Around 45% of businesses in the UK are likely to make redundancies, despite the government’s Job Retention Scheme, according to a new survey of business leaders carried out by KnowYourMoney.co.uk.
In the survey of 534 decision-makers within UK organisations, 30% of respondents said they do not expect their business to survive the next 12 months.
Furthermore, almost half (46%) of decision-makers said their company plans to reduce the amount it is spending on office space next year, with this figure rising to 61% among large businesses (over 250 employees).
Nic Redfern, finance director at KnowYourMoney.co.uk, said: “The research exposes the brutal reality UK businesses are facing right now. Cost cutting is the order of the day for many, and financial planning has become difficult.
“The result is that many companies are fearing the worst for 2021. But remaining positive and proactive is extremely important in the current climate.”
He added: “While the on-going challenges posed by the pandemic can make business leaders feel out of control, they must remember that there are still steps that can be taken to safeguard their futures.
“The Government has introduced a wide range of financial support schemes, and so long as a sound strategy is in place for what must be borrowed and how it can be repaid, there is still good reason to believe that this storm can be weathered.”