Two-third of business start-ups in Burnley failed within five years

The Federation of Small Businesses says firms were "already up against it" before the Covid-19 pandemic - but they are now reporting record falls in revenue with many posed to cut staff numbers.

Office for National Statistics data shows 360 businesses in Burnley were set up in 2014 – but after three years 210 were still active, and by 2019 just 120 remained.

That equates to a five-year survival rate of 33%.

In the North West, Burnley had the lowest rate in the region, while South Lakeland had the highest at 52%.

Survival rates for businesses in clothes manufacturing, food services and food services such as restaurants were among the lowest nationally.

In the FSB's Small Business Index report, Mike Cherry, national chairman, said small firms were already struggling with political uncertainty and a surge in operating costs before the Covid-19 pandemic.

He said Government support, such as the Eat Out to Help Out scheme, had led to a “summer bounce”, but that many were now struggling.

He added: “Firms still report a record drop in revenues, while the number planning to let staff go is at an all-time high."

"Exporters– still without any significant clarity around what the future holds for trade with Europe – say international sales have plummeted."

Last year, 420 new businesses were launched in Burnley – 130 more than those which ceased to trade in the same year.

At last count there were 2,940 active companies in the area.

The ONS figures also reveal one-year survival rates for companies set up in 2018.

In Burnley 570 businesses were still active one year on from launch, a survival rate of 96% which is higher than the UK rate of 89%.

Due to coronavirus restrictions imposed from March, many industries in the UK have been hit by enforced closures or lower takings.

The Government has provided a range of support for businesses over the pandemic including a Bounce Back Loan Scheme, the opportunity to defer VAT payments and business rates holidays.

The Coronavirus Job Retention Scheme has also been extended until March.