British business is set for a tough year, with a worrying surge in the number of firms entering “critical” financial distress in the final quarter of 2024, according to consultancy Begbies Traynor.

So, I fear 2025 could end up being a watershed moment where thousands of UK businesses ‘call time’ after struggling to survive for years'

Consumer-facing sectors such as hotels, leisure and retailers have particularly been under pressure, advisory firm Begbies Traynor said.

Construction is the sector with the most firms deemed to be in either critical or significant financial distress, a new report has said. The latest Red Flag Alert report from Begbies Traynor said the number of UK businesses in critical financial distress rose by 50.2% quarter-on-quarter to 46,853 in Q4 last year