Flooding in 2012 Cost the UK £600m – Businesses Urged to Prepare for Future Flooding

Flooding last year could have cost the UK economy up to £600m, latest research from the Environment Agency (EA) reveals.

The impact of the record-breaking wet year on businesses in England was up to £200 million, with commercial property and contents damage totalling up to £84 million.

According to the EA, other indirect impacts – such as lost working days – cost companies and local economies up to £33 million. Disruption to transport, communications and utility links, as a result of the flooding in 2012, is estimated to have cost the economy a further £82m.

Although one in four days were officially drought in 2012, flooding occurred on one in every five days, affecting over 7,000 properties.

The EA’s latest figures highlight that every affected business suffered an average of £60,000 in setbacks, however, flood defences protected 200,000 properties – worth up to £1.7 billion to the UK economy.

In England and Wales, 175,000 businesses are at risk of flooding and in a recent Federation of Small Businesses members’ survey, one in five said flooding had had a negative impact on their company over the past year.

The Environment Agency is urging businesses to sign up to receive flood warnings and make a flood plan so they are well prepared for periods of extreme weather.

David Rooke, Director of Flood and Coastal Risk Management at the Environment Agency, said: “Extreme events, such as the flooding and drought in 2012, are likely to become more frequent and more severe in the coming decades.

“It is vital that businesses plan for weather impacts to safeguard their operations today and in the future. Every £1 spent on preventing flooding saves £8 in repairing damage.”

If you are concerned about flooding or other environmental risks, and would benefit from having measures in place to prevent flood damage or identify emergency procedures to mitigate flood damage, please contact our specialist teams – we’re happy to help.