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Business: Greater London

Volume 470: debated on Wednesday 23 January 2008

To ask the Secretary of State for Business, Enterprise and Regulatory Reform how many new businesses were started in each London borough in the last 10 years; how many of them received Government funding; and if he will make a statement. (178418)

VAT registration data provide the only accurate indicator of the level of business start-up activity.

The number of new VAT registrations in each London borough are shown as follows for 1997 to 2006. Data for registrations in 2007 will be available autumn 2008.

Number of VAT registrations in each London borough 1997-2006

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

London

35,825

37,690

36,210

36,330

33,400

32,955

35,750

35,320

34,875

34,825

Barking and Dagenham

280

305

340

365

320

315

345

350

330

370

Barnet

2,360

2,350

2,050

2,075

1,815

1,740

1,715

1,700

1,605

1,490

Bexley

655

585

565

585

620

545

580

580

535

560

Brent

1,205

1,185

1,135

1,200

1,085

1,040

1,175

1,175

1,105

1,135

Bromley

1,065

1,140

925

940

965

965

985

1,015

920

1,015

Camden

2,405

2,405

2,310

2,245

1,885

1,880

2,050

1,985

1,915

1,925

City of London

1,075

1,220

1,290

1,450

1,110

1,065

1,100

1,130

1,385

1,385

Croydon

1,045

1,070

970

970

945

975

1,065

965

1,030

960

Ealing

1,240

1,215

1,175

1,175

1,150

1,160

1,315

1,280

1,250

1,350

Enfield

830

875

850

895

830

860

-895

900

840

865

Greenwich

560

565

520

510

495

490

515

550

575

600

Hackney

995

1,130

1,095

1,155

1,025

1,020

1,060

980

960

990

Hammersmith and Fulham

970

1,135

1,020

1,010

970

930

960

1,065

1,045

1,000

Haringey

930

980

975

965

880

840

915

905

850

790

Harrow

950

1,065

900

960

915

935

985

970

925

835

Havering

725

765

655

655

635

630

620

625

630

635

Hillingdon

905

920

835

860

765

850

855

870

845

845

Hounslow

795

835

820

810

810

795

840

875

875

900

Islington

1,520

1,570

1,415

1,340

1,180

1,190

1,270

1,315

1,370

1,345

Kensington and Chelsea

1,075

1,115

1,165

1,200

905

1,065

1,095

1,170

1,125

1,205

Kingston upon Thames

670

695

605

640

615

595

610

640

640

585

Lambeth

860

905

885

840

1,000

850

880

990

945

985

Lewisham

625

660

635

615

605

590

605

660

590

635

Merton

745

830

720

765

695

655

725

705

725

830

Newham

530

580

555

565

530

565

650

620

580

620

Redbridge

840

930

855

870

810

755

865

830

815

830

Richmond upon Thames

975

1,010

960

955

895

1,000

1,020

945

975

1,000

Southwark

1,005

1,080

1,015

1,100

940

985

1,080

1,100

1,135

1,090

Sutton

595

600

535

510

505

495

560

525

520

525

Tower Hamlets

975

1,080

1,100

1,085

920

940

1,055

1,065

1,295

1,180

Waltham Forest

685

715

725

655

630

660

685

700

685

615

Wandsworth

1,160

1,210

1,215

1,170

1,105

1,105

1,245

1,380

1,310

1,370

Westminster

4,570

4,960

5,390

5,195

4,840

4,455

5,430

4,760

4,545

4,375

Source:

Business Start-ups and Closures: VAT Registrations and De-registrations 1994-2006, available at:

http://www.stats.berr.gov.uk/ed/vat

Although the number of new registrations has fluctuated over the period, the total number of VAT registered businesses in London has increased from 241,000 at the start of 1997 to 309,000 at the start of 2007, an increase of 68,000 (28 per cent.).

VAT registrations do not capture all business activity. Businesses are unlikely to be registered if they fall below the compulsory VAT threshold, which was £60,000 at the start of 2006. Only 1.9 million out of 4.5 million UK enterprises (43 per cent.) were registered for VAT at the start of 2006.

Over the last 10 years a range of Government programmes have supported business start-ups in London. These programmes include the single regeneration budget programme, European structural funds, Business Link, LEGI and a range of other programmes supported by the LDA and BERR.

Neither my Department nor the LDA, keep central records about the aggregate number of business start ups which have been supported by these programmes. Given the potential range of relevant programmes, the compilation of the information required to answer this question could be achieved only at disproportionate cost.