Since Labour took office, a staggering 203,000 UK businesses have closed their doors—painting a bleak picture for enterprise, jobs, and investment under the current government.
According to Companies House and leading business analysis firms, the data shows a sharp acceleration in business failures since Labour came to power, marking one of the worst periods for British enterprise in decades.
CP
From small high street shops and family-run manufacturers to larger firms in retail, logistics, and hospitality, closures have rippled across every region of the country.
Economists and industry leaders have pointed to a series of Labour policies that have created a hostile environment for businesses. Among the most frequently cited issues are:
- Rising taxes, including corporation tax increases and the imposition of VAT on private education and other sectors.
- Excessive regulation, including new compliance requirements, red tape for employers, and centralised oversight schemes.
- Labour shortages, compounded by immigration policy confusion and disincentives to work.
- Falling consumer confidence, with shoppers tightening their belts in the face of economic uncertainty.
To make matters worse, businesses are now bracing for a fresh financial blow from April 1st, when increased National Insurance contributions for employers are set to take effect. Under Labour’s revised fiscal rules, many firms will see a significant rise in their employment costs—penalising those who hire and employ at scale. Small and medium-sized businesses, already reeling from inflation and reduced footfall, say this latest move could be the final straw for thousands more enterprises.
‘We’ve got 203,000 businesses having folded since Labour took power!’
Camilla Tominey grills Darren Jones on the ‘anti-business’ impact of Labour’s policies. pic.twitter.com/X3hyKyYaP1
— GB News (@GBNEWS) March 23, 2025
“Business confidence has collapsed under this government,” said one senior figure at a national business body. “Firms need stability, incentives, and a government that backs enterprise—not punishes it. Unfortunately, Labour has delivered the opposite.”
In a particularly telling statistic, the total number of UK companies has now declined for the first time in modern history, reversing years of growth under previous administrations. Start-up rates have also slowed dramatically, with many would-be entrepreneurs put off by the cost and complexity of launching a business in Labour’s Britain.
Critics of the government argue that while Labour promised to be “pro-business,” its actions have sent a very different signal. The cancellation of pro-growth initiatives, combined with an ideological tilt toward state intervention, has led many to question the government’s understanding of what businesses actually need to thrive.
Conservative voices are calling this “an economic warning siren,” urging urgent reform to restore confidence and growth before further damage is done.
As Britain stares down a potential recession, business closures at this scale are not just numbers—they represent lost livelihoods, rising unemployment, declining tax revenue, and a weakened national economy.
The Labour government has so far downplayed the figures, citing global trends and economic headwinds. But for many business owners, the reality is clear: operating under Labour has become more difficult, more expensive, and in too many cases, simply unsustainable.
With over 200,000 closures in less than a year, and increased National Insurance contributions looming, critics say Labour’s “pro-business” rhetoric is wearing thin—and entrepreneurs across Britain are paying the price.
This article (203,000 UK Businesses Close Their Door Under Labour Government, Alarming Economic Trend Emerges) was created and published by Conservative Post and is republished here under “Fair Use” with attribution to the author CP
Featured image: Alamy
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