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

December 2, 2024

A new mid-market council will champion the UK’s mid-sized businesses, aiming to tackle skill shortages and infrastructure issues, unlocking £115bn in economic growth by 2030.

A government-supported group is being established to represent the UK’s mid-sized businesses, often overlooked despite their significant contribution to the economy.

According to a NatWest report, these “unsung” firms 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 southeast.

Mid-sized businesses account for just 0.5% of UK companies but employ over 7.3 million people — more than a quarter of the private sector workforce. They play a crucial role in areas such as the West Midlands, northeast England, Yorkshire and the Humber, and Scotland, the report found.

However, challenges including skill shortages, poor regional infrastructure, and a lack of representation are holding back their growth. Unlike Germany’s Mittelstand, the UK’s mid-market firms lack a collective identity and advocacy platform, leaving their interests overshadowed by larger corporates and small business groups.

To address this, a “mid-market council” is set to launch in 2025, supported by NatWest and the Department of 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, NatWest’s CEO, stressed the importance of giving mid-sized companies greater visibility: “They don’t have a collective voice. There’s a lot of talk about small businesses, and large corporates have their own platform. These businesses need to be treated as a distinct segment.”

The report highlighted that poor infrastructure — including transport, broadband, housing, and grid connectivity — disproportionately affects mid-sized firms, particularly outside the southeast. A lack of skilled workers and a restrictive planning regime further hinder their ability to expand and innovate.

Jonathan Reynolds, business secretary, welcomed the creation of the council, noting that mid-sized businesses have the potential to outpace other market segments in growth, exports, and productivity. He said the council would “amplify their voice” and unlock untapped potential in the sector.