Value added tax (VAT) registrations and de-registrations are the best official guide to the pattern of business start-ups and closures. DTI data on the number of VAT registrations, and the start of year stock of VAT registered businesses, in East of England Government office region, Suffolk county and Bury St. Edmunds constituency from 1997 to 2005 are shown in the following table. Data for 2006 will be available autumn 2007.
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 East of England Registrations 18,330 17,540 16,845 17,630 16,655 17,820 18,735 17,815 17,790 n/a Stock 162,430 166,865 170,695 173,515 176,310 177,735 180,080 182,705 184,525 187,625 Suffolk County Registrations 2,035 1,890 1,855 2,060 1,885 2,100 2,160 2,085 1,915 n/a Stock 20,835 21,265 21,535 21,765 22,145 22,300 22,610 22,935 23,240 23,460 Bury St. Edmunds1 Registrations 295 270 270 325 260 325 320 345 320 n/a Stock 3,185 3,250 3,320 3,345 3,420 3,440 3,535 3,580 3,665 3,720 1 Parliamentary constituency. Source: Business Start-ups and Closures: VAT Registrations and De-registrations 1994-2005, Small Business Service, available from http://www.sbs.gov.uk/vats
Although the number of registrations in Bury St. Edmunds constituency has remained fairly constant, the start of year stock has risen by 17 per cent. over the period.
VAT registration and de-registration data do not capture all business activity. Businesses are unlikely to be registered if their turnover falls below the compulsory VAT threshold, which has risen in each year since 1997. Similarly, businesses that de-register may not have closed. Only 1.8 million out of 4.3 million businesses (42 per cent.) were registered for VAT at the start of 2005.