NatWest has urged Greater Manchester Mayor Andy Burnham to implement five specific changes to support mid-sized businesses, which are being held back by a so-called 'conversion gap' despite contributing an eye-watering £1.2 trillion to the UK economy.
The bank, which has branches in Birmingham, has called for targeted action on technology, talent and trade to help mid-sized firms turn ambition into growth. Mid-sized businesses generate around £1.2 trillion in turnover and employ 7.3 million people, but fall between support designed for SMEs and large corporates.
Five actions to unlock mid-market growth
NatWest Group is calling for a dedicated mid-market growth framework, a leadership programme and a ringfenced share of the Labour Party government's £200 million AI adoption funding. The bank outlined "five actions" to unlock mid-market growth:
- Develop a dedicated Mid-Market Growth Framework to close gaps in existing provision and give firms coordinated access to support.
- Ringfence funding for a mid-market AI Adoption Accelerator to help businesses move from experimentation to strategic deployment.
- Launch a Mid-Market Leadership Capability Programme that builds on existing initiatives and equips leaders to scale and deliver business-wide transformation.
- Build an employer-led growth and skills system that aligns training and technical education with regional and mid-market workforce needs.
- Cut the cost and complexity of international growth by reducing administrative and trade barriers and improving access to end-to-end export support.
Bank's chief executive calls for action
Paul Thwaite, Chief Executive of NatWest Group, said: "Mid-market businesses already make a significant contribution to the UK economy. They are one of the UK's greatest growth opportunities, but too many are held back because, despite having distinct needs, the segment is often overlooked. As the number one bank for mid-sized companies, we have the specialist expertise, local knowledge and financing capabilities to help mid-market customers address the challenges they are facing and reach their full potential as growth engines of our economy across every nation and region of the UK."
Government response
Minister for Small Business and Enterprise Lord Leong said: "The UK's mid-market businesses are central to our mission to grow the economy, supporting millions of jobs and bringing investment to local communities. We are working closely with businesses and industry leaders to remove barriers, strengthen skills and help more firms adopt new technology and reach international markets."
The call comes as NatWest seeks to ensure mid-sized firms are not overlooked in policy design, given their significant economic footprint and the distinct challenges they face compared to smaller enterprises and large corporations.
