Business development Rebecca Smith · 7 October 2015
89, 000 new businesses were created in the UK this year, with London dominant
New ONS figures report 89, 000 new businesses were created this year, marking a 3.8 per cent increase. There were 2.45m firms for 2015. To be counted as a business by ONS, a firm has to have VAT or PAYE systems. The update also reflected the dominance of the capital home to almost a fifth of the UK’s firms. Some 18.2 per cent of Britain’s businesses were based in London in March 2015, growing from 17.1 per cent in 2013. This was more than the total number of firms in Scotland, Northern Ireland, Wales and the North East of England combined. The South East had the second highest number with 15.4 per cent of businesses based there compared to 2.7 per cent in Northern Ireland and North East England, the equivalent of around 66, 000 firms. Law firm Irwin Mitchell and think-tank Centre for Economic & Business Research recently released a report warning that the government’s wealth-spreading agenda of the Northern Powerhouse? needed to be improved if rebalancing the UK economy was to be successful. Using a city-by-city measurement of current and projected economic strength, it found the gap between London and the North of England was set to grow with the capital’s economy predicted to be up 27 per cent by 2025 to just under 450bn, with the combined rate of growth across the North West, North East and Yorkshire & Humber expected to be just over 14 per cent. Output in those regions would be some 110bn lower than London’s in ten years’ time. The new figures from ONS show that while all regions of the UK saw the number of businesses grow between 2013 and 2015, some saw considerably greater increases than others.
ABOUT THE EXPERTRebecca Smith
Rebecca is a reporter for Business Advice. Prior to this, she worked with a range of tech, advertising, media and digital clients at Propeller PR and did freelance work for The Telegraph.