§ Ms WalleyTo ask the Secretary of State for Trade and Industry how many small and medium-sized enterprises she estimates have started business in each of the last 10 years; and if she will make a statement. [155585]
416W
§ Mr. TimmsValue added tax (VAT) registrations are the best official guide to the pattern of business start-ups. These cover businesses of all sizes. Large changes in the level of the VAT threshold mean that data before 1994 is unavailable on a consistent basis with the current series.
The number of businesses registering for VAT in each calendar year from 1994 to 2002 in the UK is as follows:
VAT registrations in the UK 1994 170,000 1995 165,810 1996 171,005 1997 187,690 1998 187,515 1999 181,370 2000 184,035 2001 174,620 2002 175,800 Source: Business Start-ups and Closures: VAT Registrations and De-registrations 1994–2002, Small Business Service While the number of new VAT registrations peaked in 1997 there were still more registrations in each year from 1997 to 2002 than in any of the three years proceeding this period. The reason why VAT registrations have fallen since 1997 is not clear. Many factors influence the number of new VAT registrations. These include global economic conditions and attractiveness of salaried employment compared with self-employment. A stable economy with low interest rates, coupled with a range of government initiatives to help start-ups, has assisted the net growth of business in the UK—at the start of 2003 there were 117,000 more VAT registered businesses than at the start of 1997