UK firms in ‘critical financial stress’ jump by a third as costs rise, report finds

All 22 sectors of the economy BTG monitors had a rise in firms in financial trouble, with hospitality and leisure faring particularly badly. Photograph: coldsnowstorm/Getty Images

The number of UK businesses in “critical financial distress” has risen by more than a third over the past year, as companies contend with a “slew of increased taxes” and the impact of the Middle East conflict.

Hospitality and leisure firms have been faring particularly badly because of shaky consumer confidence, and rising taxes and staff costs, according to research by the restructuring company BTG.