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.

As the holiday season approaches, many employees eagerly anticipate the annual office Christmas party. But for some, the traditional boozy bash may no longer be the festive highlight it once was. Increasingly, workers and employers alike are reassessing the format of these year-end celebrations, seeking to strike a better balance between fun and inclusivity.

One significant shift this year is the rise of alcohol-free office parties. According to Fortune magazine, about 20% of office parties will be alcohol-free, reflecting growing concerns about the health impact of drinking. Event management company Together reports that 74% of Gen Z workers are especially mindful of alcohol’s effects, prompting companies to provide mocktails and non-alcoholic options to accommodate their preferences. But it’s not just younger employees abstaining—many people are opting out of drinking for various personal reasons, including health, financial concerns, or simply personal preference.

Another factor contributing to the change in office party dynamics is the financial burden some employees face. For junior staff, the cost of attending an office party can be substantial, with expenses for new outfits, transportation, and drinks after the company’s tab runs out. This has led some companies to reconsider the traditional evening event in favor of more affordable options, such as a daytime celebration or a casual lunch.

For those with families or heavy work schedules, late-night festivities can be a challenge. A growing number of workers are expressing a preference for more inclusive, daytime events that allow for better work-life balance.

However, the issue of inappropriate behavior at office parties has become a serious concern. A survey by legal platform Valla found that 1 in 10 employees planned to skip their company’s holiday event to avoid unwanted sexual attention. With alcohol flowing and social barriers lowered, workplace misconduct at these gatherings is a known risk, and recent legal changes highlight the importance of addressing this issue.

In October 2023, the Worker Protection Act introduced new requirements for employers to prevent sexual harassment at work-related events, including holiday parties. Failing to meet this duty of care could lead to higher compensatory awards in the event of a legal claim. This shift has made it crucial for companies to ensure a safe and respectful environment at all office events, from office parties to team-building activities.

Ultimately, companies are being encouraged to focus on inclusivity and respect when planning celebrations. Rather than simply following tradition, employers are urged to consider their workforce’s diverse preferences, promote healthy behaviors, and create positive, memorable experiences that everyone can enjoy. For some, this may mean a move away from the classic party and towards charitable giving or alternative celebrations, which could resonate more with younger generations, as seen in recent surveys.

As businesses adapt to the changing landscape, the key takeaway is clear: office celebrations should reflect the evolving values of the workplace, fostering a culture of respect and inclusivity while celebrating hard-earned achievements.

Luke Johnson, the chairman of Gail’s bakery chain and a prominent entrepreneur, has expressed deep concerns about Labour’s proposed Employment Rights Bill, warning that some of his businesses could struggle to survive under the new regulations.

Speaking to the Employment Rights Bill committee, Johnson, who also has investments in Brompton bicycles and Revolution Bars, said the bill’s potential costs and complexities could overwhelm small and medium-sized enterprises (SMEs). “In some cases, some of my companies might not survive next year,” he told ministers.

Johnson highlighted the difficult economic climate, with insolvency specialists predicting an increase in company failures, and questioned the timing of the proposed reforms, especially following the recent tax hikes introduced in the October Budget. He argued that for many smaller businesses that lack extensive human resources departments, the bill’s regulatory demands could prove unmanageable.

“The idea that companies that can barely afford any form of HR could stomach a big new bill of 150 pages in 28 measures—they won’t even have time to read it,” Johnson said. “You never know, until you get a big tribunal, what the real cost is.”

The Employment Rights Bill aims to strengthen workers’ protections, including improved job security, enhanced flexible working options, and greater union powers. It would also allow employees to take employers to tribunal from day one of their employment. While these changes are designed to benefit workers, many business leaders are concerned about the potential impact on operational costs and hiring practices.

The government’s own impact assessment estimates that the reforms could cost businesses up to £4.5 billion. Alex Hall-Chen, head of policy at the Institute of Directors, warned that the bill could discourage companies from hiring new staff, particularly those who are considered “borderline candidates,” due to the heightened risks and costs associated with employment disputes.

Andrew Griffith, the Shadow Business Secretary, has called for the bill to be delayed until comprehensive impact assessments are carried out. He criticized the government’s existing assessments, saying they were “not fit for purpose.”

Johnson’s remarks highlight the ongoing tension between increasing worker protections and supporting businesses, especially in a challenging economic environment. “Jobs don’t just fall from the sky—they appear because companies are created by risk-takers,” he stated. “If you crush the private sector, you crush jobs. Without jobs, you don’t have civilisation.”

As ministers continue consultations on the bill, they face the difficult task of balancing the protection of workers’ rights with the sustainability of SMEs, which play a crucial role in the UK economy.