Cuts threatening 50,000 firms

Cuts announced in next week's Comprehensive Spending Review could lead to 50,000 private sector insolvencies, Begbies Traynor warned yesterday.

The insolvency specialists said that companies reliant on government contracts faced a heightened risk from what are expected to be wide-ranging austerity measures.

"The sectors most likely to be most impacted are already starting to show definite signs of financial distress," said chairman Ric Traynor.