Smaller company insolvencies are set to rise by a “catastrophic” rate of 41 per cent by the end of next year compared with where they were at the end of 2007, according to a survey by R3, a trade body for insolvency practitioners.

The findings, part of a poll of 2,073 of R3’s members last month, suggest that the number of insolvencies are likely to approach peak levels last seen during the 1992 recession. The poll findings come as official statistics on the number of UK insolvencies for the third quarter are to be released by the government’s Insolvency Service on Friday.