Insolvencies to rise by 10%

Insolvencies may increase this year as a result of public sector budget cuts. Over £52 billion of debt is owed to lenders by UK firms. The number of UK businesses facing financial difficulties has increased to its highest level in the past two years, according to insolvency specialist Begbies Traynor. Just under 150,000 firms battled with serious monetary problems in the last quarter of 2010 marking the first year-on-year rise in the past seven quarters. Budget cuts recently made by the government were said to be worsening the issue.