Mid-sized businesses across Yorkshire created 40,000 jobs during last year

Mid-sized businesses in Yorkshire have created more jobs in the last year than FTSE 350 and small businesses combined, according to new figures.

The region’s mid-sized businesses created 40,000 additional jobs in the last year, an 8% increase from 514,000 to 554,000 – according to data published by accountancy and business advisory firm BDO.

Smaller businesses experienced a 4% increase, creating just under 5000 jobs, bringing the total number of jobs to just over 117,000. The 10 FTSE 350 firms in Yorkshire experienced a decrease of 2%, a reduction of 3500 jobs, bringing the total number employed by FTSE firms to 150,000.

The national story paints a similar picture of growth for the mid-market. In total an additional 500,000 jobs were created by mid-sized businesses last year – an increase of 8%. This compares with smaller businesses, which created 100,000 more jobs, (+7% increase). FTSE 350 businesses experienced a reduction in jobs nationally, down by 1.2% at a loss of 80,000 jobs.

These high-growth, entrepreneurial and ambitious businesses (which BDO calls the UK economic engine) punch well above their weight, accounting for only 0.5% of all UK businesses (29,000) but over one third of UK revenue (£1.3tn) and almost 1 in 3 private sector jobs.

Yet despite such a pivotal role, mid-sized businesses risk being overlooked by policy makers, according to BDO’s ‘New Economy’ report.

The report outlines five key policy areas aimed at boosting the UK economic engine post-Brexit. Ideas include radically simplifying the UK tax system, creating regional and sector powerhouses, tackling the UK skills gap and increasing productivity by boosting the Annual Investment Allowance.

Terry Jones, Partner and Head of BDO in Yorkshire, said:“Since the 2016 referendum there has been a huge amount of economic and political uncertainty for all UK businesses. Despite this backdrop, it is great to see that the economic engine continues to create more jobs throughout the UK and not just in London and the South East.

“These high-growth, entrepreneurially spirited businesses are the lifeblood of our economy and warrant significant attention from any post Brexit government.

“We are proud to be a part of, and support the businesses that make up the Northern Powerhouse, and want to see the businesses at the heart of these regional powerhouses thrive.”

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