Sales of commercial insurances are set to be hit by an increase in business failures.
A report by accountant BDO Stoy Hayward said that there would be a 7% rise in business failures this year. BDO said that 17,900 businesses failed last year compared with 19,200 in 2002. In 2004, the accountant expected more than 19,200 business failures, with the leisure sector being most vulnerable.
BDO added that the worst is over for telecoms, media and technology.
In a separate report, Lloyds TSB Corporate said that sales and order books were the healthiest for six years. It surveyed 1,800 businesses with a turnover of £1m.
