Construction firms in administration soar

The number of construction and property firms falling into insolvency has risen 50% over the past 12 months.

And accountants Deloitte predict more pain to come as the economy flirts with recession.

The firm has recorded a 16% increase in administrations to 1,402 in the first half of 2008.

Deloitte partner Lee Manning told the Daily Mail attempts to restructure and refinance businesses are falling flat because of the credit crunch.

“We will see an increase before we see a decrease in firms going into administration,” he said.

Small businesses are particularly hurt because larger companies can restructure out of court.