A decade on since the UK voted to leave the EU, a survey of regional mid-sized businesses paints a mixed picture of Brexit’s impact on their operations, according to accountancy and advisory firm BDO LLP.

BDO’s bi-monthly tracker of 500 mid-sized businesses with revenues between £10m and £500m, revealed that nearly a quarter of North West companies (24%) felt the impact of Brexit has been worse than they expected at the time of the 2016 referendum. Overall, a third (33%) of those surveyed described Brexit’s effect on their organisation as negative.

However, 48% of regional businesses say the outcome has been better than anticipated, and 66% said it had been positive overall.

Not only do the statistics demonstrate the varied experiences of the North West mid-market over the last decade, but they also show the resilience of many in the face of ongoing challenges.

A combination of red tape and regulatory complexity has emerged as the most significant challenge for regional mid-sized companies. Among those businesses reporting a negative impact from Brexit, more than a third (39%) say compliance and regulation - particularly linked to imports and exports - is the area of their business most affected.

North West companies describe grappling with overly complex and “constantly changing” rules, creating administrative burdens that are slowing operations, driving up costs and diverting resources away from growth.

At the same time, Brexit has intensified skills shortages. Nearly half (48%) of North West businesses say they are struggling to recruit professionals with expertise in international trade, including EU regulation and cross-border compliance - skills that have become critical for many regional businesses in the post-Brexit landscape.

Employers also report it is harder to recruit and retain EU workers, with visa requirements, higher costs and additional bureaucracy creating new barriers in an already tight labour market.

These mid-sized companies are a crucial engine of the regional and wider UK economy, driving investment, innovation and job creation. In total, they contribute over £1.8tn in revenues, equivalent to more than half of UK GDP, and account for one in three UK private sector jobs.

Angela Cross, regional managing partner at BDO in the North West, said: “For many mid-sized businesses in the North West, Brexit has proved more difficult than expected - but it has not happened in isolation. Over the past decade, companies have faced a relentless series of challenges, from the COVID-19 pandemic to geopolitical conflicts and ongoing political uncertainty in the UK.

“This has created an exceptionally tough environment for regional businesses. However, the resilience of the regional mid-market has been remarkable.

“These businesses have continually adapted in the face of significant disruption over the last ten years. Many have reconfigured supply chains, identified new export opportunities and invested in technology and skills to remain competitive. Their ability to evolve despite prolonged uncertainty underlines the critical role they play in supporting economic stability across the North West and the UK.”

Separate research commissioned by BDO, says mid-sized UK businesses will contribute £745 billion to UK gross value added (GVA), accounting for more than a quarter (27%) of total UK GVA and 9.9 million jobs by 2028. This compares to £545 billion (24%) and 8 million jobs in 2023.

Cross added: “We know North West mid-sized companies have the ambition and potential to scale, invest and create jobs. If the UK is serious about driving long-term growth, these businesses need targeted support to help them navigate these challenges, unlock investment and compete on the global stage.”