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Autumn Statement does little for 'forgotten army' of medium sized businesses, which need targeted support, a level playing field and a long term industrial policy says Mike Norfield, CEO of TTG
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The Chancellor's Autumn Statement did little to support the UK's many larger SMEs (£50m+ turnover) that have the scale to generate employment and value for the country, says the CEO of global telecommunications company Team Telecom Group (TTG).
Mike Norfield, who led TTG's £32.8m management buy-out last year and is now focusing on building further international growth (51% of the group's sales are now overseas), says that the Government failed to deliver the targeted support needed to drive R&D, help UK manufacturers and boost business investment in education and training.
Mike Norfield says: "The Chancellor simply hasn't done enough to target support where it can have the greatest impact on growth and employment. While the credit easing will help smaller SMEs, more should have been done to help those medium sized companies, with a £50m+ turnover, which have just as much, if not more, power to generate the growth this country needs."
The CBI earlier this year highlighted Britain's 'forgotten army' of medium sized businesses, which they said could inject £20bn - £50bn into the economy if the right policy decisions were taken. "Unfortunately the right policy decisions don't seem to have been taken," says Mike. "What we would have liked to see from the Government is more targeted support - special grants and tax breaks, for example, to support the cutting edge R&D we need to build our economy through manufacturing and exporting. Manufacturers have been identified as the UK's engines of growth, but the Chancellor has done little to help them develop the goods that will bring down our deficit. "
"We also need to ensure this country is building the next generation of skills, and while educational initiatives were announced they don't go far enough to support businesses that want to invest in their own apprenticeships and training. We need a combination of direct financial support and reduced red tape to make it easier for manufacturers to develop and operate educational programmes that produce the future British talent we will rely on."
According to research for the CBI by McKinsey, companies with £10m-£100m represent less than 1 per cent of businesses, but generate 22 per cent of economic revenue and 16 per cent of all jobs, but medium sizes companies are often ignored by policy makers.
A Level Playing Field, with a Long Term Industrial Policy Mike adds:
"Elsewhere in Europe, particularly in Germany and France, they receive substantial investment in manufacturing and R&D, but the UK still isn't receiving this Government support. As a result, we're held back on the world stage. "What we really needed the Chancellor to deliver was a level playing field where British manufacturers can more effectively compete for business. So much more could be done to support the many medium sized companies that have the potential to generate employment and growth, but the government needs to talk to us and better understand the opportunities and threats we face. "The overriding issue however is that if Britain is really going to manufacture its way out of our economic gloom, we need a consistent, long term industrial policy that continues regardless of a change in Government. At present, the minute we have a new party in power, the industrial policy changes. If UK manufacturers are to grow and more effectively compete in global markets, we have to have a consistency in policy that focuses on the best interests of our business, instead of political point scoring."
TTG is a global telecommunications specialist, operating in markets including the emergency services, public sector, transport and utilities. In April 2010 it underwent a £32.8m management buy out backed by Gresham Private Equity and HSBC. It now comprises five complementary businesses - radio communications specialists Team Simoco and ComGroup, which form Simoco Group; AirRadio and C&C Technology, which form the Technology & Consultancy Services Group; and Indigo Telecom Group.
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