Skip to content

The Cynergy Bank

Business Births
& Deaths Index

The dynamism of the UK’s private sector has plunged to its lowest ebb for eight years as bigger firms hit the rocks and new company creation slows. Cynergy Bank's new Business Births and Deaths Index draws on latest ONS data to paint a sobering picture of the nation's economic health.

New company formations plummeted in 2024

In 2024, new company formations plummeted to 306,995, the lowest since at least 2017*. Meanwhile, the average turnover of failing businesses reached its highest level in the same period, indicating that even well-established, bigger firms are not immune to the current economic turbulence.

The employment outlook is equally concerning as new businesses aren’t hiring as many people as they used to. Job creation through new businesses barely outpaced losses from closures, with a net gain of only 13,754 jobs in 2024. This figure pales in comparison to the 348,845 net jobs created in 2017.

306,995 new businesses were created in the UK in 2024. This is the lowest number since data collection started in 2017. (Source ONS) - Cynergy Bank Business Births & Deaths Index.

Winners and Losers

Cynergy Bank's Business Health Score**, which measures the ratio of new businesses created to those lost, reveals a stark divide across industries:

  • Agriculture: with a score of 0.52, the UK’s farming sector has been hardest hit, with only half of the closing businesses being replaced.

  • Manufacturing and Production: these sectors are barely treading water with a score of 0.88.

  • Wholesale Trade and Transportation: both industries are struggling, scoring 0.89 and 0.86 respectively.

Business Health Score for Agriculture industry: 0.52. The UK's farming sector has been hardest hit with only half of the closing businesses being replaced. (Source ONS) - Cynergy Bank Business Births & Deaths Index.

...however, amidst the gloom, some sectors are flourishing:

  • Health and Social Care: Boasting a score of 1.34, this sector is thriving, possibly due to more private companies stepping in where the NHS is struggling.

  • Education: the sector has a robust score of 1.31 and includes all types of education businesses from pre-primary to tertiary, special needs, sports and even driving schools.

  • Real Estate: with a score of 1.30, property-related businesses are showing remarkable resilience.

Business Health Score for Healthcare industry: 1.34. The healthcare sector is thriving, possibly due to more private companies stepping in where the NHS is struggling. (Source ONS) - Cynergy Bank Business Births & Deaths Index.

Regional disparities

London continues to outperform the rest of the country with a score of 1.12, compared to the national average of 1.03. In contrast, the East Midlands and Wales are experiencing the most significant business closures, with scores of 0.94 and 0.95 respectively.***

Business Births and Deaths, map of the UK - The Cynergy Bank Index


These figures present a sobering picture of the UK business environment and with the National Insurance increase looming in April, it’s hard to see it improving in the immediate future.

However, it's not all doom and gloom. Businesses in healthcare, real estate and education are booming. At Cynergy Bank, we're committed to supporting businesses across all sectors, particularly those facing headwinds, by offering tailored financial solutions and expert guidance to navigate these turbulent times.

Nick Fahy
Chief Executive, Cynergy Bank


Regional data table

The below data table shows the Cynergy Bank Regional Health Scores for 2024-2021.

Region

2024

2023

2022

2021

UK

1.03

0.92

0.87

1.03

England

1.04

0.92

0.89

1.04

North East

1.06

0.92

0.90

1.09

North West

1.05

0.88

0.90

1.04

Yorkshire and Humber

1.03

0.89

1.02

1.07

East Midlands

0.94

0.85

0.89

1.01

West Midlands

1.00

0.83

0.85

1.12

East

1.02

0.95

0.87

0.99

London

1.12

1.00

0.90

1.10

South East

1.02

0.93

0.80

0.93

South West

0.97

0.89

0.89

1.03

Wales

0.95

0.85

0.88

0.95

Scotland

1.02

0.92

0.84

0.88

Northern Ireland

0.96

0.87

0.78

1.10


Methodology

Cynergy Bank’s report uses ONS quarterly data across 16 business sectors. See: https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/datasets/businessdemographyquarterlyexperimentalstatisticsuk

Q4 2024 data was published on 30 January 2025. 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

* Available ONS data goes as far back as 2017

** 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 going bust 1.3 new businesses are being created. Scores below 1 indicate more businesses are closing than being formed and the industry is in decline.

*** See full regional table breakdowns in notes to editors below.

Terms and conditions apply.

Ways you can contact us

Secure message

Send us a secure message by logging into .

Email us

using our online form.

Phone us

0345 850 5555 (or +44 (0) 20 3375 6422 if you're calling from outside the UK)