Last year saw the fewest new businesses created in Oxford since at least 2018, new figures show.

It comes as the UK saw its business birth rate fall to its lowest level since 2010, with the Institute of Directors blaming a poor economic environment and skills shortages.

Local records go back to 2018, and show Oxford has seen the fewest new businesses open of any year since then.

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According to figures from the Office for National Statistics, around 510 new businesses opened in Oxford in 2023, down from 575 a year earlier.

Meanwhile, 485 businesses closed in the area last year, down from 550 in 2022.

This means the total number of businesses in Oxford increased slightly last year.

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, a reversal from 2022 which was the first year in more than a decade when there were more deaths than births.

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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.

“Meanwhile, higher public spending is expected to raise the cost of finance in the UK.”

“If the government wants to get higher growth, it’ll need a vibrant business sector to deliver it.”

However, 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.

The South East had 2,035 high-growth businesses, comprising 4.9 per cent of companies in the area.

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Pranesh Narayanan, research fellow at the IPPR, welcomed the recovery in the number of high-growth businesses, leading to more jobs in dynamic and growing companies and a stronger economy overall.

However, Mr Narayanan warned they will be competing with larger, established firms.

He urged the Government to ensure the Competition and Markets Authority has the backing it needs to stop larger businesses from “throwing their weight around to stifle competition”.

The transport and storage sector industry had both the highest business birth rate (14.5 per cent) and the highest death rate (21.6 per cent), while finance and insurance saw the lowest proportion of new businesses (6.4 per cent).

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