Fewer companies going bust

THE number of London-based companies going bust last year fell more sharply than in the rest of the country, reflecting the capital's relative economic strength.

Figures from accountants PricewaterhouseCoopers show 2,594 London-based firms became insolvent in 2004, an 8% decline on the previous year.

Nationally, insolvencies fell by just 3% while in some areas they rose sharply. In Scotland, insolvencies soared by 55%.

However, the fortunes of companies in the capital varied massively across sectors. While the number of manufacturing companies going bust fell by 17%, insolvencies in the construction sector leapt by 19%.

Reflecting changes introduced by the Enterprise Act, there was a 135% increase in