Multi Millions of Investment Planned by South West Businesses
According to BDO LLP’s latest bi-monthly Economic Engine survey, some 43% of mid-sized businesses in the South West plan to spend upwards of £3m in search of growth over the next 5 years. For the full story please read the bulletin below which was issued by Insider News Media today.
Roger Mundy, Managing Director, Beardsley Theobalds, 22nd July 2024
South West businesses plan multimillion-pound investments - BDO
Mid-sized businesses in the South West plan to invest millions over the next five years, according to accountancy and business advisory firm BDO LLP.
The firm’s bi-monthly Economic Engine survey said that nearly half (43 per cent) plan to spend upwards of £3m to grow their business
The survey includes 500 mid-sized businesses which generate a turnover of between £10m to £300m each and account for one in four UK jobs.
It also revealed that a third (33 per cent) of those in the region plan to direct their investment primarily within the UK.
The research noted that nearly two-fifths of South West businesses (37 per cent) said that sourcing new capital to fund growth was one of their top priorities between now and the end of the year. It said this includes private equity investment, venture capital or additional bank loans, while it noted that a fifth (20 per cent), are prioritising developing new products or services.
Facing persistent recruitment challenges, according to the survey two-fifths (40 per cent) want to see the Government prioritise policies to ease workforce pressures, including reform of the apprenticeship levy or more support towards the cost of skilled worker visas.
To enable better access to finance, the survey said that more than half (60 per cent) want to see the new Government prioritise smaller business banks entering the market or increasing access to grants for their business.
Meanwhile, the survey added that more than a quarter (27 per cent) are calling for more progress on investment in the regions outside London and the South East. Last week, during the King's Speech, it was announced that an English Devolution Bill will streamline the process to transfer more powers to elected mayors in combined council areas.
David Brookes, regional managing partner in the South West at BDO, said "With a new government in place and inflation hitting the Bank of England's 2 per cent target in May, businesses in the region have some reason to be optimistic after years of challenging economic conditions and uncertainty.
"The message from South West businesses is clearly one centred on growth, but they will need the support of central policymakers to ensure that the regions receive the required investment to accelerate those ambitions, with Labour looking to take a fresh approach to tackling regional inequalities."
A 'mid-market manifesto' has been published by BDO outlining key policy areas that it believes will best support the growth of the UK's mid-sized businesses. These include extending holistic grants programmes to the mid-market to increase access to finance, reforming the apprenticeship levy and targeted support for mid-market exporters.
