Company registrations in Yorkshire and Humber fall in second quarter as insolvency activity rises
New company registrations in Yorkshire and Humberside fell in the second quarter of 2026, while the region also recorded a slight rise in insolvency-related activity, according to a new report.
R3’s latest Quarterly Business Health report, based on data from Creditsafe, found that 12,435 new companies were registered in Yorkshire and Humberside during the second quarter of 2026, six per cent lower than the same period last year and three per cent down on the previous quarter.
Despite the decline, the region had the sixth-highest number of UK start-ups overall.
Speaking on the new figures, Jodie Wildridge, chair of R3 in Yorkshire and barrister at Kings Chambers, said: “R3’s latest Business Health report points to a landscape where fewer entrepreneurs are starting new ventures, while insolvency-related activity in Yorkshire and Humberside has edged up slightly.
“The fall in new company registrations suggests that would-be entrepreneurs remain cautious about launching new ventures, instead favouring a wait-and-see approach.”
While fewer new businesses were launched, the number of Yorkshire and Humberside companies entering insolvency-related processes rose slightly.
There were 677 insolvency-related activities in the second quarter of 2026, two per cent higher than the same period last year and two per cent up on the previous quarter.
This diverged from the national trend which saw insolvency activity fall by six per cent.
More recent figures also suggest that business pressures have continued, with Insolvency Service statistics showing company insolvencies in England and Wales increased by five per cent in July, compared to the previous month, rising to 1,931 cases.
Speaking on the challenges faced by businesses, Ms Wildridge added: “Businesses continue to face a range of pressures, from higher employment costs and ongoing geopolitical uncertainty to concerns around consumer demand and cashflow.
“These factors can make launching a new business feel like a greater risk than it might have done previously.”
The Yorkshire figures also mirrored the national picture, with new UK company registrations falling by six per cent year-on-year to 184,873 in the second quarter of 2026 and by two per cent compared to the previous quarter.
Insolvency-related activity also declined nationally by six per cent compared with the second quarter of 2025, falling to 6,854 cases.
It comes after the latest NatWest Growth Tracker survey found that business activity rose across the majority of UK regions at the start of the third quarter, as Yorkshire and the Humber became one of only two areas to record a decrease in output.