The figures show the overall recovery in London is stronger than that in other areas of the UK, according to PricewaterhouseCoopers, which produced the research.

Insolvencies across the UK fell by just 1% when measured against the same period for last year. Scotland, however, saw an increase of more than 100%, while in the South West they were up by more than 40%.

PwC added that London businesses that get into financial difficulties are making use of the new Enterprise Act, which was introduced last year to give management greater flexibility to restructure their business.

Mike Jervis, partner in the business recovery services practice at PwC, said: 'The ongoing decline of insolvencies in London shows that its economic recovery is still on track. Fewer companies are getting into difficulty and those that are seem to be making full use of the new business rescue legislation. The result is that more London businesses are being successfully restructured.'