The government-backed group is being set up to represent the UK’s medium-sized businesses, which are often overlooked despite their vital role in the economy.
According to a report by NatWest, these “unstarted” companies could add a further £115 billion to the UK economy by 2030 with the right support, driving growth particularly in regions outside London and the south east.
Medium-sized businesses make up 0.5% of UK companies but employ more than 7.3 million people – more than a quarter of private sector workers. They play a key role in areas such as the West Midlands, north-east England, Yorkshire and the Humber, and Scotland, the report found.
However, challenges including skills shortages, poor regional infrastructure, and lack of representation are holding back their growth. Unlike Germany’s Mittelstand, UK mid-market firms do not have a platform for self-disclosure and advocacy, leaving their interests overshadowed by large corporations and small business groups.
To tackle this, a “middle 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 in the sector, representing key industries and addressing key issues such as infrastructure, planning, and skills shortages.
Paul Thwaite, CEO of NatWest, emphasized the importance of making mid-market companies more visible: “They don’t have a collective voice. There is a lot of talk about small businesses, and big companies have their own platform. These businesses need to be treated as a separate entity. “
The report revealed that poor infrastructure – including transport, broadband, housing, and grid connectivity – disproportionately affects medium-sized firms, particularly outside the southeast. A shortage of skilled workers and a restrictive planning system also hinders their ability to expand and innovate.
Mr. Jonathan Reynolds, business secretary, welcomed the establishment of this council, saying that medium-sized businesses have the potential to outpace other market segments in terms of growth, exports and production. He said the council will “amplify their voice” and open up untapped opportunities in the sector.
