A study into corporate insolvency numbers has reported little improvement in the hospitality and leisure (H&L) sector, according to PricewaterhouseCoopers (PwC).

During the first quarter of 2011, the business advisory firm found that 239 H&L companies became insolvent - 2.8 per cent down on the 246 in the last quarter of 2010. However, the number of businesses that failed during the first quarter increased 4.8 per cent on data for the same period in 2010. Pubs and restaurants were among the worst affected.

PwC hospitality and leisure leader Robert Milburn said: "This trend could continue as the spending cuts begin to impact the UK economy and with the new fiscal year starting, there are net personal tax rises for many. "This will make people tighten their purse strings which will impact disposable income with a knock on effect on the hospitality and leisure sector."

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