Lloyds: Cold snap has cost smaller businesses £7bn

Date: 16th March 2010

The effects of the severe winter weather conditions have resulted in losses of around £7 billion for the UK's smaller enterprises, according to Lloyds TSB.

A recently-published report from the bank has revealed that almost 40 per cent of smaller companies were directly affected by the harsh weather, which cut off their premises or forced them to close temporarily.

The bank also found that 42 per cent of businesses were indirectly affected by disruptions to delivery services.

Stephen Pegge, head of external affairs for Lloyds TSB Commercial, said: "Business have faced a double blow over the past few months.

"They have had to grapple with the downturn in trade as a result of the recession, as well as the impact of the severe weather conditions."

Mr Pegge urged firms to invest in technology to allow staff to work from home in order to minimise the impact of extreme weather conditions in the future.

The Lloyds report showed that 37 per cent of businesses were forced to close completely for at least one day during the winter period