Three quarters of West Midlands businesses 'optimistic' over government economic policy

The UK Growth Census from business advisory group Dow Schofield Watts, which gathered insights from 500 UK businesses with annual turnover between £10m and £150m, providing a snapshot of how these businesses are navigating external pressures, capitalising on opportunities, and positioning themselves for future success.  

Their confidence isn’t just tentative - 30 per cent of businesses in the West Midlands see Labour’s policies as very positive for business growth, while 44 per cent expect a somewhat positive impact. In contrast, just 10 per cent believe policies will have a negative impact.  

UK-wide, firms in the £50m–£99.99m turnover range are the most confident, with 83 per cent expecting a net positive impact - including 47 per cent who anticipate a very positive effect. 

Shru Morris, CEO designate of Dow Schofield Watts, said: "There has been a great deal of uncertainty about how government policies will impact businesses following October’s Budget announcement, but these findings suggest that lower mid-market firms see clear opportunities ahead. Many business leaders feel that recent policy decisions will create a more stable environment for growth, allowing them to focus on long-term strategy rather than short-term risk management." 

While optimism is high, the research shows that businesses are mindful of the challenges ahead. A total of 35 per cent cited economic uncertainty as their biggest concern over the next three years, 31 per cent pointed to regulatory or political changes, 31 per cent highlighted rising operational costs, and 28 per cent were concerned about tax or tariff changes. 

Despite this, businesses are also highly confident in their own ability to grow. 96 per cent of West Midlands-based businesses expect revenue to rise over the next 12 months, and 93 per cent are confident in increasing profitability.  

While confidence is strong across the board, Scotland and the South West are the most optimistic regions, with 97 per cent net confidence in revenue growth, whereas Yorkshire and the Humber lags behind at 83 per cent - still high but noticeably lower than the national average of 92 per cent.  

James Dow, founder and CEO of Dow Schofield Watts, added: "What’s clear from the research is that lower mid-market businesses aren’t waiting for certainty - they’re taking action. Their confidence is based on strategic investment, careful planning, and a clear focus on long-term growth. 

"We see this first-hand in the businesses we work with - whether they’re investing in technology, expanding into new markets, or pursuing M&A, they’re making deliberate moves to strengthen their position. "