British industry is on the verge of recession, a report claimed today.

Profits are down by 15% in a number of sectors and companies fear further problems as the worldwide slowdown begins to bite in the UK.

The company profitability report, by information provider Experian, also said red tape and the strong pound were adding to the slump.

The knock-on effects of the foot-and-mouth disease and the technology and telecoms crisis are expected to increase the difficulties further.

Updated: 11.03 Monday, July 23