UK Business Creations Fell 3.5% to 69,895 in July to September 2026, ONS Figures Show
69,895 businesses were created in the UK between July and September 2026, 3.5% fewer than a year earlier, while closures fell 1.1% to 63,035, according to ONS figures published on 29 October.
By Entrepreneur Group · Published
Fewer new businesses were created in the UK in the third quarter of 2026. The Office for National Statistics recorded 69,895 business creations between July and September 2026, a 3.5% fall on the same quarter of 2025. Business closures also fell, by 1.1% to 63,035, in figures published on 29 October.
That means creations still outnumbered closures in the quarter, by 6,860. But the fall in new businesses was larger than the fall in closures, and it was spread across most of the economy.
Where new businesses fell
ONS says business creations fell in 11 of its 16 main industry groups compared with July to September 2025. The largest falls were in:
- Health and social care: down 26.4%.
- Accommodation and food services: down 16.2%.
On closures, 8 of the 16 industry groups saw fewer businesses removed from the register than a year earlier. The largest fall was in business administration and support services, where closures were down 16.7%.
The bulletin does not name the industries where creations or closures rose, and it gives no regional figures in the text. ONS publishes datasets alongside the bulletin with breakdowns by industry and region for anyone who wants to look at their own sector or area.
How this compares with the spring
The third quarter is a change of direction from the previous release. In April to June 2026, ONS recorded 79,325 business creations, a 2.2% rise on a year earlier, and 76,840 closures, up 2.0%. Creations rose in 9 of the 16 industry groups that quarter, led by business administration and support services, up 12.3%.
ONS compares each quarter with the same quarter of the previous year rather than with the quarter before, so the cleanest reading is year on year: creations moved from 2.2% growth in the spring to a 3.5% fall in the summer, while closures moved from a 2.0% rise to a 1.1% fall.
For context on the other end of the business life cycle, the Insolvency Service recorded 1,882 company insolvencies in England and Wales in September 2026, down 5% on a year earlier. We covered that release in our report on company insolvencies in September 2026.
What the figures do and do not measure
These are "official statistics in development", so ONS is still refining how they are produced. A few points matter when reading them:
- Creations and closures are based on the Inter-Departmental Business Register (IDBR). The register is built from VAT, PAYE, ONS surveys and Companies House records. A business is counted as a closure when its turnover and employment have been zero for several periods, or when ONS is told it has stopped trading.
- Companies with no VAT or PAYE registration are left out. ONS excludes them because they often have no employees or turnover, so newly incorporated companies that are not yet trading will not appear.
- There is a time lag. A creation or closure is recorded when the register is updated, which can be weeks or months after the business actually started or stopped.
- Adjustments are applied. ONS reduced closures by 10.3% and creations by 3.8% for the period from October to December 2025 to July to September 2026 to allow for businesses that are wrongly recorded as new or closed.
- The annual series is the preferred measure. ONS says these quarterly figures are timelier but not fully consistent with its annual business demography bulletin.
What it means for founders
This section is editorial guidance. A fall in creations does not mean it has become harder to register a company, because these figures only count businesses once they register for VAT or PAYE. They are better read as a sign of how many new firms reached the point of trading at scale. If you are planning to start in health and social care or hospitality, the sharp drop in new entrants is worth noting alongside your own research into local demand and costs.
Frequently asked questions
How many new businesses were started in the UK in 2026?
ONS recorded 69,895 business creations in July to September 2026, 3.5% fewer than a year earlier, and 79,325 in April to June 2026. These figures cover businesses registered for VAT or PAYE.
Are more UK businesses closing in 2026?
Not in the latest quarter. ONS recorded 63,035 business closures in July to September 2026, 1.1% fewer than in the same quarter of 2025.
When is the next ONS business demography release?
ONS lists the next quarterly release as to be announced. The July to September 2026 figures were published on 29 October 2026.
Sources
- ONS: Business demography, quarterly, UK: July to September 2026 (29 October 2026) (reviewed 2 November 2026)
- ONS: Business demography, quarterly, UK: April to June 2026 (30 July 2026) (reviewed 2 November 2026)
- ONS release calendar: Business demography, quarterly, UK: July to September 2026 (reviewed 2 November 2026)
- Insolvency Service: Company insolvencies, September 2026 (20 October 2026) (reviewed 2 November 2026)