Mid-sized businesses are gearing up for a spending spree in the UK, with over half planning to invest more than £3m in expansion over the next five years.
Mid-sized businesses, defined as those generating between £10m and £300m in turnover, have set out plans to funnel capital into growth, despite tough economic conditions.
The group of companies, which account for a quarter of all UK jobs, pointed to government assistance in the effort as a top priority, according to data from accountancy and business advisory firm BDO.
Indeed, 45 per cent said the new government should be prioritising smaller business banks entering the market or grants for their business.
Sourcing new capital is also front of mind for the firms, with 24 per cent saying it was one of their top priorities to the end of the year.
Meanwhile, a third called for simpler regulation around listing mid-sized businesses on the London Stock Exchange’s Main Market or Alternative Investment Market (AIM), as over a quarter are considering floating outside the UK.
39 per cent said that more investment in the regions outside of London and the South East was necessary, while other obstacles to growth included recruitment, with 47 per cent arguing for policies like bringing more support towards the cost of skilled worker visas.
Almost two-fifths of the mid-sized businesses said they planned to direct the majority of their investment within the UK.
Richard Austin, partner at BDO said: “With a new government in place and inflation hitting the Bank of England’s two per cent target in May, it looks like businesses may have some reason to be optimistic after years of challenging economic conditions and uncertainty.
“Mid-sized businesses are the engine of the UK’s economy and their desire to invest is good news for the new government. Policymakers need to follow their lead and create an environment where they can flourish and achieve their ambitions for growth.”