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<p>We are aware of issues faced by small businesses connected with leaving the EU,
such as increasing costs due to sterling fluctuations, cash flow impacts and late
payments by customers. Government is already in close engagement on these and more
issues, both directly across the UK and through regular meetings with business representative
organisations - the Federation of Small Businesses (FSB), MakeUK, the British Chamber
of Commerce, the Institute of Directors and the CBI. The Department for Business,
Energy and Industrial Strategy (BEIS) also co-ordinates the EU Exit business readiness
forum, attended by business intermediaries and representative organisations.</p><p>Regarding
the failure of businesses due to uncertainty over exiting the EU, the following seasonally
unadjusted figures show the absolute number of insolvencies as measured by the insolvency
service for 2018 Q1 to 2019 Q1. The insolvencies listed are due to all causes, not
just uncertainty, and the current UK rate of insolvency (ie: the number of insolvencies
proportional to the number of active firms) remains low by historical standards –
well below that seen around the time of the financial crisis.</p><p> </p><table><tbody><tr><td><p><strong>
</strong></p></td><td><p><strong>England and Wales</strong></p></td><td><p><strong>Scotland</strong></p></td><td><p><strong>Northern
Ireland</strong></p></td><td><p><strong>Total</strong></p></td></tr><tr><td><p>2018
Q1</p></td><td><p>4,561</p></td><td><p>237</p></td><td><p>51</p></td><td><p>4,849</p></td></tr><tr><td><p>2018
Q2</p></td><td><p>4,078</p></td><td><p>266</p></td><td><p>125</p></td><td><p>4,469</p></td></tr><tr><td><p>2018
Q3</p></td><td><p>4,230</p></td><td><p>232</p></td><td><p>65</p></td><td><p>4,527</p></td></tr><tr><td><p>2018
Q4</p></td><td><p>4,586</p></td><td><p>245</p></td><td><p>73</p></td><td><p>4,904</p></td></tr><tr><td><p>2019
Q1</p></td><td><p>4,528</p></td><td><p>275</p></td><td><p>66</p></td><td><p>4,869</p></td></tr></tbody></table><p>
</p><p>ONS statistics on business demography (2018) show that the number of UK business
births in 2017 was 414,000, a birth rate of 13.1%. The number of UK business deaths
was 357,000 in 2017, a death rate of 12.2%.</p><p>Businesses that are unfortunately
experiencing difficulties – including requiring advice on the business implications
of leaving the EU – have immediate access to guidance through the Government’s network
of 38 Growth Hubs in England, (and equivalent services in the devolved administrations),
and via the Business Support Helpline.</p>
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