Fewer businesses were created in the South Hams last year, new figures show.

It comes as the UK saw its business birth rate fall to its lowest level since 2010, with the Institute of Directors blaming a poor economic environment and skills shortages.

According to figures from the Office for National Statistics, around 375 new businesses opened in South Hams in 2023, down from 385 a year earlier.

Meanwhile, 375 businesses closed in the area last year, down from 405 in 2022.

This means the total number of businesses in South Hams stayed the same last year.

Across the UK, the rate of new businesses opening hit its lowest level since 2010, at 11% of all active businesses.

Despite this, the death rate – the proportion of active businesses which closed last year – also fell to 10.8%.

As a result, business openings overtook closures. This was a reversal from 2022, which was the first year in more than a decade when there were more deaths than births.

Anna Leach, chief economist at the Institute of Directors, blamed poor financial conditions after the pandemic, a “relatively weak” growth environment and skill shortages.

“Recent budget decisions unfortunately undermine the UK’s business environment, disincentivising employment and reducing investment through the impact of higher taxes on business costs,” she added.

“Meanwhile, higher public spending is expected to raise the cost of finance in the UK.”

“If the government wants to get higher growth, it’ll need a vibrant business sector to deliver it.”

However, the figures did show an increase in the number of 'high-growth' businesses, those which saw their workforce swell by more than 20% for three years in a row.

There were about 13,750 such businesses nationally in 2023, an increase from 11,480 a year earlier. The South West had 1,205 high-growth businesses, comprising 4.8% of companies in the area.