MORE than three-quarters of UK insolvency and restructuring experts believe a hard Brexit will lead to more firms going to the wall.

On the day Prime Minister Theresa May confirmed she will take the UK out of the EU single market, 76 per cent of insolvency practitioners said a hard Brexit would lead to more corporate insolvencies. More than one-third (35 per cent) said there would be a “significant” rise in corporate insolvencies in the event of the UK exiting the single market to pursue a separate trade deal with the EU, while more than two-fifths (41 per cent) stated that there would be a “moderate rise”.

Only eight per cent said a hard Brexit would have no impact on insolvency numbers, according to the survey by R3, the trade body for insolvency professionals.

It also found that the prospect of Brexit has been weighing heavily on firms’ prospects since the EU referendum, with the term cited by 45 per cent of businesses which have sought help since June.

Three in 10 insolvency experts said they have seen a rise in businesses seeking their advice since the referendum, while one-fifth stated that Brexit was cited as a significant factor. Some 72 per cent declared the EU referendum result will cause corporate insolvencies to rise by the end of 2017, and 55 per cent said firms’ finances have been damaged since June.

R3 president Andrew Tate said: “The insolvency and restructuring profession is concerned about the impact leaving the EU will have on the financial health of UK businesses.

“Even before leaving, the effects of Brexit are being felt: a suddenly weaker pound and increased business uncertainty are already causing problems.”