Norwich has emerged as the UK town centre with the highest proportion of business liquidations, according to new analysis by Liquidation Centre, underscoring the uneven impact of economic pressure on high streets across the country.

The study, based on data covering 5.5m businesses within UK town centres, comes as business confidence weakened sharply at the end of 2025, hiring slowed and company insolvencies rose above 2024 levels. With liquidations expected to remain elevated in 2026, the research maps where financial stress has been most acute.

Norwich recorded a liquidation rate of 46.4 per cent within a 500-metre radius of its town centre, the highest among all locations analysed, with 2,933 companies affected. Although much of the increase dates back to the pandemic period, more recent figures suggest a tentative recovery. Takeaway food outlets and mobile food businesses remain among the most exposed sectors in the city.

Manchester ranked second, with 2,534 liquidated companies and almost one in five town centre businesses failing in recent years. Glasgow City followed, with 1,655 liquidations and sharp year-on-year increases in 2024 and 2025, pointing to mounting pressure on local firms.

Leeds placed fourth after seeing town centre liquidations more than double between 2023 and 2025, while the City of London ranked fifth. Despite a low overall failure rate, liquidations in the capital’s financial district rose by 70 per cent in 2025. Liverpool also featured prominently, with a steady upward trend in business closures since 2020.

Across the country, hospitality, property and professional services have been among the hardest hit sectors. Licensed restaurants accounted for nearly 1,000 liquidations, while management and IT consultancies and property development firms also featured heavily. Official data shows the hospitality sector recorded more than 570 net closures in 2025 alone.

Richard Hunt, director of Liquidation Centre, said the findings reflected sustained volatility for high street businesses. “Reduced footfall, rising operating costs and wider economic uncertainty are placing intense strain on local economies,” he said.

He urged company directors to focus on cash flow management and cost flexibility in the year ahead. “Businesses that regularly review stock, pricing and staffing are better placed to act early when performance slips,” he said. “Too often, liquidations occur not because warning signs were absent, but because difficult decisions were delayed.”

The report concludes that while some town centres are showing signs of stabilisation, many remain vulnerable to further shocks in 2026, particularly if consumer confidence weakens further.