# The state of UK business

Every company on the UK register, from Companies House, set against the wider business population from the ONS. This is the picture in one place: how many businesses there are, what they do, how old they are, how many are in trouble, and how it looks in West Lothian. There are 5,698,274 companies on the register today.

Source page: https://britishresilienceindex.com/deep-dive/uk-business
Machine readable data: https://britishresilienceindex.com/data/deep-dive/uk-business.json

## How to read this

Two official sources. Companies House lists every incorporated company on the register (around 5.7 million), which includes many that are dormant, holding or non-trading. The ONS counts economically active enterprises (around 2.9 million), a narrower measure. Both are used here for what each does best: the register for detail, the ONS for the births and deaths of active businesses.

## The churn of business

Each year hundreds of thousands of businesses start and almost as many close. In 2024 the UK saw 317,440 births and 280,370 deaths among active enterprises. 2022 was the one recent year when more closed than opened. The active population sits around 2,859,535.

**Series**

| year | births | deaths | active |
|---|---|---|---|
| 2,019 | 363,825 | 303,495 | 2,889,115 |
| 2,020 | 333,020 | 300,475 | 2,897,115 |
| 2,021 | 363,995 | 328,495 | 2,939,675 |
| 2,022 | 336,925 | 348,675 | 2,924,685 |
| 2,023 | 316,025 | 309,680 | 2,870,295 |
| 2,024 | 317,440 | 280,370 | 2,859,535 |

## The shape of the register

Live companies by broad sector. Retail and wholesale, professional services, real estate and construction dominate, with information and communication close behind. A large number report no main activity at all.

| sector | count |
|---|---|
| Wholesale & retail | 746,761 |
| Professional, scientific & technical | 684,311 |
| Real estate | 624,316 |
| Construction | 571,938 |
| Information & communication | 467,474 |
| Administrative & support | 399,513 |
| Accommodation & food | 298,819 |
| Manufacturing | 238,756 |
| Other services | 238,645 |
| Health & social work | 231,886 |
| None supplied | 230,898 |
| Finance & insurance | 226,203 |

## A young register

The register skews recent. About 41.7% of all live companies were incorporated in the five years from 2021 to 2025. Many are short lived, which is why the count by year of incorporation falls away for older years.

**Series**

| year | count |
|---|---|
| 2,010 | 86,869 |
| 2,011 | 103,188 |
| 2,012 | 117,899 |
| 2,013 | 136,706 |
| 2,014 | 161,766 |
| 2,015 | 181,199 |
| 2,016 | 197,069 |
| 2,017 | 221,327 |
| 2,018 | 254,105 |
| 2,019 | 297,890 |
| 2,020 | 287,382 |
| 2,021 | 306,734 |
| 2,022 | 340,256 |
| 2,023 | 426,663 |
| 2,024 | 517,428 |
| 2,025 | 785,518 |

- **Pct recent**: 41.7

## Concentrated in the cities

Active enterprises cluster in the big urban authorities. Of 361 local authorities, the largest base is Westminster with 58,370, and the ten busiest are almost all big cities.

**Top las**

| name | active |
|---|---|
| Westminster | 58,370 |
| Birmingham | 43,175 |
| Camden | 40,825 |
| Buckinghamshire | 32,885 |
| Leeds | 32,105 |
| Hackney | 29,340 |
| North Yorkshire | 28,735 |
| Barnet | 27,920 |
| Manchester | 26,230 |
| Islington | 26,145 |

- **Wl rank**: 213
- **Wl active**: 5,030
- **Total las**: 361

## Businesses per head, not raw counts

Raw counts favour big places, and central London is lifted further by registered office and accountancy addresses. A fairer view sets the active business base against the resident population. On that measure City of London leads with 2,042 active businesses per 1,000 residents, well clear of Westminster on 278, a reminder that many firms register at a central address rather than where they trade. West Lothian has 27.7 per 1,000, ranking 331 of 361.

**Top las**

| name | per1k |
|---|---|
| City of London | 2,041.5 |
| Westminster | 278.1 |
| Camden | 187.8 |
| Islington | 119.1 |
| Hackney | 112.1 |
| Kensington and Chelsea | 97.4 |
| Hertsmere | 78.6 |
| Isles of Scilly | 74.5 |
| Hammersmith and Fulham | 72.5 |
| Barnet | 71.5 |

- **Wl per1k**: 27.7
- **Wl rank**: 331
- **Total las**: 361
- **Note**: Active enterprises (ONS Business Demography, 2024) set against mid-2022 resident population (ONS). A business is counted where it is registered, which lifts the City of London and central London far above where people actually live.

## Most do not reach five years

Starting up is the easy part. Of the 363,825 UK businesses born in 2019, 94.6% were still trading after one year, 74.7% after two, 55.9% after three and just 45.0% after four. West Lothian's 2019 starters tracked close to the national rate, at 57.3% after three years.

**Uk**: births 363,825, y1 94.6, y2 74.7, y3 55.9, y4 45

**West lothian**: births 620, y1 94.4, y2 74.2, y3 57.3, y4 46

**By sector**

| sector | per4yr |
|---|---|
| Health | 61.9 |
| Education | 59.3 |
| Property | 58 |
| Arts, entertainment, recreation & other services | 57.6 |
| Finance & insurance (Excl 6420) | 56.4 |
| Motor trades | 52.7 |
| Construction | 50.1 |
| Wholesale | 48 |
| Accommodation & food services | 47.9 |
| Production | 47.1 |
| Professional, scientific & technical | 46.7 |
| Information & communication | 43.8 |
| Retail | 40.6 |
| Business administration & support services | 38.7 |
| Transport & storage (inc. postal) | 25.4 |

## Which industries are rising and falling

The change in active enterprises by sector between 2019 and 2024. Real estate and health and social work grew fastest, while information and communication, finance and professional services contracted most.

**Growing**

| sector | v19 | v24 | pct |
|---|---|---|---|
| Real estate | 110,570 | 131,340 | 18.8 |
| Health & social work | 110,890 | 124,880 | 12.6 |
| Water & waste | 8,610 | 9,495 | 10.3 |
| Accommodation & food | 185,020 | 203,225 | 9.8 |
| Education | 44,645 | 49,015 | 9.8 |

**Shrinking**

| sector | v19 | v24 | pct |
|---|---|---|---|
| Information & communication | 254,775 | 210,740 | -17.3 |
| Finance & insurance | 30,890 | 26,830 | -13.1 |
| Professional, scientific & technical | 532,680 | 465,635 | -12.6 |
| Administrative & support | 285,660 | 267,450 | -6.4 |
| Manufacturing | 150,495 | 142,260 | -5.5 |

## Foreign and offshore ownership

44,450 companies on the register give an overseas country of origin. The largest sources are not the big economies but offshore jurisdictions: the British Virgin Islands, Jersey, the Isle of Man and Guernsey all rank ahead of the United States.

- **Foreign**: 44,450
**Top**

| country | count |
|---|---|
| Virgin Islands, British | 8,577 |
| Jersey | 7,133 |
| Isle Of Man | 3,602 |
| United States | 3,355 |
| Guernsey | 2,592 |
| Ireland | 1,549 |
| Luxembourg | 1,149 |
| Netherlands | 925 |

## High growth firms

Not every company is shrinking or failing. In 2024 the UK had 14,215 high growth enterprises, businesses that grew employment by an average of at least 20 per cent a year over three years. They cluster in a handful of sectors.

**Top**

| sector | count |
|---|---|
| Accommodation & food | 1,930 |
| Professional, scientific & technical | 1,880 |
| Administrative & support | 1,740 |
| Wholesale & retail | 1,710 |
| Health & social work | 1,375 |
| Information & communication | 1,365 |
| Manufacturing | 925 |
| Construction | 840 |

- **Total**: 14,215
- **Note**: A high growth enterprise, on the ONS definition, has at least ten employees and grew employment by an average of 20 per cent or more a year over three years. Source: ONS Business Demography 2024.

## Which sectors run on staff

Among the 2,859,535 VAT or PAYE registered active enterprises, most do operate a payroll, but the balance varies sharply by sector. The employer share is highest in health & social work at 99.5 per cent and finance & insurance at 97.5 per cent, and lowest in transport & storage at 74.0 per cent, where owner only operators are most common. Add in the millions of unregistered sole traders across the wider economy and the owner only share rises much higher again.

- **Share**: 91.6
- **Active**: 2,859,535
**By sector**

| sector | share |
|---|---|
| Health & social work | 99.5 |
| Finance & insurance | 97.5 |
| Education | 97.4 |
| Accommodation & food | 97 |
| Energy supply | 96.8 |
| Other services | 96.7 |
| Information & communication | 96.5 |
| Mining & quarrying | 95.1 |
| Administrative & support | 95.1 |
| Water & waste | 94.5 |
| Professional, scientific & technical | 93 |
| Manufacturing | 92 |
| Wholesale & retail | 91.3 |
| Construction | 89.2 |
| Real estate | 87.2 |
| Arts & entertainment | 82.2 |
| Transport & storage | 74 |

- **Note**: The figures show employer enterprises as a share of registered active enterprises in each sector (ONS Business Demography 2024 employer tables). The wider UK business population, which includes unregistered sole traders, is larger and has a much higher owner only share.

## Behind on filing, or failing

Not every registered company is healthy. 450,627 of them (7.9%) are behind on their accounts, often a first sign of a company winding down. Beyond that, 116,094 are formally in liquidation, administration or receivership, and a further large group are flagged for compulsory strike off. A separate 653,980 file as dormant, registered but not currently trading.

- **Overdue**: 450,627
- **Overdue pct**: 7.9
- **Distressed**: 116,094
- **Dormant**: 653,980
**Status rows**

| status | count |
|---|---|
| Active | 5,171,736 |
| Active - Proposal to Strike off | 410,024 |
| Liquidation | 109,304 |
| In Administration | 3,700 |
| Live but Receiver Manager on at least one charge | 2,140 |
| Voluntary Arrangement | 572 |

**Strikeoff sector**

| sector | count |
|---|---|
| Wholesale & retail | 73,715 |
| Construction | 51,234 |
| Professional, scientific & technical | 39,883 |
| Accommodation & food | 38,537 |
| Administrative & support | 35,748 |
| Information & communication | 32,164 |

## The insolvency cycle

Company insolvencies in England and Wales, every year since 2000. They rose to 24,038 in the financial crisis of 2009, then fell to just 12,630 in 2020 as pandemic support kept struggling companies afloat. As that support ended they climbed sharply, reaching 25,164 in 2023, the highest in this series, and have stayed close to it since. In 2025 there were 23,942, more than three quarters of them creditors voluntary liquidations, where the directors themselves wind up an insolvent company.

**Series**

| year | total |
|---|---|
| 2,000 | 15,704 |
| 2,001 | 16,403 |
| 2,002 | 18,142 |
| 2,003 | 16,430 |
| 2,004 | 15,104 |
| 2,005 | 16,217 |
| 2,006 | 17,549 |
| 2,007 | 15,629 |
| 2,008 | 21,170 |
| 2,009 | 24,038 |
| 2,010 | 19,538 |
| 2,011 | 20,264 |
| 2,012 | 19,415 |
| 2,013 | 17,669 |
| 2,014 | 16,253 |
| 2,015 | 14,551 |
| 2,016 | 14,669 |
| 2,017 | 14,570 |
| 2,018 | 16,051 |
| 2,019 | 17,170 |
| 2,020 | 12,630 |
| 2,021 | 14,057 |
| 2,022 | 22,133 |
| 2,023 | 25,164 |
| 2,024 | 23,881 |
| 2,025 | 23,942 |

**Types**

| type | count |
|---|---|
| Creditors voluntary liquidation | 18,524 |
| Compulsory liquidation | 3,735 |
| Administration | 1,495 |
| Company voluntary arrangement | 186 |
| Receivership | 2 |

**By industry**

| sector | count |
|---|---|
| Construction | 3,945 |
| Wholesale & retail | 3,734 |
| Accommodation & food | 3,357 |
| Administrative & support | 2,452 |
| Professional, scientific & technical | 2,000 |
| Manufacturing | 1,943 |
| Information & communication | 1,464 |
| Other services | 1,059 |

- **By industry year**: 2,025
- **Peak year**: 2,023
- **Peak total**: 25,164
- **Covid year**: 2,020
- **Covid total**: 12,630
- **Last year**: 2,025
- **Last total**: 23,942
- **Note**: Insolvency Service long-run series, England and Wales, not seasonally adjusted, full calendar years only. Scotland and Northern Ireland run separate insolvency regimes and are not included here. These are formal company insolvencies, distinct from the strike off and dormant counts above, which come from the Companies House register.
**Latest monthly**: period May 2026, count 1,868, yoy pct 16, mom pct 10, prev year 2,231, blurb Company insolvencies in England and Wales fell to 1,868 in May 2026, 16 per cent lower than a year earlier (2,231 in May 2025) and 10 per cent down on April. More than three quarters were creditors voluntary liquidations.

## Mostly limited companies

The overwhelming majority are private limited companies, but the register also holds partnerships, community interest companies and charities.

| type | count |
|---|---|
| Private Limited Company | 5,271,532 |
| PRI/LTD BY GUAR/NSC (Private, limited by guarantee, no share capital) | 119,533 |
| Limited Partnership | 60,756 |
| Limited Liability Partnership | 50,939 |
| Community Interest Company | 43,562 |
| Charitable Incorporated Organisation | 39,682 |

## Business in West Lothian

West Lothian has about 7,155 companies registered to a local postcode. On the ONS active measure the county had 5,030 active enterprises in 2024, with 610 births and 455 deaths, a net gain. 512 local companies are behind on their accounts.

- **Count**: 7,155
- **Overdue**: 512
- **Active2024**: 5,030
- **Births2024**: 610
- **Deaths2024**: 455
**Sectors**

| sector | count |
|---|---|
| Wholesale & retail | 1,026 |
| Construction | 830 |
| Professional, scientific & technical | 822 |
| Real estate | 737 |
| Information & communication | 523 |
| Administrative & support | 518 |
| Accommodation & food | 467 |
| Manufacturing | 415 |

- **Scotland active**: 172,065

## What the register tells us

- There are 5.7 million companies but only about 2.9 million active enterprises. How much of the register is dormant, holding or shell companies, and does that matter for transparency?
- Nearly one in twelve companies is behind on its accounts. Could that overdue signal be used earlier to spot businesses in trouble, or to help them?
- Most live companies are only a few years old. Is that healthy churn and renewal, or a sign that too few survive and grow?
- A few sectors dominate the register. Where is West Lothian over or under represented against the national mix?

## Sources

- Companies House, Free Company Data Product (https://download.companieshouse.gov.uk/en_output.html) · Open Government Licence v3.0
- ONS Business Demography (https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/datasets/businessdemographyreferencetable) · Open Government Licence v3.0

## Caveats and data notes

- Companies House lists incorporated companies on the register, including dormant, holding and non-trading ones. It is not a count of trading businesses.
- The ONS active-enterprise figure is a narrower, economically active measure and is published with a lag (latest year 2024).
- Overdue accounts are a signal, not proof a company is failing. Some catch up; some are winding down.
- The count of live companies by year of incorporation understates older years, because companies that have since dissolved are no longer on the register.
- West Lothian companies are identified by registered-office postcode and county, which can miss firms that trade locally but register elsewhere.
- Contains public sector information licensed under the Open Government Licence v3.0.

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British Resilience Index, a non-partisan UK civic data project. Every figure is
reconciled to its primary official publisher before it is shown. Free to cite with
attribution: https://britishresilienceindex.com