LONDON, Nov 18 Reuters Britons started new businesses last year at the slowest rate since 2010, a potential warning sign for longerterm economic growth and productivity, according to official data published on Monday.

The number of new businesses started in the United Kingdom fell to 316,000 in 2023 from 337,000 in 2022, the Office for National Statistics said.

This reduced the 39;business birth rate39; the number of new businesses started as a percentage of the total number trading from 11.5 to 11.0, the lowest since 2010.

Fewer businesses closed too, with 309,000 shutting their doors in 2023, down from 349,000 in 2022, lowering the 39;business death rate39; to 10.8 from 11.9, the lowest since 2020.

Many economists view falling rates of business creation and destruction as bad for productivity growth and longterm improvements in living standards, as older businesses often find it harder to adopt better business models or new technology.

Last week the ONS provisionally estimated that Britons39; output per hour worked during the third quarter of this year was 1.8 lower than a year earlier and had risen just 2.0 in over four years since the start of the COVID19 pandemic. These figures are likely to be revised with new population estimates.

The new Labour government has said it wants Britain to achieve the fastest perhead growth in output among the world39;s seven largest advanced economies.

One bright spot in Monday39;s data was an increase in 39;high growth39;…