Icy Conditions Affecting UK Economy

icy weather conditions 150Icy weather is said to be costing the UK Economy £1bn a day

Icy conditions and continued snow are jeopardising businesses across the UK. The centre for Economics and Business Research (CEBR) told the BBC as many as 800-900 small businesses were under threat as a result of the cold snap. These are businesses where cash flow is vital, such as bars and restaurants that are really suffering.

Estimates vary widely on how much the weather is affecting the UK economy, with airports through Britain closed and many trains cancelled. Douglas McWilliams, Chief Executive of the CEBR told the BBC Radio 4’s today programme that about one-fifth of the economy had been affected, costing about £1bn every day. Chris Gorman of the Forum for Private Business put the figure at £250m, and 10 per cent of the work force being affected.

Construction projects are put on hold, and the retail sector could be affected because of travel. Many Businesses that stand to lose a lot of money are “disappointed that we still haven’t learnt the lessons from previous bad weather and that the country has yet again ground to a halt”. Also many companies have to stall their recruitment process for graduate jobs due to these graduates being unable to attend.

However many businesses had come better prepared, making arrangements for staff to work from home, or more flexible hours, and also buying their own supply of grit to clear the shop fronts and the roads surrounding their premises. British gas is also working flat out to fix major problems on many boilers and frozen pipes.

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