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Half of UK firms are considering making redundancies over the next six months, a new survey has revealed.

The British Chambers of Commerce (BCC) Monthly Business Survey found that from the 450 businesses questioned, none are prepared to increase their stock holdings in the foreseeable future.

Adam Marshall, director of policy at the BCC, said: "With half of firms still thinking about cutting their workforce by the end of the year, the government must continue to promote measures that stimulate growth in investment and jobs."

He believes that businesses will help to drive economic recovery, which in turn will enhance employment in the UK.

Results from the survey also highlighted that one in five businesses believe growth will return to the country’s economy by the end of the year, although half of respondents think this will be delayed until the start of next year.

Earlier this month, the BCC praised the Bank of England for opting to increase its quantitative easing programme, which it said should be "sufficient for the time being" but may need to be stepped up later in the year.

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