90 new businesses created every hour as UK registrations rebound

Almost 390,000 new businesses were registered across Britain during the first half of 2026, equivalent to around 90 every hour, as business creation rebounded following last year’s slowdown, according to new analysis from iwoca.

The SME lender’s annual Business Hotspots report, based on Companies House data, found that 388,922 companies were incorporated between January and June 2026 – approximately one new business every 40 seconds.

Registrations increased by 9% compared with the same period in 2025, when business creation fell 21% following the introduction of new Companies House registration requirements.

The recovery comes despite a further increase in the cost of setting up a company. Companies House doubled its digital incorporation fee from £50 to £100 in February 2026.

However, registrations have yet to return to their previous peak, remaining below the 456,430 businesses created during the first six months of 2024.

The figures nevertheless point to renewed entrepreneurial activity, with ten of Britain’s 11 regions and devolved nations recording an increase in registrations during the first half of this year.

Across the country, 164 local authorities saw registrations increase, compared with just three during the same period last year.

“Despite uncertain economic headwinds, the fact that almost 400,000 new businesses launched in just six months is a strong signal that Britain’s entrepreneurial appetite hasn’t gone away.”

London maintains lead for business creation

London continued to dominate Britain’s start-up landscape, recording both the largest number of new businesses and the highest rate of business creation per capita.

A total of 133,148 companies were registered in the capital during the first half of 2026, up from 114,905 in the corresponding period last year. London accounted for more than a third of all new registrations across Britain.

The capital recorded 1,462 new businesses per 100,000 people, placing it first among Britain’s regions and devolved nations for the sixth consecutive year. The North West ranked second, with 536 registrations per 100,000 people.

London boroughs also occupied eight of the ten highest-ranking local authority positions for business creation per capita.

Camden topped the rankings for the sixth consecutive year, recording 9,847 new businesses per 100,000 residents. It was followed by Hackney with 6,250 and Islington with 6,016.

Manchester was the highest-ranking local authority outside London, climbing from 13th last year to seventh nationally, with 1,308 new businesses per 100,000 residents.

Herefordshire was the only other local authority outside the capital to reach the top ten, rising from 29th to ninth position with 1,169 registrations per 100,000 residents.

Scotland rebounds while Wales falls further

Scotland recorded the strongest growth in new business registrations of any British region or nation during the first half of 2026.

Registrations increased 16% year-on-year to 20,720, reversing some of the decline seen in 2025, when business creation fell 17%.

Glasgow retained its position as Scotland’s leading business hub for the sixth successive year, with registrations increasing 9% to 4,236. Edinburgh followed with 3,293 new companies.

Wales was the notable exception to the wider recovery, becoming the only region or nation in Britain to record a decline in new businesses.

Registrations fell 23% year-on-year to 11,668, following a 39% decline during the corresponding period in 2025.

Cardiff recorded an especially sharp fall, with registrations declining 55% following a 52% reduction last year – the largest decrease of any local authority in Britain.

Despite the significant regional disparities, iwoca’s figures suggest Britain’s overall rate of business formation is beginning to recover following the disruption of 2025, potentially creating a growing pool of young SMEs requiring access to working capital and growth finance as they establish and expand their operations.