Startup numbers down by a fifth
The number of new businesses started in the UK has fallen by almost a fifth in the last five years.
East of England startups fell by 10,276 – 19.3 per cent – to 43,025 in 2016. The England average fall was 20.1 per cent.
Even with those disappointing figures, the East of England fared better than every other England region bar West Midlands (16 per cent decline) and London Wales witnessed the biggest drop with startup numbers falling by 26 per cent between November 2011 and 2016.
In stark contrast, Scotland only saw a three per cent decline in the five years and almost half of Scottish regions saw growth in the number of startups.
The figures came in a new report from Lloyds Bank which added a cautionary note for the English economy. The report said: “England has been hit hard, declining by a fifth. As this is where the greatest volume of new start businesses are launched, this equates to nearly 100,000 fewer new businesses created in 2016 compared to 2011.”
Jo Harris (pictured), managing director of retail business banking at Lloyds Bank, said: “The recent downward trend we’ve seen in new business startups is likely to be a response to the uncertain economic environment.”
Lloyds Banking Group claims it helped more than 100,000 new startups in 2016.