Member Article

North West is UK’s most valuable exporting region

The North West’s mid-market companies have sales abroad of £6.4 billion, higher than any other region outside of London and the South East according to accountancy and business advisory BDO LLP.

The new figures show that medium sized businesses, which make up less than 1% of all firms in the region, account for £1 of every £4 exported from the North West.

This means that 10% of all of the UK’s exports by mid-sized firms are in the North West.

The consumer markets sector which includes retail, wholesale and leisure accounts for a third of all goods and services that are sold to overseas markets at £2.2 billion.

Medium sized manufacturers export £1.7 billion and professional services export £1.3 billion.

BDO is calling on the government to consider three policy recommendations to help mid-sized businesses make the decision to export more confidently.

These are to introduce a VAT zero rating to companies that supply to qualifying exporters – something that is already in place in Ireland; agree an exemption from local taxes up to a £1m threshold for when businesses open a new branch or subsidiary overseas; and a review of the unintended consequences of the Bribery Act which, by its sheer complexity, is acting as a real regulatory barrier for new exporters.

Tim Entwistle, partner and head of BDO LLP in the North West, says medium-sized firms are still under-valued when it comes to their contribution to UK growth and economic recovery.

“Approximately 75% of all mid-market exports take place outside London and South East, yet the Government’s focus still lies heavily on the City of London.

“As policy makers strive to rebalance the economy, it’s important to recognise that regional mid-market firms contribute significantly.

“What’s exciting, yet equally frustrating, is that they’d have even more growth potential if the right support was in place,”

“There is considerable appetite for international expansion among North West firms. It’s now up to government to put the right policies in place and give these companies the tools to thrive.”

This was posted in Bdaily's Members' News section by Sophia Taha .