Job cuts planned as furlough scheme ends
MORE than half of mediumsized businesses expect to make staff redundant when the Government’s Job Retention Scheme comes to an end in October.
Nine out of 10 firms surveyed by business advisory firm BDO said they had already axed up to a fifth of their employees.
More job losses are expected in the coming months, with fewer than 10 per cent saying they have no plans for any cuts.
Leaders of mid- sized businesses expressed concern over funding arrangements, with a third saying they can’t continue trading for longer than six months.
Two out of five respondents reported the same or an increase in revenues compared to the same time last year. Over half of those surveyed said they have either partially or fully reopened their offices or places of work.
Paul Eagland, managing partner at BDO, said: “These figures highlight some of the very tough challenges and decisions businesses face.
“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.
“However, these are unprecedented times and we would encourage the Government to introduce policies that will help business compete internationally.”
“Other governments around the world are introducing policies to protect their businesses. We must not fall behind, particularly with Brexit looming.”