That's according to accountants and business advisers BDO Stoy Hayward, which still forecasts more than 17,000 failures this year and next.

The group sees tough times continuing for retailers, but says there is a brighter future around the corner as the sector comes to the end of a poor economic cycle. Manufacturers will continue to experience problems due to the poor performance of the UK economy, a strong pound and high oil prices, but the situation is expected to improve next year. The housing market, meanwhile, is predicted to remain unstable.

But overall, BDO Stoy Hayward Business Restructuring Partner Shay Bannon, is looking on the bright side:

"It’s great to see a more positive outlook for UK businesses, especially with Britain moving away from the economic fluctuations witnessed in the past. It is now essential that Gordon Brown builds on his Budget pledges to create a positive environment for business investment, so that all sectors will be able to report a decline in failures."