Clifton Asset Management

MORE JOB CUTS ON THE WAY FOR UK SMEs, SAYS CLIFTON ASSET MANAGEMENT

The number of small and medium-sized businesses who have had to make job cuts has fallen in the past six months – but more expect to shed staff in the coming half-year.

Research carried out by Clifton Asset Management (CAM), which provides specialist financial and strategic advice to SMEs, reveals that 26 per cent of firms have been forced to shed jobs over the past six months, down 2 per cent on the previous quarterly survey.

But the latest study, carried out among 1,000 small business owners, also shows that the number who say they will have to reduce their payroll further in the coming six months is up, from 12 per cent to 15 per cent.

The survey follows the latest official figures from the Office for National Statistics which show a slight fall in UK unemployment – the first to be recorded since the early part of 2008.

“In terms of attitudes, despite that the fact that the UK is officially out of recession, our research has already confirmed that owner-managers do not see any proper recovery on the horizon until 2011,” says Anthony Carty, a director at CAM.

“It will be some time before a significant percentage of our survey can actively begin to start growing their businesses again, with many certain to be affected by looming public spending cuts and others hamstrung by the unwillingness or inability of the banks to support them.

“While it is encouraging to see that fewer firms have shed jobs in the last six months, it is worrying that more job cuts are on the way, with the employment situation set to lag behind any general economic recovery.

“There are also considerable regional disparities across the country which give cause for concern, with 8 per cent of firms in London planning to shed staff, compared with 27 per cent in the North East.”

ENDS 10th February 2010

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk

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