Overview

• 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.