R3 report: New business registrations fall across the North West

New company registrations in the North West fell in the second quarter of 2026, suggesting business confidence remains subdued although the region also recorded a decline in insolvency-related activity, according to an R3 report.

R3’s latest Quarterly Business Health report, based on data from Creditsafe, found that 18,875 new companies were registered in the North West during Q2 2026, 7% lower than the same period last year (20,394) and 6% down on the previous quarter (20,006). However, despite the decline, the region had the third-highest number of UK start-ups overall.

While fewer new businesses were launched, the number of North West companies entering insolvency-related processes also fell. There were 1,044 insolvency-related activities in Q2 2026, the second-highest regional total in the UK after Greater London, but 17% lower than the same period last year (1,266 cases) and 15% down on the previous quarter (1,226).

Mark Davies, chair of R3 in the North West and Head of Restructuring and Insolvency at Aaron and Partners LLP, commented:

‘R3’s latest Business Health report points to a landscape where fewer firms are entering formal distress processes, but where entrepreneurs remain cautious about launching new ventures, instead favouring a wait-and-see approach.

‘While it is welcome to see insolvency-related activity declining, sustainable economic growth requires both resilient businesses and a healthy pipeline of new enterprises entering the market.

“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.