UK Companies House Finds Businesses Shrinking, Not Growing
The latest data from Companies House has sent a clear, not-so-subtle signal: the number of new companies being registered in the UK fell dramatically between October and December 2024, marking the first quarterly decline since the series started in April‑June 2012.
Key Numbers (Oct‑Dec 2024 vs. Oct‑Dec 2023)
- Incorporations: 181,261 – down 15.47 % from 214,446 last year.
- Dissolutions: 203,584 – up 24.55 % from 163,452.
What do these figures mean? It’s basically a cold cup of coffee for anyone hoping to start a business now – the “anti‑business” Budget has turned the entrepreneurial playground into a parking lot.
Industry Voices Call Out the Budget
“The anti‑business Budget is starting to bite. Many businesses will be downsizing or closing, and there’s never been less incentive to start a new venture. This data screams red‑flag, showing the government is decimating entrepreneurship.” – Stephen Perkins, Managing Director, Yellow Brick Mortgages (Norwich)
“If the Government needed feedback from UK firms on its Autumn Budget, this is it. It’s a damning indictment of the tax hikes piled onto UK firms and shows how anti‑business the UK has become.” – Katy Eatenton, Mortgage & Protection Specialist, Lifetime Wealth Management
“Two words sum up this data: sheer disgust. You can’t be more disappointed with what these politicians are doing to the UK economy and entrepreneurial mindset.” – David Belle, Trader, Fink Money
“Rachel Reeves effectively hung a giant ‘closed for new business’ sign on the door of UK Plc in the last Budget, and this data only reinforces that reality. If existing business owners are questioning their viability due to rising costs, why would new entrepreneurs take the risk? We risk losing an entire generation of innovators, leaving the UK trailing behind on the global stage.” – Riz Malik, Independent Financial Adviser, R3 Wealth
“It seems last year is the year entrepreneurialism started to die. People should aspire to be business owners, create opportunities and jobs for their communities. They should be rewarded for taking the leap, but the latest Budget dealt business owners blow after blow, making it unattractive.” – Ben Perks, Managing Director, Orchard Financial Advisers
What Comes Next?
While the Market Watchers are clear: the Budget has been a real buzzkill for new businesses, the next steps could involve lobbying for more favorable tax conditions, or simply adapting to a new reality where startups must be smaller, leaner and more flexible. Either way, the numbers have spoken loud and clear – the UK corporate landscape is in a bit of a slump, and that’s no small matter.
Keep an eye out, and let us know what your own entrepreneurial dreams look like in this fresh climate. And if you’re considering starting a business, remember: the road is still there – it just now looks a bit more beaten-up.
