More than 581,000 UK businesses ceased trading between Q1 2024 and Q4 2025, according to analysis by fintech firm Aurum Solutions, with London recording the highest number of closures.
The study, based on ONS data, found 118,290 business closures in the capital over the period. The South East ranked second with 79,830 closures, followed by the North West with 60,910.
Aurum Solutions said the figures reflect pressure from rising taxes, wage increases and higher operating costs. If the trend continues, the company estimates around 71,000 businesses could close in the next quarter alone.
In the South East, Kent and Surrey recorded some of the region’s highest closure figures, accounting for almost a third of all closures there. In the North West, Greater Manchester represented 43% of the region’s total closures, with more than 26,000 businesses ceasing to trade.
The accommodation and food services sector recorded the UK’s third-highest closure rate by industry group at 12.9%, behind transport and storage (16.5%) and administrative and support services (13.5%).
The findings reflect ongoing pressure on hospitality operators, particularly as businesses contend with rising labour costs, inflation and weaker consumer spending. Aurum Solutions noted that roughly one in eight businesses in the accommodation and food sector closed during the period analysed.
Separate analysis by the company, using Companies House data from the past three years, found 432 UK businesses entered liquidation, receivership or administration. Construction accounted for 16% of those cases, while accommodation and food services ranked third overall with 47 insolvencies.
Administrative and support services also saw around 50 businesses enter insolvency proceedings over the same period. Aurum Solutions said increasing automation and AI adoption could place further pressure on parts of the sector.