London has highest number of business births but lowest rate of survival

In 2012 the births of new businesses, at 270,000, exceeded the number of businesses deaths, which stood at 255,000. In London, birth rates were 14.8 per cent - the highest in the country - whilst the death rate was 11.7 per cent, meaning the capital also had the highest churn rate. Births stood at 65,000 and deaths at 52,000.

Outside the capital, birth and death rates were, by region, broadly similar. The move towards economic recovery, says the Office for National Statistics (ONS), has seen birth rates being higher than death rates from 2011, although the gap narrowed in 2012.

The North East and North West took the second and third spots for highest business birth rate, both at 11.4 per cent. The death rate for both regions was, however, the same. Northern Ireland has the lowest birth rate at seven per cent, and also the lowest death rate at 9.4 per cent, making for a more stable business population.

The five-year survival rate for UK businesses born in 2007 and still active in 2012 was 44.6 per cent. The South West saw the highest survival rate, at 48.1 per cent, whilst London had the lowest at 41.7 per cent.

Health and education has the highest survival rate when it came to industry, at 56.1 per cent and 54.5 per cent respectively. Hotels and catering were the lowest - only 37 per cent of businesses survived for five years.