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 465 new businesses opened in Carlisle in 2023, down from 505 a year earlier.
Meanwhile, 445 businesses closed in the area last year, down from 535 in 2022.
This means the total number of businesses in Carlisle increased slightly last year.
Across the UK, the rate of new businesses opening hit its lowest level since 2010, at 11 per cent of all active businesses.
Despite this, the death rate – the proportion of active businesses which closed last year – also fell to 10.8 per cent.
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.”
The Carlisle economy has recently been buoyed by the news that Tesco are going to move into the prominent former House of Fraser unit and a ‘major international retailer’ is set to move into the ground floor of the former Debenhams unit in Carlisle City Centre according to real estate company, Savills.
Debenhams closed in the city centre in May 2021 and the building has remained vacant ever since.
Alongside the former Debenhams building, Savills is also marketing the long leasehold for The Lanes shopping centre in the city which is up for more £15.7million.
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The Lanes is one of the major shopping destinations in Carlisle and shops include Primark, Next, Superdrug, New Look, River Island, Costa Coffee and Lush.
The director of retail investment at Savills said that this was a ‘rare opportunity’ to acquire the leasehold.
Cumbria Chamber of Commerce managing director, Suzanne Caldwell, said she ‘hoped’ that a new leaseholder could be found ‘quickly’.
