HomeReportPrivate sector business count

Private sector business count

Information from the ONS annual count of VAT and PAYE registered private sector businesses

Business sectors North East businesses
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Introduction

Each autumn, the Office for National Statistics (ONS) publishes UK business; activity, size and location. This is the headline ONS record of the number of businesses in the UK that have registered for Value Added Tax (VAT) and/or Pay As You Earn (PAYE), also known as the UK Business Count. It includes detailed local and small sector information that is made available from the ONS Nomis website.

The publication is produced from a March extract of the ONS Inter-Departmental Business Register (IDBR). This is a comprehensive list of businesses registered for VAT and/or PAYE. It is the main sampling frame for business surveys carried out by the ONS and other government departments. 

The publication presents counts of enterprises and local units. An enterprise is represented by the term "business" in the ONS release and within this report. It is an organisational unit producing goods or services, which has a certain degree of autonomy in decision-making. An enterprise can have more than one local unit (individual site).

Estimates of the number of employees in the publication include information from responses to ONS surveys. The turnover estimates are mainly based on administrative data and this is the source of some of the employee estimates.  Each enterprise in the IDPR is defined by a single industry code and the sector breakdown, therefore, sums to the total number of enterprises. In reality, many enterprises work in more than one area of the economy so the sector counts in this report are indicative rather than definitive.

The Department for Business and Trade’s (DBT) Business Population Estimates publication provides the only estimate of the total UK business population. It uses ONS Labour Force Survey results and HMRC self-assessment tax data to estimate the number of unregistered businesses, which are added to those in the IDBR. The estimates are only published for the UK and its 12 ITL1 areas. This report includes North East ITL1 area estimates, which also include businesses in Tees Valley.

Businesses in the North East

In March 2025, within the North East MSA area, there were:

54,860

North East registered private sector enterprises

Companies: 39,115 
Sole proprietors: 9,360
Partnerships: 4,185
Non-profit or mutual: 2,200.

Totals rounded to the nearest five.

14,455

Registered private sector enterprises in County Durham

The highest total among the seven
North East local authority areas,
followed by Northumberland, 11,295,
and Newcastle, 8,855.

47,980

Micro enterprises (with fewer than ten employees)

Small (10 to 49 employees): 5,710
Medium-sized (50 to 249): 955
Large (250 plus): 210.

Turnover of <£100,000: 17,255.
£100,000-£500,000:  26,530
£500,000 plus: 11,075

4,810

Registered private sector enterprises in Hexham

Highest NE constituency total.
Second highest: 
Newcastle Central and West: 4,420
Lowest: Houghton and 
Sunderland South: 1,780

Recent trends

In the latest decade, the number of North East enterprises increased at a slightly higher rate than nationally. The number of companies grew, while the number of sole proprietor and partnership enterprises decreased. In the latest five years, the rate of change slowed but was still positive, in contrast to a decrease nationally.

+5,930

Change in number of North East registered enterprises

Private sector: 2015 to 2025.
Companies: +10,075
Sole proprietors: -2,480
Partnerships: -1,940
Non-profit or mutual: +275

+12.1%

Percentage change in number of North East registered enterprises

Private sector, 2015 to 2025.
UK change +11.7%
Five years from 2020 to 2025:
North East +2.5%, UK -0.5%

+35%

Change in number of North East companies

Private sector, 2015 to 2025.
Enterprises with:
250+ employees: +20%
<5 employees: +17%
£5m+ turnover: +57%

+21%

Change in number of enterprises in Newcastle upon Tyne

Private sector, 2015-2025.
Highest among NE LA areas,
Second highest: North Tyneside +19%
Lowest: Northumberland +4%

How the North East compares

When the working age population is taken into account, the North East has a much lower rate of private sector enterprises than the UK as a whole. This rate tends to be lower in areas with a greater proportion of larger enterprises. The North East has the highest percentage of enterprises with 10 or more employees among English combined authority areas, although the percentage of high turnover enterprises is slightly lower than nationally.  

432

North East enterprises per 10,000 working age residents

Private sector, 2025.
Third lowest of 15 English combined
and mayoral strategic authorities 
UK rate: 625.

590

Northumberland enterprises per 10,000 working age residents

Private sector, 2025.
Highest NE LA area rate.
Next highest rates:
Gateshead, 442,
County Durham, 435.

12.5%

of North East enterprises with ten or more employees

Private sector, 2025.
Highest among 15 English
combined authority areas.
UK: 10.7%
Newcastle 14.7% (NE highest)

20.2%

of North East enterprises with turnover of £500,000 plus

Private sector, 2025.
Slightly lower than the UK (20.3%)
Fourth lowest among 15 English
Combined Authority areas
Gateshead 24.0% (NE highest)

Broad industry groups

Almost 30% of North East private sector enterprises are within the two broad industry groups of construction and professional, scientific and technical, with a large increase in the number of construction enterprises in the latest decade.  Compared with the UK industry group profile, the North East has a particularly large percentage of enterprises involved in food and accommodation services.

7,775

North East private sector enterprises involved in construction

Registered enterprises, 2025
Highest broad industry group total
Followed by professional, scientific
and technical (7,320). In total,
almost 30% of NE enterprises.

6,420

North East construction enterprises with fewer than five employees

Highest NE total of private
enterprises of this size, 2025
Other employee size bands:
5-49: Accommodation & food services
50 plus: Manufacturing

1.48

Location quotient for accommodation and food services

The highest NE concentration of
enterprises, compared to the UK.
Personal and similar services 1.26
Agriculture, forestry, fishing 1.18
Manufacturing 1.17

+1,955

Ten year change in number of construction enterprises

Private sector registered, 2015 to 2025.
Followed by: 
Accommodation, food services +865
Property +695
Transport and storage +695

Including unregistered businesses

In the broad North East region, more than three quarters of businesses have no employees. This includes the 58% of businesses that are unregistered, who produce less than 4% of turnover in the area.

166,500

registered and unregistered North East businesses

2025 estimates, North East ITL1 area
58% unregistered, no employees;
17% registered, no employees;
15% with 1 to 4 employees;
5% with 5 to 9; 4% with 10 to 49
1% with 50 or more.

3.5%

of North East turnover from unregistered businesses

2025 estimates, North East ITL1 area.
6% from registered, no employees;
8% from those with 1 to 4 employees;
6% from those with 5 to 9;
15% from those with 10 to 49
62% from those with 50 or more.

23,970

registered and unregistered North East construction businesses

2025 estimates, North East ITL1 area.
2nd: Professional, scientific, technical 20,870.
49% of all businesses in accommodation
& food services are employers,
compared to only 7% in education
and 12% in transportation and storage.

+31,500

ten year change in North East registered and unregistered businesses

2015 to 2025, North East ITL1 area.
Equivalent to a 23.3% increase.
Businesses with employees: +5.4%
businesses with no employees: +30.6%.

Further analysis

The evidence hub includes other data reports that provide information about North East businesses. The raw data for these reports can be downloaded from the Office for National Statistics (ONS) or other official statistics sites

Business sectors home page

The business evidence hub landing page. With links to all data reports about business counts, sectors and trends.

Find more statistics about North East businesses
UK business; activity, size and location (source)

The ONS statistical release of the annual estimate of the number of VAT/PAYE registered businesses in the UK, including local data.

Explore the source data
Nomis labour market statistics website (source)

An ONS site providing a flexible way to access up-to-date official statistics for local areas. The site focuses on economic and labour market data, including the UK registered business count. 

Explore the source data
Business population estimates (source)

Estimates of the total number of businesses in the broader North East region. Including unregistered businesses as well as those registered for VAT and/or PAYE.

Explore the source data
Guide to the UK business population and demography

An official guide that includes key facts about the ONS UK Business; Activity, Size and Location publication and about the DBT Business Population Estimates.

Read guidance about business count datasets