Surge in London firms going bust after rate rises

THE number of London companies falling into administration soared 37% last year, with key sectors such as property, hospitality and retail particularly hard hit, figures lay bare today.

- Joanna Hodgson

The 364 corporate failures in the capital last year accounted for 22% of the 1641 national total, according to data from law firm Shakespeare Martineau.

The UK number was a 22% jump from 2022 and 91% up on 2021.

The surge suggests many weakened companies that survived the pandemic and the energy price spike are finally being forced to throw in the towel under the weight of a cocktail of pressures.

The worrying figures come ahead of the Bank of England making its decision on interest rates on Thursday.

There is unlikely to be any comfort for firms struggling with high debt burdens as the Bank is thought almost certain to leave its key rate at 5.25%, with a cut not on the cards until May or June.