According to Cynergy Bank’s analysis of ONS data, the number of new businesses in the UK fell to 306,995 in 2024, marking the lowest level since 2017. At the same time, the average turnover of failing businesses has reached a record high, indicating that even well-established firms are struggling in the current economic climate.
Job creation through new businesses remains weak, with a net gain of only 13,754 jobs in 2024, a sharp decline from the 348,845 jobs added in 2017. The latest data also highlights a growing divide across industries. Agriculture has been the hardest hit, with only half of closing businesses being replaced. Manufacturing, production, wholesale trade, and transportation are also facing significant challenges, struggling to keep up with business closures.
In contrast, health and social care businesses are expanding rapidly, likely due to increased private sector involvement in areas where the NHS is under strain. The education sector, including all schooling and vocational training levels, is also growing, while real estate businesses continue to show resilience.
Regionally, London remains the strongest performer, with more new businesses opening than closing. However, the East Midlands and Wales are experiencing the steepest decline in business health, with closure rates outpacing new formations.
