by business editor Trevor Sturgess

Medium-sized businesses are the UK's "forgotten army" but hold the key to jobs and growth.

That's the message from the CBI. The employers' group says that for too long they have been overlooked by government, yet have the potential to inject between £20bn and £50bn into the economy by 2020.

It contrasts the UK's attitude with the German "Mittelstand" which, it says, are a backbone of medium-sized firms which export, innovate and generate growth.

Firms with a turnover of between £10 million and £100 million represent less than 1% of UK businesses but generate 22% of economic revenue and 16% of all jobs.

Its report Future Champions calls for a broader range of finance to be made available to medium-sized businesses (MSBs). It says they can no longer rely solely on bank lending for long-term growth capital.

John Cridland, CBI director-general, said: "Medium-sized businesses are truly a forgotten army, and now is the time to unlock their potential.

"We should be championing, nurturing and encouraging our mid-sized firms so that more of them grow and create jobs. For too long these companies, which could inject tens of billions of pounds into our economy, have fallen under the radar of policymakers."

He added: "These future champions would help the UK weather unexpected economic shocks, and act as a new engine for growth."

The CBI is urging the Government to recruit more MSBs to the Prime Minister's Business Advisory Council, and to ensure its policy initiatives cater for MSBs.