Cancelling office Christmas parties could have a damaging effect on small businesses, employers have been warned.

The Forum of Private Business lobby group said entertainers, florists and chefs could suffer if parties were cancelled as the recession drags on.

London events company Concerto group estimates that the festive party market is worth £1bn.

It said its research showed one in five businesses had cancelled their celebrations and half were undecided.

Last year’s financial woes led to companies cutting back on the cost of Christmas parties, but this year some are cancelling them altogether.

But the Forum of Private Business (FPB) is urging businesses to try to put one on, to thank staff and keep morale up.

Appreciation of workers

FPB spokesman Phil McCabe said a huge number of businesses were in the supply chain, with implications for businesses and jobs.

Laser Hub in Crawley, West Sussex, hosts corporate Christmas bashes for groups of 50 or so in its indoor arena or function rooms, but has had fewer bookings than expected.

Managing director Andrew Snowdon said bookings were down by a half on last year and he was not expecting to be able to make up the financial losses elsewhere.

Phil Orford, chief executive of the Forum of Private Business, said: “Staff Christmas parties are about recognition and appreciation of workers, not indulging fat cats.

“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.”

One in five firms plans to axe the traditional Christmas party this year due to the financial pressures of the recession, figures showed today.

And around half of the remaining 80 per cent of firms say they still have not decided if they will go ahead with a party.
Cash-strapped companies fear paying for their employees’ Christmas parties could leave them with an added financial burden.
But employers were today urged not to cancel office parties this Christmas because of the devastating effect it could have on small firms.

A group representing leisure and entertainment businesses launched a campaign warning they faced bankruptcy unless festive celebrations went ahead despite the recession.
The Christmas party market is worth £1 billion but this year hundreds of Britain’s small businesses, including florists, chefs and entertainers could go bust if Christmas parties are cancelled, it was warned.

‘Staff Christmas parties are about the recognition and appreciation of workers, not indulging fat cats,’ said Phil Orford, chief executive of the Forum of Private Business, which is leading the campaign.
‘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 have cancelled their Christmas party and half are 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