HC Deb 04 December 1996 vol 286 cc1035-6
15. Mrs. Bridget Prentice

To ask the President of the Board of Trade how many business failures there have been since April 1992. [5795]

Mr. Ian Taylor

Since the beginning of April 1992, there have been 80,780 company insolvencies, comprising 31,690 compulsory liquidations and 49,090 creditors' voluntary liquidations. In addition, there have been 119,509 bankruptcy orders.

In the most recent 12 months, company insolvencies accounted for 1.4 per cent. of the total number of companies registered, compared with 2.6 per cent. in 1992.

The overall number of company insolvencies has decreased by 43 per cent. since April 1992.

Mrs. Prentice

Is the Minister saying that it is acceptable that more than 219,000 businesses have gone to the wall since the last election, including 10,000 in the last quarter? Does that not give the lie to the Minister's claims that Britain is the enterprise centre of Europe?

Mr. Taylor

If the hon. Lady understood business, she would understand that it is the exact opposite, because she has forgotten that there are 400,000 business starts per annum, which shows that the entrepreneurial spirit is alive and well in this country. Nobody is pleased when a company ceases to trade or goes into insolvency, but it is nevertheless an expression of the risk that one can take in this country. I repeat that company insolvencies accounted for 1.4 per cent. of the total number of companies registered in this country. There are 3.7 million companies registered in the United Kingdom. If the hon. Lady looks at the proportions, she will realise that the entrepreneurial spirit is very much alive and well and is doing exceptionally well in this country.

Mrs. Peacock

How many more businesses are present in the United Kingdom, and how does that compare with the number that were here in 1979?

Mr. Taylor

There are currently 3.7 million businesses in the United Kingdom, compared with about 2.9 million when we came to power in 1979. The Government's success in favouring the smaller business community—for example, by the measures introduced by my right hon. and learned Friend's the Chancellor in the Budget last week—shows just why, overall, business has profited very well from the Conservative Government.