Insolvency-related activity has dropped for a second consecutive month.

In Hampshire and the South East, figures fell from 233 cases in April to 223 in May, according to R3, the UK’s insolvency and restructuring trade body.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, said: "Businesses still face considerable financial pressure.

"Challenges include an increased tax burden, escalating wages, supply chain problems and a range of both domestic and international disruptions."

He warned that the decrease should not be seen as a sign of economic stability.

Neil also advised business owners to act early if they notice signs of trouble.

He said: "It’s vital to seek advice from a qualified, regulated professional as soon as possible.

"The earlier you act, the more likely you are to find workable solutions.

"Don’t let your business become another statistic."

R3’s Southern and Thames Valley region covers Hampshire, the Isle of Wight, Surrey, Sussex, Kent, Buckinghamshire, Oxfordshire, Dorset, Wiltshire and Berkshire.