![](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/1_city-centre-skyline-pic-by-WTjpeg.jpg\")
<\/p>\n‘For me, I can pin this down to one keyword: Brexit.’<\/p>\n
Plymouth city centre(Image: William Telford)<\/p>\n
The number of businesses going bust in Plymouth and across the South West is forecast to rise in the next couple of years – with Brexit being blamed.<\/p>\n
New research shows that across the country an estimated 288,018 business failures were recorded in 2025 – about 5% of all UK businesses – with more than 22,000 of them being in the West Country.<\/p>\n
But that figure is estimated to rise to 24,505 this year, 24,791 next year, and 25,077 in 2028.<\/p>\n
And all this while the number of business failures nationally is estimated to decline next year and fall further to 286,802 in 2028.<\/p>\n
The research – by London-based insolvency expert Liquidation Centre – shows that the South West projection is despite Exeter and Teighbridge having some of the lowest town centre liquidation rates in the UK.<\/p>\n
And Brexit is being seen as a major factor, with Plymouth, alongside Bristol and Falmouth, being vulnerable because it is a port and a manufacturing hub.<\/p>\n
Richard Hunt, director at Liquidation Centre, said: \u201cIt\u2019s positive to see that there are fewer and fewer businesses failing in the UK, with 296,885 failing in 2024, compared to 375,500 in 2022, which is the highest figure since 2019.<\/p>\n
\u201cAnd according to our projections, just 286,802 businesses will fail by 2028, the lowest in nine years.<\/p>\n
\u201cHowever, if we dig deeper, we can see that this trend isn\u2019t true for every region in the UK.\u201d<\/p>\n
The South West\u2019s projected 25,077 business deaths in 2028 compares to just 22,090 in 2019 and Mr Hunt said: \u201cFor me, I can pin this down to one keyword: Brexit.\u201d<\/p>\n
He said: \u201cFor businesses in the South West, exports remain at historic lows in 2026. The South West\u2019s major commercial export ports of Bristol, Plymouth and Falmouth now face six-to-eight-week transport times, tariffs from the EU, as well as increasing transport costs.<\/p>\n
\u201cExport orders and sales for services businesses have experienced a 33% drop post-Brexit, with the manufacturing sector also taking a massive hit in the region with a 22% drop in exports.<\/p>\n
\u201cThis is especially concerning when the South West relies heavily on the manufacturing sector, such as aerospace, marine, and defence, which make up over 25.8% of the region’s manufacturing output.\u201d<\/p>\n
Liquidation Centre points out that while business creation remains strong across many parts of the country, closure rates continue to place significant pressure on local economies, employment, and high streets.<\/p>\n
It also highlights that just 1.5% of business owners believe their company is at severe risk of insolvency, yet data suggests thousands of firms are struggling with rising operating costs, weaker consumer confidence and ongoing economic uncertainty.<\/p>\n
With nearly one in every 20 UK businesses failing during 2025, it highlights the challenges many firms continue to face despite signs of wider economic recovery.<\/p>\n
And, looking ahead, the forecasts suggest that up to 289,000 UK businesses could fail in 2026.<\/p>\n
If realised, the figure would mean business closures remain close to 2025 levels, indicating that many firms are likely to face continued pressure over the coming year.<\/p>\n
Mr Hunt said: \u201cWhile the UK continues to see strong levels of entrepreneurship, the number of businesses closing their doors remains concerning.<\/p>\n
“What stands out most is the gap between the number of business failures and the number of owners who believe insolvency is a serious risk.<\/p>\n
\u201cMany businesses experience financial difficulties gradually, which is why regularly reviewing cash flow and financial performance is so important.<\/p>\n
“The businesses that tend to fare best are often those that identify issues early and take action before problems become more difficult to resolve.”<\/p>\n
The research can be found at https:\/\/liquidationcentre.co.uk\/statistics-on-business-failure\/<\/p>\n
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