NatWest to convene inaugural Growth Council meeting to support mid-market companies and UK economy
NatWest CEO Paul Thwaite is to chair the first meeting of the Mid-Market Growth Council on Thursday (27 March), established to support the sector and break down barriers to growth.
Published in December with support from the business secretary Jonathan Reynolds MP, NatWest’s report, “The Critical Middle”, found that mid-market companies represent just 0.5% of UK companies yet account for 26% of employment and 30% of UK economic gross value add (GVA).
The report highlighted how the segment can be an engine for growth for the economy, with just 1% growth estimated to add £35bn GVA to the UK economy and £115bn in business turnover by 2030.
The report identified several challenges which businesses need support to overcome to facilitate this growth, including a lack of data and transparency, insufficient access to skills and infrastructure, and a lack of a collective identity for the segment.
The Council brings together HM Treasury, the Department of Business and Trade, major trade groups and the private sector. It will meet once a quarter, giving centre-stage to some of Britain’s most successful mid-market companies. The meetings aim to:
- Give voice to the mid-market to facilitate growth and success;
- Collate evidence to better understand the specific issues facing mid-market companies;
- Provide tangible suggestions for policy makers and government to implement the recommendations highlighted in the Critical Middle report;
- Galvanise government, trade bodies and industry activity in to one sustainable forum, utilising existing regional infrastructure to ensure the segment is championed.
Paul Thwaite said: “With the impending Spring statement set to underscore the economic reality we face, this week’s inaugural meeting of our mid-market council aims to unlock the latent £35bn growth opportunity within this powerhouse segment. The impact of these 13,400 mid-market firms far outstrips their scale: employing a quarter of the UK workforce, contributing almost a third of GVA, and consistently outpacing wider economic growth by 20% over the last decade. Despite this critical role in UK real economy their presence and potential has been overlooked.
Too big to count amongst the rightly championed SMEs but not big enough to benefit from the platforms enjoyed by our largest corporates, these businesses have lacked a clear and consistent voice at the top table debates on economic and business policy. On issues ranging from international trade to infrastructure, our research shows the very specific needs of mid-market businesses are neglected. We want to fix that; with the right support, we believe mid-markets can unleash their potential to deliver growth across all nations and regions of the UK, with over £24bn reaching outside of London and the Southeast by 2030.
Private and public sector collaboration is essential if we are to rise to the growth challenge and I look forward to working with my fellow council members to help give our Critical Middle the attention and opportunity they rightly deserve.”
Gareth Thomas, exports minister, said: “We’re extremely pleased to see this new Council meeting for the first time. It’s a prime opportunity to bring together business voices to provide the right backing mid-market corporates need to unlock their full growth potential.
“This Government’s number one priority is growing the economy to put more money in more people’s pockets and mid-sized corporates are key to helping us do that.”
Leaders of mid-market companies will be integral to the work of the Council and to ensuring its output fills the crucial gaps in support. This week, the Council will hear from the founder of HomeServe and owner of Business Leader; Omex Agriculture, which develops the fertiliser, crop nutrition and renewable energy needed to feed our growing population; Rigby Group, a Warwickshire-based family business that has become Europe’s biggest private tech firm; and Trant Group, specialists in managing engineering projects in critical sectors such as defence and energy.
A full list of Council members can be found below:
· Paul Thwaite, CEO, NatWest (chair)
· Andy Gray,managing director, Commercial Mid-Market, NatWest
· Irene Graham, CEO, ScaleUp Institute
· Alex Veitch, director of Policy Insights, British Chambers of Commerce
· Louise Hellem, chief economist, Confederation of British Industry
· Steve Rigby, co-CEO, Rigby Group
· James Ashton, CEO, Quoted Companies Alliance
· Richard Harpin, chair, Growth Partners
· Max Winkler, executive chair, Omex Agriculture Limited
· Andrew McConnell OBE, former chair, British Universities Financial Directors Group
· Philip Trant, managing director, Trant Engineering
· Steve Greenhalgh, managing director, JJ Ormerod
· Andy Gregory, CEO, BGF
· Henri Murison, CEO, Northern Powerhouse Partnership
· Stuart Glassborow, director of infrastructure and growth, HM Treasury
· Gemma Stevenson, director small business strategy, Department for Business & Trade