Hundreds of businesses folded in Burnley in 2022 – as record number of companies close across the UK

It comes as more UK businesses closed since records began in 2002, surpassing the number of new start-ups founded for the first year since 2010.

In his autumn statement, Chancellor Jeremy Hunt announced a range of tax cuts to aid businesses.

This included making a tax break allowing firms to cut their bills if they invest in new equipment permanent, in what he claimed was the "biggest business tax cut in modern history".

Think tank the Institute for Public Policy Research said the rising number of closing businesses is a "potential warning sign for the British economy", blaming high energy costs and the end of coronavirus pandemic support schemes.

Office for National Statistics figures show around 335 businesses in Burnley ceased trading in 2022 – up from 280 the year before.

Some 2,945 businesses were active last year, meaning the 'business death rate' – the percentage of businesses that closed – has risen to 11.4%.

This is in line with the 'business birth rate' – the percentage of businesses that began trading – of 12.9%, with around 380 created last year.

Dr George Dibb, head of the IPPR's Centre for Economic Justice, said: "Today's new data is a potential warning sign for the British economy with more companies going out of business than started up for the first time in 2022 since the tail end of the financial crisis.

"Whilst this isn't unexpected – high energy costs combined with the end of pandemic support schemes would always see a rise in company closures – it might signify that greater business support would have maintained higher economic activity."