"Analysis from Grant Thornton UK finds that labour productivity of UK mid-size businesses, when measured as average annual revenue per employee, has surpassed that of larger and smaller companies, and the UK average, for the past six years. Compiled in advance of the Autumn Budget 2025, the research, which analyses labour productivity levels of UK businesses over the past eleven years, finds that, in 2024, the productivity gap by company size continued to widen, with mid-size businesses (MSBs) pulling further ahead than other segments."
"In 2024, average annual revenue per employee was 11% higher at MSBs than at larger companies (up 4% since 2023) and 15% higher than the UK average for businesses with 10+ employees (up 3% since 2023). Though the mid-market continues to lead the way, productivity in UK business remains low by international standards, and according to ONS data, in Q2 2025 UK productivity was 0.8% lower than in Q2 2024."
"However, businesses are also feeling pressure from rising costs, labour market shifts, and ongoing uncertainty. This was evidenced by a dramatic dip in profit expectations (-21pp) compared to June 2025, now at the lowest level recorded by the Tracker since December 2021. Despite these challenges, and the uncertainty about further tax pressures as we head towards the 2025 Autumn Budget - over three quarters (78%) of mid-market leaders believe the UK Government's Industrial Strategy will help improve national productivity levels."
Labour productivity of UK mid-size businesses, measured as average annual revenue per employee, has exceeded that of larger and smaller companies and the UK average for the past six years. Since 2018 mid-size businesses have steadily pulled ahead, and in 2024 average annual revenue per employee at MSBs was 11% higher than at larger companies and 15% higher than the UK average for businesses with 10+ employees. Overall UK productivity remains low by international standards, with ONS reporting Q2 2025 productivity 0.8% below Q2 2024. A panel of 600 mid-market decision makers showed strong confidence in growth and funding but profit expectations fell sharply (-21pp) since June 2025. Over three quarters (78%) of mid-market leaders expect the Government's Industrial Strategy to improve national productivity ahead of the Autumn Budget 2025.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]