It was reported yesterday, 17 January, 2012, that small businesses are shedding staff due to the lack in confidence in the economy – with further cuts to take place in the next three months.

This encouraged the Federation of Small Businesses (FSB) ‘Voice of Small Business’ index to conduct a survey to collect findings on this. They found that ahead of employment statistics that will be published later today, 18 January, 2012, that 6.5% of small businesses will be laying off staff in the next three months. This following the 4.8% of small businesses the index reported who reduced their staff numbers in the three months leading up to the end of last year, October- December 2011.

The FSB who commissioned this survey, from the results have asked the Government to look into taking action and to highly consider small businesses in their Modern Workplaces consultation.

John Walker, National Chairman, FSB, said: ‘The beginning of 2012 is beginning to look bleak with confidence incredibly low and businesses looking to shed staff. However, things do not need to be so negative. If the Government makes the right choices and puts action into words we can turn this around.’

The FSB feel that the Government needs to act on policies and initiatives they have already announced to help boost small business confidence so that these companies can invest and grow in 2012.

Later today new employment statistics are to be released but with them expected to rise and these new figures about redundancies and job losses in small businesses, the FSB is urging the Government to ‘think small first’ when it responds to the Modern Workplaces consultation.

The FSB is calling for:

‘Micro firms to be made exempt from the extension of the right to request flexible working for all’

‘A complete and simplified reform of maternity and paternity leave in the future – doing so in an uncertain economic environment could arm businesses’

‘A micro business exemption from proposals on pay audits which will require employers who lose an Employment Tribunal case to carry out a potentially costly, time consuming and complex pay audit’

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