East Anglia restaurants are battling to survive as a "perfect storm" of factors sees a 93pc rise in insolvencies within the sector.

Research published by Price Bailey reveal that 129 restaurants in the region became insolvent in the 12 months to March 31 2022, compared to 67 during the previous 12 months.

The increase in insolvencies in East Anglia is more than twice the national average which stood at 41pc, the accountancy firm found.

Price Bailey said that the restaurant sector is facing a "perfect storm" of adverse trading conditions, including the phasing out of measures put in place to support businesses during the pandemic and a squeeze on incomes due to rising inflation.

Matt Howard, head of insolvency and recovery at Price Bailey, said: “Restaurants are facing bracing economic headwinds. Soaring inflation is leaving consumers with less money to spend on eating out, which is hitting restaurants just as government support is being phased out.

“Restaurants are struggling with rising wages and food costs. Many are finding it difficult to pass those costs on to diners who are feeling the squeeze from rising energy and food bills themselves.

"Restaurants are capital-intensive businesses. Many are perpetually walking a balance-sheet tightrope and it often only takes a few months of poor takings to send them over the edge.”

Insolvencies across all sectors are on the rise, as new data published by the government's Insolvency Service shows that corporate insolvency figures in England and Wales have more than doubled compared to this time last year.

The figures reveal that April 2022 saw a 115.2pc rise in the number of firms entering into administration compared to April 2021.

Alistair Bacon, founding principal at AMB Law in Ipswich, said: “These statistics reflect the continued toll the economic turbulence is taking on our local business community. The boom many were hoping for when pandemic restrictions ended simply hasn’t happened. The UK has moved from one damaging set of economic stressors to another with no time to draw breath.

“Local businesses are trying to trade amidst rising inflation, a contracting economy and consumer confidence at a near historic low – lower than during the peak of the pandemic – due to cost of living concerns. Alongside this, rising fuel and energy costs and demands for increased wages from employees mean that it’s a challenge simply to break even at the moment, especially for those businesses who are still reeling from the pandemic."