Accountants see record business failures

"Other sectors relying on consumer spending will also be affected," it said. "Business failures in the personal services sector, which includes hairdressers and dry cleaners, are forecast to increase by 55.9 per cent this year to 1,910, and rise to 3,140 in 2010 as consumers tighten their belts."

In the leisure sector, 2,550 businesses are expected to fail in 2009 and 3,690 in 2010.