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Company insolvencies jumped by a 10th between July and September, compared to the same period last year, new Insolvency Service data revealed.
It threatened to trigger a wave of insolvencies had not the Bank of England intervened.
These were all drawn out insolvencies, concealed for months if not years.
"With insolvencies increasing, especially among builders on fixed-price contracts who are walking off jobs and terminating contracts because the cost increases mean it's not worth their while, those contracts are often now 30 per cent higher.