(Bloomberg) -- U.K. manufacturers are calling for added financial support when the government announces spending plans next week, as a survey shows almost 75% of companies in the sector could dismiss workers in the next six months.
The latest poll from industry group Make UK found that 42% of firms now plan redundancies in the period, up from 25% a month earlier, and almost a third say redundancies are possible. Nearly one in ten of those surveyed plan to lay off between a quarter and half of their staff.
The U.K. manufacturing sector has already seen some big companies announce job cuts -- Rolls-Royce Holdings Plc (LON:RR) is set to eliminate 3,000 jobs in Britain this year. Companies have been making use of government furlough plans as demand dries up, but with the program due to end in October many are mulling permanent cuts unless Rishi Sunak, the Chancellor of the Exchequer, offers more support for the sector.
“Conditions are still very tough for many companies with disruption likely to continue for some time,” said Make UK Chief Executive Officer Stephen Phipson. “In the short term it’s essential that the Chancellor uses the full armory of economic weapons at his disposal to safeguard as many jobs and livelihoods as possible.”
Sunak will address Parliament on July 8. The Make UK study surveyed 274 companies between June 22 and June 29.