North West sees autumn uplift with rise in new businesses, R3 research shows
An increase in the number of start-up businesses in the North West since last year is a welcome uplift for the region, but firms are still facing a challenging economic outlook. This is according to new research from R3, the UK’s trade body for restructuring, turnaround and insolvency professionals.
R3’s analysis of data from Creditsafe shows that the number of new businesses started in the region rose by 24% in September 2025 to 7,485 new businesses compared to September 2024 when there were 6,044 new start-ups.
The region’s performance reflects the national trend, with the North West recording the fourth highest growth in start-up activity across the UK over the period. Only Wales (35%), the North East (29%) and West Midlands (26%) saw larger increases in new business formations.
In contrast, the number of insolvency-related activities – including liquidator and administrator appointments and creditors’ meetings – edged up only slightly, rising by 1% from 350 in September 2024 to 353 last month.
Fran Henshaw, chair of R3 in the North West and restructuring and insolvency director at Menzies LLP, commented:
“The increase in new business start-ups suggests that entrepreneurial confidence is returning to the region, even amid a challenging economic climate. Despite pressures from inflation and rising employment costs linked to higher National Insurance contributions, firms across the North West are showing real resilience by innovating, investing in technology, and adapting their strategies to remain competitive.
“However, while insolvency-related activity has remained steady, it’s clear that many businesses are still operating in difficult conditions. As we approach the November Budget, there’s a degree of nervousness about potential tax rises and their impact on the business community.
“Given the ongoing uncertainty, directors must remain vigilant about the financial health of their companies. Whether a business is newly established or long-standing, it’s vital to monitor finances closely and seek early professional advice from R3 members if challenges begin to emerge.”