More business creations than closures for the first time in two years
26 October 2023
From July to September 2023, the number of UK business creations exceeded the number of business closures. This is the first time this has happened since April to June 2021.
78,655 businesses were added to the Inter-Departmental Business Register (IDBR) (business creations) in the UK from July to September 2023. This was 15% higher than in the same period in 2022, which saw the lowest number of business creations since the start of the quarterly data series from January to March 2017.
There was an increase in creation in 13 out of 16 main industrial groups from July to September 2023 compared with the same period in 2022. The most significant increase came in the professional, scientific, and technical activities industries, where business creations were up by 34%.
The number of businesses removed from the IDBR (business closures) in the UK from July to September 2023 was 69,445. This is 14% lower than the same period in 2022, with 10 out of 16 main industrial groups showing a decrease in closures.
The most significant decrease in closures came in the transport and storage industries (down 41%). Unlicensed carriers (down 51%) showed the most significant fall within transport and storage.
Data in this release are experimental statistics, so care needs to be taken when interpreting them. Our annual Business demography publication remains the best source of information on business demography.
Lowest rents not affordable for lowest-income households
23 October 2023
Lower-priced private rents were not affordable for households on lower incomes, according to our latest bulletin on private rental affordability.
For households on the lower 25% of incomes, the cheapest 25% of private rents equaled more than 30% of their household income in the year to March 2022.
This was the case in England, Wales, and Northern Ireland.
An area’s rents are not considered affordable if privately renting households would have to spend more than 30% of their income on rent.
For median and higher-income households, rents were more affordable, and below the 30% threshold.
Private renters on median household incomes in England could expect to spend 26% of their income on rent. In Wales, they could expect to spend 23% and in Northern Ireland, the figure was 25%.
Average rents sat below the 30% income threshold in all English regions apart from London, where the median rents were 35% of the median private-renting household income.
Half of adults say the cost of living has risen in the last month
20 October 2023
More than half (52%) of adults across Great Britain say that their cost of living has increased compared with a month ago.
This is according to those asked between 4 and 15 October 2023 as part of our latest Public Opinions and Social Trends bulletin.
However, that was down from 79% among those asked during a similar period one year ago (29 September to 9 October 2022).
Despite the drop, 90% said the cost of living was an important issue facing the UK today, a higher percentage than those citing the NHS, the economy, climate change and the environment, or housing.
The cost of living crisis continues to damage retail sales
20 October 2023
The cost of living crisis and its effect on shoppers has seen reduced spending at shops in Great Britain.
Retail sales volumes (the amount of stuff bought), have fallen 0.9% in September 2023, following a rise of 0.4% the previous month.
Despite the small growth in August 2023, sales volumes in the three months to September 2023 were down 0.8% compared with the previous quarter.
Non-food stores saw some of the biggest drops in retail sales (1.9%) in September 2023. Shops reported that the pressures of the cost of living crisis, as well as September’s heatwave reducing sales of autumn clothing, contributed to a poor month.
Similarly, non-store retailing (mostly online shops) saw a decline in sales volumes of 2.2% in September 2023. This follows a drop of 0.9% in August 2023.
Despite the overall monthly decline, some sectors did experience an increase in sales volumes. Food stores saw a 0.2% increase in September 2023, following a 1.4% rise the previous month.
Automotive fuel sales also partially bounced back from a 1.0% fall in August 2023 to a 0.8% rise last month.
When compared with their pre-coronavirus (COVID-19) level in February 2020, total retail sales were 17.1% higher in value terms, but volumes were 2.5% lower.
Public sector borrowing fell in September 2023
20 October 2023
The public sector borrowed £1.6 billion less in September 2023 than it did a year earlier – the first year-on-year fall in borrowing in any month since September 2022.
However, it still spent more than it received in taxes and other income, requiring it to borrow £14.3 billion.
While growth in central government tax receipts has been slowing in recent months, it remains stronger than in the years running up to the coronavirus (COVID-19) pandemic.
Inflation (the rate at which the price of goods and services rises) continues to put upward pressure on public spending. September saw increases for central government pay and procurement, along with uprated benefit payments.
However, the interest payable on the central government’s outstanding debt was reduced by £7.2 billion compared with September last year. This was the third-lowest amount in any single month since monthly records began in 1997.
Visits to UK close to pre-coronavirus pandemic levels
19 October 2023
Visits to the UK by overseas residents between April and June 2023 reached a level close to that seen before the coronavirus (COVID-19) pandemic.
Overseas residents made an estimated 9.9 million visits to the UK from April to June 2023, which was around 5% lower than the 10.4 million visits recorded during the same period of 2019.
Holidays were the most popular reason for the visits (4.4 million), followed by visiting friends or relatives (3.1 million).
The number of visits UK residents made abroad between April and June 2023 remained below pre-coronavirus pandemic levels.
They made an estimated 23.4 million visits overseas over the period, which was 9% below the 25.8 million visits made in 2019.
Private rents rise at record pace while house price growth slows
18 October 2023
Private rental prices paid by tenants in the UK increased by 5.7% (provisional estimate) in the year to September 2023. This is the highest annual percentage change since this UK series began in January 2016.
Private rent prices rose 5.6% in England, 6.9% in Wales and 6.0% in Scotland in the year to September 2023. These are the highest annual changes in rental prices in England and Wales since records began (in January 2006 and January 2010, respectively). In Scotland, this is the joint-highest annual change in rental prices since records began in January 2012, alongside August 2023. Private rental prices in Northern Ireland rose by 9.3% in the year to July 2023.
Private rental prices in London (which accounts for almost a third of UK rental expenditure, as shown in our Index of Private Housing Rental Prices, UK dataset) increased by 6.2% in the 12 months to September 2023, up from an increase of 5.9% in the 12 months to August 2023. This is the highest annual percentage change in London since the series began in January 2006.
Meanwhile, average UK house price annual inflation has continued to slow. The provisional estimate for the average price of a UK house was £291,000 in August 2023. This is little changed from the same month a year ago, but £9,000 above the recent low point in March 2023.
This represents an average increase of 0.2% in the year to August 2023 (provisional estimate), down slightly from growth of 0.7% in the year to July 2023 (revised estimate).
Annual inflation remains unchanged as fuel prices rise
18 October 2023
Annual inflation, which is the rate at which the price of goods and services is rising, remained unchanged in September 2023.
This was according to both the Consumer Prices Index (CPI) and Consumer Prices Index including owner occupiers’ housing costs (CPIH).
In the 12 months to September 2023, CPI rose by 6.7%, and CPIH rose by 6.3%. These were the same rates as the 12 months to August 2023.
It follows three consecutive months of falls in the annual inflation rate. CPIH has been falling from a peak of 9.6% in October 2022, which was the highest rate in over 40 years, according to estimates.
Rising motor fuel prices were one of the main factors keeping annual inflation high.
Between August and September 2023, petrol prices rose by 5.1 pence per liter to 153.6, and diesel prices rose by 6.3 pence per liter to 157.4.
In the same period last year, fuel prices fell by 8.7 pence per liter for petrol and 5.0 pence per liter for diesel.
UK GDP estimated to have grown by 0.2% in August 2023
12 October 2023
Monthly real gross domestic product (GDP) is estimated to have grown by 0.2% in August 2023, following a fall of 0.6% in July 2023.
Looking at the broader picture, GDP increased by 0.3% in the three months to August 2023, with growth in all sectors.
Services output grew by 0.4% in August 2023, after a fall of 0.6% in July 2023, and was the main contributor to the growth in GDP in July.
Output in consumer-facing services fell by 0.6% in August 2023 following a fall of 0.2% in July.
Production output fell by 0.7% in August 2023, following a fall of 1.1% in July 2023.
The construction sector declined by 0.5% in August 2023, following a 0.4% decrease in July 2023.
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