East Midlands mid-sized businesses are a thriving but overlooked part of the regional economy having seen double digit profit growth over the last year, according to new research published by BDO.
Mid-sized businesses in the region saw an increase in profit growth of 18% to £4.8bn from £4bn. Turnover for mid-sized businesses grew by 4.3% from £73bn from £70bn and the regions mid-sized businesses employ 496,000 people in the region up by 3.6% in the last year from 479,000.
Yet despite having such an impact in the East Midlands mid-sized businesses risk being overlooked as the UK prepares to leave the European Union, according to BDO’s ‘New Economy’ report.
With so much uncertainty facing the UK, BDO is calling on the Government to prioritise the needs of mid-sized companies as one of three areas that policymakers must get right in order to create a ‘new economy’ that can thrive in the post-Brexit environment.
The three areas in the ‘New Economy’ report that BDO is calling upon the Government to focus on are:
(i) Encourage the UK’s fast-growth mid-sized businesses (the UK economic engine)
(ii) Create sector and geographic powerhouses
(iii) Ensure open and simple access to global markets and talent
The report’s proposals – which suggest twenty two policy recommendations – include a call for the Government to choose ‘simplicity over subsidy’ for the UK tax code, helping to simplify the tax system to support mid-sized companies; to cut through red-tape and commission ‘shovel-ready’ infrastructure projects that bring immediate economic impact; and battling hard to retain a variant of the financial services passport which is a core pillar of the UK’s economic success.
Richard Rose Lead Partner of the Midlands said:
“High-growth mid-sized businesses are the backbone of the East Midlands economy. They contribute jobs, revenue and profits to our region yet, because they are so hard to define, they are overlooked and undervalued.
“With Brexit and more uncertainty looming, this is the time for the Government to engage with this part of our economy and draw on their natural energy, ambition and entrepreneurial spirit to create a ‘new economy’ and help the UK succeed post-Brexit”.