New company registrations in the South East fell in the second quarter of 2026, suggesting business confidence remains subdued despite a reduction in insolvency-related activity, according to an R3 report.
R3’s latest Quarterly Business Health report, based on data from Creditsafe, found that 16,294 new companies were registered in the South East during Q2 2026, a 7% decrease on the same period last year (17,504) and a 6% fall compared to the previous quarter (17,286).
While fewer new businesses were launched, the number of South East companies entering insolvency-related processes also declined. There were 543 insolvency-related activities in Q2 2026, 12% lower than the same period last year (619 cases) and 11% lower than the previous quarter (607).
More recent figures suggest business pressures have continued however, 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.
Neil Stewart, R3 Chair in Southern and Thames Valley and Regional Associate Director at Manolete Partners commented:
“R3’s latest Business Health report presents a mixed picture for the South East. While fewer businesses are entering formal insolvency processes, we’re also seeing a slowdown in new company registrations, suggesting many would-be entrepreneurs are taking a cautious approach.
“The South East remains one of the UK’s most economically significant regions, but businesses here are not immune from the challenges affecting companies across the country. Rising employment costs, continuing economic uncertainty and pressure on consumer spending are all impacting confidence and investment decisions.
“Although it’s encouraging to see that insolvency-related activity remains below last year’s levels, a thriving economy also depends on new businesses entering the market and driving innovation, job creation and growth.
“Business owners should continue to monitor their financial position closely and seek advice as early as possible if they experience cashflow or trading difficulties. Speaking to a qualified professional who is an R3 member at the earliest opportunity can widen the options and help achieve the best possible outcome.”
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.
