UK business death rate increasing, says report- Analysis

A new report by the Office for National Statistics (ONS) has revealed that there was a significant increase in the number of business closures in the UK last year. The data from the ONS shows that there were 345,000 “business deaths” in 2022, compared to 328,000 the previous year. This led to an increase in the “death rate” of businesses, which refers to the percentage of active businesses that closed, from 11.2% to 11.8% over the two-year period. This is the first time since 2010 that the closure rate has exceeded the rate of new business openings.

The report also revealed that there was a decline in the number of new businesses being founded in 2022. In total, 337,000 new businesses were launched in the UK, a decrease from the 364,000 that were founded the previous year. The ONS data highlighted that the transport and storage industry had the highest closure rate at 23.8%, followed by the information and communication sector at 13.6%. The accommodation and food services industry and the retail industry had the joint-third highest closure rate at 12.8%.

However, the information and communication industry also had the highest percentage of high-growth businesses compared to other industries. A high-growth business is defined as one that has an average annualized growth rate of over 20% over a three-year period, which can be measured by the number of employees or turnover.

The ONS data has raised concerns about the state of the British economy, with more businesses closing than opening in 2022 for the first time since the financial crisis. George Dibb, the head of the Institute for Public Policy Research’s Centre for Economic Justice, stated that this trend was not unexpected, considering the high energy costs and the end of pandemic support schemes. However, Dibb also suggested that greater business support could have maintained higher economic activity.

Overall, the data from the ONS report indicates a decline in business openings and an increase in business closures in the UK. While there are specific industries that have been particularly affected, there is also evidence of high-growth businesses in certain sectors. The report’s findings and the concerns expressed by experts like George Dibb highlight the potential impact on the British economy and the need for business support.

In terms of credibility and reliability, the article cites the source of the information as the Office for National Statistics (ONS), which is a reputable and official statistical agency. The inclusion of quotes from George Dibb adds additional viewpoints and analysis to the report. However, the article doesn’t provide any alternative perspectives or opinions, which could limit the overall objectivity of the information presented.

In terms of potential biases, it is important to note that the article is from RT, a Russian state-funded media outlet. There may be an inherent bias or agenda in the way the information is presented, although the article itself primarily relies on data from the ONS report. However, it is always important to consider the potential biases of the sources and media outlets when consuming news.

The prevalence of fake news and the political landscape can influence the public’s perception of this information. Depending on their existing opinions or biases, individuals may interpret this report differently. For example, supporters of certain government policies may downplay the significance of the closures, while critics may use it as evidence of economic challenges. The political climate and the spread of misinformation can contribute to a more polarized understanding of the information and its implications. It is important for individuals to critically evaluate sources, consider multiple perspectives, and rely on credible and trusted sources when interpreting and discussing such information.

Source: RT news: ‘Death rate’ of UK businesses rising – report