​Business creation in Peterborough falls to six year low, it is claimed

According to data from the Office for National Statistics, around 1,160 new businesses opened in Peterborough in 2023, down from 1,530 a year earlier.

Meanwhile, 1,390 businesses closed in the area last year, which is an increase on the 1,325 closures seen in 2022.

It means the total number of businesses in Peterborough fell last year.

The ONS says It is the lowest annual business creation in Peterborough since 2018.

A challenging economic environment as well as a shortage of skills has been blamed for the downturn.

However, nationally business openings last year overtook the number of closures.

Across the UK, the rate of new businesses opening hit its lowest level since 2010, at 11 per cent of all active businesses.

But the proportion of active businesses which closed last year fell to 10.8 per cent.

As a result, business openings overtook closures.

Anna Leach, chief economist at the Institute of Directors, said: “Recent budget decisions unfortunately undermine the UK’s business environment, disincentivising employment and reducing investment through the impact of higher taxes on business costs.

“Meanwhile, higher public spending is expected to raise the cost of finance in the UK.”

“If the government wants to get higher growth, it’ll need a vibrant business sector to deliver it.”

However, the figures did show an increase in the number of ‘high-growth’ businesses, those which saw their workforce swell by more than 20 per cent for three years in a row.

There were about 13,750 such businesses nationally in 2023, an increase from 11,480 a year earlier.

The East of England had 1,170 high-growth businesses, comprising 4.3 per cent of companies in the area.

The transport and storage sector industry had both the highest business birth rate (14.5 percent) and the highest death rate (21.6 percent). Finance and insurance saw the lowest proportion of new businesses (6.4 percent).