A majority of small and medium businesses are planning to cut their staff numbers in response to rising business costs, according to a new survey. Business finance company Scotpac released the latest results from its biannual SME Growth Index, reporting that rising wages and compliance costs top the list of growing cost pressures for Australian business. Sixty-one per cent of respondents said labour costs and wages were among their top-three fastest growing costs, followed by compliance costs (53 per cent) and transport, distribution and logistics (51 per cent). In response, more than half (52 per cent) of respondents said they plan to reduce headcount. Among other responses, 54 per cent are increasing their working or operating hours, and 41 per cent are reducing sales volumes or otherwise downsizing. The 720 SMEs surveyed for the report have an average of 59 employees and have operated for an average of 14.2 years.