BRADFORD remains a "commercial hotbed" - despite last year seeing the most business closures in the city since 2018, the Chamber of Commerce has said.

According to figures from the Office for National Statistics, around 2,330 new businesses opened in Bradford in 2023, down from 2,575 a year earlier.

Meanwhile, 2,385 businesses closed in the area last year, up from 2,275 in 2022.

That was the highest number since local records began in 2018.

Mark Casci, head of policy and representation at West & North Yorkshire Chamber, said: “While it is, of course, disappointing to see the number of businesses closing increasing and the number of firms being incorporated decreasing, we should be mindful that Bradford remains a commercial hotbed.

“Since the financial crisis Bradford has punched its weight in terms of new businesses being founded and, thanks to its youthful population, this trend will continue in time.

“The change seen in the last 12 months are part of a national trend as businesses of all size struggle with massive overheads and a seemingly ever-increasing tax burden."

He added: “It is incumbent on the Treasury to enact legislation to make life easier for businesses and encourage budding entrepreneurs to start their own enterprises.” 

Across the UK, the rate of new businesses opening hit its lowest level since 2010, at 11 per cent of all active businesses.

Despite this, the death rate – the proportion of active businesses which closed last year – also fell to 10.8 per cent.

As a result, business openings overtook closures.

Speaking on the figures, Anna Leach, chief economist at the Institute of Directors, blamed poor financial conditions after the pandemic, a “relatively weak” growth environment, and skill shortages.

“Recent budget decisions unfortunately undermine the UK’s business environment, disincentivising employment and reducing investment through the impact of higher taxes on business costs,” she added

The figures did show an increase in the number of 'high-growth' businesses, those which saw their workforce swell by more than 20 per cent for three years in a row.

There were about 13,750 such businesses nationally in 2023, an increase from 11,480 a year earlier.

Yorkshire and The Humber had 965 high-growth businesses, comprising 4.3 per cent of companies in the area.

A Department of Business and Trade spokesperson said: “The last few years have been incredibly difficult for business.

"This Government is determined to improve the total business environment including for small business.

“That’s why we’ve already taken action to tackle the scourge of late payments, which has been one of the biggest issues facing small businesses and self-employed workers, and we’re committed to a fairer business rates system which incentivises investment, tackles empty properties and supports entrepreneurship.”