Government-backed council to champion ‘unsung’ mid-sized businesses

By Investor Empires On Dec 2, 2024

A government-backed group is now being set up to represent the UK’s medium-sized businesses, which are often overlooked despite their significant contribution to the economy.

According to a NatWest report, these “unsung” companies could add an additional £115 billion to the UK economy by 2030 with the right support, driving growth particularly in regions outside London and the South East.

Medium-sized businesses represent just 0.5% of UK businesses but employ more than 7.3 million people – more than a quarter of the private sector workforce. The report found that these animals play a crucial role in regions such as the West Midlands, north-east England, Yorkshire and the Humber and Scotland.

However, challenges, including skills shortages, weak regional infrastructure, and lack of representation, are hindering its growth. In contrast to mid-market companies in Germany, mid-market companies in the UK lack a collective identity and advocacy platform, leaving their interests overshadowed by larger companies and small business groups.

To address this issue, the Middle Market Council is scheduled to launch in 2025, with support from NatWest and the Department for Business and Trade. The Council will act as a unified voice for the sector, representing key industries and addressing critical issues such as infrastructure, planning and skills shortages.

Paul Thwaite, chief executive of NatWest, stressed the importance of giving medium-sized businesses greater visibility: “They don’t have a collective voice. There is a lot of talk about small businesses, and large companies have their own platform. These companies should be treated as a distinct sector.

The report highlighted that poor infrastructure – including transportation, broadband, housing and network connectivity – disproportionately affects mid-sized businesses, especially outside the Southeast. The lack of skilled workers and a restrictive planning system further hinders its ability to expand and innovate.

Jonathan Reynolds, Minister for Business, welcomed the establishment of the Council, noting that medium-sized companies have the potential to outperform other market sectors in growth, exports and productivity. He said the council would “amplify their voice” and unlock untapped potential in the sector.

Jimmy Young

Jamie is an experienced business journalist and senior reporter at Business Matters, with over a decade of experience reporting on UK SME business. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends. When Jamie is not reporting on the latest business developments, he is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.