New business registrations fall across the West Midlands

New company registrations in the West Midlands 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 16,410 new companies were started in the West Midlands during Q2 2026, eight per cent lower than the same period last year (17,845) although numbers were at similar levels to the previous quarter (16,551).

While fewer new businesses were launched, the number of West Midlands companies entering insolvency-related processes also fell. There were 730 insolvency-related activities in Q2 2026, the fourth-highest regional total in the UK after Greater London, the North West and East Anglia but 12 per cent lower than the same period last year (826) and four per cent down on the previous quarter (744).

R3 Midlands chair, Monica Kapur, a solicitor and director at Isadore Goldman, said: ‘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 six per cent year-on-year to 184,873 in Q2 2026 and by two per cent compared to the previous quarter. Insolvency-related activity has also declined nationally by six per cent compared with Q2 2025, falling to 6,854 cases.