More jobs could be created in the UK's private sector by adopting a policy that has worked effectively to boost medium-sized businesses in Germany.

This is the declaration made by the Confederation of British Industry (CBI) in a new report entitled Future Champions, produced with McKinsey & Company, which claims such companies could be the "backbone" of the British economy.

According to the CBI, independent medium-sized firms have been neglected in terms of government policy and more needs to be done to ensure they flourish in the future such as improving access to finance and investment opportunities.

It noted that the German Mittelstand - a collection of small and medium family run firms that drive the manufacturing and export economy - has helped the nation to flourish and continue producing jobs.

The CBI estimated that Britain's medium-sized businesses could put between £20 billion and £50 billion into the economy over the next decade, as they provide a disproportionate amount of revenue and employment.

A recent warning about skills shortages in areas such as engineering and IT jobs in the UK was issued by the Recruitment and Employment Confederation, which suggested despite rising unemployment talent gaps are still a problem for many firms.

Posted by Alex Donnell