10,000 contractors to go bust in 2009

More than 10,000 construction companies could fail this year according to accountant BDO Stoy Hayward.

Construction and property will be among the hardest hit industrial sectors as the recession continues to send companies under.

BDO belive that as many as 10,300 construction and property businesses could fail before the end of this year.

Across all industries, one in 56 companies across the UK will go bust in 2009, a 59% rise on last year. The firm predicts that a total of 36,000 companies will fail this year.

Shay Bannon, head of business restructuring at BDO Stoy Hayward, said: "The deteriorating economy and expectations of a drawn-out recession has led to a downward revision in the UK outlook and has severely impacted the survival rate of UK businesses."