Too hot to trade as extreme weather hammers productivity and pushes business bills higher

This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news

Britain’s scorching summer isn’t just uncomfortable. It’s becoming an economic crisis. Extreme heat had already cost the UK an estimated £4.4 billion by the end of July, according to analysis from green thinktank Verdant.

June alone reportedly cost £2.36bn, with July pushing the total to £4.4bn. August could send the bill even higher.

Small businesses feel the heat

Heatwaves hit businesses from every direction. Workers slow down, machinery overheats, transport is disrupted and outdoor jobs are postponed or cancelled.

Small and micro businesses have fewer resources to cope:

• Productivity falls: Allianz data suggest output drops 3% for every degree above 30°C.
• Working hours disappear: A survey found 3.6% of people didn’t work during June’s heatwave, while 87% reported health effects.
• Equipment fails: Overheated vans, computers and machinery can stop trading altogether.
• Costs soar: Fans, air conditioning, repairs and cancelled jobs eat into already thin margins.

Could the bill hit £25bn?

Verdant estimates extreme heat could cost the economy £25bn annually by 2030 if recent trends continue.

There are calls for better ventilation, cooling and heat-safe workplaces, alongside maximum legal working temperatures. But those measures would themselves cost businesses money, with microbusinesses least able to afford major upgrades.

Drought adds another threat through higher food prices, disrupted supply chains, transport problems, insurance costs and inflation.

Retail, hospitality, construction and agriculture are particularly exposed.

Heatwaves aren’t simply a weather problem anymore. They’re another cost of doing business.

And Britain’s smallest firms could once again end up paying the biggest price.

This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news
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