Nearly 100 businesses will fail every day this year, research by BDO Stoy Hayward shows. According to the report, low interest rates and policy measures aimed at boosting the economy are not likely to halt the rate of UK business failures until at least 2011, paving the way for a far worse picture to come in 2010 where 40,400 (111 businesses everyday) are expected to go under.

The economy has already shrunk by 1.9% and further contractions are expected throughout the year. The biggest pinch will be felt in the sectors controlled by consumer spending with the ordinary person spending less on themselves. Hair dresses particularly are noticing customers taking longer between cuts.

Rising unemployment, weaker earnings growth and reduced perceived wealth levels due to declining asset prices are all likely to continue late into 2009/2010.

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