Calls for “new economy” as Yorkshire’s mid-market is overlooked
ALTHOUGH Yorkshire mid-market firms are growing faster than the national average in terms of revenue and job creation, they are being “overlooked” according to business advisory firm BDO.
In the region, turnover for mid-market firms grew nearly 80% over the last five years, reaching close to £64bn last year.
This outstrips the UK average, where mid-tier firms (with revenues of £10m to £300m) have grown turnover by 55% to £1.02trn.
The UK mid-market has “outstripped” the FTSE 100 in many key areas of performance
Jobs growth of the UK mid-market is three times faster than that of the current FTSE 100 according to BDO.
Mid-market firms in Yorkshire grew faster than the national average employing 72% more people than they did in 2010.
With rebalancing the economy the top political priority for the UK Government, through initiatives such as the Northern Powerhouse and the new independent infrastructure commission, BDO is calling for policy-makers to determine a bigger role for the mid-market in their thinking and help this already successful sector expand further.
Terry Jones, partner and head of BDO LLP in Yorkshire, said: “Now that we are on the road to recovery, it is essential that we do not repeat the mistakes of the past and perpetuate an unbalanced economy too heavily reliant on one sector or region.
“The Government has started tackling the issues and plans around the Northern Powerhouse, devolving powers to cities and infrastructure investment are all very welcome. More can be done though, and encouraging Britain’s mid-market has to be at the heart of Government plans. Yet currently the mid-market falls into a policy and profile gap – too big to benefit from the policies aimed at small businesses and too small to get the attention lavished on FTSE firms.
“We would like to see a ‘new economy’ that harnesses the entrepreneurial spirit of UK businesses and puts the mid-market front and centre of the UK’s growth plans.
“Germany’s Mittelstand is rightly lauded in its own country and it’s time our own ‘Brittelstand’ got the same recognition”.
