Question to the Department for Business and Trade:

To ask His Majesty's Government whether there was an increase or a decrease in the number of small business start-ups in 2025–26; and what assessment they have made of the reasons for any change.

Inter-Departmental Business Register data indicates a 3% fall in UK business start-ups between financial years 2024-25 (308,700) and 2025-26 (298,655).

While business births data is not available by business size, the UK business population is overwhelmingly composed of small and medium-sized enterprises (SMEs), accounting for 99.9% of firms.

Business start-up rates are influenced by a range of factors, including levels of entrepreneurial activity, the policy and regulatory environment, and broader economic conditions.