Monica Kapur comments on the latest figures examining the health of businesses across the East Midlands.
Monica Kapur, Director and Solicitor at Isadore Goldman and Chair of R3 Midlands, has commented on the latest figures examining the health of businesses across the East Midlands.
The East Midlands recorded a decline in the number of company start-ups in Q2 2026 and was one of the few areas of the UK to see insolvency-related activity increase, according to an R3 report. R3’s latest Quarterly Business Health report, based on data from Creditsafe, found that 6,620 new companies were registered in the East Midlands during Q2 2026, 8% lower than the same period last year (7,182) and 3% down on the previous quarter (6,837).
The East Midlands also saw a rise in insolvency-related activity during the quarter. There were 258 insolvency-related activities in Q2 2026, up 4% on Q2 2025 (247), diverging from the national trend which saw insolvency activity fall by 6%. However, the figure was down by 7% on the previous quarter's total of 278.
Monica Kapur commented:
"R3's latest Business Health report suggests many would-be entrepreneurs are taking a cautious approach to launching new ventures.
"That is a concern because sustainable economic growth depends on a healthy pipeline of new businesses entering the market.
"Businesses continue to face a range of pressures, from higher employment costs and geopolitical uncertainty to concerns around consumer demand and cashflow. Together, these factors can make starting a business feel like a greater risk than it might have done previously.
"Business owners should continue to monitor cashflow carefully and seek professional advice early from an R3 expert if financial pressures begin to build.’
The latest figures mirror the national picture on start-ups, with new UK company registrations falling by 6% year-on-year to 184,873 in Q2 2026 and by 2% compared with the previous quarter. However, the East Midlands diverged from the national trend on insolvency-related activity across the UK which fell by 6% this quarter to 6,854 cases.
Content taken from R3's August 2026 release "New business registrations fall across the East Midlands" and reproduced here with their permission.
Media Coverage
This content was also covered in the following news articles:
Northampton Chronicle: New business registrations fall across the East Midlands
Lincolnshire World: New business registrations fall across the East Midlands
MSN.com: New business registrations fall across the East Midlands
Northants Telegraph: New business registrations fall across the East Midlands
Daventry Express: New business registrations fall across the East Midlands