According to responses from over 300 insolvency practitioners, the wholesale and retail sector (31%) will suffer the most insolvencies 2011, followed by construction (25%), and hotels and restaurants (20%).

By contrast, only 6% of respondents thought the manufacturing, which includes the printing industry, would be the hardest hit in the coming year.

R3 has also looked at the likely impact of public sector cuts on the number of insolvencies, where just 3% of IPs believe manufacturing will be hardest hit, while almost half, 48%, feared for construction.

However, the organisation has again warned that, due to a combination of factors such as VAT and interest rate rises, public sector cuts, and a tightening of the Time to Pay scheme, the fallout from the recession is far from over.

President Steven Law said: "As conditions change, it is likely that we will see a rise in insolvencies. But much depends on monetary and fiscal policy from here on in and, most importantly, on management's ability to diversify their businesses, search out new markets and keep their costs under control."

According to the survey, 29% of insolvency practitioners believe that a squeeze on HMRC's Time to Pay scheme, expected next year, will have the most negative impact on UK businesses in 2011.

Both the impact of public sector cutbacks and a modest rise in interest rates are also considered to be major reasons for increased struggles in 2011 by 23%.

Respondents were also asked to name the planned policy changes that will have the most effect on business, with half claiming that VAT increases would hit the UK and a third claiming a 1% rise in National Insurance would have the most impact.