COMPANY failures could soar to more than 60,000 over the next 18 months if the country dips into recession, research has revealed.

Experts at Leeds University’s Credit Management Research Centre forecast that the insolvency rate will rise sharply over the next six months and into 2009 – with the “worst case” scenario suggesting a peak at more than 66,000 between July and December next year.

Prof Nick Wilson, of the CMRC, said: “These are very worrying figures and do not bode well for the UK corporate sector – particularly for small to medium-sized businesses which suffer most in a downturn.”