The number of restaurants going insolvent has increased by 25% in the last year, new research suggests.

There were over 1,400 insolvencies in the sector in the year to June, amid the Brexit-related blow to consumer spending and a rise in costs from the collapse of Sterling, said accountancy group UHY Hacker Young.

The rapid growth of the causal-dining sector since the last recession resulted in an over-saturated mid-market which is still going through a dramatic shake-out, said the report.

Recent publicity over restaurant closures has been focused on big name, multiple operators – which has obscured the problem at thousands of smaller restaurant businesses, said the accountancy group.

Peter Kubik, of UHY Hacker Young, said: “The crisis in the restaurant sector has been presented as a problem only for the chains that had lost touch with their customers.

“That’s overlooking the hundreds of small independent restaurants that have become insolvent.

“Good restaurants and bad have all struggled from over-capacity, weak consumer spending and surging costs. Having a loyal following is great but if that loyal following stops going out then you have a problem.”

Alan Jones is PA Industrial Correspondent.