UK’s small businesses will contribute £217bn to economy in 2020

New survey predicts strong growth for Northern Powerhouse areas yet London will "lead the way" in terms of added economic value...

By 2020, the UK’s small and medium-sized business community will increase their total economic contribution to £217bn, new research from Hampshire Trust Bank in partnership with the Centre for Economics and Business Research (CEBR) has indicated.

Analysing the country’s top 10 cities, the research found that small businesses will increase their added value to the economy by 11% – a marked jump up from the £196bn they currently contribute.

Unsurprisingly, London’s small firms are set to “lead the way” with £164bn in economic contributions and a rise in the total number of small businesses in the capital; predicted to increase to 534,035.

Yet there is also set to be strong growth for businesses in ‘Northern Powerhouse’ cities. Manchester and Leeds are both predicted to grow by 15%.

In the Midlands, Birmingham is predicted to enjoy growth of 11% to £6.9bn while in South West England, Bristol business’ will increase the value they add to £4.2bn representing a 14% jump.

Hampshire Trust Bank chief executive, Mark-Sismey-Durrant, commented:

“As the government prepares for the first Autumn Statement following the decision to leave the EU, I urge them to keep the spotlight on smaller companies by creating conditions which will be support their continued growth.”

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