The International Association of Bookkeepers [IAB] has reported that half of small and medium-sized enterprises [SMEs] in the UK will raise their prices in 2022 because of supply chain disruption.
The revelation came after accountancy and advisory network, Moore UK, carried out research into the topic in its Owner Managed Business [OMB] survey.
Moore UK’s study also uncovered that one in three owner-managed firms plan to offload staff in 2022 and are, on average, considering making 45 per cent of their workforces redundant over the next six months.
Owner-managed businesses in the capital are the most likely to be planning redundancies, with 42 per cent said to be considering offloading staff.
Moore UK has suggested that the statistics reflect the impact of the Covid-19 pandemic on the finances of hospitality businesses such as hotels, pubs and restaurants, which form a major part of London’s economy.
Moor UK chair, Maureen Penfold, said that although a raft of redundancies did not materialise as the furlough scheme lapsed on September 30, 2021, many businesses are now waiting to gauge whether laying off staff will become a necessary move over the next few months.
Penfold commented: “It’s surprising to see that so many businesses are considering reducing staffing numbers so substantially. Policymakers should be careful not to assume that the economy is back in rude health – especially taking into account how the new restrictions just implemented may further impact businesses.
“No business wants to lay off staff if it can be avoided and it seems like many are still waiting to see if they need to press that button. Their cash flow might allow them to keep their full workforces employed for now, but they have plans in place to quickly make redundancies if they need to.”
Photo by Benjamin Davies on Unsplash
