New business formations exceed business “deaths”

The latest figures from the Office for National Statistics show that in 2025 the number of UK business births exceeded business deaths for a second successive year, pointing to a net increase in the total number of active enterprises. According to data from the Inter-Departmental Business Register, there were 313,715 new businesses created in 2025 and 285,245 that ceased trading, resulting in a net growth of 28,470 businesses on the register. This pattern suggests that entrepreneurial activity remains resilient despite broader economic headwinds and contributes to modest expansion in the overall business population.

Quarterly official statistics for late 2025 also reinforce this trend. Figures for the fourth quarter (October to December) show that new business formations increased by 10% compared with the same period in 2024, while business closures were 3.6% lower than in the prior year period. Growth in start-ups was recorded across most industrial groups, with particularly strong increases in transport, storage, information and communication sectors.

These statistics underline a shift from earlier quarters, where the balance of births and deaths fluctuated more and in some sectors raised concerns about churn and employment impact. However, the annual outcome for 2025 reinforces a net positive dynamic in UK enterprise counts. While the headline birth-death balance is encouraging, analysts note it remains important to monitor the quality of job creation and the survival prospects of new businesses as they scale. The figures are part of official statistics in development and will be refined as further data become available.