Mid-market poised to invest if government backs growth

Increased confidence sees four in five mid-market businesses plan to invest and expand over the next six months
Large majority believe greater fiscal powers for regional mayors will boost growth
Businesses look to Autumn Budget to confirm investment ambitions

Appetite to invest has increased for four in five mid-sized businesses over the past three months, according to new research from accountancy and advisory firm BDO LLP. Now government action will determine whether that appetite translates into long-term growth.

The bi-monthly tracker covering 500 mid-market businesses with revenues between £10m and £500m reveals that half plan to invest or expand in London and the South East over the next two years (50%), closely followed by the Midlands (42%).

Businesses are also backing greater regional decision-making, with the majority (89%) saying they believe giving regional mayors greater fiscal powers would have a positive impact on growth.

When asked in which sectors business leaders see the most potential to drive economic growth in the next five years, one in three (33%) identified the hospitality and leisure industry, followed by financial services (28%), manufacturing (26%) and professional services (23%). This comes as the hospitality sector saw a strong performance over the summer, benefiting from increased domestic tourism and a World Cup bounce. ¹

Despite the slightly more positive outlook, mounting supply chain costs and disruption (cited by 40%) followed by increased employment costs and skills shortages (31%) are the top challenges that risk holding back growth in a segment responsible for over £1.8 trillion in revenues and more than one in three private sector jobs. ²

Looking ahead, the Autumn Budget will determine whether renewed confidence translates into long-term investment. The areas businesses want to see the government prioritise to drive growth include improved access to finance and capital, a simpler tax system with greater certainty on tax policy, and action on employment costs.

Businesses also highlighted where the government should focus specific funding to boost the economy. Almost two in five are calling for increased business grants (38%), a third want the government to take equity stakes in strategic businesses (34%) and a fifth want to see more attractive government backed loans (21%).

Richard Austin, partner at BDO, said: “The mid-market wants to invest, expand and continue to be a powerful driver of jobs and revenue growth in the UK. Supporting them to do that is a no-brainer. The upcoming Budget is a crucial moment to provide businesses with much needed certainty and confidence.”

ENDS

Note to editors

Findings are based on a survey of 500 C-suite executives in UK mid-market businesses (revenue £10m–£300m). Fieldwork took place between 24 April and 11 May 2026. Some questions allowed multiple responses. The sample was quota-controlled by region and sector, with maximum targets in specific company types (e.g. PE-backed/AIM-listed) also.

BDO LLP operates in 19 offices across the UK and Ireland, employing 8,500 people. It has revenues of £1.1bn.

It provides Audit, Tax, Deals, and Consulting, Risk & Outsourcing (CR&O) services predominantly to the entrepreneurial, ambitious and growing mid-sized businesses that are driving growth in the UK and Ireland economies.

BDO LLP is the UK and Ireland member firm of the BDO Global network.

BDO Global

The BDO international network provides business advisory services in 169 countries and territories, with 95,000 people working out of 870 offices worldwide. It has revenues of US$11bn.

BDO’s global network

The BDO global network provides business advisory services in 166 countries and territories, with more than 119,000 people working out of 1,800 offices worldwide. It has revenues of US$15bn.

Methodology

Following data collection, the results were weighted to bring the overall sample profile to a balanced demographic composition. Weighting adjusts the relative influence of respondents from groups that are slightly over- or under-represented in the achieved sample. Limits are applied to these adjustments to avoid individual responses having disproportionate influence and to preserve the robustness of the results.

Contact

Rebecca Stone - Headland
RStone@headlandconsultancy.com
+44 (0)73 1136 9943

Ella Hatfield – Headland
ehatfield@headlandconsultancy.com
(+44) (0)77 9868 7042

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