The number of firms registered in the UK has fallen 61,645 in the past year – but Torfaen has bucked the trend to be crowned the country’s new-business hotspot.

Analysis by Oxford Business College experts confirms that Torfaen – home to the towns of Pontypool, Cwmbran and Blaenavon – saw a net increase of 285 new businesses in the past year. Some 590 firms were incorporated in the area in the past 12 months, compared with 305 businesses that collapsed.

The region is one of only nine parts of the UK with more businesses opening than closing in the last 12 months. It is also one of only three locations to experience two years of consecutive growth.

Local leaders attribute Torfaen's achievement to emphasising the bedrock economy, spurring innovation, nurturing entrepreneurial endeavours, and fostering a conducive atmosphere for businesses to flourish.

The rest of the places to see net business numbers grow were the City of London; Stevenage, Hertfordshire; North Tyneside, Tyne and Wear;  Middlesbrough, North Yorkshire; Fenland, Cambridgeshire; Norwich; Castle Point, Essex; and Melton, Leicestershire.

Table: Business registrations and closures – biggest risers

The picture for the rest of the nation is bleak. More than 294,000 businesses were incorporated in the UK in the last year and 355,650 firms closed, making a net fall of 61,645.

England saw a drop of 52,630, while Scotland’s business community fell 3,535, Wales’s by 2,130 and Northern Ireland’s dropped 2,350.

Worcestershire was the worst-hit local authority, with a net fall of 2,540 firms, followed by Surrey, which saw a drop of 1,675.

Table: Business registrations and closures – bigger fallers

On a regional basis, London saw the largest net fall in the number of businesses, with 11,045 more firms going under than starting. The South East was second worst-hit with 9,045, followed by the West Midlands with 7,330.

Table: Business registrations and closures – by region

Dr Ventsislav Ivanov, business expert and lecturer at Oxford Business College, commented:

“The outlook for businesses at the moment is bleak, with soaring energy costs and inflation putting firms under pressure, so Torfaen deserves credit for bucking the trend.

“Torfaen’s business leaders and local government have created the conditions for startups to flourish, and waived rates for certain business types to encourage growth.

“It’s sobering to think that only nine locations in the UK have seen the number of businesses grow in the past year.

“For the past two years we’ve seen the number of registered companies in the UK fall, with more than 93,000 more businesses closing than starting.

“National leaders need to act now to create the conditions to inspire the next generations of entrepreneurs.”

Councillor Joanne Gauden, Torfaen’s Executive Member for the Economy, said:

“As part of our ambitious plans for the county we’re encouraging innovation and enterprise and promoting Torfaen as a great place to do business.

“We’ve created the Torfaen Business Direct service as a one-stop shop for advice and we’re focusing our support on the Foundational Economy by wrapping financial support around entrepreneurs, developing local networks, and identifying suitable premises.

“We are also providing support for existing town centre businesses looking to diversify, modernise and develop local supply chain networks.

“In the autumn we will launch a new business grants programme which supports work we’ve already undertaken to expand flexible business spaces for co-working, opening test trading spaces with rent free periods and providing small business marketing support.

“Our Torfaen Works teams are also supporting new and existing businesses with training, work placements and recruitment.

“There’s still huge opportunities for business growth in the borough and we’d love to hear from more businesses looking to start-up on how we can improve our offer and support them further.”