The North West is the UK’s most valuable exporting region for mid-market companies with sales abroad totalling £6.4bn, higher than any other region outside London and South East, according to accountancy and business advisory firm BDO LLP.
The new figures show that medium-sized businesses, which make up less than 1% of all firms, account for £1 of every £4 exported from the North West.
The £6.4bn figure represents 10% of all UK exports by mid-sized firms, and nearly equals that of London which has an export value of £7.5bn. The East of England and the West Midlands follow closely, with medium-sized businesses exporting to the value of £6.3bn in both regions.
The North West’s consumer markets sector – retail, wholesale and leisure – is the most prolific exporter, accounting for a third of all goods and services sold to overseas markets (£2.2bn). In Yorkshire, it is medium-sized manufacturers that export the most, trading £1.3bn internationally.
Tim Entwistle, partner and head of BDO LLP in the North West, says medium-sized firms are still under-valued when it comes to their contribution to UK growth and economic recovery.
“Approximately 75% of all mid-market exports take place outside London and South East, yet the Government’s focus still lies heavily on the City of London. As policy makers strive to rebalance the economy, it’s important to recognise that regional mid-market firms contribute significantly. What’s exciting, yet equally frustrating, is that they’d have even more growth potential if the right support was in place,” says Entwistle.
“There is considerable appetite for international expansion among Northern firms. It’s now up to government to put the right policies in place and give these companies the tools to thrive.”
As part of its Mid-Market Manifesto, BDO is calling on the government to consider three policy recommendations to help mid-sized businesses make the decision to export more confidently.
These are to introduce a VAT zero rating to companies that supply to qualifying exporters – something that is already in place in Ireland; agree an exemption from local taxes up to a £1m threshold for when businesses open a new branch or subsidiary overseas; and a review of the unintended consequences of the Bribery Act which, by its sheer complexity, is acting as a real regulatory barrier for new exporters.
