More than two thirds (68%) of privately-held businesses are planning to stand firm in the recession and either keep staff levels the same or increase them over the coming year.

According to financial adviser Grant Thornton, 49% of these businesses will keep their staff levels the same and 19% expect an increase.

But just under a third (31%) think their staff levels will decrease, giving a balance of
-12%, which is the first time the UK has seen a negative outlook since 2003.

Nearly nine out of 10 (88%) of UK privately-held businesses plan to increase salaries in line with inflation this year or keep it the same as last year.

Clive Fathers, head of employer solutions at Grant Thornton, said: "Despite the bleak economic landscape, it is welcome news that the majority of UK privately-held businesses plan to hold steady and try to avoid making knee-jerk redundancies. Due to their size and structure privately-held businesses are far more agile than larger corporate organisations and can adopt creative working methods more easily."