Yob bill for British businesses doubles
12 March 2007
The cost of yob behaviour has soared to an average £5,000 for each business affected in 2006, according to research by Royal & SunAlliance (R& SA).
The research revealed a 120 per cent increase in costs incurred, suggesting that cases of yob behaviour have increased in severity (despite a reduction in the number of businesses affected from one third in 2005 to one fifth in 2006). Whether it is theft, broken windows, graffiti or intimidation yob behaviour is causing a financial burden for businesses across the UK.
Impact of the 24-Hour Drinking Legalisation
Just over a quarter (27%) of those businesses affected by yob behaviour attribute an increase in this problem to the introduction of the 24-hour drinking legislation in England and Wales. Relaxed alcohol licensing laws were introduced in November 2005 to stop drinkers heading home at the same time, but many feared it would actually increase violence by providing more drinking time.
Businesses in the service sector felt most affected, with 31 per cent saying that the 24-hour drinking legislation has increased yob behaviour in 2006. The manufacturing sector was least affected (7 per cent).
Who is worst hit?
Hardest hit is the retail and consumer sector, where businesses say that yob behaviour has cost them an average of just over £9,000 during the last year (this compares to £5,000 in 2005). Over a quarter of these businesses claim to be affected. The 2006 statistics show a similar trend to the previous year when Retail and Consumer was the industry most affected, followed closely by Transport and Construction and Agriculture and Materials.
The research shows that large businesses were most vulnerable to yob behaviour in 2006, with 40 per cent of businesses employing over 200 people affected, followed by a third of businesses with 50 – 99 employees. The mid-size business (50 – 99 employees) was the most affected in 2005 with 59 per cent suffering from yob behaviour.
Regional Variations
The R& SA research also reveals that there are huge differences across the regions with a third of businesses in the North West affected by yob behaviour in 2006, followed by a quarter in the Midlands. The regions least affected were Eastern England (12 per cent) and Scotland (16 per cent). Even though Scotland was one of the areas least affected, it has lost out the most financially with the average yearly cost for businesses affected being £4,674. This was followed closely by North East / Yorkshire (£4,600) and London and the South East (£4,300).
Commenting on the findings, Tesh Patel, corporate development director at R& SA, said: “Our research shows that although the number of cases of yob behaviour has reduced as the government continues to tackle this problem, the financial impact is actually on the increase. This is a huge burden on UK businesses, especially on smaller companies that will struggle to cope with the financial loss.
“It is always helpful to contact your insurer to check you have the correct security measures in place to reduce the risk or damage of yob behaviour affecting your business. R& SA’s team of specialist risk consultants regularly provides assistance to a wide range of businesses in order to help protect them from many risks, including yob behaviour.”
