Mid-market sector provides 22 per cent of Yorkshire jobs

Research from professional services firm BDO analysed 2,150 mid-sized regional businesses, which contribute £71bn in revenue and £22.5bn in gross value added (GVA) each year.

Launching its Mid-Market Manifesto, the firm said better access to finance, improved education and skills development and reforms to tax and exporting are crucial for the sector to grow.

Terry Jones, partner and head of BDO in Yorkshire, said the value of the county’s mid-sized enterprises was overlooked and undervalued.

The run-up to the General Election is an opportunity to consider how to best generate growth by supporting the sector, he said.

Mr Jones said: “Mid-sized firms contribute a remarkable amount to GDP (gross domestic product) and jobs, and what’s exciting is that with the right support these businesses have the potential to deliver even more for our regional economy.

“The Government has done a good job at promoting the general needs of business but more can be done to help mid-sized firms specifically.”

A temporary reduction in National Insurance for manufacturing companies could yield dramatic results, driving £3.5bn into the economy – £1bn from the mid-market – and adding 90,000 private sector jobs.

BDO also urged the Government to award its contracts on the basis of employment and training benefits, not just on cost alone. Looking for best value from contracts, rather than the cheapest price, could add 11,000 jobs and an additional £1bn in revenue.

Allowing smaller firms to access the Regional Growth Fund could generate £200m in GDP, of which £60m would come from the mid-market. This could also create 2,000 jobs, BDO said.

Mr Jones said the proposals are “rooted in reality”.

He said: “There is now a unique opportunity to tilt the balance in the direction of growth for the unsung heroes of our economy to ensure we drive value for Yorkshire plc.”

Britain’s mid-market companies account for one per cent of all UK firms but generate a third of private sector revenue, totalling more than £1 trillion per year, and employ over 6.2 million – or one in four – people.