High interest rates ‘will lead to thousands of UK firms failing in 2024’

Thinktank Cebr expects Bank rate to rise twice more and predicts 28,000 insolvencies over next year

About 7,000 businesses are likely to fail every quarter in 2024 as high interest rates cause financial strain and the UK economy enters recession, according to a thinktank.

The Centre for Economics and Business Research said debt taken on during the pandemic, higher borrowing costs and the cost of living crisis would drive an increasing number of businesses under, particularly in the retail and hospitality sectors.