Floods cost small firms £831m
As businesses continue to recover from the recent floods, new data released by the Federation of Small Businesses (FSB) reveals small firms in affected areas lost more than three quarters of a billion pounds. The FSB is publishing new research today showing an average cost of £1,531 per business in flood hit areas amounting to a total of £831m.
It is now three months to the day since the first flood warnings were issued, with many areas in the South West still suffering from severe flooding. The impact on businesses has been significant. The FSB’s flood research shows a third (32%) of small firms in flood hit areas suffered from reduced demand for goods and services, while transport disruption hindered the movement of goods and supplies (29%) and led to staff absences (16%) in many businesses.
The FSB remains concerned that as a result of the floods, small businesses will find it more difficult to obtain insurance. More than a third (37%) of FSB members in flood hit zones expect it to be more difficult to renew their insurance and more than half (59%) expect their insurance to become more expensive as a result of being left out of the Flood Re support scheme.
John Allan, national chairman, FSB, said: “In the past few weeks we have heard countless stories from our members who were left devastated by some of the worst flooding on record. Not only have they had to cope with a lack of demand for their services, many have had to close. That is why Government support has been welcome, and with many still affected, why that support needs to be kept under review.”
“We also know small businesses are worried they will find it increasingly difficult and considerably more expensive to insure their businesses. Certainly the evidence we have from our members points to small businesses’ exclusion from the Flood Re scheme being unhelpful. We want the Government and the insurance industry to look again at the support they have in place for small businesses in flood hit areas and see whether there is more help they can provide to ensure they have access to adequate and affordable insurance.”
