WITH overseas revenue of £5 billion, the needs of high-growth entrepreneurial mid-sized businesses must be considered in negotiations over the UK’s exit from the European Union, according to accountancy firm BDO, writes Kevin Scott.
Calling these mid-sized businesses “overlooked and undervalued” BDO has today published twenty-two policies which it believes will put these firms at the centre of a ‘new economy’ which will thrive post-Brexit.
BDO said mid-sized businesses, those with revenue of between £10m and £300m, are the economic engine of the country and the continuing growth of the 30,000 UK businesses included in this group was critical to Brexit negotiations.
New research commissioned by the firm shows that Scottish businesses within these parameters grew overseas turnover by 0.5 per cent last year to more than £5bn, compared to a 34 per cent contraction in overseas revenue to £9bn for Scotland’s large businesses and a contraction of 18 per cent in overseas turnover to £500 million for Scotland’s small businesses.
In it New Economy report BDO suggests introducing a VAT zero rating on supplies to companies that export once Brexit negotiations are finalised and calls for the UK Government to battle hard for a variant of financial passporting as part of the Article 50 negotiations.
The proposed policies also include the creation of long-term lending trusts to give firms greater access to finance and a simplification of the rules for these companies to list on a growth equity market.
Martin Gill, lead partner at BDO in Scotland, said: “High-performing and entrepreneurially-spirited mid-sized businesses are the economic engine of international growth in Scotland and the UK. Despite all the uncertainty of the past twelve months these companies have taken calculated investment risks and prospered.
“The success of these businesses should not be taken for granted and, with Article 50 being invoked in two days’ time and the prospect of a second independence referendum in Scotland, it is crucial that the Scottish and UK Governments factor the needs of Scotland’s mid-sized businesses into their thinking ahead of negotiations,” added Mr Gill.
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