Partner Article

SMEs 'forced to make job cuts'

A North East business spokesperson has challenged banks and the government to do more, as figures reveal SMEs are being forced to make job cuts.

Research has revealed more than a third of UK Small to medium sized enterprises have been forced to lay off their staff in the last six months while the big banks are once again starting to post large profit results.

Simon Hanson, Federation of Small Business North East Policy Manager, said: “Despite recent data pointing to an improvement in economic performance it is clear that small businesses still face a number of challenges.

“The recovery of the economy will be driven by small businesses in the region but they can’t do this by themselves.”

Clifton Asset Management, who were responsible for the new findings, found that 34% of small businesses owners in the UK admitted that they had been forced to shed jobs, with a further 14% saying they definitely would have to reduce their payroll by the end of the year.

Managing Director, Neil Greenaway, said: “We keep hearing about these so-called ‘green shoots’ of recovery, especially when it is reported that the banks are again making profits, but our research reveals that further down the line our small businesses are still feeling the pain.”

Simon Hanson, FSB, added: “The banks and government need to do more to help small businesses in the current climate.

“Access to finance is still a critical issue for the majority of small businesses across the region which must be improved through increased bank lending and the prompt payment of invoices by both the private and public sector.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .