The number of new business start-ups in the North East fell sharply last month, reaching one of the lowest points recorded this year, according to newly released data.
Research by R3, the UK’s trade body for restructuring, turnaround and insolvency professionals, drawing on CreditSafe figures, shows that North East business start-ups declined by 18 per cent in November. A total of 1,335 new firms were registered during the month.
This represented a notable drop from October, when 1,620 new businesses were formed across the region. The last comparable low point was in February, when 1,331 start-ups were recorded. Despite the monthly fall, North East business start-ups remain higher year on year, increasing by 12 per cent compared with November 2024, when 1,187 new firms were established.
The pattern seen in the region mirrors wider UK trends, with the number of start-ups falling nationally over the same period.
There was, however, more positive news elsewhere in the data. Insolvency-related activity, including appointments of liquidators and administrators as well as creditors’ meetings, fell by 16 per cent.
Kelly Jordan, chair of R3 in the North East and a partner at Muckle LLP, said: “The decline in new business start-ups suggests that entrepreneurial confidence is lacking in the region, amid a challenging economic climate. New and existing businesses are still digesting the autumn Budget and looking to adapt their strategies accordingly.
“There will undoubtedly be winners and losers from the Budget and we are only likely to see the impact in the coming weeks and months. The decision to lower business rates for some retail, hospitality and leisure businesses will provide a lifeline to many SMEs in sectors that continue to face significant financial pressures. Directors will also be hoping that measures aimed at easing cost-of-living pressures will help support consumer spending.
“On the other hand, businesses will need to factor in the increased costs of the minimum wage rise into their planning, as this may drive wider inflationary wage pressures across their workforces at a time when tackling persistently high inflation remains a priority.”
The figures highlight the complex environment facing North East business start-ups as companies balance cost pressures, economic uncertainty and policy changes.
