Lower mid-market businesses optimistic about Labour’s economic policies

New research offers a respite to Labour which has faced widespread criticism over the burden its Autumn Budget placed on business through its National Insurance hike for employers and the Living Wage increase.

Nearly three-quarters (73%) of the North West’s lower mid-market businesses are optimistic about Labour’s economic policies, believing they will positively impact growth.

This is according to new research from Daresbury-based business advisory group Dow Schofield Watts.

The UK Growth Census, which gathered insights from 500 UK businesses with an annual turnover between £10m and £150m, provides a clear snapshot of how these businesses are navigating external pressures, capitalising on opportunities, and positioning themselves for future success.

Their confidence isn’t just tentative – 39% of businesses in the North West see Labour’s policies as very positive for business growth, while 34% expect a somewhat positive impact. In contrast, just eight per cent believe policies will have a negative impact.

UK-wide, firms in the £50m-£99.99m turnover range are the most confident, with 83% expecting a net positive impact – including 47% who anticipate a very positive effect.

Shru Morris, CEO designate of Dow Schofield Watts, said: “There has been a great deal of uncertainty about how government policies will impact businesses following October’s Budget announcement, but these findings suggest that lower mid-market firms see clear opportunities ahead.

“Many business leaders feel that recent policy decisions will create a more stable environment for growth, allowing them to focus on long term strategy rather than short term risk management.”

While optimism is high, the research shows that businesses are mindful of the challenges ahead – 35% cited economic uncertainty as their biggest concern over the next three years, 31% pointed to regulatory or political changes, 31% highlighted rising operational costs, and 28% were concerned about tax or tariff changes.

Despite this, businesses are also highly confident in their own ability to grow. Ninety per cent of North West-based businesses expect revenue to rise over the next 12 months, and 88% are confident in increasing profitability.

While confidence is strong across the board, Scotland and the South West are the most optimistic regions, with 97% net confidence in revenue growth, whereas Yorkshire and the Humber lags behind at 83% – still high but noticeably lower than the national average of 92%.

James Dow, founder and CEO of Dow Schofield Watts, said: “What’s clear from the research is that lower mid-market businesses aren’t waiting for certainty – they’re taking action.

“Their confidence is based on strategic investment, careful planning, and a clear focus on long term growth. We see this first hand in the businesses we work with – whether they’re investing in technology, expanding into new markets, or pursuing M&A, they’re making deliberate moves to strengthen their position.”

He added: “At Dow Schofield Watts, we’ve built our business around the needs of owner-managers, empowering them to create, protect and realise value.

“Their ability to move decisively in uncertain times is what sets them apart, and it’s why they continue to drive economic growth across the UK regions.”