- Research reveals the UK’s top 25 regions for business growth, with Manchester, Leeds and Oxford leading the charge
- Index of mid-market companies (MMCs) points to continued London dominance, but finds smaller authorities such as Slough and Telford are punching above their weight as innovation epicentres of the country
- Swindon emerges as climate tech hub with a cluster of renewable energy and clean technology companies, while university ‘spinouts’ play key role in securing inclusion in the innovative ranking for Cambridge and Oxford
- The findings suggest the UK’s economic story is “no longer written only in its biggest cities”, says Andy Gray, Managing Director of Commercial Mid-Market at NatWest
- It comes ahead of the Autumn Budget as economic growth enters the spotlight once again
A new index of the UK’s hotspots for business growth has identified Manchester, Leeds and Oxford as being among the preeminent areas for mid-market activity in the UK.
The in-depth report from NatWest, which points to the rising powerhouses of opportunity and innovation across the country, found Manchester to be a dynamic hub for creative and digital industries fuelled by MediaCityUK and a thriving start-up scene.
Oxford, meanwhile, is home to research-driven companies that have evolved from university spinouts into mid-market players, with Leeds carving out a reputation in health technology to complement its established financial services sector thanks to its close links to NHS Digital and leading hospitals.
While London remains the largest centre for profit, headcount, and turnover in the mid-market, other parts of the UK begin to feature more prominently when it comes to innovation.
Slough and Telford and Wrekin were among the smaller authorities appearing in the innovative rankings, while Swindon emerged as one of the climate technology hubs of the country thanks to a cluster of renewable energy and clean technology companies in the area.
Top 25 regions for mid-market business growth in the UK:
- London
- Manchester
- Leeds
- Oxford
- Birmingham
- Buckinghamshire
- North Yorkshire
- Edinburgh
- Glasgow
- Bristol
- Cheshire East
- Milton Keynes
- Belfast
- Sheffield
- West Northamptonshire
- Aberdeen
- Wiltshire
- Warrington
- Cardiff
- Windsor and Maidenhead
- Solihull
- Reading
- Cheshire West and Chester
- Wakefield
- Nottingham
The NatWest research, conducted with data company Beauhurst, took into account innovation, profit change, headcount change and turnover as part of the report, which sought to identify the regional hubs that are reshaping the UK’s economic geography.
It puts the spotlight on mid-market companies (MMCs) which turn over between £25m and £500m annually and account for more than a quarter (26%) of employment and 30% of UK economic Gross Value Added* – a key consideration ahead of the Autumn Budget.
Among the emerging growth centres of the country, researchers pinpointed South Cambridgeshire as being home to a thriving cluster of university spinouts.
The study notes that these research-intensive companies have scaled into the mid-market, particularly in life sciences, giving the area one of the strongest concentrations of innovative companies in the UK.
Aberdeen and Aberdeenshire also perform strongly in the innovative subset, reflecting the area’s long-standing expertise in oil and gas, now being redirected into renewable energy, carbon capture, and wider climate technologies.
Local businesses have benefitted from specialist engineering skills, proximity to North Sea projects, and strong research links, helping the area reinvent itself as a hub for innovation in the UK’s energy transition.
Andy Gray, Managing Director of Commercial Mid-Market at NatWest, said: “The UK’s economic story is no longer written only in its biggest cities. Across the country, mid-sized businesses are scaling up, investing in people and creating high-quality jobs. These boom regions demonstrate that entrepreneurial energy and economic resilience can flourish anywhere.”
Henri Murison, Chief Executive at The Northern Powerhouse Partnership, said: “While London remains an important location for mid-market businesses, this new report from NatWest clearly points to the impressive growth and innovation that is taking place in the North across both Manchester and Leeds, and their respective neighbours across Cheshire and in Wakefield, as well as North Yorkshire and Sheffield.”
“As the Autumn Budget approaches, we should be backing concrete steps towards adoption and diffusion of innovation in businesses that are seeking to scale up, providing more high skilled jobs in Northern towns and cities, and playing a fundamental part in delivering the UK Government growth mission.”
Louise Hellem, Chief Economist at the CBI, said: “This report underlines the vital role the mid-market sector plays in driving regional growth and strengthening our economy. These businesses are not just surviving, they’re expanding, innovating, and investing in their communities. To fully unlock the UK’s potential and develop high growth clusters, we should harness their strengths as part of regional growth plans, ensure they are engaged in shaping local skills plans and have greater access to finance to scale.”
With the right support, mid-market companies could contribute an additional £115 billion to turnover and £35 billion of Gross Value Added by 2030 – despite making up just 0.5% of companies in the UK*.
Committed to helping businesses take the action they need to grow, NatWest offers a range of support for MMCs, from funding options to expert knowledge and advice. For more information on the services and support available, visit the NatWest website at www.natwest.com.
