When the government’s Job Retention Scheme ends in October, new research suggests that more than half of medium sized businesses will cut jobs.
Business advisory firm BDO, surveyed nine out of ten companies who said that they have already made up to a fifth of workers redundant. However, fewer than 10% surveyed said they have no plans to cut jobs.
Medium sized businesses said that they are concerned over funding arrangements, whilst a third said they cannot continue trading for any longer than six months.
More than half reported they have either fully or partially reopened their offices, and two out five had the same increase in revenues compared to 2019.
Paul Eagland, managing partner at BDO said, “These figures highlight some of the very tough challenges and decisions businesses are faced with.
“The leisure and hospitality sector, in particular, is facing the double-whammy of both the furlough support and Eat out to Help Out schemes ending.
“The Government took bold action with its furlough policy which has undoubtedly saved many jobs and businesses.
“However, the harsh reality is that these are unprecedented times and we would encourage the Government to introduce policies that will help UK business survive and ultimately compete internationally.
“Other governments around the world are and will be introducing policies to protect their businesses.
“We must not fall behind, particularly with Brexit looming.”