Government cuts are expected to bite hard into the private sector, according to the research by Begbies Traynor insolvency specialists.
It found that 148,000 firms had serious problems in the final three months of last year, with at least 23,500 companies expected to fold this year.
Compared with the July to September quarter, there was an increase of 20 per cent in the number of companies experiencing “significant” or “critical” financial problems.
More than £52.7 billion is owed to creditors and suppliers by firms currently deemed to be in “critical” condition, Begbies said.
IT, business services and construction sectors are especially vulnerable as are smaller companies.
“The figures demonstrate that the sectors most reliant on government spending are already feeling the impact of public sector cuts”, said Ric Traynor, chairman of Begbies Traynor.
“With the full implementation of budget cuts only starting to show through in these figures, public sector-exposed sectors are likely to face significant increases in the level of corporate failures over the course of 2011.”
Meanwhile retailers will come under increased pressure as disposable incomes are hit by higher inflation, tax rises and job cuts and discretionary spending contracts leading to “an increase in business failures”.
The chairman of the commission on banking, Sir John Vickers, who is due to report later this year, unsettled major banks by hinting that he will eventually recommend splitting retail and investment banking.
In a speech in the City, Sir John ruled out creating “narrow banks” that can only take deposits but suggested that banks might be forced to “ring-fence” some of their subsidiary operations.
Bankers worried that ring-fencing will hit profitability argue this may lead to cuts in lending and higher lending costs to businesses and households.
The commission’s final recommendations will be put to Chancellor George Osborne in September.
