COMPANY insolvencies may worsen if the Government gets tough on failing firms.

That is the warning from accountants after The Insolvency Service revealed there were 4,716 company failures in England and Wales in the third quarter.

It was a welcome fall of 4.7% on the previous quarter, but a 14.6% increase on the same period a year ago.

And Brian Johnson, insolvency partner at chartered accountants HW Fisher & Company, said: “Although quarter three figures will be generally welcomed by the business community, this fillip of good news shouldn’t deflect attention away from the fact that corporate insolvencies were still up almost 15% on the same period last year.

“The 4.7% decrease may reflect the summer lull but may also be a result of the reduction in the number of insolvencies instituted by HM Revenue & Customs, as the government tries to support businesses.

“However, this relaxed attitude by the HMRC is expected to harden in the near future and will have a significant impact on the number of insolvency petitions being issued.”