Brits in the Red reaches 11-year high

The number of people going bankrupt in Britain remained at an 11-year high during the first three months of the year, figures in the UK have shown.

Data from the UK's Department of Trade & Industry (DTI) showed 10,294 people in England and Wales became insolvent in the first quarter – 0.5% lower than the previous three months but still 26.8% higher on the same period a year ago.

At the same time, the DTI said the number of companies that became insolvent fell to 3,155, 4.6% fewer than the three months to the end of December and a 14.3% drop on the same quarter of 2003.

The figures come a day after the Bank of England’s Monetary Policy Committee raised interest rates by 0.25% to 4.25%, a move which is likely to increase the pressure on people already troubled by debt.