In new data released by Barclays, built from research from Barclays Eagle Labs and Beauhurst, the number of new business registrations in the first quarter of 2025 rose sharply from the figure for the final quarter of 2024.  

In Q1 of this year, the UK saw a 16.3% increase in new business registrations from Q4 with a total of over 213,000 new additions. Compared to the same period in 2024, this represents a small decline in new registrations, with over 247,000 coming in the first quarter of last year.  

When accounting for businesses closing, the total number of registered companies in the UK has grown by 4.23% in Q1, a rise of over 221,000. Amid all these new registrations, that means there are now 5.45m companies registered with Companies House. 

Speaking about this, Abdul Qureshi, MD, Business Banking at Barclays said: “Q1 often sees a seasonal rise in new businesses opening, fuelled by new year ambitions. But these figures are a positive sign that entrepreneurs continue to have the confidence to take risks and start new ventures in the UK.”

You can see the breakdown, region by region, by clicking on the button below, which will open Barclays Regional Investment Map.   

Every region in the UK saw an increase in the number of new businesses registered in the first quarter of 2025 with the exception of Northern Ireland, which saw a slight fall of 2.07%.

Leading the way for new businesses was the North East, which saw a total of 5,320 new ventures launched in the region, a 24.4% rise. Close behind was Scotland with a 22.7% increase and over 10,500 business registrations, followed by Yorkshire and the Humber with 19.70% and the North West, which saw a 19.20% increase. 

London saw the largest increase in total company population, with the number up by 4.89%. Overall, London has 1,545,771 corporations making up 28.40% of all UK firms. 

But, while the UK capital saw the largest increase in overall company population, it did not record the highest number of new incorporations. This may be driven by lower closure rates and the continued appeal of the region as a base for registered offices.

Beauhurst’s research defines a high-growth business as any that has achieved scaleup status (10%+ year-on-year growth), received equity, venture debt or an innovation grant, spun out of a university or academic institution, attended an accelerator programme, experienced a management buyout, or featured in a verified high-growth list.

Among those businesses, in 2024, £165 billion was secured in bank loans and overdraft as they look to drive growth. Perhaps unsurprisingly, London ranks the highest for debt finance, with £80.1 billion owed to lenders. This marks an 8.88% increase from 2023’s figure.

The largest increase in debt finance came from high-growth businesses based in the North West, with the number increasing by 21% to £15 billion of debt. The largest decline came from high-growth businesses in the South West, which saw its percentage of debt owed to lenders fall by 16.2%. 

In the first three months of 2025, equity investment activity declined across the UK, with a 7.27% average drop in investment value between Q4 2024 and Q1 2025.

There were two regions that bucked the trend. Wales enjoyed a prosperous quarter, with a 955% uplift in investment, driven by a £600m offshore energy deal, a deal that represented 91.3% of the region’s increase. 

Yorkshire and the Humber also enjoyed a positive quarter for equity funding, with £42 million secured between January and March 2025, representing a 72.10% rise from Q4.

Meanwhile London and the South East maintained their leading positions for spin outs from academic institutions, with 290 and 276 respectively. The two regions made up over a third (35.02%) of the overall 1,616 new business spin out activity in the quarter.

As well as mopping up the most spin out from academia, London also saw a substantial increase in grant funding, with £45.4m in grants awarded in Q1 2025— a 116% increase from Q4 2024.

That was not the case across the rest of the country, with the majority of UK regions seeing grant funding decline. Overall, grant funding dropped by 15.4% drop over the last quarter, representing £16.8m less funding than the UK saw in Q4. 

On this, Qureshi added: “Whilst our data suggests equity investment and grant funding is declining, Barclays remains open to lending. Through our £22bn Business Prosperity Fund, we can help businesses of all sizes access the finance and expertise to support their prosperity and future growth.”

Despite the drop in equity investment and grant funding, a number of new launches in the first quarter of 2025 could provide a boost to new businesses launching. 

In January, the High Street Rental Auctions (HSRAs) scheme was rolled out, giving local authorities a new power to require landlords to rent out persistently vacant commercial properties to new tenants, with funding available for refurbishment as part of the scheme.

And, at the end of 2024, the government announced a renewed emphasis for UK businesses and start-ups to apply to Horizon, the largest research collaboration programme in the world, which has £80 billion in funding to distribute until 2027. Grants are available for businesses and budding entrepreneurs to attend roadshows.