UK Business Demography – July 2024 Update
As of July 2024, there are 5.43m active and dormant companies in the UK. This figure represents an uptick from the 5.41m companies recorded in April, marking an increase of 0.37%.
16 September 2024

Overview
Despite the growth in active companies during this period, there has been a noticeable drop in new business formations across all UK regions. Over the past three months, the median decline in new incorporations across regions has been 28.5%. Scotland, while still experiencing a decrease, fared better than all other regions with the smallest drop of 23.4%.
This decline is accompanied by a decrease in investment volumes, with a median reduction of 9.98% from the previous period. Grant funding trends were more positive, as the majority of regions saw an increase in the value of grants awarded. The only regions reporting a drop in grant funding were Wales and Northern Ireland, with a collective sum of £21.3m and £33.7m, respectively.
London and the South East stay at the top of the ranking in terms of the number of active spinouts, with 271 and 251, respectively. Scotland and the East of England are close to a tie, with 180 and 173 spinouts each.
Regional highlights
London accounts for 28.6% of all active and dormant companies in the UK. The region recorded a decrease in the number of new company formations, with a decrease from 89.1k in the three months to April 2024, to 65.1k in the three months after. This trend was mirrored across the whole of the country, aligning with the new fee structures incorporated to Companies House at the beginning of May
The North West witnessed the highest growth in equity funding—companies in the region secured £709m during this period, up from the £132m secured in the three months to April 2024. This surge was largely driven by a single deal worth £500m, secured by environmental consultancy RSK Group, which constituted 70.5% of the total investment recorded in the region across the period.
The West Midlands reported the highest growth in grant funding awarded to companies during the tracking period. Companies in the region were awarded a total sum of £101m via 229 grants. Voltempo, an electric vehicle charging developer, secured the largest grant in the region, totalling £10.5m.
[1] “Companies House Fees Increasing from 1 May 2024.” GOV.UK. February 19, 2024.
https://www.gov.uk/government/news/companies-house-fees-increasing-from-1-may-2024.
Wales
Wales was the leading region for population growth over the past three months, with a notable increase of 7.25%. This growth occurred despite the region experiencing one of the largest declines in new business formations. The key factor behind this population surge was the region’s relatively low rate of company cessations, which averaged just 2,781 during the same period. This stability in business closures helped counterbalance the decline in new startups.
Moreover, Wales secured the second highest position among regions for growth in equity raised compared to the previous tracking period. Welsh companies collectively raised £30.8m in equity funding, representing a significant 73.0% increase. A standout contributor to this surge was Cardiff-based Space Forge, which alone raised £12.0m in June, representing 39.0% of the total equity secured.
Wales' success is driven by organisations like Tramshed Tech, which provides workspaces, business support programs, and specialised training for tech startups and scaleups. Their Grangetown office hosts the local Eagle Labs team and serves as a hub for alumni of Tramshed’s Startup Academy incubator program.
Yorkshire and the Humber
Yorkshire and the Humber reported 11.0k new business formations between May and July 2024. Despite the general drop in incorporations, the region was the only one in the UK to show growth across all other key metrics. This success is driven by support hubs like the Centre for Digital Innovation (C4DI) in Hull, which provides startups with the vital tools and resources needed to launch and scale their businesses.
Companies based in Yorkshire and the Humber collectively raised £58.9m in equity—a robust 51.0% increase from the previous tracking period. Additionally, the region saw an increase in the value of grants awarded over the past year, with a total of £108m distributed across 217 grants.
Further driving the region's success are initiatives like Sheffield Hallam University's Wellbeing Accelerator, launched in collaboration with Barclays Eagle Labs. The accelerator aims to propel businesses forward by advancing their development and securing investment, with a particular focus on South Yorkshire's rapidly expanding digital health and wellbeing sector.
Key metrics
The metrics offer valuable insight into the strength of the UK business ecosystem and the opportunities available to the companies within it. By examining population metrics and changes in newly incorporated companies, we obtain insight into the attractiveness of each region and its capacity to support business growth.
Companies securing funds via equity investment and winning innovation grants demonstrate their intent to scale up and develop their businesses. The spinout population in each region serves as an indicator of IP generation, which can provide a competitive edge and hence drive economic growth across a company’s region and the UK as a whole.
Methodology
The information presented in the UK Business Demography – July Update is sourced from Beauhurst, a comprehensive database of UK companies. The data covers the three months up to the end of July 2024. It also includes grant data for the 12 months from July 2023 to July 2024, with growth rates calculated using the grant data for the 12 months from April 2023 to April 2024. The spinout population data is accurate as of the end of July 2024.
UK Business Demography map
Company population:
The information presented in the UK Business Demography – July Update is sourced from Beauhurst, a comprehensive database of UK companies. The data covers the three months up to the end of July 2024. It also includes grant data for the 12 months from July 2023 to July 2024, with growth rates calculated using the grant data for the 12 months from April 2023 to April 2024. The spinout population data is accurate as of the end of July 2024..
Scotland |
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Company population now: | 299,497 | 0.46% | |
Incorporations in past 3 months | 9,159 | -23.4% | |
Investment in past 3 months: | £100m | -58.7% | |
Grants in past 12 months (July 2023 - July 2024): | £110m | 1.85% | |
Spinouts: | 180 |
Northern Ireland |
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Company population now: | 93,075 | 2.73% | |
Incorporations in past 3 months | 3,947 | -33.1% | |
Investment in past 3 months: | £17.2m | -54.7% | |
Grants in past 12 months (July 2023 - July 2024): | £33.7m | -20.9% | |
Spinouts: | 55 |
North West (England) |
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Company population now: | 529,945 | -0.33% | |
Incorporations in past 3 months | 18,547 | -28.1% | |
Investment in past 3 months: | £709m | 437% | |
Grants in past 12 months (July 2023 - July 2024): | £88.2m | 6.78% | |
Spinouts: | 110 |
Wales |
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Company population now: | 186,520 | 7.25% | |
Incorporations in past 3 months | 5,111 | -31.8% | |
Investment in past 3 months: | £30.8m | 73.0% | |
Grants in past 12 months (July 2023 - July 2024): | £21.3m | -26.3% | |
Spinouts: | 65 |
West Midlands (England) |
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Company population now: | 431,864 | 0.34% | |
Incorporations in past 3 months | 15,143 | -31.6% | |
Investment in past 3 months: | £15.4m | -49.5% | |
Grants in past 12 months (July 2023 - July 2024): | £101m | 46.21% | |
Spinouts: | 62 |
South West (England) |
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Company population now: | 357,956 | -0.10% | |
Incorporations in past 3 months | 8,962 | -31.0% | |
Investment in past 3 months: | £101m | 16.5% | |
Grants in past 12 months (July 2023 - July 2024): | £124m | 1.64% | |
Spinouts: | 139 |
North East (England) |
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Company population now: | 121,122 | 0.33% | |
Incorporations in past 3 months | 4,429 | -27.1% | |
Investment in past 3 months: | £57.9m | 4.51% | |
Grants in past 12 months (July 2023 - July 2024): | £48.3m | 9.28% | |
Spinouts: | 52 |
Yorkshire and the Humber (England) |
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Company population now: | 328,475 | 0.15% | |
Incorporations in past 3 months | 11,003 | -33.5% | |
Investment in past 3 months: | £58.9m | 51.0% | |
Grants in past 12 months (July 2023 - July 2024): | £108m | 15.9% | |
Spinouts: | 84 |
East Midlands (England) |
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Company population now: | 299,800 | 0.53% | |
Incorporations in past 3 months | 9,406 | -28.0% | |
Investment in past 3 months: | £24.0m | -76.5% | |
Grants in past 12 months (July 2023 - July 2024): | £44.5m | 9.34% | |
Spinouts: | 60 |
East of England |
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Company population now: | 498,416 | 0.15% | |
Incorporations in past 3 months | 14,880 | -28.9% | |
Investment in past 3 months: | £115m | -61.0% | |
Grants in past 12 months (July 2023 - July 2024): | £109m | 14.3% | |
Spinouts: | 173 |
London (England) |
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Company population now: | 1,554,763 | -0.25% | |
Incorporations in past 3 months | 65,084 | -26.9% | |
Investment in past 3 months: | £1.97b | -3.43% | |
Grants in past 12 months (July 2023 - July 2024): | £264m | 13.8% | |
Spinouts: | 271 |
South East (England) |
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Company population now: | 726,949 | -0.04% | |
Incorporations in past 3 months | 19,510 | -27.8% | |
Investment in past 3 months: | £276m | 4.151% | |
Grants in past 12 months (July 2023 - July 2024): | £347m | 62.1% | |
Spinouts: | 251 |
Download the demography map here:
UK Business Demography map (209kb pdf)
The metrics offer valuable insight into the strength of the UK business ecosystem and the opportunities available to the companies within it. By examining population metrics and changes in newly incorporated companies, we obtain insight into the attractiveness of each region and its capacity to support business growth. Companies securing funds via equity investment and winning innovation grants demonstrate their intent to scale up and develop their businesses. The spinout population in each region serves as an indicator of IP generation, which can provide a competitive edge and hence drive economic growth across a company’s region and the UK as a whole.
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