The great divide

The CBI is calling on the Government to address regional disparities in new business start-up rates which are affecting jobs and prosperity across the UK.

The employers' organisation is worried by the startling and growing gap in regional rates of new businesses - London has more firms and companies than Wales, Scotland and Northern Ireland combined and is accelerating away.

The call for action was made by CBI Director-General Sir Digby Jones in a new report 'A More Dynamic Start-up Market', the second in a series examining the Government's small business policy.

Small businesses are responsible for half of all UK jobs and wealth and are fundamental to future economic success - but while London has seen a 16% increase in businesses since 1997 in Wales the figure was just 2%. The South East managed a 15% rise but Scotland recorded only a 5% increase and Northern Ireland 6%.