Stark warning in survey

Majority of firms to cut staff when furlough ends

Graeme Roy: ‘long road ahead’ (pic: Terry Murden)

More than half of firms say they plan to make redundancies once the government’s furlough support scheme comes to an end, according to a new survey.

Of those which used the scheme, about one in eight 12% expect a “large” decrease in employees, while 43% are looking to lay off a small number of staff and 41% say they expect no change. 

The furlough scheme has supported 736,500 workers across Scotland but will begin to wind down from this weekend as firms begin paying national insurance contributions. By September they will be forced to pay 10% of wages before the scheme ends in October.

The stark warning from firms preparing to lay off staff was revealed in the latest Addleshaw Goddard Scottish Business Monitor, produced in partnership with the Fraser Of Allander Institute economic think tank.

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