The number of “active enterprises” in Redbridge is on the up, but the borough remains in the bottom half of the London league table.

A report from the Office for National Statistics reveals that the number of businesses that had turnover and employment increased from 8,115 in 2008 to 10,475 in 2011. But the borough is 22nd out of the 33 for the number of these.

Gary Diamond, vice-chairman of Barkingside Traders Association, said this was due to banks not supporting small businesses. He said: “From the time of these figures, there were problems with the banks not lending money to small businesses. Some businesses started up with no knowledge of what was going on down the line.”

Mick Crocker, vice-chairman of the Redbridge Chamber of Commerce, said high business rates were pushing businesses out. He added: “There are lots of small one-man companies. People start up in a small way hoping to build.”