Businesses - % of the VAT / PAYE registered businesses that survive for at least three years (c19)

• This measures the number of VAT (Value-Added Tax) / PAYE (Pay As You Earn) registered businesses who have survived three years after being created.
• Business sustainability data comes from the Businesses Demography 2024 publication (published in November 2025) and produced by the Office for National Statistics (ONS) using data from the Inter-Departmental Business Register (IDBR). The main administrative sources for the IDBR are VAT trader and PAYE employer information passed to the ONS by HM Revenue and Customs under the Value Added Tax Act 1994.  For VAT traders and the Finance Act 1969 for PAYE employers, details of incorporated businesses are also passed to ONS by Companies House.
• It is worth noting the time lag in measuring business sustainability over three years as this requires three years’ worth of data from when a business was established, e.g. for a business established in 2021, 2024 is the latest data available. 

Why this matters

• Measuring business sustainability over three years is important because it shows how resilient local businesses are beyond their start‑up phase. Higher survival rates mean more stable jobs, stronger local supply chains, and consistent contributions to the local economy.
• Tracking this measure also highlights whether businesses - especially small and medium sized firms - are receiving the support they need to thrive. 

Latest performance

3 year survival rates for businesses in North Lanarkshire shows a varying position over the years, with the latest results for 2024 (published in November 2025) showing that 53.4% of businesses registered in 2021 have survived for 3 years. 

• The latest results for North Lanarkshire of 53.4% (Figure 19a) are higher than the previous year 51.5%.
• To review this in more context Figure 19b shows the shows the number of new VAT/PAYE businesses registered each year, this shows there were 1,170 businesses registered in 2024, the highest number for the last five years.
• Over the period of The Plan for North Lanarkshire, 3-year business survival rates have decreased from 58.7% to 53.4%.
• Figure 19a shows that trends in North Lanarkshire has followed the changes in the national position, although to a lesser extent.
• The data shows that business survival rates in North Lanarkshire do reduce over time, for example based on 1,155 businesses registered in 2019, 94.8% survived for 1 year (i.e. to 2020), 74% for 2 years (i.e. to 2021), 54.1% for 3 years (i.e. to 2022), 42.4% for 4 years (i.e. 2023), and 35.5% for 5 years (i.e. to 2024, as published in November 2025).  The national picture shows a similar picture with corresponding survival rates being 94.7% (1 year), 75.9% (2 years), 57.4% (3 years), 46.5% (4 years), and 39.3% (5 years).

The trend in business survival rates in North Lanarkshire over the years does mirror the position both nationally and with the comparative average for the group of similar councils, although North Lanarkshire tracks slightly below. 

Impact of delivering The Plan for North Lanarkshire

Improving business sustainability rates means more local businesses are surviving beyond their early years, creating stable jobs and reliable services that contribute consistently to the local economy.  When businesses survive and grow, they spend more locally, support nearby suppliers and help keep local places and spaces active. This builds a stronger local economy that attracts further investment and gives residents more job and training opportunities. 

As businesses become more stable, they contribute more in taxes, helping fund local priorities. Overall, higher business survival rates lead to a healthier economy and ensure more people and communities benefit from local economic growth.