Over 371,200 Time to Pay arrangements have been granted to struggling businesses since November 2008 – worth £6.8bn – but official figures out today show a rapid drop in the number of schemes approved in the last few months.

The value of bad debts owed to HM Revenue and Customs (HMRC) has rocketed by 40 per cent to £6.4bn in the last year, according to accountancy firm UHY Hacker Young.