Businesses will fail at record rates, says BDO

Nearly 100 businesses will fail every day this year, research by BDO Stoy
Hayward shows.

Forecasts for rising unemployment and continued weakness in consumer spending
would impact on sectors that relied on disposable income including retail,
leisure and personal services.

The survey assumed a 3.5% fall in employment in 2009 and a further 1.9% drop
in 2010. It would lead to the failure of 40,00 businesses, the survey predicted.

But the survey also predicted that government action including a bank rescue
plan, drastic cuts in interest rates and fiscal stimulus packages would take
effect from 2011.

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