Businesses in various UK regions are facing significant challenges due to rising costs, increased taxes, and a decline in consumer spending, resulting in many high streets appearing deserted. The upcoming hikes in National Insurance contributions, Minimum Wage, and National Living Wage from April are expected to add more financial strain on businesses already struggling.
According to recent data analysis by Liquidation Centre, certain UK regions are experiencing higher rates of business closures, indicating disparities between different areas. Norwich is reported to have the highest liquidation rate at 23.27%, with 3,446 businesses closing down out of 14,807 registered companies. The town witnessed a peak in liquidations in 2025, with a notable surge in 2021 likely influenced by the pandemic. So far in 2026, 311 liquidations have been recorded, hinting at a challenging year ahead.
Following Norwich, Chorley ranks second with a 20.55% liquidation rate and 1,908 companies going out of business. Burnley follows in third place with a 12.03% liquidation rate and 633 company closures. The North West region is particularly impacted, leading the country in business closures with a 3.26% liquidation rate.
Blaby, with an 8.36% liquidation rate, underscores the ongoing financial pressures faced by businesses. Despite being lower than the top three, the figures highlight the difficulties businesses are encountering nationwide. Richard Hunt, director at Liquidation Centre, emphasized the visible impact business closures have on local economies, high streets, and employment.
Hunt advised businesses to proactively monitor cash flow, manage expenses carefully, and take timely actions to address any warning signs. He stressed the importance of being vigilant, especially with impending cost increases, to improve the chances of business survival in the current challenging economic climate.