Almost 1,400 retail businesses are expected to go bust next year, an increase of 7% on 2007 levels, according to research by accountants BDO Stoy Hayward.

BDO predicts 1,382 retailers will go into insolvency next year, compared to 1,297 this year.

Many insolvencies are expected to happen in January following the quarterly rent call from landlords at the end of December.

Manufacturing, wholesale, real estate, transport and leisure, as well as manufacturing are also expected to see an increase in insolvencies over 2008.

Only technology, media and telecoms are expected to see a reduction in the number of insolvencies.

BDO also expects growth in consumer spending to slow dramatically next year to 1.6 per cent from 2.8 per cent this year.

"The rate of growth is halving next year. At 1.6 per cent it will be lower than inflation," says Shay Bannon, a partner at BDO Stoy Hayward.