Banks report a slump in start-up businesses

START-UP activity fell by 7.8 per cent year-on-year during the first quarter, the Committee of Scottish Clearing Bankers yesterday claimed.

During the three months to 31 March, a total of 4,012 business accounts were opened with the four clearing banks north of the Border - Bank of Scotland, Royal Bank of Scotland, Clydesdale and Lloyds TSB Scotland.

The figures are regarded as a guide to the business start-up rate, but do not capture all activity because accounts opened with other banks like HSBC and Santander are not included.

The data also does not distinguish between banking accounts opened by existing businesses and those set up by newly-established enterprises.

Edinburgh and Glasgow both recorded year-on-year falls, but Aberdeen posted an increase to 210 from 193.

Among those sectors recording the biggest falls were construction; wholesale and retail trade; hotels and restaurants; health and social work; and recreational, personal and communications services.

Gainers were led by the transport, storage and communications sector, with 240 accounts opened in the first quarter, up from 151 previously. Others sectors showing more modest increases included real estate and renting, financial intermediation and manufacturing.

Compared to the low of 3,020 accounts opened during the final three months of last year, first quarter activity was up by nearly a third.