Would you support these 4 proposals to the government to help Mid sized firms?

Mid-sized businesses are the backbone of the UK economy, according to new figures. And professional services lead the pack. Now some are calling for this mammoth contribution to trigger a bit more government support.

Predicted to contribute £745 billion to UK gross value added (GVA), mid-sized businesses are also on track to create an additional 1.9 million jobs by 2028.

The professional services sector, which includes financial advice, is projected to be the largest contributor to both GVA (£260 billion) and employment (2.4 million jobs) within the mid-market by 2028, reflecting the UK’s status as a leading professional services hub.

This is according to new forecasts from accountancy firm BDO, which says the Government should recognise and reward such an economic boost from the sector.

By 2028, according to the data, mid-sized UK businesses will account for:

• more than a quarter (27%) of total UK gross value added

• 9.9 million jobs

This compares to £545 billion (24%) and 8 million jobs in 2023.  

The point of the BDO research is to highlight the critical role these businesses will play in meeting the government’s ambitious growth targets – and as such, why it should listen and back them.

As the government continues to consult on its ten-year Modern Industrial Strategy, BDO is urging policymakers to consider the importance of the mid-market to economic growth and jobs creation, and to ensure the strategy enables these businesses to unlock their full potential.  

Ways the government can help the mid-market unlock its potential (according to BDO)

• Streamline taxation: Tailored HMRC support, a simpler tax code, two-year advance warning for major tax changes and standardised compliance processes.

• Bolster access to capital: Alongside vital government grants and tax incentives to encourage equity investment, listing remains an important route to capital raising. The government must work to simplify IPO criteria.

• Enable the skills pipeline: A dedicated skills hub and plan to tailor skills development support by region or industry. To resolve recruitment and retention, the government must build a long-term strategy to connect young people with regional jobs or training.

• Unlock opportunities in R&D and AI: Tax exemptions for hiring researchers in high growth sectors, a centralised resource hub for AI best practice and ensuring R&D tax credits remain attractive will support innovation.

A full set of policy proposals can be found in BDO’s 2025 Mid-Market Manifesto.  

Gareth Thomas, exports minister, says unlocking the full productivity potential of mid-sized businesses is “crucial to this Government’s mission to go further and faster for UK-wide growth”.

“We’re working in partnership with business to ensure they have the right support and recognition to overcome the barriers they face to help them to thrive, create jobs and grow the whole economy,” he adds.

What policies would you want to see for your and your clients’ businesses?