Confidence among North West mid-sized companies remains resolute, according to new research from accounting and business advisory firm BDO. In its bi-monthly survey of over 500 mid-sized business leaders, more than two-fifths (41%) of regional businesses are confident about their growth prospects over the next 12 months, the same number as reported by BDO in June.

While conditions remain difficult, the findings suggest many mid-market companies in the region are seeing out the year on a firm footing after a prolonged period of pressure and uncertainty, positioning 2026 as the year when AI investment comes to the fore.

2025 has been a year of transition, according to the Economic Engine survey, with more than two-fifths (44%) of companies now actively investing in AI and a further 53% exploring how it could support operations. The focus has shifted, from whether to adopt new tools, to how to embed them effectively across the business. For example, more than a third (38%) now use AI daily in their tax processes.

Many have adjusted hiring as they rebalance operations around AI and new technologies: 68% of companies hired fewer people overall, while a smaller group (29%) maintained headcount but for different roles.

Looking ahead, 2026 is expected to mark a new phase as AI reshapes workforces more visibly. Three in five (62%) businesses plan to keep overall headcount steady but change the mix of roles. A further 12% expect to increase hiring, while just over a quarter (26%) expect to hire fewer people. The figures suggest that rather than triggering job losses, AI is prompting a gradual shift in skills and responsibilities as companies integrate it more deeply into their operations.

As the North West mid-market looks to consolidate in this area, attention is turning to the Autumn Budget. Regional mid-market leaders are calling for stability and a policy framework that supports investment and cost control, rather than sweeping reforms.

When asked which measures would most support growth, companies prioritised practical cost relief: targeted incentives to cut energy and input costs topped the list at 26%, followed by business rates reform (24%), improved capital allowances (21%) and clearer R&D reliefs (21%).

Nearly a quarter (24%) of North West mid-sized companies want a three-year moratorium on business tax changes, a signal of how highly companies value predictability.

Angela Cross, regional managing partner at BDO in the North West, said:

“The North West’s mid-market has absorbed several years of economic uncertainty and is now showing real resilience. Confidence is standing firm, investment in technology is becoming routine and companies are rebalancing rather than retreating."

“For regional companies investing in technology and reshaping operations, the ability to plan with confidence is now critical. There is a strong desire among businesses for no further changes to taxation at the Autumn Budget to encourage investment. What the mid-market in our region needs is consistency from government: a stable policy environment that turns momentum into lasting growth.”