HC Deb 21 June 2004 vol 422 cc1230-2W
Simon Hughes

To ask the Secretary of State for Trade and Industry what percentage of VAT-registered enterprises registered in(a) 1987, (b) 1992, (c) 1997 and (d) 2001 were still trading after (i) 12 months, (ii) 24 months and (iii) 36 months, broken down by region. [177064]

Nigel Griffiths

VAT registrations do not capture all business activity. Businesses are unlikely to be registered if they fall below the compulsory VAT threshold, which has risen in each year since 1997. Similarly, businesses that deregister will not necessary cease trading. Only 1.8 million out of 3.8 million enterprises were registered for VAT at the start of 2002.

The percentages of UK VAT registered enterprises still registered after 12 months are not available for enterprises registered before 1993. The answers for 1997 and 2001 are as follows:

12 months

The percentages of UK enterprises registered for Value Added Tax (VAT) in 1997 and 2001 that were still registered for VAT after 12 months, in each country and Government Office Region (GOR), are as follows.

Percentage
Country Enterprises registered in 1997 still registered after 12 months Enterprises registered in 2001 still registered after 12 months
United Kingdom 89 92
England 90 92
Scotland 88 92
Wales 89 92
Northern Ireland 91 94
Source:
Small Business Service (SBS) Business Survival Rates, http:// www.sbs.gov.uk/analytical/statistics/statisticssurvivalrates.php

Percentage of UK enterprises still registered after 12 months
Government Office Region Enterprises registered in 1997 still registered after 12 months Enterprises registered in 2001 still registered after 12 months
North East 90 91
North West 87 91
Yorkshire and the Humber 89 91
East Midlands 89 92
West Midlands 88 92
East 91 92
London 89 91
South East 91 93
South West 91 93

24 months

The percentages of UK VAT registered enterprises, in each Government Office Region, still registered after 24 months, are only available for enterprises registered in 1999 and 2000. They are as follows:

Percentage
Country Enterprises registered in 1999 still registered after 24 months Enterprises registered in 2000 still registered after 24 months
United Kingdom 77 79
England 77 79
Scotland 76 79
Wales 77 78
Northern Ireland 80 83

Percentage
Government Office Region Enterprises registered in 1999 still registered after 24 months Enterprises registered in 2000 still registered after 24 months
North East 76 77
North West 75 78
Yorkshire and the Humber 77 77
East Midlands 78 79
West Midlands 77 79
East 79 79
London 75 77
South East 80 81
South West 78 80

36 months

The percentages of UK VAT registered enterprises still registered after 36 months are only available for enterprise registered 1993 to 1999 inclusive. Data for enterprises registered in 2001 are expected in winter 2005–06

Data for 1997 and the latest year (1999) are as follows:

Percentage
Country Enterprises registered in 1997 still registered after 36 months Enterprises registered in 1999 still registered after 36 months
United Kingdom 67 66
England 67 66
Scotland 66 65
Wales 68 68
Northern Ireland 75 72

Percentage
Government Office Region Enterprises registered in 1997 still registered after 36 months Enterprises registered in 1999 still registered after 36 months
North East 66 66
North West 64 65
Yorkshire and the Humber 67 66
East Midlands 67 68
West Midlands 66 67
East 70 68
London 64 63
South East 71 70
South West 70 68