Small Businesses Lose 25% Productivity
Barclays research finds over a quarter of UK small businesses lost productivity this summer due to extreme heat, which also reshaped consumer behavior.
Over a quarter of small businesses lost productivity this summer due to high temperatures, according to new research from Barclays. The survey of 1,000 businesses and 2,000 consumers in late July found the extreme heat impacted staff concentration, prompted more breaks, and forced core activities outside the hottest hours.
Large companies, with the resources to afford air conditioning units, saw a productivity increase throughout the same period. For small businesses like cafes, workshops, and compact offices, the heat led to quieter footfall, queasy staff, and dwindling concentration.
The Productivity Drain
Barclays' research indicates the UK's summer heatwaves, which saw temperatures hit 38C in parts of London in August, significantly dented small business output. Robert Marks, lead climate economist at Oxford Economics, warns that temperatures in the high 30s and low 40s would "likely lead to substantial productivity losses" across sectors including construction, retail, and hospitality.
The impact extends beyond worker behavior to reshape customer activity. The research found consumers avoid shopping in-person when temperatures exceed 25.1°C, unless for drinks, cooling products, or trips to outdoor venues. This hits small businesses hardest, as they lack the air-conditioned spaces and flexible working policies of larger firms.
Makeshift Measures for Survival
Without that safety net, small business owners have taken matters into their own hands. Barclays data shows 28% of businesses introduced wellbeing measures, 23% now offer flexible or remote working options when temperatures surge, and 21% shifted their core working hours to avoid the worst of the afternoon sun.
Some businesses were forced to pause operations entirely. Toad Bakery in Camberwell closed for a day in June when kitchen temperatures reached levels unsafe for staff. While these actions offer short-term relief, they are designed to get through a hot week, not prepare for a hotter future.
Preparing for a Hotter Future
The Met Office projects Britain will see four heatwaves a year within 50 years, with an increase in days over 25 degrees in the shorter term. The message for small businesses is that heat is becoming a permanent fixture, and planning now is crucial.
Adopting changes does not need to break the bank. The source recommends writing a risk assessment to protect against staff illness, adjusting staff schedules based on last summer's takings, and investing in cooling systems during the colder autumn and winter months when quotes are more competitive.
Smaller, immediate fixes can also help manage temperatures. These include installing shading, applying reflective window film, using fans, and adjusting work hours. Business owners are also advised to check the government’s business finance support finder for local sustainability and ventilation grants.
