The number of people declaring themselves bankrupt in England and Wales surged to a new record high, according to recent figures.

The Department of Trade and Industry revealed that the number of individual insolvencies in the first quarter of 2006 leapt 73% compared to the same time in 2005, to a seasonally adjusted 23,351.

Howard Archer at Global Insight said: "With unemployment rising and debt levels at record high levels, there is a very real danger that individual insolvencies and mortgage repossessions will climb markedly further over the coming months.

"We believe that the continuing need for many people to improve their personal financial situations will be a significant constraint on consumer spending for some time to come."