A spokesperson for small business on the Isle of Wight has called a suggestion that redundancies could rise, as the government's job retention scheme winds down, 'worrying'.

The Federation of Small Businesses (FSB) said fourteen per cent of small firms with staff that answered its survey said they were likely to make some, or all, of their teams redundant this quarter.

The FSB's development manager for Hampshire and the Isle of Wight Nicola Bailey said: “It’s worrying to see such a sizeable proportion of employers fearing redundancies over the coming months.

"Initiatives like Kickstart, as well as incentives to take on apprentices and trainees, need to be delivered efficiently over the coming months to protect against a job market shock and support the young people that have disproportionately borne the brunt of rising unemployment.  

“Policymakers also need to look at measures to encourage hiring activity. Bringing down the non-wage costs of employment, starting with employer national insurance contributions, which essentially serve as a jobs tax, would certainly help.

“With emergency loan repayments now starting to bite, the Government should carefully consider routes to realising economic value from the facilities it has underwritten: an approach to repayment based on the student loan model and greater adoption of employee ownership trusts could both mark constructive ways forward.

Meanwhile, the FSB said its survey also showed 58 per cent of small businesses expect their performance to improve this quarter, while thirty one per cent  expect theirs will worsen.

Nearly 1,700 business owners were involved in the Small Business Index survey and the results were weighted to make sure they were representative, said the FSB.

Nicola Bailey said: “Lockdowns have caused our £23bn late payment crisis to deepen. As confidence returns, now is the time to bring forward reforms that will help audit committees gain full visibility of payment practices.  

“As the economy shifts, support measures need to evolve – particularly where support for start-ups is concerned.

"The Help to Grow initiative should be urgently reformed in order to both widen its support remit and make it open to all small business owners as they start out, not just those that already have staff."