West Midlands mid-sized companies are in favour of staying in Europe, according to new figures published by accountancy and advisory firm, BDO LLP.
Following the Prime Minister’s negotiation with the European Council, 61% of West Midlands mid-market firms surveyed (those with revenue of between £10m and £300m) want to stay in Europe under David Cameron’s new terms.
The poll – which in total surveyed 632 mid-sized companies from across the UK – found that 63% of the mid-market businesses based in the West Midlands believed that leaving the EU would make it harder to run a successful business.
The mid-market is politically and economically important to the UK and the region. While making up only 1% of all UK companies, these firms create 1 in 4 private sector jobs and are responsible for around one third of the UK’s total revenue (over £1tn a year).
Despite being in favour of staying, West Midlands mid-market firms do want further changes to the EU. When asked what other reforms they would like to see, 65% of firms wanted less red tape and gold-plating of EU legislation to make it easier to do business. In particular, those polled wanted to see regulatory off-setting with every new regulation adopted leading to one existing EU regulation removed.
Improving trade agreements to help boost exports was also highlighted by the mid-sized firms surveyed. 63% want the EU to have a greater focus on trade agreements such as the Transatlantic Trade and Investment Partnership with the US and other high growth markets like India.
Further liberalisation of markets to make it easier to trade across Europe was also flagged by the mid-market. More than a third (35%) would like to see greater progress with creating a digital single market making it easier for consumers to buy online across Europe.
The data is part of BDO’s New Economy campaign which includes a set of policy proposals developed by BDO aimed at putting the entrepreneurial mid-market at the heart of the UK’s economy.
Richard Rose, Partner and head of BDO in Birmingham, said:
“Exports and international trade are critical to the West Midlands mid-market. These firms are entrepreneurial, have high-growth targets and are focused on international expansion so it’s no surprise that the majority of them support remaining within the European Union.
“Despite being supportive, West Midlands mid-market companies want to see further EU reform. They want an end to gold-plating, greater progress with trade agreements and increased liberalisation of markets. They are clear that this will create jobs and growth for the West Midlands.”