According to Santander Business Banking 60% of small business owners have frozen their own pay. Even more impressively, only one in three have frozen the pay of their employees.
The nationwide survey shows that small businesses, with a turnover in excess of £1 million, a whopping 59% of business owners have frozen their own pay, while only 33% have frozen the pay of their employees. In addition to this, only 5% of of small firms have reported staff redundancies, which shows how reluctant many companies are to cut jobs.
The head of Business Banking at Santander, Paula Ickinger, stated:
“It is impressive to see that just one in 20 have had to cut jobs and is a testament to the commitment of business owners that they have, where possible, protected their staff. That should stand them in good stead for the return to growth that is tentatively underway.”
She went on to say that banks play a crucial role in supporting small businesses by “focusing on customer relationships and providing support for well run and viable businesses.”
With a difficult year ahead for the UK’s economy let’s hope that Santander and its fellow banks increase this small business support and include better lending terms over 2010.