UK's Top 10 Towns Hit Hardest by Store Closures Amid Economic Strain
Top 10 UK Towns Worst Hit by Store Closures

UK's Top 10 Towns Hit Hardest by Store Closures Amid Economic Strain

High streets across the United Kingdom are facing a severe wave of business closures, driven by escalating operational costs, increased tax burdens, and a notable decline in consumer spending. This troubling trend has left many local shopping areas looking unusually deserted, as companies nationwide grapple with persistent economic headwinds and high insolvency rates.

From April onwards, additional financial pressures are expected to mount due to hikes in National Insurance contributions, alongside rises to the Minimum Wage and the National Living Wage. These factors are set to exacerbate the challenges for businesses already struggling to stay afloat.

Identifying Liquidation Hotspots

Utilising official data from the Insolvency Service and the Office for National Statistics, recent analysis by experts at Liquidation Centre has identified the UK regions most severely impacted by business closures. This research highlights liquidation hotspots where firms are shutting down at accelerated rates, revealing stark regional disparities in economic resilience.

The findings indicate that several smaller towns are experiencing some of the highest business failure rates in the country, with Norwich emerging as the area with the most significant challenges for company survival.

UK's Worst Areas to Run a Business

1. Norwich, Norfolk

Norwich tops the list with the highest liquidation rate at 23.27%, making it one of the most difficult places in the UK to operate a business. Out of 14,807 registered companies, 3,446 have entered liquidation, meaning nearly one in four businesses in the area has shut down through this process.

The city recorded its peak number of liquidations in 2025 with 805, but the largest surge occurred in 2021, likely due to pandemic-related disruptions. So far in 2026, 311 liquidations have been noted, suggesting this year could rank among the worst on record for business failures in Norwich.

2. Chorley, Lancashire

Chorley ranks second with a liquidation rate of 20.55%, involving 1,908 companies going bust. This data implies that firms in smaller regional economies may be particularly vulnerable to rising costs and reduced consumer spending.

Last year was Chorley's worst for liquidations across all years examined, with 596 recorded. Already in 2026, the town has seen 186 liquidations, indicating ongoing economic distress.

3. Burnley, Lancashire

Burnley holds third position with a liquidation rate of 12.03% and 633 companies folding. The town experienced 184 liquidations in 2025, and thus far in 2026, 39 have been recorded.

If this trend persists, Burnley could witness over 200 liquidations in 2026, potentially making it the worst year for business failures on record. Towns across the North West are under mounting pressure as soaring operating costs push businesses toward collapse, with the region now leading the UK for closures at a liquidation rate of 3.26%.

4. Blaby, Leicestershire

Blaby sits fourth with a liquidation rate of 8.36%. Of the 8,249 registered companies in this Leicestershire authority, 690 have entered liquidation. While this rate is lower than the top three, it still underscores the financial pressures facing firms across the UK.

Richard Hunt, director at Liquidation Centre, emphasised the broader impact of these figures on local economies, high streets, and employment. He stated, "These figures show just how tough the environment has become for businesses across the UK, particularly in smaller towns. When companies enter liquidation, this has a real visible impact on the local economy, especially on high streets. When businesses close their doors, it creates empty shop fronts, fewer jobs, and reduced footfall for other businesses. Over time, that makes it harder for the rest of the high street to survive."

Hunt added, "With costs set to rise in April, including National Insurance, the Minimum Wage, and the National Living Wage, it's more important than ever for directors to keep a close eye on cash flow, manage overheads carefully, and act early. Many business failures happen not because the warning signs aren't there, but because tough decisions are left too late. By regularly checking stock, pricing, and staffing, businesses can respond quickly when numbers start slipping and give themselves a better chance of staying profitable. In this uncertain climate, being proactive can make all the difference."

Complete List of the UK's Worst Towns and Cities for Running a Business

  1. Norwich, Norfolk
  2. Chorley, Lancashire
  3. Burnley, Lancashire
  4. Blaby, Leicestershire
  5. Darlington, County Durham
  6. Brentwood, Essex
  7. Bury, Manchester
  8. Dundee City, Scotland
  9. Oldham, Manchester
  10. Swansea, Wales

This analysis paints a concerning picture of the UK's economic landscape, highlighting the urgent need for strategic interventions to support struggling businesses and revitalise high streets across the nation.