Birmingham businesses: What's behind the high number of business deaths in Birmingham?

Business owners in Birmingham have expressed concern following the news that the city topped the list of UK areas with the most business deaths in 2023.

Across the city, 4,845 businesses closed last year, with over 2,000 business deaths taking place in the first quarter of 2023, according to new research by Utility Bidder, a company utility tariffs for business. Westminster came in second place, with 4,450 business closures in 2023, with Leeds in third (2,970). Barnet (2,680) and Manchester (2,675) made up the top five cities with the highest amount of business deaths last year.

It's a concerning statistic, and with energy bills rising, and the fact Birmingham City Council's declared itself effectively bankrupt last year, some business owners in the city have expressed concern about the future.

Amy Morris, who runs the El Buen Gusto Spanish restaurant in Harborne, with her husband, said it can be challenging trying to run a business in the city without government support. She said: "We have had challeneges. The government were paying half the electric bill until March 2023, and to help with the rising costs.

"After that we've had to juggle these large bills. There is a lack of support, it can be a fend for yourself kind of thing. But I think there's a lack of support for what running a business actually entails. A lot of people assume you make a lot of money, but most of it is spending lots of money."

She added: "Companies obviously need to put their prices up as they need to pay their staff more, because eveything is going up so it's never as simple as it seems."

Lee, one of the owners of the Bun and Barrel bar on Harborne high street, said many small businesses have to worry about rising costs. He told us: "Every samll business has its issues, it can be about knowing the market and how to appeal to people in your area. Being a small independent isn't easy - you don't have that large financial backing."

'The Clean Air Zone is bad for business'

Mike Olley, general manager of Westside BID believes the Clean Air Zone and lack of accessible public transport during the nightime has been detrimental for hospitality businesses in recent years.

He told BirminghamWorld: "I'm concerned about business buoyancy given the current economic climate. Clearly, during the pandemic and post-pandemic we have suffered an economic downturn.

"I'm also concerned, however, about local measures which are driving people out of the city centre and have done in recent years. That's the Clean Air Zone, which I argue is largley unnecessary, and also argue there is non existent public transport and that policy is biting into businesses and the night time economy."

He added: "There are no trams, no buses and no transport after a reasonable hour at night that can take people back to the likes of Evesham and Wolverhampton or even Edgbaston."

The data in full

The table below reveals which UK areas have the highest number of business deaths based on figures from the first three quarters of 2023.

The UK saw more than 800,000 new businesses in 2022/23, a 6.4% increase from the previous year. Unfortunately, it’s not good news for all business owners, as recent figures have revealed that England and Wales have seen the highest rate of bankrupt companies since the early 1990s.

With 4,845 business deaths, Birmingham has seen more enterprises terminate than any other area in the UK. Of the first three quarters of 2023, January to March saw the most significant proportion of business deaths, with more than 2,100.

The data also shows that in 2023, 37,490 business deaths were reported in the professional, scientific and technical activities industry, which is the highest in the UK. The construction industry came in second place, with 35,095 business deaths over the 12 month period.