Business survival rates in Edinburgh drop 11 per cent

Edinburgh and London are among the top 10 UK cities experiencing an increase in business closures, according to research

Some of the UK’s biggest business hubs, such as Edinburgh and London, have experienced a significant drop in business survival rates.
That’s according to new research from London insolvency practitioners Hudson Weir.
These cities were both in the top 10 for increased business closures, with Edinburgh showing an 11% increase – slightly higher than London’s 9%.
The firm says London’s start-up businesses in particular have been found to struggle with steep business rates and skyrocketing commercial rent prices.
Meanwhile, Aberdeen showed a 34% increase in businesses closing down.
Hudson Weir says Aberdeen has been hit hard by the global oil crisis, with slumping oil prices resulting in job losses and business closures.
Top 10 cities showing the greatest decrease (%) in business closure rates between 2010 and 2015

City

Percentage Decrease 2010-2015

Belfast

-44.24

Blackpool

-23.63

Mansfield

-22.79

Sunderland

-20.03

Worthing

-15.66

Bournemouth

-13.57

Burnley

-12.52

Portsmouth

-12.10

Coventry

-11.47

Barnsley

-11.33


Top 10 cities showing the greatest increase (%) in business closure rates between 2010 and 2015

City

Percentage Increase 2010-2015

Northampton

+34.66

Aberdeen

+34.12

Plymouth

+20.74

Luton

+18.01

Oxford

+17.09

Crawley

+13.23

Edinburgh

+11.74

London

+9.93

Cambridge

+8.40

Doncaster

+7.77

 

Hasib Howlader, Director at Hudson Weir Ltd, said: “It’s very encouraging to see that despite worries over Brexit having a restricting effect on UK businesses, many areas are seeing a significant improvement in business survival rates, particularly in the North of England.
“However, it is clear that there are areas in the UK where businesses continue to struggle due to varying factors such as the weak pound, increased price of imports and increasing overheads. We would recommend that any business concerned about their long-term success should seek advice from an insolvency specialist, as early intervention is key to business turnaround and recovery.”
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