New research has found that one third of small and medium-sized enterprises (SMEs) across the UK are seriously considering laying off employees following the end of the furlough scheme.

This study spoke to the owners of 422 UK SMEs, and the results show that a third of them are considering making some of their staff redundant. Among those looking at this as an option for dealing with financial problems after Covid-19, the percentage of their workforces they are planning to cut is as high as 45% on average.

This is a worrying sign for the UK economy in the wake of the pandemic. Talking to a small business accountant in Goole or any other part of the country could help SMEs find other solutions to their financial troubles, however.

When it comes to the regional picture, it is London where the situation is worst. In total, 42% of SMEs that are based in the capital told the report that they were thinking seriously about having to let employees go to cut back on costs.

Maureen Penfold from Moore UK, which produced the report, told Peer2Peer Finance News that:

“It’s surprising to see 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.”

Penfold then added that this was not an option that any owner of a small firm would want to take, and that this reluctance was why so many were holding off to see if it could be averted.