Yorkshire sees 4.7 per cent decrease in business start-ups as levels fall across most of UK

Although levels have decreased slightly in the region over the last quarter, the figures for March show that over 1,200 more businesses launched compared with December 2023.

The level of business start-ups is one of the key indicators of a buoyant economy.

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The research, which is based on an analysis of data provided by CreditSafe, comes after figures from the Office for National Statistics in February estimated that GDP fell by 0.3 per cent at the end of last year, meaning the country has entered a recession following a fall in the previous quarter.

In March 2024, only Northern Ireland saw a rise in start-ups, with an increase of 19.4 per cent.

Scotland and Wales were the only other nations to perform more strongly than Yorkshire and the Humber, with falls of 1.1 per cent and 4.2 per cent respectively.

In contrast, the greatest decreases were in the South East with a fall of 11.7 per cent, Greater London, which saw a 11.6 per cent fall, and the South West, which was down by 10.4 per cent.

Looking at insolvency-related activity last month, Yorkshire and the Humber was one of five regions and nations to experience a fall since February. The region saw an eight per cent decrease in this type of activity, which includes liquidator and administrator appointments and creditors’ meetings, with 242 businesses here affected.

The most marked falls were in Greater London, the West Midlands and the North East. In contrast, the largest increases were in the South West, which was up by 38.1 per cent, Scotland, which was up 31 per cent and East Anglia, which saw a 14.2 per cent increase.

Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, said: “While the UK economic landscape looks far from rosy, it is certainly good news that Yorkshire and the Humber is holding its own, both in terms of levels start-ups and insolvency-related activity.

“Despite confirmation that the UK entered recession in the second half of 2023, there already appear to be some green shoots of recovery. Recent growth figures are encouraging, along with signs of a resurgence of the housing market and various consumer and business surveys suggesting that confidence is returning.

“Nevertheless, with GPD lower than before Covid and living standards continuing to fall, interest rates remain high and businesses continue to face a challenging economic environment. We urge business owners to keep a close eye on cash flow and seek advice from an insolvency expert at the first signs of financial difficulties.”