Businesses are cutting costsAlmost half of all companies in the UK have admitted that they will not be holding a Christmas party for their employees this year due to financial concerns, new research has revealed.

According to, 42 per cent of small businesses will not be hosting any such festivities, while 46 per cent will not be paying workers a Christmas or end of year bonus.

Furthermore, as the recession rumbles on, 58 per cent of small firms admitted they have had to find ways to cut their costs in order to get through the last year, while 80 per cent admitted 2009 had been a tough year, although 43 per cent see no signs of economic recovery.

Jake Ridge, small and medium-sized enterprise expert for, said: “It’s not surprising that many feel forced to pull the plug on the traditional Christmas party and end of year bonuses. These are difficult decisions to make and could have an impact on staff morale and loyalty.

“For those employees hit by the double whammy it’s going to feel like a real damp squib of a Christmas,” he added.

Indeed, Jonathan Austin, founder and chief executive of Best Companies, recently suggested the annual Christmas party can play an important role in creating more of a team culture among employees.