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.
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.
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.***

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.