Accountancy and business advisory firm BDO LLP has published a Mid-Market Manifesto in a bid to get political parties on board to support the business world’s “squeezed middle” in the run up to next year’s general election.
BDO in Southampton, which has been championing the mid-market’s growth potential this year through its Central South Mid Market campaign, says medium-sized companies are caught in a policy black hole.
Local analysis earlier in the year revealed that although mid-market companies only represent 9% of firms in the Central South, they are responsible for 45% of the region’s jobs.
Malcolm Thixton, partner and head of BDO in Southampton, said: “Without a shadow of a doubt the Central South’s mid-market is over-looked and under-valued. These firms contribute a remarkable amount to GDP and jobs, yet are too large to benefit from policies tailored to small business and too small to win the attention that the largest corporates and FTSE firms command from the media and policy makers.”
As part of its Manifesto, BDO has created a series of policy recommendations that are “rooted in reality” and make a strong case for the forgotten middle-ground as the election draws closer.
The practical policies address a range of issues from business finance, tax and exporting to retail, manufacturing and education and skills.
One of BDO’s policy ideas is a temporary reduction in National Insurance for manufacturing companies. The firm says this 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 support the mid-market through its own procurement policy and 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.
Malcolm Thixton continued: “Our policy recommendations are rooted in reality and quantify just how beneficial to businesses, job creation, and the wider economy they could be. 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. As we begin the run-in to a general election, there is now a unique opportunity to tilt the balance in the direction of growth for the unsung heroes of our economy.”
