small business planner 2022 uk

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Small Business Tax Planner

UK Small Business Tax Planner

This simple calculator to see how much take home profit your small business can make after taking into consideration turnover, outgoings, employee costs, corporation taxes and income/dividend taxes.

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Use our business tax planner to get an idea of how much money you can extract from your small business once employee costs and taxes are taken into account.

You can navigate around the planner at any time by selecting from the sub menu, which takes you to each relevant section.

Begin by entering the following:

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If you run your own small business then you are likely to have more than one source of income.

Planning your personal taxes can also get complicated so we have a Multiple Income Tax Calculator to get an overall picture of taxes deducted once every income source gathered.

You can also use our Multiple Income Tax Estimate if you don't want to save your calculation and just quickly see the total tax deductions.

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Small Business Statistics 2024: the full report

Our experts

Written and reviewed by:.

2023 presented a turbulent backdrop for the UK economy.

The ongoing war in Ukraine cast a long shadow, disrupting supply chains and pushing energy prices higher, impacting both consumers and businesses. The lingering effects of the COVID-19 pandemic continued to weigh on some sectors, while rising interest rates aimed at curbing inflation also presented challenges.

Fast forward to 2024 however, and there’s good news. While the overall number of employing businesses saw a slight dip, small businesses stepped up in a big way, creating a remarkable 300,000 new jobs . In fact, over the past 25 years, small businesses have been responsible for 2 out of every 3 jobs created .

So what are the most crucial things you need to know to set yourself up for success as a small business owner this year? Where are the most failures occurring? Which industries are poised for growth? Below, we’ll examine UK businesses on a sector-by-sector basis, as well as identifying the main barriers and opportunities for new startups and SMEs.

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• There are currently 5.51 million small businesses in the UK, indicating potential for new ventures. However, careful planning and execution remain crucial in today’s competitive market.
• On average, almost 20% of new businesses fail in their first year . Thorough market research, dedicated financial planning, and adaptability will be key for SMEs to overcome these initial challenges in 2024.
• SMEs account for 99.2% of the UK’s business population. This fact highlights the significant contribution SMEs have on the economy, and emphasises the need for continued government support and tailored resources to empower their success.
• SMEs account for an estimated 61% of employment (16.3 million) and 52% of turnover in the UK private sector . However, inflationary pressures and rising costs could pose challenges in 2024, requiring innovative strategies and cost-efficiency measures.

On this page, we’ll cover:

Uk small business statistics, uk small business finance statistics, uk business sectors, barriers to uk business, how do uk small businesses compare to the us.

Please feel free to use the graphics from this page.

Infographics of each section’s key insights, as well as a full infographic covering the whole guide, can be accessed here. All we ask is that you credit us and link back to this page – thanks!

The outlook remains cautiously optimistic. Inflation continues to be a concern, potentially impacting consumer spending and business costs, but the job market shows signs of strength , which could be good news for hiring needs. 

How many small businesses are there in the UK?

The number of small businesses in the UK is currently at 5.51 million . In total, the most up-to-date government figures show a total of 5.58 million SMEs currently active in the UK. 

1,415,980 of UK small businesses have employees, while 4,174,920 have none at all – this is likely due to the 46% of people in the UK who are sole traders or who have started a side hustle.

How does the number of UK SMEs compare to previous years?

When records began in 2000, the overall number of private sector businesses stood at 3.5 million. Overall, the UK has still enjoyed a 77% increase in SMEs over the past 23 years .

How many new businesses were launched in the UK?

2023 started with a 19.5% rise in new businesses (39,966 businesses), which represents a 6.5% increase compared to the same period in 2022. This growth is particularly noteworthy considering the more modest 2% year-on-year increase in overall incorporations last year (778,219 in 2022).

While challenges remain, this strong start to 2023 could signal a sustained increase in business creation in 2024 . However, the true picture will emerge in March when Companies House releases data for the latter half of 2023. 

Additional points:

• ⬆️ There has been a 1.2% increase in non-employing businesses, driven by a 2.9% rise in unregistered businesses.
• ⬆️ Employment within small businesses amounted to 12.9 million (48% of total) with a turnover of £1.6 trillion (36%). 
• ⬇️ There has been a 0.2% decrease in employing businesses.

How many UK business failures are there?

• ⬇️Around 316,310 UK businesses stopped trading in 2023, according to the latest data from the Office for National Statistics (ONS). This translates to a business death rate of almost 11%.
• ⬇️ Business closures decreased slightly from 324,000 from 2022, but still represent a significant number.

In better news, 65.3% of small businesses were profitable in 2022 . Early 2023 reports showed signs of recovery in external finance usage by small businesses, potentially fueling further profitability. Based on these trends, some sources like Small Business Trends estimate that the percentage of profitable small businesses might even be higher in 2023-2024, potentially reaching 70%.

What kind of firms make up the UK’s business population?

According to the 2022 Business Population Estimates by the Office for National Statistics (ONS), construction had the highest number of businesses in the UK , with 914,000 firms operating in 2022. While the 2023 data isn’t available yet, construction consistently shows a high number of businesses in official ONS reports. 

The same ONS report shows 865,000 businesses operating in administrative and support services sectors like recruitment, accountancy, and business administration. Some sources, like the Federation of Small Businesses , also consider this sector will be the largest this year based on their calculations.

The ONS Business Impact of COVID-19 Survey (BICS) found that around 45% of SMEs saw turnover fall by at least 20% post-COVID. As a result, data sources show that smaller SMEs suffered more financial repercussions from COVID-19 than larger businesses.

How many UK small businesses use external finance?

On average, 56% of SMEs have sought external finance in the last three years, as found by the British Business Bank 2021 SME Finance survey .

In 2023, the “ cautious funding trend ” began, where investors scaled back in the UK due to financial uncertainty. It picked up again in October 2023 however, when a report revealed that venture capitalists were once again offering new growth prospects remotely, but the process was leading to burnout (in the form of Zoom fatigue ) among entrepreneurs.

In the first half of 2023, the total capital raised amounted to £4.6 billion , representing a stark 70% decrease from the £15.3 billion raised during the same period in 2022. 

According to our exclusive Startups data , companies are exploring different ways to get funding depending on their industry.

• ⬆️Tech companies are boldly seeking money, with 54% actively looking for investors .
• ⬇️ Construction companies are being more cautious, choosing their funding wisely.
• ⬇️ Uncertainty in tourism and hospitality makes it hard for businesses to plan their funding.
• ⬆️ Rising costs (for example business electricity costs ) are pushing 63% of businesses to consider getting more money from outside sources.

How many UK businesses have used private debt?

Private debt typically refers to loans made by non-bank lenders to firms. It is also sometimes referred to as direct lending or private credit.

According to Deloitte’s “ Private Debt Deal Tracker Winter 2023 Update ,” 1,823 private debt deals were completed in the UK in 2023. This represents a significant decrease compared to 2022, which saw 2,706 deals.

The UK private debt market saw a significant decline in 2023, with the total deal value dropping from £54.3 billion to £44.4 billion compared to 2022. While the average loan size also dipped slightly to £19 million, healthcare, business services, and technology sectors remained the most active sectors for private debt financing.

• ⬇️ Total deals in 2023: 1,823
• ⬇️ Change from 2022: -26.0%

Although this information is specific to the data provided by Deloitte and might not represent the entire UK private debt market, it’s a good place to start when trying to understand private debt figures.

How many small businesses are financed by venture capital?

Typically, small businesses in the UK only get a small slice of the venture capital (VC) pie.

This is because VC is usually targeted by larger companies with over 100 employees. VC deals usually take a number of years to complete (typically five to seven), with the aim of only making a return once a company has grown.

There were 57 venture capital trusts (VCTs) in the UK in 2021 . This is a significant drop from ten years ago, when there were 128.

However, the amount of funds raised by VCTs has been on a rising trend in recent years and has more than doubled from 2009 to 2010.

Venture capital is still largely a boys’ club. According to data from private market data company Pitchbook , of VC deals made in 2017:

• Less than 1% went to entirely female teams
• 10% went to teams with mixed genders
• 89% went to entirely male teams

What alternative finance options can small businesses use?

In addition to equity and debt, the UK boasts a plethora of alternative finance options to fund a startup or drive business growth.

Small business crowdfunding 

Back in 2011, crowdfunding websites backed just eight deals in the UK. In 2020, this has ballooned to 433 successful campaigns. However, crowdfunding seems to have slowed as a result of the COVID-19 pandemic.

In the first semester of 2020, the UK crowdfunding market collected £103 million in total – a 25.4% fall compared to 2019.

Small business asset finance 

The BBB Small Business Finance Markets 2022 report shows that the SME asset market increased by 25% in 2021 , giving it a total value of just under £20 billion.

This new growth follows a fall of 21% in 2020.

As the BBB report notes, such a noticeable market recovery means the annual new business level in 2021 was only 1% below 2019 (its pre-COVID peak).

Peer-to-peer small business lending 

Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses using specialist digital platforms.

Data from the Cambridge Centre for Alternative Finance shows that peer-to-peer business lending is the funding method with the lowest volume . Still, it has been growing steadily since 2012, and was valued at £4 billion in 2020.

How has Brexit impacted small business investment?

Following the 2016 Brexit referendum, data from the Bank of England (BoE) shows that around 45% of businesses rank Brexit as one of the top sources of uncertainty for their business. Businesses with a higher level of Brexit uncertainty also enjoyed less investment growth post-referendum than those with lower Brexit uncertainty.

In its May 2021 Decision Maker Panel survey, the BoE asked business members how they thought the UK’s decision to leave the EU had affected investment. Businesses reported that in 2020, investment was 5.5% lower than it would have otherwise been.

Which sector has the most UK businesses?

According to the Office for National Statistics (ONS) data from March 2023, the professional, scientific and technical activities sector holds the largest number of VAT and/or PAYE-registered businesses, with 15.2% of the total (2.727 million). This broad category includes diverse areas like IT, accounting, legal services, and research & development.

Which UK business sector employs the most people?

While definitive data for 2024 isn’t available yet, the UK business sector employing the most people in 2024 is likely to be Health and Social Care , a sector that employed 2.9 million people in 2023 according to the UK Office for National Statistics (ONS).

Unfortunately, 2024 didn’t start well in terms of job security in other areas, particularly in the tech industry – for reasons not yet clear – with over 34,000 employees losing their jobs across more than 140 companies, according to Layoffs.fyi. 

Even established giants haven’t been immune, including major names like Snapchat, Zoom, PayPal, Salesforce, Microsoft, eBay, TikTok, Wayfair, Google, Discord, Audible, and Rent the Runway.

A survey conducted this year also found that London is currently the worst region for job security in the UK right now.

Additional information:

• ⬆️ There has been a 1.7% increase in small business employment from 2022, adding 300,000 new jobs.
• ⬆️ 16.7 million people are currently employed by small businesses, representing 61% of all private sector jobs – and a 1.7% increase compared to the 2022 average.
• ⬆️ There are currently 1.4 million employing businesses and 4.1 million non-employing businesses.
• ⬆️ SMEs account for three-fifths of the employment and around half of turnover in the UK private sector.

Which UK sectors have grown over time?

Several sectors witnessed positive trends from 2022 to now when it comes to the fastest-growing industries , according to IBIS World :

• Non-alcoholic beer production: this niche market experienced a significant 40.5% revenue growth in 2024, reflecting changing consumer preferences and health-conscious trends.
• Corporate travel services: with business travel resuming post-pandemic, this sector saw a 31.5% revenue growth in 2024.
• Language learning software developers: the ever-growing demand for language learning led to a 22.4% growth in this sector’s revenue in 2024.

Other promising sectors:

Immersive technology: encompassing virtual and augmented reality, this sector exhibits potential for significant growth across various industries.

Fraud detection software developers: as cyber threats evolve, the demand for security solutions is increasing, driving growth in this sector.

Social media platforms: despite challenges, social media platforms remain popular, with a projected 20.1% growth in UK revenue for 2024.

Online men’s clothing retailers: benefitting from the online shopping shift, this sector is projected to grow 19.0% in 2024.

Tour operators: with travel restrictions easing, the tourism industry is seeing a rebound, leading to a projected 17.8% growth for UK tour operators in 2024.

There is also the ever-present and unstoppable rise of artificial intelligence (AI) to consider. According to our exclusive Startups data, 61% of businesses think AI will disrupt their industry , with: 

• ⬆️ Highs of 32% believing it will cause “high disruption” in the tech industry
• ⬆️ Highs of 75% in the transportation industries citing they are “not sure what the impacts of AI will be at this time”
• ⬇️ Lows of 59% and 57% in the professional services and leisure industries respectively.

In 2020, we collected expert research between January and March 2020.

In 2024, the answers are a little different. The main concerns currently are:

Economic instability

UK businesses and entrepreneurs are feeling nervous about the future, with our recent exclusive Startups’ survey revealing that 24% of respondents see economic instability as their biggest concern . 

This worry seems to be impacting business confidence as well, with a majority (57%) of small businesses believing a change in government would be beneficia l.

The ongoing conflicts between Ukraine and Russia, as well as Israel and Palestine, can have indirect yet significant impacts on small businesses in the UK. Firstly, these conflicts can lead to economic instability globally, affecting trade relations and causing fluctuations in currency exchange rates, which may impact the cost of imports and exports for UK businesses . 

Additionally, heightened tensions can result in increased uncertainty among investors, potentially leading to reduced consumer confidence and spending, which can directly affect small businesses relying on local consumer demand.

Employee retention

Despite employee salaries and benefits being their biggest expense (25%) , 71% of UK startups are optimistic about meeting employee pay expectations in 2024, according to our exclusive Startups research. 

This optimism aligns with the ambitious growth plans of 80% of businesses , aiming to expand their workforce. However, attracting skilled workers might be challenging due to visa issues , highlighting a potential hiring hurdle amidst these growth aspirations. 

Only 20% consider workforce expansion their top priority, suggesting a nuanced approach to growth where talent acquisition might be a key factor.

How has Brexit affected UK small business?

More feedback from our Startup’s 2020 survey

Four years after leaving the European Union, the impact of Brexit on UK small businesses remains a complex and evolving story. While some sectors have adapted and even thrived, others continue to face challenges due to increased regulations, trade barriers, and the rapidly shifting landscape.

City AM surveyed UK SMEs in November 2021. It found that 64% of UK SMEs believe that Brexit has negatively influenced the UK economy.

• Two in five respondents said their costs had increased since the referendum results were announced, particularly costs associated with importing goods.
• 16% reported suffering a talent shortage as they were finding it harder to recruit staff due to stricter immigration laws.

Trade woes remain prominent

A 2024 report by Bibby Foreign Exchange found that over half (55%) of small businesses involved in international trade see Brexit as a significant challenge, impacting profitability and growth. New customs checks, tariffs, and administrative burdens have added complexity and cost, particularly for smaller firms with limited resources.

Labour shortages bite

The UK’s exit from the single market has also exacerbated pre-existing skills gaps in many sectors. A 2023 survey from the Federation of Small Businesses revealed that 45% of members struggled to hire skilled workers. This issue was further compounded by the rising cost of living , making it harder for businesses to compete for talent.

Looking ahead

The full picture of Brexit’s impact on UK small businesses is still unfolding. While the initial shockwaves may have subsided, ongoing challenges remain. Government initiatives aimed at easing trade barriers and supporting skills development are crucial, but the long-term consequences of Brexit for this vital sector will likely continue to be debated and analysed for years to come.

Further research on the potential barriers of technology from our 2020 Startups Survey

What barriers do female and minority small business owners face?

The gender funding gap has historically been a significant barrier to women starting a business.

According to investment tracker Dealroom, female entrepreneurs’ share of the UK’s multi-billion-pound VC funding market has stayed under 2% for the past 10 years.

Startups recently carried out our own investigation into the gender funding gap. We discovered that, on average, businesses with just one male founder received seven times more investment than women-owned firms.

Racial bias is also a factor in new business success.

The same BBB report found that 18% of external finance applications from ethnic-minority-led businesses were turned down . This is compared to 10% of white-led business applications.

Research from the Black Business Network has highlighted the impact this is having on Black startup owners. Only 43% of Black entrepreneurs said they trust banks to support them with the capital to grow their businesses.

While we’d hoped 2024 would bring more progression, there was a huge roadblock regarding investment at the start of the year: Until recently, investors on angel platforms needed to earn over £100k. But in January, the investment threshold soared to £170k . The steep increase may disproportionately impact the pool of female investors in the UK, particularly in regions where women earning over £170k are scarce or non-existent.

To make matters worse, artificial intelligence may contribute to the issue rather than help to resolve it.

• ⬆️ 79% of working women are employed in the occupations deemed most susceptible to AI automation. ( UK Parliament of Science and Technology )
• ⬇️ Women make up half of the UK population, yet only 22% of AI and data professionals are presently females ( Alan Turing Institute ).
• ⬆️ Men currently constitute an average of 80% of AI professors ( Alan Turing Institute )
• ⬇️ In 2023, the pay gap among full-time employees increased to 7.7%, up from 7.6% in 2022. 
• ⬇️ Black British and Asian employees in 2023/24 earned less (£13.53) median gross hourly pay than White employees (£14.35), which has been the case since 2012. ( Office of National Statistics )

How has COVID-19 affected UK small businesses?

The COVID-19 pandemic has dealt a heavy blow to UK small businesses, leaving a lasting impact across various sectors . Lockdowns and restrictions triggered sharp sales declines, particularly in hospitality and recreation, with some businesses experiencing a staggering 57% revenue drop in April 2020 . 

While some recovery has taken place, further waves and ongoing challenges like inflation keep the future uncertain.

Smaller businesses, often lacking reserves and operating in hard-hit sectors, faced a double whammy. They struggled to access finance due to their limited size and were disproportionately affected by closures. While government support schemes offered a lifeline, many companies accumulated debt during the crisis.

Which sectors were most impacted by COVID-19?

The top three sectors that were most impacted by COVID-19 in the UK are:

1. Hospitality:

• ⬇️ Revenue decline: 57% in April 2020
• ⬇️ Employment: Still 11% below pre-pandemic levels in October-December 2021
• ⬇️ Challenges: Lockdowns, restrictions on gatherings, ongoing staffing shortages, and rising costs

2. Arts, entertainment, and recreation:

• ⬇️ Revenue decline: Significant impact on cultural events, live performances, and leisure activities
• ⬇️ Challenges: Closures, cancellations, reduced capacity limits, and ongoing consumer cautiousness

3. Retail (non-essential):

• ⬇️ Revenue decline: Varies by subsector, but some non-essential stores faced significant drops
• ⬇️ Challenges: Closures, limited capacity, shift to online shopping, and changing consumer behaviour

The landscapes of small businesses in the UK and US, while sharing similar aspirations, diverge in several notable areas, relevant for those businesses considering expanding into the US or seeking insights into US best practices.

• Number of businesses: the UK boasts a higher number of small businesses per capita , with an estimated 5.6 million compared to 30.7 million in the US . However, the US has a significantly larger population, leading to a higher overall number of small businesses.
• Size and structure: the UK leans towards sole proprietorships (56%), while the US favours employer firms (80%) (FSB, 2023; SBA, 2023). This indicates a potential difference in risk appetite and growth aspirations, with UK businesses potentially starting smaller and remaining solo-operated.
• Funding: accessing capital differs significantly between continents. US small businesses enjoy easier access to venture capital, with the US accounting for 78% of global VC investment in 2022 . UK businesses, however, rely more on bank loans and government support (British Business Bank, 2023).
• Digital adoption: the US leads in ecommerce penetration, with 14.1% of retail sales happening online compared to 12.9% in the UK (Statista, 2023). This suggests greater digitalization among US small businesses, potentially impacting their reach and scalability.
• Innovation: the UK currently ranks higher in the Global Innovation Index (2nd) compared to the US (3rd). However, the US generates more patents , suggesting a focus on commercialising innovations (USPTO, 2023).
• Challenges and opportunities: both countries face similar challenges like rising costs, inflation, and talent shortages. However, the US market offers greater scale and access to capital, while the UK boasts a supportive regulatory environment and a skilled workforce.

The UK startup scene in 2024 presents a picture of resilience. Despite economic uncertainties, the sector continues to thrive:

• Investment: investors remain committed, with over £25 billion of new funds raised in the last 3 years ( Dealroom, 2024 ).
• Growth: the UK boasts the #1 tech ecosystem in Europe and #3 globally, attracting talent and fostering innovation ( Dealroom, 2024 ).
• Impact: climate tech, AI, and healthcare are booming, tackling critical challenges with innovative solutions ( TechRound, 2024 ).
• Diversity: vibrant startup hubs are emerging beyond London, empowering regional growth and innovation ( Dealroom, 2024 ).

Examples of success from the Startups 100 2024:

• Unitary : This AI firm revolutionises content moderation, promoting a safer online environment (Startups.co.uk, 2024).
• Lottie : Transforming social care, Lottie helps families find the perfect care homes (Startups.co.uk, 2024).
• Maeving : Britain’s first electric motorbike makes EVs accessible and practical for everyday use (Startups.co.uk, 2024).

Challenges remain:

• Funding: while strong, access to funding might become more selective as economic pressures mount ( Antler, 2024 ).
• Talent: Attracting and retaining top talent in a competitive global market is crucial for continued success.
• Regulation: Navigating a complex regulatory environment can hinder growth for some startups.

Overall, the UK startup landscape in 2024 is a dynamic and promising space. With continued support for innovation, talent, and diversity, the UK is poised to remain a global leader in fostering groundbreaking startups that address major challenges and shape the future.

• News and Features

Written by:

Related articles.

81 UK Small Business Statistics (Updated 2024)

The last few years have been among the most turbulant on record for small businesses..

The 2020s started with a global pandemic and has since seen Russia invade Ukraine, the Israel-Gaza war, and a cost of living crisis.

All of these, and more, has led to some interesting UK small business statistics. There have been changes in both new company formations and the number going under. Yet, the overall makeup of the UK business world still has many familiar stats.

Here’s our UK small business statistics roundup, including:

UK Business Population Statistics

• Birth & Death Rates Of UK Companies
• Types of UK Company Stats

UK Business Growth Rates

Vat & tax statistics, international trade statistics.

• Small Business Data & Security

So, let’s get started…

UK Small Business Statistics (Editors Picks)

• Number of UK businesses: There are 5.6 million UK private sector businesses (7.1% fewer than 2020). 
• Employees: 75% of businesses do not employ anyone aside from the owner(s)
• New company formations: 801,006 new businesses were formed in 2022/23
• Company age: The average UK company at the end of March 2023 was 8.6 years old
• Company size: 99.2% of the total business population are small businesses (0 to 49 employees)
• Most popular type of company: Since 2004, private LTD companies have consistently accounted for over 95% of all corporate body types
• Failure rate: Almost 1 in 5 new businesses fail in the UK each year
• VAT registration: The number of Value Added Tax (VAT) and/or Pay As You Earn (PAYE) businesses in the UK was 2.6 million
• Average turnover: The average turnover of businesses in the UK increased to £806K in 2023, growing 6.9% from 2022. 
• Growth Rate: Businesses with a business plan grow an average of 30% faster than those without

When looking at the overall make-up of UK businesses, there are some interesting statistics that stand out…

How many businesses are there in the UK?

There were estimated to be 5.6 million private sector businesses in the UK in 2023 (down 7.1% from 2020). This is almost entirely (99.9%) comprised of small and medium-sized businesses – and is responsible for generating 52.5% of the total turnover. 

Businesses with no employees account for just 3.84% of all employees but generated 7.38% of all turnover.  

The average turnover of all UK businesses at the start of 2024 was up 6.9% on 2022 (£806,381). Some regions saw higher rates of turnover (with London having the highest rate of £86 billion). However, every region in the UK saw annual average turnover increase in 2023. In regions with relatively low average turnover (Wales, Scotland, Northern Ireland, South West, North East, and Yorkshire), turnover growth is as high as 10% since 2022. 

How many micro businesses are there in the UK?

There are 5.3 million micro businesses (0-9 employees) in the UK, accounting for 95% of all businesses.

The total turnover of a micro business in the UK is £636,893 million. 

Micro businesses were the only business category (by size) that saw a fall in numbers in 2023. Every other business size rose in 2023, the first time after 2 years of declines following Covid-19. 

How many small businesses are there in the UK?

There are 5.47 million small businesses (with 0 to 49 employees) in the UK, 99.2% of the total business population. This makes small businesses by far the most common type of business in the country. Interestingly, small businesses are also responsible for 67.6% of total turnover.

The total turnover of small businesses in the UK is £1.2 billion, while the average turnover per business is £2,802,670. 

How many medium businesses are there in the UK?

There are 35,620 medium-sized businesses (with 50 to 249 employees), 0.6% of the total business population. This means medium-sized business still only make up a very small amount of the total UK business population.

The turnover for medium-sized businesses is £720,540 million. 

How many large businesses are there in the UK?

7,700 businesses were large businesses (with 250 or more employees), 0.14% of the total business population. This makes large businesses by far the least common size of business in the country.

The average turnover of a large-sized business in the UK is £279,468,844 million.

How many black-owned businesses are there in the UK?

There are approximately 250,000 companies in the UK that are ethnic-minority led. This accounts for around 4.5% of the total number of registered businesses. However, it should be noted that this includes all non-white ethnic groups.

Given that ethnic minorities make up around 14% of the overall UK population, this highlights there is still work to be done to increase the number of ethnic-minority entrepreneurs in the country.

UK Company Birth & Death Rates

When looking at how many companies are formed, and how many are dissolved each year there are some very surprising facts.

In fact, the business annual business birth rate is around 13% and the death rate is around 11%.

How many new businesses are started in the UK?

A record 900,000 companies started in 2023, up 12% on 2022. The fastest growing region Northern Ireland (+59%), followed by London (+20%) and Scotland (+11%). 

This figure remains significantly higher the years immediately preceding the Covid-19 Pandemic.

Year by year new company incorporations:

How many new businesses fail in the UK?

Almost 1 in 5 (20%) of new businesses fail in the UK each year. 60% of new businesses will fail in the first 3 years and only around 33% will make it to being a decade old. This reflects the challenging nature of starting, growing and maintaining a successful business.

In 2022 to 2023, there were 585,807 dissolutions in the UK, a year-on-year increase of 0.7%.

Year by year company dissolutions:

What are the biggest concerns for businesses? 

Economic uncertainty is the biggest concern for businesses at the start of 2024, with 23% stating that they are impacting business turnover. This is closely followed by cost of labour, which is now a major challenge for 22% of business surveyed compared to 14% in July 2023. 

On a positive note, the negative impact of inflation is beginning to decline with only 17% of businesses saying the cost of materials will impact turnover compared to 22% in July 2023.  

What is the average age of a UK company?

The average age of a company on the total register at the end of March 2023 was 8.6 years. Despite fluctuations in recent years, the average age of a company has gradually declined from 10.7 years at the end of March 2000.

However, there was no change in the years 2021/22 to 2022/23, indicating a possible stabilisation in the statistic.

Statistics For The Types Of UK Company

The UK is home to a wide range of different types of company. Here we look at some of the most common and the stats around them.

How many hospitality businesses are there in the UK?

There were 223,045 hospitality businesses in the UK as of 1 January 2020, 3.7% of all UK businesses.

In 2019 the hospitality sector contributed £59.3 billion in Gross Value Added to the UK economy, around 3.0% of total UK economic output.

In the three months to September 2020, there were 2.38 million jobs in the hospitality sector in the UK, representing 6.9% of total UK employment.

How many retail businesses are there in the UK?

There are over 300,000 companies registered in the UK that are classed as retail businesses.

Retail businesses employ over 3 million people represent over 8% of all UK jobs. In 2019, retail sales in the UK were worth £439 billion. 

How many ecommerce businesses are there in the UK?

The total number of e-commerce companies in the UK is 120,375. This accounts for around 2.2% of all UK businesses.

With the growing popularity of online shopping, accelerated partially by the COVID-19 pandemic, the share of ecommerce businesses in the UK has grown significantly over the last few years.

Online shopping as a percentage of all retail sales peaked at nearly 38% in January 2021, having stood at 8% at the start of 2011 and 19% in February 2020. It has since fallen back but remains around 28% in the latest period (February 2022).

• Businesses with a business plan grew an average of 30% faster than those that didn’t
• Businesses with a business plan were also 2x more likely to get investments or secure loans than those without.

• Total VAT receipts in the tax year ending March 2023 increased by 1% from the previous tax year (to £160 billion).
• The Wholesale and Retail sector continued to be the largest contributor to net Home VAT liabilities.
• 75% of total net Home VAT declared was paid by traders with an annual turnover greater than £10 million.
• Out of the 2.77 million VAT and/or PAYE businesses, only 59,000 operate from more than one site.

How many VAT registered businesses are there in the UK?

The number of Value Added Tax (VAT) and/or Pay As You Earn (PAYE) registered businesses in the UK is 2.46 million (as of March 2023). This has increased slightly year on year.

Following the UK’s exit from the EU, there is an increased interest on the impact on businesses that trade with the EU.

How many UK businesses trade with the EU?

During the EU referendum debates, Vote Leave estimated that around 324,000 UK businesses traded with the EU. Meanwhile, Britain Stronger in Europe simply stated the figure was ‘over 200,000’.

Unfortunately, there are no official figures on the number of UK businesses that trade with the EU. Still, we can estimate that the true figure is somewhere around 5-6% of all UK businesses.

How many UK businesses export to the EU?

Around 82% of all SMEs who are engaged in exporting are said to export to the EU. From this, it can be estimated that around 8% of all UK SME businesses export to the EU. This figure drops slightly to 7% when all UK businesses, regardless of size, are factored in.

Small Business Data & Security Statistics

• 32% of UK businesses report having cybersecurity breaches or attacks in the last 12 months.
• Large businesses are much more likely to report issues with some 59% reporting breaches.
• Across all businesses, the average estimated loss reported from a cyberattack was £1,100. This rises to £4,960 when looking only at medium at large businesses.
• 68% of micro businesses say cybersecurity is a high priority for them. This is a drop from 80% in 2022 cited as being due to broader economic concerns.
• 10% of all UK businesses send or receive digitised data, either personal or non-personal, to/from organisations or people outside the UK.

Despite the many challenges for UK business over the past few years, the overall performance and outlook is very encouraging.

Our review of the latest UK small business statistics has shown higher new business incorporations at the same time as seeing lower numbers of company dissolutions. This is leading to overall growth in the number of UK businesses.

Small business are easily still the most common type of company and a large proportion of them are being run by the owners without any employees.

However, the average age of registered businesses is falling, and only around a third make it to the 10-year mark. This is a slightly concerning statistic that indicates that many new businesses are being created without a solid long-term strategy.

This highlights the need for better education of entrepreneurs to help them succeed in realising their ambitions.

Sources: Business4Beginners , GOV.UK 1 , GOV.UK 2 , GOV.UK 3 , GOV.UK 4 , GOV.UK 5 , GOV.UK 6 , GOV.UK 7 , GOV.UK 8 , ONS 1 , ONS 2 , CREME , UK Parliament 1 , BBC

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11 best diaries and planners for getting organised in 2022

Whether you need to-do lists, goal setting or just plenty of blank space, we’ve found the perfect journals, article bookmarked.

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You’d be forgiven for having given up on the concept of a diary during the past two years. Thanks to the pandemic, absolutely nothing has gone to plan. And when we weren’t stuck inside, we were doing plenty of last-minute living.

That’s why we’re leaning into 2022, and the order that a diary will help provide.

Nothing says new beginnings like a fresh journal, and we have high hopes that this year we’ll be able to use them comprehensively.

What makes a good one will vary from person to person – some will want nothing more than a space for appointment reminders, while others will want to make detailed notes. Some will want a diary that lives on their desk all year round, while others will need something compact and portable. Those who have meetings with important people will want something smart and chic, while others will desire prompts to help them stay organised and focused on their goals.

All of the diaries and planners in this round-up have something special about them – from the quality of the leather or binding to the size, layout or artwork. We’ve also ensured that all budgets are considered.

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How we tested

We examined each diary initially on aesthetics – did it look inviting?  What was it made of? Was it heavy? What was the layout – day per page or week per page?

The paper was important too. Was it good quality? We used both a pencil and rollerball pen to see how easy it was to write on and noted anything extra special about each diary – and anything that was less impressive.

The best diaries and planners for 2021 are:

• Best for thinking outside the box –  Redstone diary, ‘In another world’: £20, Theredstoneshop.com
• Best desk diary –  Hello Day original 2022 daily planner in ‘swag’: £46, Hellodayplanner.com
• Best for blowing the budget –  Smythson 2022 Panama diary with pencil: £85, Smythson.com
• Best gift –  Noble Macmillan duck egg blue diary: £59, Noblemacmillan.com
• Best for brightening up your day – The Completist Andalucia weekly planner: £20, The-completist.com
• Best for busy households – Dodo Pad original desk diary: £17.95, Dodopad.com
• Best for inexpensive personalisation – Papier pressed blooms 2022: £23.99, Papier.com
• Best for life management – My PA 2022 business planner: £35, Mypaplanner.co.uk
• Best quality –  Organise-Us the midsize organiseher diary 2022: £75, Organise-us.com
• Best budget buy –  Ryman soft touch diary week to view A5: £8.99, Ryman.co.uk
• Best for bookworms –  Moleskine ‘Le Petit Prince' planner: £19.99, Moleskine.com

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Redstone diary: In another world

Best: For thinking outside the box

Rating: 10/10

• Size: 24.5cm x 16.7cm

The team at Redstone consistently create diaries that are so much more than simply a means of tracking plans and making lists. Each year focuses on a (usually niche) theme and the diary is stuffed with artwork, photography, writing and graphics taken from diverse sources. This means that as the year goes on you’re digesting beautiful and interesting things. For 2022, the theme is “everything is possible – in another world”.

A lot of people keep their old diaries, but we’d wager this is especially true when it comes to Redstone’s.

Hello Day original 2022 daily planner in ‘swag’

Best: Desk diary

Rating: 9/10

• Size: 19.5cm x 22cm

Weighty, thick and not one for discreetly popping into your handbag, this planner means business with a page-per-day format and a chic monochrome cover (although different designs are available). We like the large ring binding – it makes the pages easy to turn, and laying the diary flat is a doddle.

What we loved most were the prompts encouraging users to detail what they are grateful for or if there’s a birthday to be remembered. There’s also an inspirational quote on every page, the likes of which can never harm one’s motivation. There are trackers for water consumption and even exercise and meditation. We found that having these unticked boxes really helped encourage us to make better health choices.

Smythson 2022 Panama diary with pencil

Best: For blowing the budget

• Size: 9cm x 14cm

Smythson’s diaries never fail to be really glamourous and special – even their pocket-sized offerings pack a punch. Especially this bright red beauty that comes complete with a pencil.

Everything about it speaks to luxury, from the crossgrain lambskin cover to the gilt-edged featherweight paper. We loved that this can fit into even a diminutive handbag and we couldn’t have felt more smug casually placing it on the table in meetings and waiting for the compliments to come rolling in.

Noble Macmillan duck egg blue diary

• Size: 12.8cm x 17.5cm

Simple, fun and luxurious, this diary will be a lovely companion for the coming year. Its soft, leather-bound cover can be personalised with initials, names or even a message and offers a week-per-view format, opposite which is a space for an extensive to-do list. At the back is a 26-page notes section.

We love the gold-gilt-edge pages which feel super glam and make this diary ideal for gifting, not least because it arrives in a beautiful hard box, all tied up in a bow.

If blue isn’t your colour, there are others to consider including lime and tangerine .

The Completist Andalucia weekly planner

Best: For brightening up your day

Rating: 8/10

This bright and juicy cover is exactly what any bleak January calls for. We love this planner which is light and slim. The pages are made from music sheet paper, which is a lovely little quirk. It has also been beautifully and meticulously bound so that it can lie flat when opened.

With a two-page spread per week, there’s plenty of space for appointments and notes, if not quite full journal entries.

Dodo Pad original desk diary

Best: For busy households

• Size: 24cm x 19cm

The Dodo Pad has been a firm favourite for anyone with a hectic life and a taste for the offbeat since 1966. You aren’t going to be writing your memoir in the Dodo Pad – it’s very much about planning. Each week is presented as a grid with each day having a row of five columns. This is ideal for those who have distinct parts of their lives (work, home, gym and creative, for example).

The entire ring-bound book is covered in bright, jolly illustrations and full-page colour bleeds. It’s a joy to use and for extra fun, this year’s diary comes with a set of stickers for either decoration or strategic coded planning.

We recommend the original-size pad, but smaller versions are also available.

Papier pressed blooms 2022 diary

Best: For inexpensive personalisation

Part of the brand-new “mother of pearl” range at Papier, this diary is ultra feminine and will be a welcome addition to any desk or handbag. It runs for 13 months, which gives avid planners a little more time for looking ahead. The interior layout has a week per view, but there are pages dedicated to monthly overviews and goal setting, which is a nice way of dipping one’s toes into the world of goal-oriented planning.

The front can be personalised, which adds a lovely touch.

My PA 2022 business planner

Best: For life management

Rating: 7/10

• Size: 24cm x 18cm

This is for anyone who doesn’t have a PA IRL, but wants one. It is a thick, weighty volume that promises to optimise the user’s work, social life and health.

Yes, it offers a “normal” diary format, but there’s more. So much more. It invites you to set daily, weekly and monthly goals. It makes space for a monthly social media plan. And there are pages dedicated to gratitude journaling and more still to serve as an “inspiration vault”.

When people say “I need to sort my life out,” they could probably do with My PA.

Organise-Us the midsize organiseher diary 2022

Best: Quality

Rating: 9.5/10

• Size: 13.5cm x 19 cm

The first thing we noticed about this diary, aside from the amazing, deep emerald green colour, is how tactile the cover is. It’s smooth with a lizard-skin finish and manages to be both minimal and interesting in one go.

The quality is evident immediately. Hand-bound with inside covers lined in a sleek silk, plus ribbon markers, it’s weighty without being clumsy and it even smells luxurious.

Inside, it’s a week-per-view format with clever distinct sections for lists and so on. This is the perfect diary for people who love diaries.

Ryman soft touch diary week to view A5

Best: Budget buy

This A5 diary is slim and chic with a leather-feel cover. We loved how very practical it is: a week-to-view layout plus pen loop and elasticated closure. But the price point is really the best thing about this diary – it’s an absolute steal without compromising on style or ease of use. Really smart.

Moleskine ‘Le Petit Prince' planner

Best: For bookworms

Moleskine is a stationery heavyweight, with its diaries reaching cult status thanks to their easily recognisable design – the rounded corners being a classic feature – which also manages to be discreet and understated.

This year the brand has unveiled a limited-edition hardcover diary with a Le Petit Prince theme that is sure to charm bookworms of any age. Graphics and quotes from Antoine de Saint-Exupery’s much-loved classic tale punctuate the planner from beginning to end.

The day-per-page format is brilliant for those who like to add detail to their diary entries, or for fully-fledged journalers. We were also delighted that it lies flat, making it easy to write in.

There are lots of helpful accoutrements including international measurements, dialling codes and flight durations, and an expandable inner pocket for receipts, ticket stubs and stamps.

The verdict: Diaries and planners

We have a soft spot for Redstone because it’s just so cool as an object and makes each day interesting. Although we can’t fault Ryman’s soft cover offering – it’s cheap, simple and efficient. For the more discerning it’s got to be one of the options from Smythson , Noble Macmillan or Organise Us .

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Small Business UK

Advice and Ideas for UK Small Businesses and SMEs

What emerging business ideas could boom in the future?

Cloud services and artificial intelligence are emerging as the next biggest business opportunities

UK entrepreneurs are looking to take advantage of the next emerging business trends which could boom in the near future and beyond.

If you’re a budding entrepreneur considering going solo with a passion for all things tech, there are some great opportunities for you to build on your skill set and turn that brain power into a thriving business.

While the last 18 months have undoubtedly been a challenge for businesses across most sectors, the demand for digital innovation has seen a huge uptick as organisations relied on technology to help them either survive or thrive. That means that the opportunity is there for those with innovative new ideas who can leverage tech in their favour.

Tech trends on the rise

While it was already on the up long before the pandemic, cloud services have seen massive gains over the last 18 months. Gartner has predicted cloud spending to reach $332.3bn (£250.5bn) in 2021 , up from $270bn (£203.5bn) in 2020, as businesses looked towards digital solutions that were faster, more agile and secure to deploy. And as businesses were forced into dramatic pivots and decision-making as they sailed the stormy waters of 2020-21, the cloud was a natural accompaniment when it came to digital innovation.

Salesforce, Microsoft and Amazon Web Services (AWS) have all seen massive increases in revenue in that period. More businesses started using their software. And with much of the global workforce likely to remain remote, even on a hybrid basis, once restrictions ease and the world returns to normal, the demand for video apps such as Zoom and Teams, and the platforms that support them, will continue indefinitely. The opportunity to enhance those offerings is also there.

Not only that, but the shift to even more reliance on digital consumer services will also remain. We’ve all downloaded apps for local restaurants and are used to packages constantly being delivered at home from online purchases. While that trend may slow as we eventually return to eating out and visiting shops, it won’t disappear completely. Similarly, we won’t ditch the extra entertainment services we’ve subscribed to in order to keep us entertained—indeed, as a lot of working lives change with the benefit of a better work-life balance as a result, there’s a chance they could become even more important to us.

>See also: How to shift your pub or restaurant from eat-in to takeaway and delivery

AI is also on the rise

That’s not to say the cloud is the only area of tech that’s seen a surge in demand recently. There was a time when artificial intelligence (AI) may have been seen as something from the future or even to be feared, but the reality is that it is now simply part of our everyday lives. Now, PwC has predicted that AI has the potential to contribute $15.7trn (£11.7trn) by 2030 .

From voice-activated personal assistants such as Google Home or Alexa, to chatbots on website, it doesn’t just stop at consumer-facing products like these, as businesses are also increasingly relying on it to spot trends and inform decisions behind the scenes. It’s safe to say that the reality of AI, whilst still incredibly innovative and exciting, is very different to the dystopian vision that may have been portrayed 10-15 years ago. For the technically minded among you, this is another great area to step into while it’s still in the relatively early stages, as there is still massive potential for growth.

From an entrepreneurial point of view, the landscape is also incredible encouraging. For anyone with a unique idea and a deep understanding of AI, the opportunity is there to develop new technologies with a practical application. Whether that’s automating manual tasks, reporting or even using speech recognition in a unique way, there’s a good chance you could make a successful business out of it.

The ups and downs of entrepreneurship – have you got what it takes to go it alone?

There’s no doubting that technology remains a sector full of growth potential across different niches and ecosystems. However, you should bear in mind that it’s one thing to have the technical ability, it’s another thing entirely to have the drive and ambition to start up your own business. It takes a special kind of person to take on the responsibility and the challenge of building a business from scratch . You need to have the passion and motivation to push through any obstacles; it’s a real departure from the 9-5, where you can switch off when you leave work at the end of the day.

However, when it comes to making the leap and hiring your first employee , it’s also worth considering the world of work has changed dramatically over the last year. Your working week may no longer resemble a 9-5, but there’s a good chance your employees don’t want theirs to either. So, before you even post a job ad, think carefully about the sort of package on offer and how it reflects the ‘new normal’.

Are you able to offer a remote or hybrid approach to where people are based, and flexible hours around that? If so, you won’t just appeal to the usual candidates, but you’ll be able to draw from talent pools that can be restricted by a full-time, site-based role. The plus side is that despite the skills gap in technology, diversity remains a major area in need of further improvement—appealing to those outside of traditional hiring patterns will put you in a great position to get the jump when it comes to recruitment.

As you can probably gather, there’s much to think about when it comes to entrepreneurship beyond just having a brilliant idea. Look behind any overnight success and it’s rare that it is just that—the moment the light appears to flicker on is usually the result of months, years or even decades of hard work. That period may see slow, steady growth until momentum carries you to success, but it’s also likely to be accompanied by mistakes and bumps in the road. So, you need to be prepared to learn from those in order to move forward.

The good news is that despite the scare stories about the economy at the beginning of the pandemic, there’s little doubt that opportunities are there. Ensuring you’re adaptable and willing to roll with the punches that are still coming in, as well as being prepared to work harder than you ever have before, is the best way to make sure you’re geared up for success in the long-term.

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This piece was updated in December 2021 by James Lloyd-Townshend, chairman and CEO of Frank Recruitment Group.

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What Is the Rwanda Policy? U.K.’s Plan for Asylum Seekers Explained

The plan has been in the works for years, but the passage of a contentious bill by Britain’s Parliament puts the country closer to sending asylum seekers to the African nation.

By Megan Specia

Reporting from London

After a prolonged battle in the courts and in Parliament, Britain’s Conservative government secured passage of legislation on Monday that is intended to allow the country to send asylum seekers to Rwanda.

The legislation is intended to override a Supreme Court ruling last year that deemed the plan to send asylum seekers to the African nation unlawful . The judges ruled that Rwanda was not a safe country in which refugees could resettle or have their asylum cases heard.

The Rwanda plan, which has become a flagship policy of Prime Minister Rishi Sunak at a time when his party’s approval ratings have floundered, now seems closer than ever to becoming a reality. But critics say it raises profound questions about the rule of law and the separation of powers in Britain and could affect thousands of asylum seekers. Rights groups have vowed to fight the plan in the courts.

Here’s what to know.

What is the Rwanda policy?

As the number of asylum seekers arriving across the English Channel rose after a lull during the coronavirus pandemic, the Conservative government pledged to “stop the boats.” Most of those arriving by small, often unseaworthy boats apply for international protection in Britain through the asylum system, and many are later found to be refugees and permitted to settle in Britain.

Through a series of bills and agreements, the government introduced a policy that said that people arriving by small boat or any another “irregular means” would never be admissible for asylum in Britain. Instead, they would be detained and sent to Rwanda, where their asylum cases would be heard, and, if successful, allow them to be resettled there.

The government has argued that the Rwanda policy will be a deterrent, stemming the flow of tens of thousands of people who make dangerous crossings from France to Britain each year. This has been questioned by some migration experts who say that the people on small boats already risk their lives to travel to Britain.

Rights groups and legal experts have warned against the policy, saying it contravenes Britain’s legal obligations to refugees under international law and violates the 1951 U.N. Refugee Convention .

How did we get here?

In early 2021 , Boris Johnson, then prime minister, began discussing plans to send asylum seekers abroad. Taking control of Britain’s borders was a central promise of the 2016 Brexit campaign, championed by Mr. Johnson and Mr. Sunak.

In the summer of 2021, Priti Patel, then the minister responsible for overseeing immigration and asylum, introduced the Nationality and Borders Bill , making it a criminal offense to enter the country by irregular means, for instance by boat and without a visa. The bill also gave the authorities more scope to make arrests and remove asylum seekers .

By April 2022, Britain announced a deal with Rwanda to send asylum seekers there in exchange for hundreds of millions in development funding, and the Nationality and Borders Bill became law later that month.

But amid legal challenges and a last-minute interim decision by the European Court of Human Rights, the first planned flight in 2022 was halted . By early 2023, Suella Braverman, the home secretary then, revived the plan with the Illegal Migration Bill.

That legislation, which became law last July, gave her office a duty to remove nearly all asylum seekers who arrived in Britain “illegally” — meaning without a visa or through other means, like covert arrivals by small boat or truck. (In practice, many of these asylum seekers would not be arriving illegally since genuine refugees have a right to enter and claim international protection.)

The asylum seekers would then be sent to their home countries, “or another safe third country, such as Rwanda.” No matter the outcome of their claims, they would have no right to re-entry, settlement or citizenship in Britain.

These efforts were all challenged in the courts, ending with the Supreme Court ruling that deemed the plan to deport asylum seekers to Rwanda unlawful.

The Safety of Rwanda Bill and a treaty with the African nation earlier this year are intended to override the court’s judgment by declaring Rwanda safe in law, and instructing judges and immigration officials to treat it as such.

How much has Britain spent on the plan?

Although no asylum seekers have yet been sent to Rwanda, Britain’s independent public spending watchdog last month found that the government will have paid Rwanda £370 million , or around $457 million, by the end of 2024. And costs to carry out the policy will rise even further if flights do take off.

For each person eventually sent, Britain has pledged to pay Rwanda an additional £20,000 in development fees, plus £150,874 per person for operational costs. After the first 300 people are sent, Britain will send an additional £120 million to Rwanda.

Yvette Cooper, the opposition Labour minister responsible for a portfolio that includes migration, on Tuesday called the cost “extortionate” and argued that the money should be put into “boosting our border security instead.”

What has been the reaction to the plan?

The policy has faced intense opposition almost since its inception, with the United Nations’ refugee agency, UNHCR, warning in 2021 that it violated international law.

On Tuesday, Filippo Grandi, the UNHCR commissioner, said the law sought to “shift responsibility for refugee protection, undermining international cooperation and setting a worrying global precedent.”

Michael O’Flaherty, the Council of Europe’s commissioner for Human Rights, said the bill “raises major issues about the human rights of asylum seekers and the rule of law more generally” and urged Britain to “refrain from removing people under the policy and reverse the bill’s “effective infringement of judicial independence.”

When could the first deportation flights take off?

Mr. Sunak initially promised to deport asylum seekers by the spring, but on Monday he said the first flights would not depart until June or July.

He said the government had put an airfield on standby, booked commercial charter planes and identified 500 trained escorts who would accompany asylum seekers to Rwanda.

However, legal experts say the plan is deeply flawed, and rights groups have vowed to fight any plans to send asylum seekers to Rwanda.

Richard Atkinson, the vice president of the Law Society of England and Wales, a professional association for lawyers, said in a statement on Tuesday that the bill “remains a defective, constitutionally improper piece of legislation.”

On Tuesday, more than 250 British rights organizations wrote to Mr. Sunak vowing to oppose the measures in European and British courts.

Individuals who receive notices that they will be sent to Rwanda are expected to start legal challenges against their removal in British courts, and some may also appeal to the European Court of Human Rights, which could again issue an injunction to halt flights.

Nick Cumming-Bruce contributed reporting from Geneva.

Megan Specia reports on Britain, Ireland and the Ukraine war for The Times. She is based in London. More about Megan Specia

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• UK Export Finance Business Plan 2024-29
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UK Export Finance Business Plan 2024-2029

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This publication is available at https://www.gov.uk/government/publications/uk-export-finance-business-plan-2024-29/uk-export-finance-business-plan-2024-2029

1. Executive Summary

This is UK Export Finance’s (UKEF’s) 5‑year strategic plan. It sets out how UKEF will grow the impact it delivers for the UK public, looking out to 2029.

UKEF supports UK exports – from companies large and small – helping to create economic growth and support jobs across the UK. It also creates wider impacts, like bolstering the UK’s leadership in green industries and building commercial partnerships with fast growing developing markets.

1.1 The structure of our plan

Delivery objectives.

Five objectives setting out the real‑world impact UKEF will target over the next five years.

Five‑year milestones

Puts a number on our ambition by setting out our numerical expectation of the impact we will create by 2029.

Strategic enablers

Describe how UKEF will evolve as an organisation to deliver the best service possible for our customers.

1.2 Our strategic enablers

• Putting the customer at the heart of everything we do
• Being purposeful and responsible with our risk taking
• Making UKEF the best place to work for our people
• Ensuring we have the right digital and data solutions to inform our activities
• Ensuring UKEF is an agile, fit-for-purpose organisation

1.3 Our objectives and five-year milestones

2. foreword.

I am exceptionally proud to present UK Export Finance’s (UKEF) next business plan. When I took on the role of UKEF’s Chief Executive Officer, I saw first‑hand the impact we have, and the momentum and drive of a department committed to serving its customers and delivering for the taxpayer. In that spirit, I set out my priorities for the department: maximising our real‑world impact, delivering services for our customers, growing the reach and relevance of our support, and continuing to invest in our people to ensure UKEF remains a great place to work. This plan builds on those priorities and sets out the department’s guiding strategy for the next five years. It is rightly bold, ambitious and challenging, and will deliver impact across the UK and in communities overseas.

Our mission has changed since our last business plan. We are now aiming to advance prosperity by ensuring no viable UK export fails for lack of finance or insurance, doing that sustainably and at no net cost to the taxpayer. Those principles – of delivering prosperity to individuals and communities, of doing our business sustainably, and of upholding our responsibility to the UK taxpayer – underpin all the work we do and our approach to supporting UK exporters.

This business plan also marks a shift for the department. UKEF has a proud track record of delivering tangible outcomes for our customers and partners, helping UK businesses realise their global ambitions. Our success will always be their success. Now we are also putting that impact at the heart of our business plan for the first time.

This approach is about recognising the strength of the UKEF offer and the role we can play as a catalyst for the UK economy – whether supporting the low‑carbon transition or using our deep sectoral understanding, global relationships and the opportunities created by new free trade agreements to get more UK businesses involved in large international projects. It is already guiding our strategic focus, most obviously in our new objectives and our Sustainability Strategy that I am pleased to launch alongside this business plan.

For our customers, this plan means a reaffirmation – and evolution – of the UKEF proposition. It means more digital services, a better user experience and a continued commitment to deliver innovative and game‑changing solutions that work for them, so that UKEF can unlock the finance they need to export. But our customers are not the only stakeholders we serve. We also have a responsibility to the taxpayer – to ensure that our services are delivered in a way that delivers value for money, protects against the risk of financial crime, and mitigates effectively against the risk of default.

Our ambitions build on strong foundations. Under our last business plan, we grew our portfolio, diversified our customer base and product range, and played a pivotal role in the response to some of the most pressing challenges of our time – the pandemic, the invasion of Ukraine and climate change.

None of this would have been possible without UKEF’s greatest asset: our people.

As we enter this next period, we will continue to invest in them, ensuring UKEF remains a place where talented people choose to build their careers, motivated by the real impact we have on the world.

Tim Reid, Chief Executive Officer

3. ukef’s strategic context.

Our world has faced a series of crises that have upended norms and led to a substantial global realignment. The pandemic, the war in Ukraine, persistent inflation and the effects of climate change are all having marked impacts not just on the UK but across the world. Against this backdrop, UKEF will play a key role in growing the UK’s trade base, supporting a greater value and volume of exports across this period.

Looking across the period of the business plan, the fundamentals of UKEF’s work will not change. The UK is a major exporting nation, and throughout our history UK companies have sold their goods and services across the world. Our core purpose remains as relevant as ever – but our offer will need to evolve. While UK service exports have stayed strong due to a deep comparative advantage across financial, cultural and business services, our goods exports are currently below pre‑pandemic levels. We will need to do more to help bring the domestic benefits of trade to more businesses large and small. This will mean supporting more exporters, significantly scaling the number of small and medium‑sized enterprises (SMEs) we support in all regions of the UK, and better targeting those who are underserved, such as ethnic‑minority and women‑led businesses.

At the same time, this is an era of global challenges – from climate change and biodiversity loss to the slowing progress towards poverty reduction and an uncertain economic environment. Export credit agencies are increasingly looked to not only to fulfil a market gap, but also to support their governments’ wider international and domestic policy objectives. Geopolitical tension and uncertainty is leading to increased global defence spending and a focus on building greater supply chain security – requiring us to continue to play a pivotal role in financing exports from the UK’s world‑leading defence and aerospace sectors. The imperative of addressing climate change means we will also need to expand our provision of clean growth and transition finance. And we will increase our financing for social infrastructure in developing countries, helping to build strong trading and investment partnerships with the markets of the future.

We live in an increasingly contested and volatile world. Trade can help us solve the problems of our time, unlocking the potential of British businesses, growing economies across the world and bringing the benefits of the climate transition to all. Helping UK businesses seize the opportunities of a changing world is the core of our 2024‑29 business plan.

4. Our mission, vision and values

UKEF is a purpose‑led organisation. We embed our vision and mission across our business, driving progress against the government’s priorities, delivering value for our customers and ensuring UKEF remains a great place to work.

Our mission

We advance prosperity, ensuring no viable UK export fails for lack of finance or insurance, doing that sustainably and at no net cost to the taxpayer.

To empower UK businesses, drive local growth and create a global impact.

5. Our impact

Each year, UKEF provides billions of pounds of financial support, helping businesses across the whole of the UK to export. This support makes a crucial difference, allowing UK firms – large and small – to grow by tapping into the enormous opportunities that global markets provide. This is at the core of our mandate, but the real‑world impact of our work is much wider: from supporting quality jobs in local communities in the UK and driving place‑based growth, to financing clean energy technologies that are needed for the global low‑carbon transition, and helping build much needed infrastructure in emerging economies.

Across the financial sector, firms are increasingly considering the impact of their finance and how they can drive better outcomes for customers and communities across the world. As a government department and a key tool for the UK government’s economic and foreign policy agenda, it is right that we do the same. Our staff consistently report that it is the impact of what we do that sets us apart and helps make UKEF a great place to work. Whether this is helping a small, local business in Teesside win a place in an overseas project, or financing a hospital to be built in Angola, our support touches individuals and communities across the world.

To ensure we fully understand the impact of our support, we have developed an impact framework, stemming from our mission statement, that sets out three thematic outcomes which UKEF support drives. Most importantly we support the UK’s prosperity, enabling firms to win contracts, create employment opportunities and pay higher wages. We have a sustainability impact, which includes supporting the low‑carbon transition. And we contribute to the UK government’s public policy aims, such as levelling up and the international development strategy. We work alongside the other public finance institutions in the UK, maximising the impact public finance can have and catalysing benefits for UK businesses through our combined approaches.

Our approach to impact has informed the development of this plan, with each of our delivery objectives aligned to the impact we want to have on the world. We are committed to ensuring that every strand of our operations – from our people, to how we use data and insights, to our approach to managing risk – are all focused on maximising the impact of our finance and support. The public rightly has high expectations for how their money is spent. This approach will give us assurance that we are driving positive outcomes while remaining responsible and appropriate with the amount of risk we take.

6. Delivery objectives for 2024-29

Our five delivery objectives set out what ukef will do to achieve our mission and continue to drive impact over the next five years:.

Catalyse UK trade through UKEF’s world-leading export finance and insurance offer

Significantly increase the number of SMEs that benefit from UKEF’s support

Support a broad range of businesses to export, driving local growth across all regions of the UK

Position UK exporters and suppliers at the heart of the global low-carbon transition

Use our finance in developing markets to create positive impact on communities overseas and in the UK

7. Objective 1: Catalyse UK trade through UKEF’s world-leading export finance and insurance offer

UKEF’s offering is our core strength – government‑backed finance on commercial terms that is focused on enabling British businesses to win contracts, fulfil orders and get paid. We will use our finance and insurance in support of the government’s trade agenda, driving UK exports, maintaining our place as a world‑leading export credit agency and expanding our support to more businesses than ever.

Support UK firms to win over £12.5 billion of export contracts by 2029

Enable £5 billion of finance to help exporters build their capability by 2029

7.1 How we will achieve this

8. objective 2: significantly increase the number of smes that benefit from ukef’s support.

The importance of the UK’s SMEs should not be understated. Comprising over 99% of all British businesses, they account for three‑fifths of employment and half of turnover in the private sector. Located across all regions and nations of the UK, these businesses provide local employment opportunities, bring UK expertise into global supply chains and are the heart of the UK economy. We want to support more SMEs that are looking to export and address the challenges they face in securing finance or insurance from the private sector. Underpinned by our trade finance products, including the General Export Facility, we will build on our historic successes and broaden our reach to even more of these businesses.

Support 1,000 SMEs per year before 2029

8.1 How we will achieve this

Expanding our reach to fill our addressable market for smes.

• Making it easier for SMEs to access our support, with more digital and automated services and quicker response times
• Delivering a targeted offering for smaller SMEs that struggle to access finance, covering both experienced and new exporters
• Doing more to help SMEs access finance from the private market
• Onboarding alternative finance providers that specialise in financing SMEs
• Better connecting SMEs with the projects that UKEF supports overseas, helping them win contracts
• Developing our offer for the overseas buyers of SMEs
• Modernising and expanding our insurance offering
• Delivering more targeted marketing and communications to build awareness of the UKEF offer

9. Objective 3: Support a broad range of businesses to export, driving local growth across all regions of the UK

UKEF is the export credit agency for the whole of the UK, so it is important that the benefit of our support is available to all businesses – irrespective of location, size or ownership. We know that underserved businesses have huge potential, but face barriers to accessing finance.

We are committed to increasing the impact we have on customers from underserved groups and ensuring that all regions and nations of the UK can benefit from UKEF’s offer.

Maintain a minimum of 80% of the businesses we support based outside of London over the business plan period

Measure the number of underserved businesses we support, setting a baseline and increasing the proportion of these businesses year-on-year

9.1 How we will achieve this

10. objective 4: position uk exporters and suppliers at the heart of the global low-carbon transition.

UKEF was one of the first export credit agencies to commit to reaching net zero by 2050, and we remain strongly committed to using our finance to facilitate the net zero transition. To achieve this, we will work with our partners to maximise positive climate impacts and mitigate negative ones, helping to accelerate the global transition to low‑carbon and climate‑resilient economies. We will enable the export of clean growth technologies, playing our part to bolster the UK as the world’s leading hub for green finance.

Provide £10 billion of clean growth finance to accelerate the UK’s green export sector by 2029

10.1 How we will achieve this

11. objective 5: use our finance in developing markets to create a positive impact on communities overseas and in the uk.

UKEF’s finance in developing and emerging markets can create mutual benefits, securing UK export wins and helping to deliver the infrastructure and other priority projects overseas that create economic growth. We know that developing countries will need vast quantities of finance to unlock clean and sustainable growth. UKEF actively mobilises finance into developing markets, de‑risking deals for commercial lenders and investors, and we remain committed to reforming and greening the international financing system. Over the course of this business plan, we will continue to contribute to the UK government’s international development offer, bringing the benefits of our support to the countries that need it the most.

Mobilise £10 billion of finance in low- and middle-income countries

11.1 How we will achieve this

12. our strategic enablers, 12.1 the blueprint for our delivery.

Our strategic enablers set a blueprint for achieving our business plan objectives. We have identified five enablers that will chart the path for us to deliver and will act as key areas of transformation over the next five years.

13. Customers

13.1 putting the customer at the heart of everything we do.

Serving the customer – UK exporters and those who buy from them – is at the core of our plan. We want our customers to benefit from clear, easy-to-use services. This means greater digitalisation to provide faster response times, innovative product development to respond to their needs, and consistent stakeholder engagement so our customers feel confident in our offering.

13.2 How we will achieve this

14. risk taking, 14.1 being purposeful and responsible with our risk taking.

Within our legislative and policy framework, effectively managing risk is key to everything we do. Due to the nature of our work – complementing the private sector, rather than competing with it – our portfolio tends to have a higher risk profile, a focus on emerging market risks, longer risk horizons and greater risk concentrations across certain sectors and geographic regions.

To manage this effectively, we must also act within our risk appetite using an appropriate risk management framework. Over the next five years, we will continue to strike that balance between ambition and responsible risk management, so that we can take the right risks to deliver against our objectives.

14.2 How we will achieve this

15.1 making ukef the best place to work for our people.

It is our people that shape our culture, uphold our values and who will ultimately make this plan a reality. Their knowledge, skills, creativity, and dedication will be what enables us to deliver on the strategy and ambitions we have mapped out for the next five years.

For UKEF to succeed, we must continue to build a working environment where our people feel valued, supported, and able to reach their full potential.

15.2 How we will achieve this

16. digital and data solutions, 16.1 ensuring we have the right digital data solutions to inform our activities.

A vast quantity of data flows into UKEF and is generated by UKEF every day.

Making sense of this data is key to ensuring our offer remains at the forefront of good practice, and that all our decision-making is evidence-driven and insight-rich.

Data and insights are the foundation of our organisation’s ability to take informed decisions, understand risks and secure business opportunities, and our use of technology helps us leverage this. Over the next five years we will continue on our path to becoming an insight‑driven organisation.

16.2 How we will achieve this

17. governance and accountability, 17.1 ensuring ukef is an agile, fit-for-purpose organisation.

UKEF is committed to high standards of governance and accountability, and as a ministerial government department, to delivering to the highest standards within our statutory remit for our ministers and wider stakeholder base.

Following the UK’s departure from the EU, this also includes opportunities created by our independent role in international forums to influence the wider enabling architecture for export credits. This will enable us to deliver our services more effectively and deliver on the government’s broader policy agenda.

17.2 How we will achieve this

18. our fiscal responsibility, 18.1 delivering value for taxpayers’ money.

UKEF operates at no net cost to the taxpayer over the long run, maintaining high standards of responsibility by adhering to the UK government’s Managing Public Money principles, and acting in accordance with our financial obligations as set out in HM Treasury’s Consent and UKEF’s governing legislation. We operate within an exposure limit and charge a premium that covers both the risk we take on and our operating costs. We have a number of financial objectives and a series of detailed risk policies, procedures and individual risk methodologies which determine how we assess, measure, manage and report the categories of financial risk we are exposed to.

One of the ways we can report on the level of financial risk we are taking on is through our measurement of maximum liability, which reflects the theoretical maximum value of claims payable across the portfolio. We are constrained on the amount of business we can underwrite by our maximum commitment limit, which sets out the maximum amount of exposure we are allowed to take.

But it is not only fiscal risk we manage. We monitor and assess a variety of other non‑credit risks, including:

• fraud, bribery and corruption, safeguarding taxpayer funds and avoiding loss occurring through export transactions tainted by financial crime
• legal risks, ensuring compliance with public law principles and applicable legislation and ensuring that UKEF’s documentation protects its position
• sustainability, environmental, social and governance risks, including the risk of supporting projects that do not adhere to human rights and modern slavery standards
• ensuring debt related to the transactions we support is consistent with sustainable lending principles

Our ministers and the UK taxpayer need to be confident that we remain a model of responsible and purposeful risk management. We will continue to proactively manage our risk and adhere to our fiscal requirements in pursuit of delivering our mission.

19. Contact us

[email protected]

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