Metric permalink

Business births minus closures

Official

Part of the Work and Productivity domain. Net business formation rate expressed as birth rate minus death rate in percentage points, indicating whether the enterprise base is growing or contracting.

Latest data

Latest reading

Latest value
1.3percentage points (birth rate − death rate)

2024

Previous value
0.2percentage points (birth rate − death rate)
26pts
Direction of badnesslower is worse

A lower reading is treated as worse for this indicator.

Score composition

Stress score

22/100

Blended from three components: (60% weight), trend (30% weight) and volatility (10% weight). Full formula on the methodology page.

Level · 60% weight

28bounds

Bounds: scored against fixed best/worst limits, used until a metric has about eight years of verified data to rank against.

Trend · 30% weight

0improving

Measured from the direction and size of the change between the two most recent readings.

Volatility · 10% weight

50

Provisional: fewer than four historical readings are available, so this defaults to a mid range score rather than a measured figure.

Data confidence and provenance

Confidence and source

0.80Medium0.80

How much weight to put on the reading, the mean data-confidence across the component metrics (source quality, recency and completeness).

Source

Office for National StatisticsOfficial

Business demography

Update frequency
Annual
Reliability
high
View source series ↗

Provenance

Provider
ONS (Business Demography)
Series ID
business birth rate − death rate
Frequency
annual
Accessed
13 June 2026

Known weakness

Annual frequency means the indicator lags the economic cycle by up to 18 months; VAT and PAYE registration thresholds mean very small businesses are excluded.

Notes

Verified official value from ONS (Business Demography) (business birth rate − death rate), accessed 2026-06-13.

Historical values

History

PeriodValueRelative
20230.2
20241.3