Credit crunch caused surge in business closures

Official figures from the Office for National Statistics (ONS) demonstrate the effects that the credit crunch had on businesses.

The statistics show that the number of business deaths rose by 20,000 (7.4 per cent) between 2009 and 2010.

Since 2009 the UK and global economies have been hit by turmoil and the UK has been through a recession.

This is also reflected in the decline in the number of business start-ups during this period – a fall of 42,000 (1.8 per cent) between 2009 and 2010.

Businesses that saw the highest start-up rate during this period were in the information and communication industry, while business administration, accommodation and food services saw the biggest level of closures.

Unsurprisingly, London had the highest business birth and death rates, while Northern Ireland had the lowest.

The business birth and death scale was tipped during the credit crunch, as figures for 2007 show that business births out-stripped business deaths by nearly 60,000.