UK Business Growth at a Record Low
In 2024, there were 306,995 new enterprises in the UK, the fewest since 2017, according to Cynergy Bank’s analysis of ONS statistics. Even well-established companies are having difficulty in the current economic environment, as evidenced by the record-high average turnover of failing businesses.
Sharp Decline in Job Creation
A net increase of just 13,754 jobs in 2024—a dramatic drop from the 348,845 jobs created in 2017—reflects the continued weakness of employment creation through new firms. The most recent data also shows a widening gap between industries. Only half of the enterprises that have closed have been replaced, making agriculture the most affected industry. Transportation, manufacturing, production, and wholesale trade are all having a hard time keeping up with company closures.
Sectors That Are Growing
On the other hand, companies in the health and social care sectors are growing quickly, most likely as a result of the private sector becoming more involved in regions where the NHS is struggling. While real estate companies continue to exhibit resilience, the education sector—which includes all levels of education and vocational training—is also expanding.
Regional Business Trends
London continues to be the best-performing city in the region, with more new companies launching than closing. Nonetheless, business health is declining at the fastest rate in the East Midlands and Wales, where closure rates are higher than new firm formations.
