Number of startups in London increasing
The number of VAT and/or PAYE-based businesses is increasing in London, making up 18.7 per cent of the UK total, according to the Office for National Statistics (ONS).
Figures also showed that London has the largest growth for startups, with an increase of 7.2 per cent between 2015 and 2016, compared to 6.9 per cent in 2014-2015.
The number of businesses registered for VAT and/or PAYE in the UK was 2.55 million in March 2016, an increase of 4.3 per cent from 2.45 million businesses from the same period last year.
Professional, scientific and technical was found to be the biggest industry group for 2016, making up 18 per cent of all registered UK businesses, up from 17.8 per cent last year.
The number of companies and public corporations has increased, representing 68 per cent of all companies, whilst the number of sole traders and partnerships has decreased, making up 27.4 per cent of total businesses.
According to the ONS, the trend of the number of businesses increasing is reflective of the UK economy’s performance.
GDP increased by 2.6 per cent, 2.9 per cent and 2.0 per cent in the 12 months to the first quarter from 2014-2016, whilst CPI inflation was 1.6 per cent in 2014, 0 per cent in 2015 and 0.5 per cent in 2016.
The research stated that the low inflation and strong growth could have provided a good environment for businesses to set up.