Fewer UK businesses failing but tough times ahead says new report

Although the number of corporate failures in the UK continues to decline, an increase in businesses failures in key industry sectors points to tough times ahead, according to the latest figures released by Experian, the global information solutions company.

While there was a marginal 0.4% reduction in the number of businesses failing in quarter three 2007 compared to the same quarter last year, the year-to-date figure showed a far healthier 4.7% decline, or 661 fewer businesses failing. Although 2007 is proving a better year than 2006, when Experian recorded its highest ever annual number of corporate failures (20,067), there are some warning signs for the economy.

The quarter saw an increase in business failures in 11 of the 34 sectors Experian