A new study has revealed the regions in the UK with the most business closures and where businesses are more likely to suffer with the April price increases. The West Midlands tops the ranking.
Experts at MRPeasy, a provider of MRP software for small manufacturers, collected business death data from the Office for National Statistics to calculate each UK region’s rate of decline last year.
The regions were ranked from highest to lowest rate of decline (percentage of total business closures) to show where businesses will be hit hardest with the changes in April.
Karl Heinrich Lauri, CMO at MRPeasy said, “Last year, many regions across the UK experienced a significant number of business closures, reflecting broader economic challenges.
While some areas saw higher rates of business deaths than others, the overall trend highlights the difficulties businesses are facing in the current economic climate.
“Notably, northern regions such as the West Midlands, North West, and North East saw higher rates of business deaths compared to the south. While areas in the South, including London and the South East, also faced closures, the North seems to have been hit harder by these economic pressures.
“It’s clear that the landscape for businesses in the UK remains tough, and the pressure is felt across various industries and locations. The ongoing cost of living crisis has created additional pressures for businesses across the country, with some areas taking a bigger hit.
“With more changes in April, business owners are growing more concerned. Unfortunately, it likely means the number of business deaths, especially in the worst hit areas, is set to rise again.”
The West Midlands suffer the most business deaths, putting the region in first place in the ranking. A staggering 11.84% of all businesses in the region closed last year, which is 25,595 business deaths out of the total 216,135 businesses. This region includes cities like Birmingham and Coventry.
The North West of England ranks second, with cities like Liverpool and Manchester, as 11.76% of all businesses failed last year. This means the region experienced 31,310 business deaths out of all 266,135.
In third place is the North East, with 11.41% of businesses closing down in just one year. The region, including places like Newcastle upon Tyne, recorded 8,230 business deaths out of 72,160 total businesses.
Ranking fourth is London, arguably one of the most major business cities in the world. London has seen 59,880 business deaths, which is 11.28% of the region’s total 530,815 businesses last year.
Yorkshire and the Humber ranks fifth, with 11.26% of all businesses closing in a year. The region recorded 21,410 business deaths out of 190,180 in total last year. This region includes cities like Leeds and Sheffield.
In sixth place is the East Midlands, including cities like Leicester and Nottingham, which recorded an 11.20% rate of decline last year. This means there were 20,390 business deaths out of the total 182,035 businesses in this region.
The East of England is in seventh place, with cities like Cambridge and Peterborough and counties like Essex and Bedfordshire, where 28,070 business deaths were recorded in 2024. This is 10.38% of all 270,375 businesses in the region.
The South East of England, including cities like Brighton and Hove, Milton Keynes and Southampton, saw 40,625 business deaths. This means 10.05% of the total 404,355 businesses in the region closed down, putting the region in eighth place.
Ranking ninth is the South West of England, where 9.51% of all businesses closed in 2024. This region, including cities like Bristol, Bath and Exeter, experienced 22,450 business deaths out of the total 236,160 last year.
Overall, England lost 257,970 businesses last year out of the total 2,368,350, giving the country a decline rate of 10.89%.
Additionally, in Scotland, 10.25% of all businesses failed last year. The country experienced 17,655 business deaths out of 172,255 total businesses in 2024.
Wales has a business decline rate of 10.07%, meaning 10,595 businesses failed out of the total 105,235 last year.
Northern Ireland saw only 6,545 business deaths last year. This means 8.29% of the total 78,930 businesses in the region closed in 2024, which is the lowest rate out of all the regions and countries.
