Small businesses moving out the office

Small business are downsizing offices and encouraging working from home in a bid to reduce costs, according to research.

A poll conducted by O2 found that, since the year began, over one in ten of the 500 companies polled had chosen not to renew a lease on their premises.

On top of that, 60 per cent that were still in an office or industrial park were contemplating moving out within the year.

Reducing costs was the main reason for downsizing - 62 per cent cited this - but other factors like faster internet and the ability to work "on the move" also influenced decision makers.

"Getting rid of the office relieves many small businesses of a major overhead very quickly and shows a rapid response to current economic pressures," said O2 head of business marketing, Simon Devonshire.

There was good news for businesses in Manchester that want to embrace the trend.

Vodafone announced a major multimillion pound upgrade to its wireless broadband network in the city, meaning workers will be able to access faster internet services on the move.