The number of UK businesses has grown for the sixth consecutive quarter according to the latest data from Barclays.  As of July 2024, there are 5.43 million companies registered in the UK. Over 300 thousand more than the same time last year. Regions across the UK maintained or grew the overall number of businesses trading due to a reduction in the number of businesses closing.

The largest increase across the UK was seen in Wales with a 7.25% increase on the three months prior.

Hannah Bernard, Head of Business Banking at Barclays said:  “Even though the number of new businesses registered were down against the previous quarter, we continued to see growth in the total number of companies in the UK. This suggests that companies are becoming more resilient, agile and adaptable to change, which along with wider support for strategically important industries like technology, advanced manufacturing and life sciences is a great recipe for growth.

“The GDP growth we have seen in the first half of this year compared with the last half of 2023, suggests greater levels of trading and confidence amongst businesses and consumers alike.”

“At Barclays we have a renewed commitment to increase our lending to businesses. This is in addition to our support from Barclays Eagle Labs which has supported more than 13 thousand businesses raise over £3.6billion in lifetime funding.”

Grant Funding Growth

According to new data from Barclays Eagle Labs, there has also been a 19 per cent increase in grant funding in the last year, totalling over £1.4 billion.

The Southeast of England saw the biggest growth in grant funding, an increase of 67 per cent in the year to July compared with funding in the year to April, which is indicative of the region's continued focus on innovation and support for emerging technologies. Grant funding is financial support provided by government or organisations to fund specific projects or initiatives.

The West Midlands reported the second-highest growth in grant funding. Companies in the region were awarded a total sum of £101m via 229 grants, a rise of 46 per cent.

Yorkshire and Humber also saw an increase in the value of grants awarded over the past year, with a total of £108m distributed across 217 grants, up 16 per cent compared to the year to April.

This funding is particularly for those focused on research and development with the main rise linked to funding from Innovate UK.

Private Equity Investments is also rising

Equity investment also saw an increase with £3.47bn invested in businesses across the UK in the last three months (May – July 2024), up almost three per cent compared to the three months prior.

The Northwest witnessed the highest growth in equity funding with a massive 537% increase as companies in the region secured £709m during this period, up from the £132m secured between February - April 2024.

Wales secured the second highest position among regions for growth in equity raised as Welsh companies collectively secured £30.8m in equity funding, representing a significant 73 per cent increase.

Wales’s success is driven by organisations like Tramshed Tech, which provides workspaces, business support programs, and specialised training for tech startups and scaleups in Wales. Their Grangetown office hosts the local Eagle Labs team, a Barclays entrepreneurial network, providing a wealth of support to startup and scaleup businesses, and it serves as a hub for alumni of Tramshed’s Startup Academy incubator program.

For more information about Barclays Eagle Labs please visit https://labs.uk.barclays/about