New company registrations in Yorkshire and Humberside fell in the second quarter of 2026, suggesting business confidence remains subdued, while the region also recorded a slight rise in insolvency-related activity, according to an R3 report.
R3’s latest Quarterly Business Health report, based on data from Creditsafe, found that 12,435 new companies were registered in Yorkshire and Humberside during Q2 2026, 6% lower than the same period last year (13,290) and 3% down on the previous quarter (12,852). Despite the decline, the region had the sixth-highest number of UK start-ups overall.
While fewer new businesses were launched, the number of Yorkshire and Humberside companies entering insolvency-related processes rose slightly. There were 677 insolvency-related activities in Q2 2026, 2% higher than the same period last year (661 cases) and 2% up on the previous quarter (666). This diverged from the national trend which saw insolvency activity fall by 6%.
More recent figures suggest business pressures have continued, with Insolvency Service statistics showing company insolvencies in England and Wales increased by 5% in July, compared to the previous month, rising to 1,931 cases.
Jodie Wildridge, chair of R3 in Yorkshire and barrister at Kings Chambers, commented:
‘R3’s latest Business Health report points to a landscape where fewer entrepreneurs are starting new ventures, while insolvency-related activity in Yorkshire and Humberside has edged up slightly.
‘The fall in new company registrations suggests that would-be entrepreneurs remain cautious about launching new ventures, instead favouring a wait-and-see approach.
“Businesses continue to face a range of pressures, from higher employment costs and ongoing geopolitical uncertainty to concerns around consumer demand and cashflow. These factors can make launching a new business feel like a greater risk than it might have done previously.
‘Businesses should continue to monitor cashflow carefully and seek professional advice early from an R3 expert if they are struggling.’
The latest figures mirror the national picture, with new UK company registrations falling by 6% year-on-year to 184,873 in Q2 2026 and by 2% compared to the previous quarter. Insolvency-related activity has also declined nationally by 6% compared with Q2 2025, falling to 6,854 cases, according to the R3 report.
