The UK’s medium-sized businesses are being overlooked by policy makers who focus on start-ups and multinationals, according accountants BDO.

In a report out today, BDO refers to a “policy and profile black hole” into which many promising businesses have fallen. They are too big to enjoy benefits afforded to small businesses but too small to enjoy the limelight of bigger corporates.

Yet businesses in this bracket create more than 25 per cent of all private sector jobs, despite accounting for less than one per cent of the total business stock.

BDO researched thousands of British firms with turnovers between £10 million and £300 million. It found these contributed £1 trillion to the British economy, a third of total private sector turnover, and employed around 6.2 million people.

Simon Michaels, managing partner at BDO, said: "Compared to other European nations, Britain's middle-market is undervalued and overlooked. Despite already contributing a remarkable amount to UK GDP and jobs, these businesses have the potential to deliver even more.

"The UK government has done a good job at promoting the general needs of business but more can be done to help Britain's mid-market specifically.

“As we begin the run-in to a general election, this is a good opportunity to reflect on the needs of this section of our economy, as all political parties consider what they can do to drive economic growth."

BDO has released a 'Mid-Market Manifesto' outlining ways to boost businesses. It includes recommendations for cutting taxes for exporters, awarding government contracts on employment and training benefits, not just cost, and allowing the Regional Growth Fund to lend to smaller businesses.

Mr Michaels added: "Straightforward changes even to policy around procurement could make a material difference - current collaborative initiatives like HS2, that favour only smaller enterprises, could be broadened to include the mid-market, benefitting both those businesses and the wider economy.

"Our policy recommendations are rooted in reality and quantify just how beneficial to businesses, job creation, and the wider economy they could be. There is now a unique opportunity to tilt the balance in the direction of growth for the mid-market to ensure we drive value for UK PLC."