0.10% of the business population became insolvent during October, compared to 0.09% in September 2011 and 0.08% in October 2010.

According to the latest Insolvency Index from Experian, the South West of England was the best performing region (0.06%) while the West Midlands overtook the North East as the worst performing region with an insolvency rate of 0.13%.

The average financial strength score for UK businesses was 78.44 in October. However, large companies saw their financial strength score improve from 84.84 last year to 85.81 in October 2011.

The financial strength score predicts the likelihood of a business failing in the next 12 months, with 100 being the least likely to default and 1 being the most likely.

Max Firth, UK & Ireland managing director for business information services at Experian, said: “While 0.10% represents a very small percentage of the UK’s business population failing in October