2005 will mark the beginning of a sea change for UK business as the number of firms going bust is expected to increase for the first time in two years, according to experts at BDO Stoy Hayward.
The latest BDO Stoy Hayward Industry Watch reveals a 3 per cent increase in the number of business failures from last year. This is equivalent to an average of 315 businesses going bust per week.
Since 2003, there has been a steady decline in the number of businesses failing but this is set to change. A tough year is expected for businesses in 2005 with increases in inflation and interest rates, a decline in consumer confidence and a more volatile global economic environment likely to result in an increasing number of businesses failing. Consequently, Industry Watch predicts that 17,043 businesses will fail in 2006, a further 4 per cent increase from 2005.