That’s according to a study conducted by digital PR company Reboot Online, who analysed data from Companies House to uncover the number of failed businesses in the UK in 2024.
Highlights from the study:
- Despite a lower failure rate of 2.6%, Construction experienced the largest number of failures in absolute terms, with 15,002 failed businesses
- Mining & Quarrying has the highest business failure rate in 2024, with 95.9% of businesses failing
- Agriculture & Fishing is the second most affected sector, with 81.7% of failed businesses
- Despite having large numbers of businesses, sectors like Admin & Support Services (2.1%) have comparatively low failure rates
- Sectors such as Electricity & Gas Supply (2.0%), Transport & Storage (1.9%), and Finance & Insurance (1.7%) showed greater resilience with lower failure rates
Top 10: The Industries with the Highest Percentage of Failed Businesses in 2024:
| # | Sector | Number of Businesses | Number of Active Businesses | Number of Failed Businesses | Percentage of Failed Businesses |
| 1 | Mining & Quarrying | 49 | 1 | 47 | 95.9% |
| 2 | Agriculture & Fishing | 71 | 11 | 58 | 81.7% |
| 3 | Accommodation & Food Services | 285,148 | 241,568 | 9,579 | 3.4% |
| 4 | Water & Waste Management | 17,545 | 15,700 | 501 | 2.9% |
| 5= | Construction | 567,656 | 507,160 | 15,002 | 2.6% |
| 5= | Manufacturing | 243,237 | 219,705 | 6,410 | 2.6% |
| 7 | Admin & Support Services | 434,956 | 391,950 | 9,106 | 2.1% |
| 8 | Electricity & Gas Supply | 18,101 | 16,847 | 368 | 2.0% |
| 9 | Transport & Storage | 161,575 | 138,251 | 3,046 | 1.9% |
| 10 | Finance & Insurance | 203,359 | 192,027 | 3,444 | 1.7% |
The full dataset can be accessed here:
Mining & Quarrying has the highest percentage of failed businesses
Reboot Online can reveal that the UK’s Mining & Quarrying sector has the highest percentage of failed businesses, with 96% closing. Out of 49 new businesses in the sector, 47 failed, leaving just one active business. This exceptionally high percentage highlights the challenges faced by this sector, which often contends with falling commodity prices, rising operational costs, and environmental regulations.2 While the total number of businesses in this sector is small compared to others in the data, the near-total collapse reflects a sector struggling to maintain viability in an increasingly competitive and regulated environment.
The Agriculture & Fishing sector follows in second place, with 82% (58) of new businesses in this sector failing this year, despite having a higher absolute number of failures than the Mining & Quarrying sector. This sector has dealt with many setbacks, especially from the UK’s withdrawal from the European Union affecting workforce shortages and administrative challenges, which has affected farmer’s profits and trades.3
In third place is the Accommodation & Food sector, which experienced 9,579 new business closures in 2024, equating to a 3.4% failure rate. Despite the relatively low percentage compared to smaller sectors like Mining & Quarrying or Agriculture, the sheer volume of failures underscores the challenges faced by this industry. Factors such as energy prices, falling demand for goods and services, and taxation have likely contributed to the strain.4 Despite this sector having the 13th-highest economic output in the UK last year, and the third-highest number of businesses (285,000), it is still one that continues to navigate significant pressures.5
The Water & Waste Management sector has the fourth-highest number of failed businesses (2.9%). Out of 17,545 companies, 501 have failed, leaving 15,700 active companies. While the percentage is lower than industries like Mining & Quarrying or Agriculture & Fishing, it still represents significant challenges for companies as the sector has struggled with high operational costs, lack of fresh water supply and a lack of proper regulation.6
In joint fifth place with a 2.6% failure rate are the Construction and Manufacturing sectors. In the Construction sector, 15,002 businesses out of 567,656 failed, leaving 507,160 active companies. This highlights the scale of the industry, which, despite its low percentage of failures, faces challenges such as a drop in planning approvals, particularly in office and retail projects.7 Despite this, the UK’s Construction sector saw a 0.8% rise in growth in Q3, showing its resilience, which is evident in its large number of active businesses, emphasising its vital role in supporting economic development through infrastructure and housing projects.8
The Manufacturing sector experienced 6,410 failures out of 243,237 businesses, with 219,705 still active. The sector has faced pressures in recent years such as rising inflation and labour costs, barriers to trade relationships and supply chain continuity between the UK and the EU.9 Despite these obstacles, Manufacturing remains a cornerstone of the economy, contributing to exports and industrial innovation. The joint low failure rate outlines the importance of these sectors in maintaining economic stability and growth.
In 10th place is the Finance & Insurance sector, with 1.7% (3,444) failed businesses, with 192,027 still active. This low percentage highlights the sector’s strong stability, despite facing challenges such as economic conditions and the ever-growing presence of cybersecurity threats. However, the UK’s financial regulators have recently introduced new rules to strengthen the resilience of technology and third-party services used by financial firms, aiming to mitigate risks to financial stability caused by disruptions or failures of critical third-party providers, which may make it easier for businesses in the future.10
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