More companies have closed than opened for the first time in six years

London is the worst area for closure England After suffering a net loss of 7,695 local businesses in 2022.

Figure from National Statistics Office reveals that 76,730 small businesses closed last year, compared to just 69,035 new ones.

By contrast, 67,363 businesses closed and 76,960 opened in 2017 with a net profit of over 9,500.

The figure reached an all-time high in 2019 as the capital saw net profits for nearly 15,000 businesses.

This is because companies will cut 85% of their energy aid after the government chooses not to extend the energy bill relief scheme in the spring budget.

Sarah Olney, Liberal Democrat Treasury Department spokesperson and Richmond Park MP, criticized the government in response to the figures.

she said: Businesses in London are the backbone of our community, yet too many shops, cafes and restaurants are off-limits.

“London tech entrepreneurs driving growth, strangled by years of economic turmoil, Brexit-related bureaucracy and stagnant growth, desperately need help.

“The Conservative government is ignoring the plight of business in London. These figures show that instead of creating more opportunities in the capital, the government has literally done the opposite.

“Jeremy Hunt needs to step up immediately, review plans to cut energy support and give London businesses the support they need.”

In the past, the utility cost reduction system set the upper limit of the utility cost, but now it has been replaced by the utility cost discount system. This new scheme will repeal only the bill, with no cap on energy costs.

We reached out to the Department for Business, Energy and Industrial Strategy for comment.