A government-backed group is being set up to represent Britain’s medium-sized businesses, which are often overlooked despite their significant contribution to the economy.
According to a NatWest report, with the right support, these ‘unsung’ businesses could add a further £115 billion to the UK economy by 2030, boosting growth particularly in regions outside London and the South East.
Medium-sized businesses represent just 0.5% of UK businesses, but employ over 7.3 million people – more than a quarter of the private sector workforce. They play a crucial role in areas such as the West Midlands, North East England, Yorkshire and the Humber and Scotland, the report found.
However, issues such as skills shortages, poor regional infrastructure and a lack of representation are holding back their growth. Unlike the German Mittelstand, Britain’s mid-sized companies lack a platform for collective identity and advocacy, leaving their interests overshadowed by larger companies and small business groups.
To address this, a mid-market council will be launched in 2025, supported by NatWest and the Department of Business and Trade. The council will act as a unified voice for the sector, representing key industries and tackling critical issues such as infrastructure, planning and skills shortages.
Paul Thwaite, CEO of NatWest, highlighted the importance of giving mid-market companies greater visibility: “They don’t have a collective voice. There’s a lot of talk about small businesses, and big businesses have their own platforms. These companies should be treated as a separate segment.”
The report highlighted that poor infrastructure – including transport, broadband, housing and network connectivity – disproportionately affects medium-sized businesses, especially outside the South East. A lack of skilled workers and a restrictive planning regime further hinder their ability to expand and innovate.
Jonathan Reynolds, Business Secretary, welcomed the establishment of the council, noting that mid-market companies have the potential to outperform other market segments in terms of growth, exports and productivity. He said the council would “amplify their voices” and unlock untapped potential in the sector.