26/10/2009 - Firms urged to keep Christmas party
Hundreds of small businesses could go bust if employers cancel their office Christmas parties due to the recession.
A campaign has been launched to urge firms to support the festive celebration market, which is worth £1 billion. A group representing leisure and entertainment businesses warned that if large numbers cut back on the event, it could mean bankruptcy for many firms in the sector. It said chefs, florists and entertainers could all be severely affected.
Phil Orford, chief executive of the Forum of Private Business, which is leading the campaign, said staff Christmas parties were about the recognition and appreciation of workers, not indulging fat cats.
He added: "They are a valuable way of saying thank you to employees for their hard work during this turbulent time. In turn, good employee engagement delivers bottom line results."
Figures from one of the leading events companies in London showed that one in five businesses had cancelled their Christmas party and half were undecided.
This could have a detrimental impact on the supply chain, as the events industry could lose between £350 million and £500 million of Christmas party funds, it was claimed.
Copyright © Press Association 2009
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