Fewer firms now operating in North East

The number of private sector firms in the North Est has fallen by over 11,000, new figures reveal.

New Government data shows there were 163,000 companies in the region at the start of 2018, and 151,500 at the turn of this year – but more of the businesses that remain are growing. The figures are contained in the Business Population Estimates released by the Department of Business, Energy & Industrial Strategy (BEIS).

Despite there being fewer businesses, North East firms still recorded a combined turnover of £78.9bn at the start of the year, and the number of VAT and PAYEregistered enterprises increased by 1,070 to 70,460 over the year – the largest growth since 2016/17.

This suggests that while more sole trader businesses are closing, the number of businesses taking on employees and being required to register for VAT – by earning in excess of £85,000 per year - are rising.

Chief executive of the Entrepreneurs’ Forum, Jonathan Lamb, said: “Whilst it is disappointing that the North East has the fewest number of businesses of any English region and that figure has fallen over the past 12 months, the region is evolving in terms of business and there remain many positives for the future.

“There is an increase in the number of businesses providing employment and exceeding a turnover figure of £85,000.

“This region is famous for its past feats, but there are many modern-day successes in the rapidly-expanding digital and creative sector, the offshore and subsea sector, advanced manufacturing and life sciences.”