The number of business failures is set to continue rising over the next three years, with levels reaching 57% more than 2008. Figures released by insolvency specialist Tenon Recovery estimate a further 5,800 businesses will fail by the end of 2009, as interest rates, inflation and the VAT increase impact businesses attempting to recover during the recession. Business areas predicted to be most affected over the next 12 months include leisure and hospitality, property, printing and publishing, construction and business services. Carl Jackson, national head of Tenon Recovery, said the UK is unlikely to see any significant reduction in business failures over the next three years. 'Many distressed businesses have had a temporary reprieve from collapse because of the combination of low interest rates, a temporary reduction in VAT and low inflation levels, combined with the deferral of PAYE and corporation tax,' he said. 'Inevitably these will change, placing an increased strain on businesses, and those that have not planned wisely will fail.' Christmas is also set to be a tough time for businesses on the high street, as slumps in consumer spending take their toll on the already struggling retail sector.