Mike Penning: To ask the Secretary of State for Trade and Industry what percentage of businesses in (a) Hertfordshire and (b) South-East England were start-up businesses in each year since 1997; and if he will make a statement. [57806]
Alun Michael: DTI figures based on the ratio of new VAT registrations to total VAT registered stock for Hertfordshire and the South and Eastern Government Office Regions of England are shown below for 1997 to 2005. Data for 2006 will be available in autumn 2006. Click here for table.
VAT registrations only provide a broad indicator of business start-up activity, since they do not capture all new businesses. Businesses are unlikely to be registered if they fall below the compulsory VAT threshold (currently £60,000). Only £1.8 million out of £4.3 million enterprises were registered for VAT at they start of 2004. Barclays Bank produce estimates of start-ups based on business bank account activity, which include non-VAT registered firms. According to Barclays there were 8,500 business start-ups in Hertfordshire in 2003 and further 8,600 in 2004. Data on the total number of businesses is not available at county level. DTI figures based on the ratio of Barclays new business start-ups in 2003 to the total number of businesses in 2003, show that new businesses accounted for 11 per cent. of all businesses in the East of England Government Office Region, 13 per cent. of all businesses in the London Government Office Region and 11 per cent. of all businesses in the South East Government Office Region. Data prior to 2003 are not available. Data for 2005 will be available in autumn 2006. | 
