The Cynergy Bank Business Births & Deaths Index
Cynergy Bank’s latest Business Births and Deaths Index draws on the latest ONS data for January to June 2026, providing an updated view of UK business creation, closures, employment and turnover in the first half of the year.
The Index shows the UK’s start-up pipeline is not yet strong enough to offset the economic value being lost as established firms leave the market. In the first half of 2026 (H1), 157,980 new businesses were created, while 160,415 businesses closed, leaving the UK with a net loss of 2,435 businesses and an overall Business Health Score* of 0.98.
The Cynergy Bank Business Births & Deaths Index
Cynergy Bank’s latest Business Births and Deaths Index draws on the latest ONS data for January to June 2026, providing an updated view of UK business creation, closures, employment and turnover in the first half of the year.
The Index shows the UK’s start-up pipeline is not yet strong enough to offset the economic value being lost as established firms leave the market. In the first half of 2026 (H1), 157,980 new businesses were created, while 160,415 businesses closed, leaving the UK with a net loss of 2,435 businesses and an overall Business Health Score* of 0.98.
Cynergy Bank Index - business closures
The Index shows that new businesses generated £47.8bn in turnover during H1, while businesses that closed accounted for £51.2bn. The £3.3bn gap suggests the need for a stronger pipeline of new firms to replenish the revenue and productive capacity being lost as established businesses leave the market.
Cynergy Bank Index - business closures
This matters at a time when many UK businesses are facing uncertainty, cost pressures and a more cautious investment environment. With closures removing more turnover from the economy than start-ups are adding, the data indicates the importance of encouraging more entrepreneurs to start businesses and build the foundations for future growth.
Cynergy Bank Index - new business
The same pattern was visible in employment. New businesses created 411,962 jobs in the first half of 2026, but closures accounted for 459,463 jobs lost, leaving a net employment deficit of 47,501.
The shortfall comes as the UK labour market continues to show signs of softening, with falling vacancies and more cautious hiring plans. It reinforces the need for stronger business creation, with today’s start-ups forming part of the employer base needed to replace jobs lost through closures, support wage growth and strengthen labour market resilience.
Sector Performance
Despite the challenging backdrop, Cynergy Bank’s Business Health Score*, which measures the ratio of new businesses created to those lost, reveals that some sectors are still finding room for growth.
Real estate was the strongest- performing sector in H1 2026, with a Business Health Score of 1.23 and a net gain of 1,300 businesses. The data reflects continued strength in business creation within the property market, even as wider economic conditions remain challenging.
Motor trades and Education also showed signs of growth, each recording a Business Health Score of 1.16.
Motor trades delivered a net gain of 625 businesses, while education recorded a net gain of 410, suggesting continued demand for vehicle services, training, skills and learning services.
Agriculture recorded the lowest sector score at 0.59, with 1,180 more businesses closing than opening.
Regional disparities
The H1 2026 regional data also shows a mixed picture across the UK. Scotland recorded the highest Business Health Score from the regions analysed, with a score of 1.04 and a net gain of 350 businesses, making it the only devolved nation in the data to show net growth in H1.
London also remained in positive territory, with a Business Health Score of 1.02 and 840 more businesses created than closed, while the North East recorded a score of 1.01 and a modest net gain of 30 businesses.
By contrast, Wales recorded the lowest regional score at 0.88, with 665 more businesses closing than opening. Northern Ireland also contracted, with a Business Health Score of 0.92 and a net loss of 285 businesses, while the East Midlands recorded a score of 0.94 and a net decline of 645 businesses.
"Start-ups have always been one of the UK's greatest economic strengths. They create jobs, bring fresh ideas to market and help drive long-term growth.
"If the UK wants a stronger pipeline of new businesses, entrepreneurs need an environment that encourages them to take the leap. That means ensuring ambitious founders can access the support and finance they need to turn an idea into a sustainable business and create the foundations for future growth.
"‘Access to finance, practical support and strong banking relationships all have a role to play in helping more businesses get off the ground and establish themselves in their early years.
"At Cynergy Bank, we see first-hand the ambition that exists within the UK's entrepreneurial community. Through relationship-led banking and our Human Digital approach, we help businesses access this support and grow with confidence."
Nick Fahy
Chief Executive, Cynergy Bank
Annual regional data table
The below data table shows the annual Cynergy Bank Regional Health Scores for 2024-2021.
Region | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
UK | 1.10 | 1.03 | 0.92 | 0.87 | 1.03 |
England | 1.11 | 1.04 | 0.92 | 0.89 | 1.04 |
North East | 1.16 | 1.06 | 0.92 | 0.90 | 1.09 |
North West | 1.15 | 1.05 | 0.88 | 0.90 | 1.04 |
Yorkshire and Humber | 1.09 | 1.03 | 0.89 | 1.02 | 1.07 |
East Midlands | 1.04 | 0.94 | 0.85 | 0.89 | 1.01 |
West Midlands | 1.04 | 1.00 | 0.83 | 0.85 | 1.12 |
East | 1.10 | 1.02 | 0.95 | 0.87 | 0.99 |
London | 1.19 | 1.12 | 1.00 | 0.90 | 1.10 |
South East | 1.08 | 1.02 | 0.93 | 0.80 | 0.93 |
South West | 1.02 | 0.97 | 0.89 | 0.89 | 1.03 |
Wales | 1.02 | 0.95 | 0.85 | 0.88 | 0.95 |
Scotland | 1.09 | 1.02 | 0.92 | 0.84 | 0.88 |
Northern Ireland | 0.95 | 0.96 | 0.87 | 0.78 | 1.10 |
Methodology
Cynergy Bank’s report uses ONS quarterly data across 16 business sectors, available here: Business demography, quarterly, UK - Office for National Statistics. Available ONS data goes as far back as 2017.
Q2 2026 data was published on 30 July 2026. Business “births” and “deaths” are terms used by ONS. Strictly, these are enterprises added to, and removed from, the Inter-Departmental Business Register (IDBR), respectively. The IDBR is a comprehensive list of UK businesses used by government for statistical purposes.
NOTES and definitions
* Strictly, these are enterprises added to, and removed from, the Inter-Departmental Business Register (IDBR), respectively.
* Cynergy Bank’s Business Health Score divides the number of business births by the number of business deaths in any given industry to give a snapshot of overall sector health. For example, a score of 1.30 means for every one business closure recorded in the ONS data, 1.3 new businesses are being created. Scores below 1 indicate more businesses are closing than being formed.
* Any views expressed are based on historical ONS data and should not be relied upon as an indicator of future economic or business performance.
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