Small business face labour shortage as migrants quit UK
 

Britain's small and medium enterprises (SME) community, which employs about 13.5m people and produces annual turnover of £1,440bn, is already under severe pressure as around 40 businesses a day collapse amid a seemingly inevitable recession.

The new survey will add to its woes. The Federation of Small Businesses (FSB) said these are "very, very difficult times" and urged the Bank of England Monetary Policy Committee to cut interest rates by 1pc when they meet this week in order to avoid a "deep and severe recession".

The warning about migrant workers comes from research by Tenon, the accounting and business advice service, which showed that the number of businesses employing workers from abroad has more than doubled in the last two years.

In 2006 just 21pc of SMEs had non-UK workers on their books, but that figure is now 48pc – meaning that the impact of migrant workers leaving the UK could have severe implications for the economy.

With the value of sterling plummeting and the latest GDP figures showing that the UK economy shrank 0.5pc in the last quarter, 29pc of entrepreneurs are concerned that foreign employees will return home.

Andrew Jupp, Tenon's national head of tax, said a shortage of unskilled labour was "one headache that small businesses could do without", given the cost of training up UK workers to replace their departing staff. Losing employees would be a further blow to SMEs, with 280 closing every week amid a lack of credit and a downturn in demand as consumer spending is tightened.

"These are very, very difficult times," said John Wright, chairman of the FSB,

So, it's not all bad news then! :rofl:

Re: Small business face labour shortage as migrants quit UK
 

I know, I know..I'm a foreign worker but no-one said I couldn't he a hypocrite! :D

Re: Small business face labour shortage as migrants quit UK
 

time to simulate Dubai press:

"SMEs in GB are avoiding the recession completely, with queues of hopeful migrant workers happily oiling the wheels of the economy. "Business is booming here. It's definately a good time to invest" says Ivan, a worker from [insert baltic state here]"

Re: Small business face labour shortage as migrants quit UK
 

I hope I can still get Żywiec and Lech in Morrisons when I visit my family ;)

Re: Small business face labour shortage as migrants quit UK
 

kielbasa?

Re: Small business face labour shortage as migrants quit UK
 

Beers.. though I should check sausages next time!

Re: Small business face labour shortage as migrants quit UK
 

what's wrong with foreign workers in the UK then?

Re: Small business face labour shortage as migrants quit UK
 

surely if a lot of businesses go bust then there will but lots of unemployed people to replace the returning migrant workers.