the company went into administration. Reuters Death of the British high street? The retailers affected Claire's Accessories (US only) People walk past a Claire's store in downtown Chicago. The chain that has pierced the ears of millions of teens has filed for Chapter 11 bankruptcy protection. The accessories chain said that its stores will remain open as it restructures its debt. AP Death of the British high street? The retailers affected Carpetright Carpetright announced that it has secured £12.5m of emergency funding from one of its largest shareholders and that it is exploring the opportunity of seeking approval for a restructuring plan under which it would slash rents and shut stores to avoid going into administration. Reuters Death of the British high street? The retailers affected MOSS BROS. Suits specialist Moss Bros has reported a drop in earnings and profit in 2017, blaming a “tough end to the year” and stock shortages which hurt sales. Chief executive Brian Brick said: “Going forward, we are planning for an extremely challenging retail environment, not least because of the uncertain consumer environment and significant cost headwinds.” PA Death of the British high street? The retailers affected Mothercare Mothercare warned over profits after UK sales plunged in the run-up to Christmas 2017, with consumer spending falling in both stores and online. PA Death of the British high street? The retailers affected House of Fraser The Chinese owner of House of Fraser plans to sell its majority stake in the troubled department-store chain, adding to the upheaval on the UK’s shopping streets. Getty Images Death of the British high street? The retailers affected Conviviality - Bargain Booze Bargain Booze owner Conviviality could be heading for administration after failing to secure emergency funding, placing 2,500 jobs at risk. AFP/Getty

Mr Mulligan said that a rising number of insolvencies was almost certain in the near future.

“The UK’s economy has lost momentum, the credit cycle is over and another recession is very likely on the cards,” he warned.

“Businesses and individuals have been feeling the effects of an increasingly sluggish economy for some time now. A deadly cocktail of accessible, cheap borrowing and plateauing wages across the country has contributed to the marked rise in personal insolvencies.

“The lack of money in consumers’ pockets will have had a direct effect on company insolvencies, especially in sectors such as retail, which are already struggling. Consumer spending is down and businesses are having to fight to attract the remaining spending power that is out there.”

Stuart Frith, president of insolvency and restructuring trade body R3, backed up this analysis.

“The pressure point for businesses most frequently cited by our members is weak consumer demand,” he said.

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“People just don’t have much spare cash at the moment, reflected in the rise in the number of personal insolvencies also confirmed today.

“This also spells bad news for businesses at one remove from the consumer, such as manufacturers supplying consumer products, shop-fitters, or logistics firms. Every business is part of a network and one struggling business will affect others.”

He added that uncertainty around Brexit and the future EU-UK trading relationship is “already forcing businesses to hold off on investment decisions, again affecting their suppliers and customer networks”.