To say it’s been a tough few years for UK businesses is somewhat of an understatement: pandemics, Brexit, cost-of-living crises and more have made running a company tougher than ever.
Some areas of the UK have had it tougher than others, however. A recent report published by Helix Law highlighted the regions that witnessed the most company closures in 2024. While these figures will undoubtedly be bad news for the staff and directors of the businesses involved, their closures also have a wider effect on the areas and communities nearby. Local economies rely on healthy employment and spending within the region, and these insolvencies can have a detrimental impact upon that.
So which areas have been hit the hardest?
1. London and the South East – 5,459 closures
It’s fair to say that London’s position at the top of this list should perhaps carry an asterisk of sorts: given the sheer number of businesses in the capital, there is always bound to be a considerable number of closures too.
With that being said, 5,459 is still a significant figure. Certainly, any claims by those outside of the capital that London is cushioned from nationwide insolvency issues somewhat, can now be dismissed. In fact, this figure is some 20% higher than that recorded for second place.
2. North West – 4,034 closures
Avoiding top spot here will do little to assuage the fears of business owners in the North West. The area also has the second-worst survival rate for businesses over the last five years, with just 36.1%.
The region also logged the second-highest insolvency rate per 10,000 businesses with 165.07.
3. Yorkshire & Humberside – 3,139 closures
The report makes for worrying reading for the Yorkshire and Humberside region. The 3,139 company insolvencies recorded makes for more than a 35% increase since 2022.
It only gets worse when looking at this figure in relation to the amount of businesses there. The region recorded the worst insolvency rate in the UK for 2024, with 165.07 companies per 10,000 closing.
Its five-year survival rate of 41% isn’t great, but is beaten out by others here, however.
4. West Midlands – 2,377 closures
The top four is rounded off by the West Midlands, which also logged an insolvency rate of 109.98 per 10,000 businesses in the area.
Despite managing to steer clear of the top spot last year, though, the West Midlands own the unenviable title of having the worst UK survival rate in the UK over the last five years. That rate sits at a lowly 34.66%, making opening a new business in the area a risky endeavour indeed.
Is your business finding conditions difficult?
It doesn’t matter where your company is based, business conditions have been tough for us all. If you think that your company might find itself struggling in the near future, it’s best to get ahead of the situation as soon as possible and speak to one of our advisers.
At Forbes Burton, we’re able to help with restructuring plans, strategise the best way to exit, or even find a buyer for your business. Our initial phone consultations are entirely free of charge and will give you an idea of the best route to take.
Call today on 0800 975 0380 or email advice@forbesburton.com for a free consultation with one of our expert advisers and find out how we can help business owners navigate an uncertain future.
