London's mid-sized firms risk being overlooked during Britain’s departure from the European Union, according to new research published by BDO.
The accountancy firm is calling on the government to take into account the needs of London’s mid-sized firms during Brexit negotiations.
The report claims mid-sized firms are driving more growth in the UK than the city’s large and small businesses.
In the last year London’s mid-sized businesses grew their collective turnover by 4.2 per cent from £356bn to £371bn, the report said.
This compares with the turnover of London’s large businesses contracting by 17 per cent from £1.1 trillion to £928bn and the turnover of London’s small businesses contracting by 20 per cent from £51bn to £40bn.
The accountancy firm’s “New Economy” report points out that the UK government must “create sector and geographic powerhouses” for
mid-sized firms while ensuring “open and simple access to global markets and talent”. It added that government must “retain a variant of the financial services passport”, should cut red-tape and “commission infrastructure projects that bring immediate economic impact”.
Paul Eagland, managing partner at BDO, said: “High-growth mid-sized businesses played a leading role in the UK economic recovery after the global financial crisis.
“With Brexit and more uncertainty looming, this is the time for the government to engage with this part of our economy and draw on their natural energy, ambition and entrepreneurial spirit to create a ‘new economy’ and help London succeed post-Brexit.
“Despite being the economic engine of London’s growth, mid-sized businesses are often undervalued and overlooked.
“Part of the problem is that they include a wide spectrum of family-owned, private-equity-owned businesses and AIM-listed firms that do not have a single voice,” Eagland added.