Government-Supported Group to Champion UK’s Mid-Sized Businesses

A new government-backed initiative will be established to represent the UK’s mid-sized businesses, which have long been 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, driving growth, particularly in regions outside of London and the southeast.

Mid-sized businesses make up just 0.5% of UK companies but employ over 7.3 million people, more than a quarter of the private sector workforce. These firms play a vital role in key areas such as the West Midlands, northeast England, Yorkshire and the Humber, and Scotland, the report revealed. Despite their importance, challenges such as skill shortages, poor regional infrastructure, and a lack of representation have hindered their growth.

Unlike Germany’s Mittelstand, where mid-market firms benefit from a strong collective identity and advocacy platform, the UK’s mid-sized businesses have struggled to find a unified voice. Their interests are often overshadowed by larger corporations and small business groups.

To address this gap, a new “mid-market council” will be launched in 2025, supported by NatWest and the Department for Business and Trade. The council will serve as a collective voice for mid-sized firms, representing key industries and tackling critical issues such as infrastructure, planning, and skills shortages.

Paul Thwaite, CEO of NatWest, emphasized the need for greater visibility for mid-sized businesses. “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,” he said.

The NatWest report also highlighted that mid-sized firms are disproportionately affected by poor infrastructure, including transport, broadband, housing, and grid connectivity, especially outside the southeast. Additionally, a lack of skilled workers and restrictive planning regulations have further impeded their ability to grow and innovate.

Jonathan Reynolds, the business secretary, welcomed the creation of the new council, noting that mid-sized businesses have the potential to outpace other sectors in growth, exports, and productivity. He added that the council would help “amplify their voice” and unlock the untapped potential in this important segment of the economy.

The establishment of the mid-market council marks a significant step toward supporting the UK’s mid-sized businesses, which could play a pivotal role in driving economic growth and creating jobs across the country.