HC Deb 11 May 2004 vol 421 cc248-9W
Mr. Wyatt

To ask the Secretary of State for Trade and Industry how many new businesses have started up in Sittingbourne and Sheppey since 1997. [170291]

Nigel Griffiths

Barclays Bank's latest survey of business creation includes non-VAT registered firms and shows that there were 115,000 business start-ups in England and Wales, including 2,700 in Kent County (which contains the constituency of Sittingbourne and Sheppey), in the fourth quarter of 2003. The latest yearly figures show 465,000 business start-ups in England and Wales in 2003. This represents a 19 per cent. increase on the year before. There were 10,800 business start-ups in Kent County in 2003. Data for counties are not available for before 2003.

DTI figures based solely on VAT registrations for Swale local authority (which contains the constituency of Sittingbourne and Sheppey) are shown below for the period 1997 to 2002. Data for 2003 will be available in Autumn 2004.

VAT Registrations: 1997–2002
Swale
1997 340
1998 315
1999 335
2000 355
2001 385
2002 330
Source:
Business Start-ups and Closures: VAT Registrations and De-registrations 1994–2002, Small Business Service, available from: www.sbs.gov.uk/statistics/vatstats.php

VAT registrations do not capture all start-up 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 de-register will not necessarily have closed. Only 1.8 million out of 3.8 million enterprises were registered for VAT at the start of 2002.