One in three owner-managed businesses are planning to make redundancies after the end of the furlough scheme, research suggests.
A survey of 442 firms by Moore UK, the accountancy network, found that those businesses planning to make redundancies are considering cutting 45 per cent of their workforces over the next six months.
Owner-managed businesses in London are more likely than those in any other part of the UK to be planning redundancies, probably because of the impact of the pandemic on restaurants, hotels and pubs, the report said.
Maureen Penfold, of Moore UK, said while a wave of redundancies did not materialise at the end of furlough on September 30, many businesses are waiting to see whether layoffs become necessary over the coming months.
“The UK is far from out of the woods when it comes to redundancies,” she said. “It’s surprising to see so many businesses are considering reducing staffing numbers so substantially.
Advertisement
“Policymakers should be careful not to assume that the economy is back in rude health, especially taking into account how the new restrictions just implemented may impact businesses.”
Half of respondents also said they plan price rises in the next few months because of the supply chain disruption.
The findings from the Moore UK survey could add fuel to the debate over the Bank of England’s monetary policy. Policymakers will decide on Thursday whether to raise borrowing costs for the first time since 2018.
Andrew Bailey, the Bank governor, said last month that before raising rates he wanted more evidence that the end of the furlough support scheme had not added to unemployment significantly.
