The 10 UK towns and cities hit worst by store closures as businesses struggle

High streets across the UK are being hit by a wave of business closures amid rising costs and falling consumer spending

10:27, 18 Mar 2026Updated 10:38, 18 Mar 2026

If you’ve spotted your local high street looking unusually deserted recently, it’s likely because businesses nationwide are grappling with escalating costs, increased taxes and dwindling consumer spending. Businesses across the UK are battling ongoing economic challenges, with insolvencies remaining high.

From April, hikes in National Insurance contributions, along with rises to the Minimum Wage and the National Living Wage, are set to heap further financial pressure on businesses.

Using official Insolvency Service and ONS data, recent insights from the experts at Liquidation Centre have pinpointed the UK regions most affected by business closures. These figures reveal ‘liquidation hotspots’ where firms are closing down at the fastest rates, underscoring regional disparities, reports the Express.

The latest analysis shows that several smaller towns are suffering some of the highest business failure rates in the country, with Norwich topping the list for company liquidations.

UK’s ‘worst’ areas to run a business

1. Norwich

Norwich has the highest liquidation rate (23.27%), making it one of the most challenging places in the country to run a business, with 14,807 registered companies and 3,446 liquidations.

This translates to nearly one in four businesses in the area shutting down through liquidation. Norwich recorded its peak number of liquidations in 2025 (805), but its largest surge occurred in 2021, likely due to the pandemic.

So far in 2026, 311 liquidations have been recorded, indicating this year could rank among the worst on record.

2. Chorley

Chorley comes in second place, with the second-highest liquidation rate (20.55%) and 1,908 companies going bust. The data suggests that firms in smaller regional economies may be particularly susceptible to increasing costs and declining consumer spending.

Last year marked Chorley’s worst year for liquidations across all years examined (596), and already in 2026, the town has seen 186.

3. Burnley

Burnley sits in third position, with a liquidation rate of 12.03% and 633 companies folding. Burnley experienced 184 liquidations in 2025, and thus far in 2026, 39 have been recorded.

Should this trend continue, Burnley could see over 200 liquidations in 2026, potentially making it the worst year for business failures on record.

Towns across the North West are under mounting pressure as soaring operating costs drive businesses towards collapse. The region now leads the UK for business closures, with a liquidation rate of 3.26% – the highest nationwide.

4. Blaby

Blaby sits fourth with a liquidation rate of 8.36%. Of the 8,249 registered companies in the Leicestershire authority, 690 have entered liquidation.

While the rate is significantly lower than the top three, the figures still underscore the financial pressures facing firms across the UK. Richard Hunt, director at Liquidation Centre, has highlighted the impact these figures have on local economies, high streets, and employment.

He stated: “These figures show just how tough the environment has become for businesses across the UK, particularly in smaller towns. When companies enter liquidation, this has a real visible impact on the local economy, especially on high streets. When businesses close their doors, it creates empty shop fronts, fewer jobs, and reduced footfall for other businesses. Over time, that makes it harder for the rest of the high street to survive.

“With costs set to rise in April, including National Insurance, the Minimum Wage, and the National Living Wage, it’s more important than ever for directors to keep a close eye on cash flow, manage overheads carefully, and act early. Many business failures happen not because the warning signs aren’t there, but because tough decisions are left too late. By regularly checking stock, pricing, and staffing, businesses can respond quickly when numbers start slipping and give themselves a better chance of staying profitable. In this uncertain climate, being proactive can make all the difference.”