Red alert as region’s mid-sized businesses smash through £100bn barrier
Mid-sized businesses in the East of England have broken the £100 billion revenue barrier yet are in danger of being marginalised in a post-Brexit Britain, according to accounting and advisory firm BDO.
BDO’s ‘New Economy’ report underlines that mid-sized businesses in the region generated bigger revenue growth than their larger and small counterparts.
In the last year they increased turnover by 6.36 per cent to £106bn from £99.6bn while revenue for large businesses locally shrunk by 5.6 per cent to £94bn from £100bn and SME revenues contracted 13 per cent to £11bn from £13bn.
Despite driving East Anglia’s economy, the group risks being overlooked as the UK prepares to leave the European Union, according to BDO. The firm is calling on the Government to prioritise the needs of mid-sized companies as one of three areas that policymakers must get right in order to create a ‘new economy’ that can thrive in the post-Brexit environment.
BDO wants Whitehall to:-
• Encourage the UK’s fast-growth mid-sized businesses (the UK economic engine)
• Create sector and geographic powerhouses
• Ensure open and simple access to global markets and talent
The report’s proposals suggest 22 policy recommendations. It urges the Government to choose ‘simplicity over subsidy’ for the UK tax code, helping to simplify the tax system to support mid-sized companies.
It wants the Government to cut through red-tape and commission ‘shovel-ready’ infrastructure projects that bring immediate economic impact – and to fight hard to retain a variant of the financial services passport which is a core pillar of the UK’s economic success.
Lisa Clampin, lead partner for BDO in East Anglia said: “High-growth mid-sized businesses are the backbone of the East Anglian economy. They contribute jobs, revenue and profits to our region yet, because they are so hard to define, they are overlooked and undervalued.
“With Brexit and more uncertainty looming, this is the time for the Government to engage with this part of our economy and draw on their natural energy, ambition and entrepreneurial spirit to create a ‘new economy’ and help the UK succeed post-Brexit.”
BDO’s New Economy report can be downloaded here – www.neweconomy.bdo.co.uk