UK mid-sized firms urge Budget support as 78% feel overlooked

As the UK awaits the upcoming Autumn Budget, new research from specialist bank Shawbrook reveals a growing sense of frustration among medium-sized businesses, with more than three-quarters (78%) believing they are overlooked by current Government policy.

Often described as the “engine room of the UK economy”, mid-sized businesses play a key role in employment and growth. However, Shawbrook’s latest findings show that many feel existing policy either favours early-stage start-ups through incentives like the Enterprise Investment Scheme (EIS) or targets large corporates, leaving mid-market firms stuck in a “support gap”.

According to the research, four in five (79%) medium-sized firms struggle to access Government support, while nearly one in five (18%) admit they do not know where to begin. Even among those who successfully applied, 61% required external assistance, highlighting both complexity and a lack of clarity around guidance.

This challenge is emerging at a difficult moment for the mid-sized sector, with 35% of respondents expressing a negative economic outlook for the next 12 months.

When asked what they most want to see in the Chancellor’s statement, business leaders highlighted immediate cost pressures and long-term growth support. Their top five priorities include:

Support with energy bills – 26%
Support accessing new markets – 26%
Increased business rate relief – 25%
Funding for digital transformation – 25%
Greater access to finance, including flexible funding – 24%

These asks underline concerns around operating costs, competitiveness, and future-proofing through investment and innovation.

Despite the challenges, business confidence in future Government support remains surprisingly resilient.

Nearly three-quarters (72%) of leaders say they trust that policymakers will help drive business growth over the coming year. Optimism also varies by company size, with larger mid-sized firms (100–249 employees) more hopeful (76%) compared with smaller firms (50–99 employees) at 66%.

Neil Rudge, Chief Banking Officer for Commercial at Shawbrook, said: “Medium-sized businesses are the engine room of the UK economy, yet our research clearly shows a concerning consensus that they are being overlooked.

“There is a palpable ‘support gap’ where policy measures are missing the mark for this vital segment. It’s not just about introducing new schemes, but making existing support straightforward and more accessible.

“Mid-sized firms continue to hope that the Government will offer more support for them and their growth in the year ahead. In the upcoming Autumn Budget, it will be telling to see if these hopes are confirmed or dashed given how vital these firms are for UK economic prosperity.”