UK Businesses Face 'Perfect Storm' as Over 47,000 Companies on Brink of Collapse

Rising borrowing costs and taxes, coupled with the end of cheap money, push firms into critical financial distress, with construction and real estate sectors hardest hit.

Over 47,000 UK companies are on the brink of collapse, facing 'critical' financial distress, due to higher borrowing costs and taxes, according to a report by insolvency practice Begbies Traynor.
The construction and real estate sectors are among the hardest hit, with London and the south east bearing the brunt of the problems.
The Bank of England's interest rate hikes have significantly increased the cost of borrowing for UK businesses, preventing many from papering over the cracks with cheap debt.
The number of firms in distress has risen by 25% for two consecutive quarters, marking a 'perfect storm' impacting every corner of the economy.
Experts warn that the UK could see a doubling in the number of insolvencies if all 'critical' firms go under.