Should last winter’s severe weather return, 84 per cent of businesses said they would be adversely affected – according to recent research by insolvency trade body, R3.

Nearly two thirds (61 per cent) of businesses said that staff would be unable to attend work and nearly half (48 per cent) said they would experience reduced profits.

Frances Coulson, R3 President, comments:

“These are worrying findings. Last year the weather caught us all off guard and the detrimental economic impact was widely reported. It seems as though a few days of icy weather this year could easily snowball into a financial disaster, especially for struggling businesses. They should be planning for the worst to avoid taking a real hit if trading suffers.”

The survey found that six per cent of business thought that adverse weather conditions could tip them into insolvency. In the retail and distribution sector, the findings were considerably higher than the national average, with 11 per cent of businesses worrying that severe winter weather could tip them into insolvency.

Frances Coulson continued: “It comes as no surprise that the retail sector is most concerned. Earlier in the year, R3′s Business Distress Index showed that retail businesses are more likely than any other to be concerned about their debt levels (41 per cent). The research also found that 58 per cent of retailers were experiencing a decrease in profit which was 24 per cent higher than the cross sector average.

“Although the last retail figures showed sales were up, people are likely to curb their spending again after Christmas. Retailers also have quarter day to contend with at the end of December, which will mean many will be paying landlords a hefty lump sum. If a business is already struggling and does not think it will withstand the pressures of severe winter weather, it should seek the advice of a professional to ensure it has the best chance of survival.”

The Government’s Green Deal risks failing to attract the businesses it needs to deliver its flagship energy efficiency scheme unless it provides greater clarity on how it will be financed and promoted, the CBI has said.

The Green Deal will allow people to take out loans to improve the energy efficiency of their properties, including for insulation, heating and lighting. The loans are to be attached to the property and will be paid back over a fixed period through the savings made on energy bills.

However, with a new CBI survey showing that three-quarters of the public do not even consider the energy efficiency of a property when buying or renting a home, the Government clearly needs to do more to get consumers to buy into the concept. This is a vital first step to ensure there is a market for the businesses that will deliver the scheme.

Dr Neil Bentley, CBI Deputy Director-General, said: “Improving the energy efficiency of our homes and businesses is a surefire way of cutting emissions, as well as creating economic growth.

“The Green Deal is a good idea, but risks becoming a lame duck unless the Government tackles the big questions of financing and uptake.

“The Government faces an uphill challenge convincing home owners to sign up to the Green Deal, given that three-quarters admit they don’t consider energy efficiency when looking at a property.

“To ensure the scheme is a success, the Government needs to clarify how the Green Deal will be paid for in the early stages to give investors confidence, and make it simple and hassle-free for consumers.”

In a new report called A Real Deal? Making the Green Deal Work, the CBI is calling on the Government to deliver:

• A financial model that is attractive to private investors with a decision by Spring on where the default risk will lie, ensuring that it does not undermine the ability of smaller firms to become providers. 
DECC should also provide robust and realistic modelling to show expected payback periods, including for different types of properties
A range of policies to encourage take-up of the Green Deal by the public, which could include rolling out Display Energy Certificates to commercial properties
Promoting the Green Deal through targeted communications at appropriate trigger points. For example, when people are buying their first home or installing a new boiler.
Establishing a strong, recognisable Green Deal kitemark and system of accreditation to generate confidence and trust, both among potential consumers and providers.

Expanding the current loan scheme for small businesses and providing incentives for firms to green their buildings are just two of the measures that Government must look at in order to achieve the UK’s tough carbon emission reduction targets, according to a new report from the Federation of Small Businesses (FSB) today.

The UK is expected to reduce its carbon emissions by 20 per cent by 2020 and the report, ‘Making sense of going green – small businesses and low carbon economy’, looks at the many opportunities which will allow small businesses to play their part.

The FSB believes that to get small business owners to proactively embrace energy efficiency, the Government needs to make going green economically viable. While many small businesses understand the benefits of green investment, the upfront cost is a huge disincentive.

Currently, small firms can access a zero per cent loan scheme for energy efficient equipment which the FSB urges the Government to reform and expand. The scheme allows firms to ‘pay as you save’ so firms can realise a genuine cost saving through energy efficiency, without having to make an upfront cost.

With 47 per cent of the UK’s carbon emissions from buildings there is an urgent need to engage with the private sector to tackle this problem. Furthermore, with 44 per cent of small businesses renting their business premises, many for less than five years, neither the landlord nor the business would see the benefit of making the building as environmentally friendly as possible. The FSB believes this can be done by:

• Incentivising private sector providers (banks, energy or construction companies) to pay the upfront costs of major building energy efficiency upgrades
• Guaranteeing ‘pay as you save’ repayments through energy bills – by linking the responsibility of repayment to the building would help overcome the landlord/tenant divide
• Supporting new business owners to green their buildings by encouraging firms in the worst G-rated buildings to take steps to move to an F-rating
• Not penalising those who increase their rateable value through greening their premises by waiving the increased business rates

John Walker, national chairman of the Federation of Small Businesses, said:

“The need to cut carbon emissions and the predicted increase in the cost of energy over the coming decade means that the move to a low carbon economy is more of an economic imperative than ever.

“In order to achieve the tough targets set by the Government, it must ensure that it makes economic sense for the UK’s 4.8 million small firms to go green. Small businesses can play a huge part in the UK’s fight against climate change and we urge the Government to harness this potential when it publishes its Energy Bill, expected later this Parliament.

“If the correct policies are put in place now, then small businesses will have the potential to significantly reduce carbon emissions while also delivering the substantial economic growth that the UK economy desperately needs.”

Mike Childs, Friends of the Earth’s head of climate, said: “As this report sets out, small businesses have much to gain from cutting their emissions – insulating offices and producing clean energy will save thousands on fuel bills, and there’s going to be plenty of new job opportunities as loft-laggers, roofers and technicians are needed to improve the UK’s woefully inefficient buildings.

“Increasing zero-interest loans and more ambitious incentives for green energy for businesses would make going green more financially rewarding, but businesses also need certainty about what will be expected of them in the years ahead – which means getting regulations and taxation right.

“The Government’s immediate priority should be to set all areas Local Carbon Budgets, encouraging councils and businesses to work together to cut emissions, save energy and transform the places in which we live and work.

Bad things happen. It’s a fact of life. But with a little preparation, businesses can mitigate some of the impact.

There are some estimates that 80 per cent of businesses with no business continuity plan fold in the aftermath of a major disaster. And while this could be something along the lines of a national emergency such as a terrorist attack or health epidemic, it could just as easily be something closer to home, for example the incapacity of a key member of the business. Or it could be something as simple – yet damaging – as a strike leaving you out of contact with your customers.

Putting a plan in place can not only help you arrange procedures for dealing with emergencies; it also provides a step-by-step guide for individuals to follow when they may be finding it difficult to make decisions – giving them a route to follow will help them work through the crisis.

“By developing a simple plan, a business continuity plan, you can protect your business to ensure that no matter what disaster strikes you are prepared and “Business as usual” is the only thing your customers and suppliers see,” says Colin Ive from SME Continuity.

Your first step, according to the Contingency Planning and Disaster Recovery Guide, is to prepare a list of all the potentially serious events that could happen. This doesn’t necessarily mean listing all the disasters that could befall you, but looking at the issues that would affect your business. So instead of listing swine flu, ebola or any other illness, the list would include something along the lines of staff shortages or key person unavailability.

For each potential issue, you need to come up with a process to follow – the key people involved, any suppliers that need to be contacted, a list of contractors who may be able to support you and, vitally, any insurance policies you can claim on.

While business insurance won’t be able to completely prevent any effects of a disaster, it can help to mitigate any costs you may incur. Key Man Insurance can provide a cash injection into a business in the event of the untimely death or incapacity of a specified member of staff. The funds can be used to offset any loss of revenue caused by that person’s absence, or to recruit or train a new person in that position.
If your business is hit hard, and has to stop trading for a short period, Business Interruption insurance can help to tide you over. It’s a short term solution for a few weeks and is there specifically for if you have to stop trading due to factors outside your control – it doesn’t cover a downturn in trading conditions.

If the emergency is a bit closer to home, public liability insurance and employers’ liability insurance will protect you from claims for issues that arise on your premises. We live in a culture of litigation and if an injury or damage could be found to be your responsibility, then expect a hefty bill.

Forty percent of businesses are failing to conduct fire risk assessments in accordance with legislation implemented three years ago, warns Aviva Risk Management Solutions (ARMS).

Based on this unsatisfactory level of compliance with the Regulatory Reform (Fire Safety) Order 2005, Fire and Rescue Services have issued businesses with 34,500 informal notifications, 3,200 enforcement notices, 442 prohibition notices and 84 alterations notices.

And fire authorities prosecuted 43 per cent more organisations last year for failing to comply with any part of the order.

Andrew Couch, health and safety consultant for ARMS, said: “Though fire service audits increased 20 per cent last year and the number of enforcement notices has fallen, satisfactory compliance rates have remained virtually unchanged in the past two years³.

“As the figures show, this is not going unnoticed by the authorities and is leading to enforcement action. And an increased level of audit activity focusing more on higher risk premises such as care homes, hotels and hospitals will bring more and more firms under the spotlight.”

Successful prosecutions can lead to significant fines. Last November, the high street fashion chain, New Look was fined £400,000 for fire safety breaches at a London branch*.

To help small businesses comply with legislation, ARMS has launched a service in which its risk assessors will conduct fire assessments on a firm’s behalf, producing formal documentation, identifying fire risks and providing evidence that the requirements of the RRO have been fulfilled.

If shortfalls are identified, risk assessors will advise businesses on how fire risks can be improved. This will include details of relevant preferred supplier solutions at competitive prices.

Couch continues: “Often businesses tell us that they either don’t have the time, don’t know where to begin when it comes to fire safety, or they need additional support and advice from someone who knows what they are talking about.

“But failing in the basic responsibilities of completing fire risk assessments means that firms are not only breaking the law but also not managing the hazards on their premises.

“The use of risk assessors to conduct health and safety consultations is a cost effective way to bring in the necessary expertise to ensure fire safety. It can be a useful business strategy until businesses are in a position to appoint their own suitably qualified employee to conduct fire assessments.”

The risk assessment will include a fire safety policy, which identifies fire risks such as combustible or flammable materials and incorporates procedures for evacuation, as well as making recommendations to improve fire risks.