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203,000 UK businesses have closed since the Labour government took office, marking a sharp acceleration in business failures.
Economists and industry leaders attribute this to Labour’s policies, including rising taxes, excessive regulation, labour shortages and falling consumer confidence.
The government’s actions have led to a decline in business confidence, with critics arguing that Labour’s “pro-business” rhetoric is inconsistent with its policies, which are perceived as hostile to enterprise and investment.
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203,000 UK Businesses Close Their Door Under Labour Government, Alarming Economic Trend Emerges
By Conservative & Reformer Post
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.
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 1 April, 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.
“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.
Related: UK economic growth forecast to be cut in half in blow to Starmer and Reeves, Independent, 21 March 2025
About the Author
The Conservative & Reformer Post, formerly The conservative Post, was founded by and is edited by Claire Bullivant. The site aims to be the “Home of the Right,” meaning a news outlet for the British political right.
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Categories: Breaking News
All part of the plan. Take away any form of independence and make you more dependent on the system. So when they cut you off, you don’t linger much.
Look at the results of what has happened since 1997.We have had only fools running this country and Europe It is obviously planned chaos and destruction. What is left at the end for the globalists. It all heading for anarchy. I wonder if they have lost the plot along the way? Any thoughts?
Satanic influence
Even on my little island those who make and bake cakes, and chutneys and whatever-now have to have council kitchen inspections, list the ingredients, go on level 2 courses and a whole lot else-they are finding this too much!
The cottage industry is all but done. All by satanic design.
Not at all surprising considering their anti business policies and tax hikes that have driven the wealthy to move abroad. Because of this they have probably lost more revenue than what they were hoping to gain. I have to believe these policies are deliberately killing the economy. I find it hard to believe that this government is so mind-blowingly stupid. Of course, I may be wrong about how intellectually challenged they are.
You don’t collapse the economy by having thriving businesses
This is all by design, the idea is to render us all helpless and reliant on our deep state captors, who will dispatch us at their leisure by more fake Jabs – No Jabs means no access to the digital matrix – either way you Die . how can people NOT join up the Dots is beyond me – though I am not Jabbed maybe they have all (the jabbed) lost the ability to perceive threats towards them having lost their cognitive perception. It has certainly dumbed down the Jabbed peoples range of critical thinking skills.
Yes, pro business, big business that is, which has for decades done it’s utmost to destroy, with political help, the existence of small businesses