Over 100,000 London Businesses Closed Last Year Study Reveals

It’s been revealed that 581,060 businesses ceased to trade in the last year, from Q1 in 2024 to Q4 in 2025. Referred to as a business death. Taking the average of each region across the different quarters, around 71,000 businesses could be set to close over the next quarter, if the trend follows the same projection.

Analysis from ONS revealed that London (118,290) experienced the highest number of business closures last year. Of all business closures, London accounted for 20% of them. With the capital home to the largest population and key business hubs, it is unsurprising that the number of closures there was so high. Yet it’s still a major blow for businesses in the area, with higher taxes and rising costs affecting many smaller businesses in the capital. Despite this, the number of businesses starting up in the capital continues to climb, with many seeing London as the place to be to start their company.

The South East, which ranked second on the list (79,830), also saw significant business closures. The region is an attractive location for businesses, close to London but with lower costs. However, while classic commuter cities may benefit from proximity to the capital, the advantages of being just outside London may be outweighed by intense competition. Areas such as Kent (13,090) and Surrey (11,985) ranked highly for business closures across the UK and topped those in the South East, accounting for 31% of all business closures in the region.

The North West ranked third (60,910), which may come as a surprise. The region boasts a strong business hub, particularly in media, centred around cities such as Liverpool and Manchester. However, growing competition in these sectors may have contributed to the higher closure rate. Greater Manchester saw over 26,000 business deaths across 2024-2025, generating 43% of all the North West business closures for the year.

Area
Total – (Q1 2024- Q4 2025)

London
118,290
South East
79,830
North West
60,910
East
55,005
West Midlands
50,195
South West
43,835
Yorkshire and The Humber
41,650
East Midlands
39,465
Scotland
34,575
Wales
20,480
North East
16,385
Northern Ireland
12,430
Northern Ireland saw the smallest number of business closures throughout the year, with 12,430 closures. This was followed by the North East region with 16,385.

Transport and storage companies see the highest closure rate by industry group.
The latest figures highlight the percentage rate of sector-based business closures across the UK. The transport and storage sector recorded the highest rate, with 16.5% of businesses closing, resulting in around 23,000 closures compared to those remaining active.

Next was the business administration and support services sector, with a closure rate of 13.5%. Although the total number of businesses in this sector was significantly higher, at around 36,000 closures, this figure is balanced by the overall size of the sector. Following this, the accommodation and food services industry saw a closure rate of 12.9%, with many restaurants and takeaways across the UK feeling the pinch.