Report reveals impact of crime on business

A major new survey on business crime published by the British Chambers of Commerce has revealed that crimes against businesses cost the UK economy £18.8 billion per year.

In a wake-up call to reshape the Home Office agenda on crime, the BCC’s Business Crime Survey 2001 showed 58 per cent of businesses report being a victim of crime in the last 12 months compared with 27 per cent of individuals. The survey revealed that on average, crime costs a company £5,000 per year and mainly results in a disruption of trading.

Firms also suffer higher rates of victimisation than individuals, with more than one-fifth of businesses experiencing a crime at least once every two months. Alarmingly, more than one third of businesses claimed that they had never received crime reduction advice, while 82 per cent of companies reported that they were not aware of a community safety partnership in their area.

Commenting on the findings of the survey, David Lennan, Director General of the British Chambers of Commerce said: “There is often a perception in the public sector that businesses are profitable and insured, there by making business crime a ‘victimless crime’. As the survey demonstrates, the social and economic costs of business crime are staggering.

“Crimes against businesses have wider implications, depriving communities of amenities and services, threatening jobs, increasing business costs and jeopardising local investment. For small businesses with few resources, crime can tip the balance from success to failure.

“Crimes against businesses rarely receives the attention it deserves, therefore, Government, police and local authorities must do more to work with the business community to help reduce the burden of this ‘forgotten crime.”

The survey, the largest and most detailed of its kind, covering 3,000 firms of all sizes in all sectors across the UK, uncovered high levels of under-reporting of business crime with 13 per cent of firms claiming they do not report any instances of crime to the police. (MB)