Welsh VAT figures point to fall in start-ups
More and more businesses in Wales are de-registering for VAT, raising concerns that entrepreneurs in the region are under pressure.
According to Department of Trade and Industry figures, there were 6,110 new VAT-registered companies for 2002 in Wales but 6,785 de-registrations, giving a negative balance of 675.
The increase in the rate of de-registrations in Wales was 5.2% – making it the second worse performing region in the UK after London, whose rate of de-registration was 8.2%.
Although growing numbers of small businesses appeared under pressure, commentators stressed that other economic indicators for the region were positive, including employment figures and the Purchasing Managers’ Index.