§ Mr. Jim CunninghamTo ask the Secretary of State for Trade and Industry what assessment he has made of the proportion of start-up businesses in the West Midlands metropolitan district; and what measures he plans to increase the number of business start-ups. [60483]
§ Mrs. RocheAlthough VAT registrations are not synonymous with business start-ups, the following data are often used. The VAT figures for 1994 to 1996 (the latest available) show business formation rate in the metropolitan districts to exceed those of the West Midlands region and the UK. The decline in the formation rate in the metropolitan area brought it close to the rate for the UK in 1996.
657W
Business Formations VAT registrations 1994–96 Stock at year start VAT registrations Formation rate (per cent.) Metropolitan West Midlands 1994 55,820 6,185 11.1 1995 55,190 5,920 10.7 1996 54,500 5,880 10.8
Business Formations VAT registrations 1994–96 Stock at year start VAT registrations Formation rate (per cent.) West Midlands Region 1994 138,145 13,663 9.9 1995 136,594 13,289 9.7 1996 135,214 13,295 9.8 UK 1994 1,629,235 168,240 10.3 1995 1,609,335 163,960 10.2 1996 1,600,065 168,200 10.5 Figures from Barclays Bank show business start-ups in the West Midlands region were estimated at 45,000 start-ups in 1996 and 48,000 in 1997, a seven per cent. increase. The creation of new small businesses is dependent primarily on a climate of stable, sustained economic growth. The Government have taken decisive action to establish a new framework for monetary policy to ensure economic stability. The Government are also committed to helping businesses overcome financial, regulatory and other barriers to establishment and growth. Practical help is provided by the Business Link Network in England which assists businesses of all sizes and at all stages. Further specific measures will be announced in the Department's forthcoming White Paper.