60% Plan Redundancies as Government Support Ends

  • 60% of medium-sized businesses plan redundancies due to the end of the Coronavirus Job Retention Scheme
  • 89% of surveyed businesses have already made up to a fifth of staff redundant
  • Less than 10% have no plans for job cuts
  • Mid-sized businesses generate £1.4 trillion in revenues and almost 8 million jobs
  • Over half of the surveyed businesses have reopened or partially reopened offices
  • 33% are investing in new technology, 29% launching new products/services due to pandemic
  • Leisure and hospitality sector hit hard by end of furlough and Eat out to Help out schemes
  • Paul Eagland urges government support for mid-sized businesses to compete internationally and avoid falling behind

A new survey by accountancy and business advisory firm BDO reveals that over half of UK’s medium-sized businesses are planning redundancies due to the end of the Coronavirus Job Retention Scheme in October. The research, based on responses from 500 such firms, shows that 89% have already made up to a fifth of staff redundant and only 10% have no plans for job cuts. Mid-sized businesses contribute significantly to the economy, generating £1.4 trillion in revenues and nearly 8 million jobs. Despite challenges, over half have reopened offices and some are investing in new technology or launching new products/services due to the pandemic.

Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (BDO’s monthly Rethinking the Economy survey) and presents objective data on the current situation of medium-sized UK businesses. It also includes expert commentary from Paul Eagland, managing partner at BDO, which adds value to the story. The article does not contain digressions or irrelevant information, nor does it present personal opinions as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of the Coronavirus Job Retention Scheme ending on medium-sized UK businesses and includes insights from a survey conducted by BDO. It also highlights some positive signs of resilience and recovery in the mid-market. The article quotes Paul Eagland, managing partner at BDO, who offers an expert opinion on the situation and calls for government support for these businesses. However, it could benefit from more detailed analysis or data to support his claims about international policies and competition.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact on UK’s medium-sized businesses due to the end of the Coronavirus Job Retention Scheme and concerns over funding arrangements, which could potentially affect employment and the economy. It also mentions the leisure and hospitality sector being affected by the end of the Eat out to Help out scheme.
Financial Rating Justification: The article discusses financial topics such as job losses, funding challenges, and government policies impacting businesses, which are relevant to the economy and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the situation described is related to economic challenges faced by mid-sized businesses due to the end of government support schemes.

Reported publicly: www.retailsector.co.uk