Business Boom? More Like Business Bust: Gloucestershire’s Start‑Up Scene Takes a Hit
According to fresh numbers from WSP Solicitors, the sky’s really not the limit—at least not for new companies in the UK. Since the last Budget, the federation of “new businesses” has shrunk by a whopping 16%, while the raw count of company closures has jumped up 23%. It’s the kind of headline that screams “time to rethink your entrepreneurial dreams.”
National Snapshot: Numbers that Make You Crunch Your Eyebrows
- Company closures rose from 350,169 to 432,026 (↑23%).
- New incorporations dropped from 513,298 to 430,882 (↓16%).
So on the whole, entrepreneurs are turning their backs on the UK a little more often than before.
Gloucestershire Goes Dark: Start‑Ups Swipe the Decline Flag
WSP’s local investigation reveals a 20% drop in new companies over the last year. That’s a decent amount of “new” that never happened… in fact:
- New incorporations fell from 862 last year to 685 today.
- Even six months before the autumn Budget—just before the new government won the election—the figures were down 15%.
Elsewhere, talk of companies, however, is going a bit up: a 3% rise in modern out‑of‑business groups since October.
Reasons Behind the Rainstorm: Budget Shockwaves and Tax Ticks
Peter Mardon, WSP’s Commercial Director, points to a mix of budget decisions as the culprit:
- Higher Employer National Insurance Contributions (NIC) and a wage hike added salting to the rise in labour costs.
- The so-called Business Asset Disposal Relief (a tax break when you sell) has climbed from 10% to 14% right now and will shoot to 18% next April.
In the words of Peter, “These tax bumps, totalling more than a smidge to the economic strain, are nudging firms to shut up shop or hand over the keys to a buyer.”
WSP’s Take: Companies Are Closing, and So Are Dreamers
“The government’s relentless tax climbs aren’t just a tick on the stress‑scale. They’re turning the makin’‑of‑money scene into an anti‑entrepreneur zone,” Mardon says. “Even millionaires are migrating straight away—if that’s the point, then the business scene is going for a full‑on cast‑off.”
Broader Economic Reality: The Job Market’s Slow‑Mo
Will’s evidence lines up with the latest ONS figures: the UK unemployment rate is now at 4.5%, the highest since the summer of 2021. That means:
- Hiring is slowing and, in theory, people too weigh up the risk versus the reward.
- Costs that keep climbing—raw materials, salaries, taxes—make it harder to open a new company.
With the payscale’s tipping point, surely your stomach won’t feel as huge as that coffee machine would want you to think.
Exit Strategy: Plan Now or Regret Later
Peter advises:
- Start planning for that Business Asset Disposal Relief hike next spring if you’re already on the path to exit.
- Family‑run firms, get the hang of the forthcoming inheritance tax changes in April 2027—especially as inherited pensions will be taxed too!
Takeaway: The Big Picture is Pivotal
Ultimately, the numbers are not mere data points. They’re the pulse of how business in Gloucestershire is far from a selfie‑happy story. It’s up to policy makers, employers, and dreamers alike to decide whether the region can bounce back or face a future that’s all but a faded meeting room sketch.
