The UK economy may get a significant boost as mid-sized businesses emerge from Covid-19 lockdowns and restrictions with plans to invest and hire more staff.
In a boost for the UK economic recovery, close to 86 per cent of UK mid-tier businesses told BDO they are looking to recruit more staff over the next six months, with over half (54 per cent) planning permanent appointments.
According to the data from accountants at BDO, three-quarters of the UK’s medium-sized businessesstating that 2021 is the time to invest, and 26 per cent of them already planning to invest in new locations or M&A.
BDO surveyed top bosses from 500 UK medium-sized businesses on their plans for the year as the Great Britain progresses with its rapid vaccine rollout programme.
More than a third (36 per cent) of business leaders said they would now hire apprentices as a direct result of the Government’s £3000 apprenticeship grant announced in the Budget. This came as part of a larger 70 per cent of businesses planning to recruit in this area regardless of the incentive.
Recent data from the ONS revealing that those under the age of 25 account for more than two thirds of job losses since the start of the pandemic.
Investment plans also received a boost in the March budget. Nearly half of businesses (47 per cent) are planning new investments following the “super deduction” initiative, which allows companies to cut their tax bill by up to 25p for every £1 they invest.
Mid-sized businesses also now expect a swift rebound in revenues, with three quarters of businesses (75 per cent) expect sales to return to pre-pandemic levels within a year of the strictest restrictions being lifted.
However another third (33 per cent) expect pricing of products and services to increase for customers and clients
Ed Dwan, partner at BDO, said: “Mid-sized businesses are the engine of the economy; they have often proven robust even during the most uncertain economic conditions. The resilience they have demonstrated over the past year will mean they are well-placed to benefit from the vaccine roll-out and gradual lifting of restrictions. Ultimately these businesses will drive the UK’s economic recovery forward.