Leading financial and business adviser Grant Thornton UK LLP, is calling on the Chancellor to use the Autumn Statement on the 4th December as an opportunity to announce measures specifically designed to help mid-sized businesses (MSBs) unlock their potential and further boost the UK economy.
MSBs represent an integral part of the East Midlands economy, employing more than 16% of its workforce and creating in the region of 20% of the region’s revenue, despite only representing 1.9% of the total businesses in the East Midlands, according to statistics from the CBI.
Grant Thornton’s Autumn Statement survey, conducted with the leaders of dynamic mid-sized businesses*, confirmed their strong support (48%) for a single and dedicated HMRC contact who knew their businesses.
On the subject of accessing finance and the reintroduction of the corporate venturing scheme, 30% of respondents would be in favour of obtaining equity investment from corporate investors, particularly with a view to fostering strategically beneficial partnerships, if it was available.
Finding and training the right talent has become a familiar concern across business and nearly 40% of respondents identified their biggest skills shortage as being technical skills, followed by management, sales, finance and marketing and digital media. Of those from our survey who don’t already have apprentices, 50% said that a National Insurance Contribution (NIC) exemption would make them significantly more likely to take one on.
With the trade deficit currently expanding, and government seeking new ways to encourage overseas growth, a third of businesses said that they would be more likely to consider exporting to a new emerging market such as China or India if the exploratory costs qualified for an export tax credit.
Commenting on the findings ahead of the Autumn Statement, Chris Frostwick, Partner and Practice Leader in the firm’s East Midlands regional office in Leicester, said: “In order to maintain and accelerate economic growth in the UK, we have submitted to Government a paper outlining why they should use the Autumn Statement to back the MSBs and high growth firms (or ‘scale ups’) which can make the biggest contribution to wealth and jobs growth.
“Here in the East Midlands, mid-sized businesses have performed well in recent times, as was found in our East Midlands Top 200 2014 report, which revealed that East Midlands 200 fastest growing companies have typically increased profits at a rate of 26% per year – no mean feat especially in a period when UK GDP fell on average by three percent per annum – with an average total sales growth of 56.3%, and a typical increase in staff numbers of 8.6%.”
A separate report, the Q3 2014 ICAEW/Grant Thornton UK Business Confidence Monitor, revealed a similar picture of financial performance in the region’s MSBs, as Chris explains: “Companies in the East Midlands reported a notable improvement in financial performance and robust confidence levels, with gross profits projected to rise by a further 6% in the year to come.
“Positive performance is clearly evident amongst the East Midlands mid-sized businesses, and the Chancellor should use the upcoming Autumn Statement to support further unlocking the economic potential for the region of these sometimes forgotten firms.”
