Mid-sized businesses in the Midlands plan to invest millions over the next five years, with nearly half (42%) planning to spend upwards of £3 million to grow their business, according to accountancy and business advisory firm, BDO LLP.
The firm’s bi-monthly Economic Engine survey of 500 mid-sized businesses, which generate a turnover of between £10 to £300 million each and account for one in four UK jobs, has revealed that nearly a third (29%) of those in the region plan to direct their investment primarily within the UK.
More than a quarter of Midlands businesses (27%) said that sourcing new capital to fund growth was one of their top priorities between now and the end of the year. This includes private equity investment, venture capital or additional bank loans. A similar number (24%) are prioritising developing new products or services.
With a new government now in post, Midlands businesses are calling for policies that will help them deliver their scale-up plans. Facing persistent recruitment challenges, almost half (45%) want to see the Government prioritise policies to ease workforce pressures, including reform of the apprenticeship levy or more support towards the cost of skilled worker visas.
To enable better access to finance, two-fifths (40%) want to see the new Government prioritise smaller business banks entering the market or increasing access to grants for their business. Meanwhile, 40% are calling for more progress on investment in the regions outside London and the South East. The follows the announcement last week during the King’s Speech that an English Devolution Bill will streamline the process to transfer more powers to elected mayors in combined council areas.
Kyla Bellingall, regional managing partner in the Midlands at BDO, said: “With a new government in place and inflation hitting the Bank of England’s 2% target in May, businesses in the region have some reason to be optimistic after years of challenging economic conditions and uncertainty.
“The message from Midlands business is clearly one centred on growth, but they will need the support of central policymakers to ensure that the regions receive the required investment to accelerate those ambitions, with Labour looking to take a fresh approach to tackling regional inequalities.”
