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Birmingham Post
Birmingham Post
Business
Debora Aru

Number of businesses in the East Midlands grew last year, despite continuing Brexit uncertainty

Experts have warned an unexpected rise in the number of businesses in the East Midlands could be put in jeopardy by a chaotic no-deal Brexit.

New figures showed a rise of 1.0% from 178,745 businesses across the region in 2018 to 180,450 as of March 2019.

The number had previously increased from 177,385 in 2017.

The data was published by the Office for National Statistics.

It counts all businesses registered with HM Revenue and Customs (HMRC) for Value Added Tax (VAT) and Pay As You Earn (PAYE).

Businesses have to register for VAT if their turnover is above £85,000. Registration is voluntary for businesses with smaller turnovers.

Wellingborough saw the biggest increase in the region with 43.4% more businesses, followed by Corby (19.9%) and Bolsover (19.9%).

The figures show that across the East Midlands, 25,585 businesses are in the professional, scientific and technical sector.

That makes it the largest sector in the region, accounting for 14.2% of all businesses.

Industry could be stalled by a bad Brexit (Tom Houghton)

Nationally, the number of registered businesses rose to 2.72 million in March 2019, up from 2.67 million at the same point in 2018 - an increase of 1.8%

All regions except the North West saw a rise.

London remained the region with the largest number of businesses. The capital now has 19.2% of all registered businesses in the UK.

The rise was welcomed by business bosses - but they warned continuing uncertainty over Brexit made progress potentially fragile.

Sophie Wingfield, head of policy and public affairs at the Recruitment and Employment Confederation (REC), said: “The prosperity of the UK depends on businesses being able to thrive and create jobs.

“The number of new businesses is rising, albeit slowly, showing an economy that is creating those opportunities right across the country.

“But the government must not be complacent. REC data shows fewer people being placed into new jobs, while employer confidence in the economy is at a low point ahead of Brexit.

“Businesses are holding off making investments because they don’t know what the situation will be this time next month.

“The government should not take today’s figures for granted. They must focus on delivering a negotiated exit from the EU, and avoiding no-deal, to give businesses the confidence they need to grow our economy and create jobs. In particular, businesses need a post-Brexit immigration policy that ensures people can come to the UK and contribute their skills with ease.”

Boris Johnson this week published new proposals for a withdrawal agreement including new customs rules in Northern Ireland.

The EU, however, reacted frostily to the prime minister’s plans.

Mr Johnson - who told the Tory conference his proposals were a “fair and reasonable compromise” - has said any rejection would inevitably result in a no-deal Brexit.

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