Press Release
UK roads are crippling small businesses’ bottom line
UK roads are crippling small businesses’ bottom line
The cost of Britain’s poor transport infrastructure to the nation’s small business community has risen 40% to nearly £2 billion in the past year, new research* from Bibby Financial Services’ annual transport survey reveals.
More than a third (38%) of owners and managers now estimate they are losing up to £10,000 a year because Britain’s roads and railways are simply not good enough – a 2% increase on last year.
And, not only are more businesses suffering but the financial impacts they are experiencing are greater than ever before with a staggering six per cent claiming to be losing more than £10,000 annually. This represents a four per cent increase on last year and a rise of some 45,000 businesses across the country.
Congestion on road networks is ranked as being the biggest challenge for business owners and managers with almost a quarter (21%) of people having missed an important business meeting as a result of traffic congestion. This 2% increase from 2005 comes as no surprise with the past 12 months seeing endless miles of roadworks, plans to double the size of London’s congestion charge zone and admissions that the country’s first toll motorway is failing to cut congestion.
Other major impacts of Britain’s poor transport infrastructure once again include suffering with high levels of staff lateness (12%) and losing a big order (9%). One in 10 businesses have actually lost key members of staff, directly because of increased transport costs or a lack of public transport.
When it comes to transport woes, fuel prices continue to be a major cause of anguish with 40% of businesses now claiming they have the single biggest negative effect on their success. The number of owners and managers listing fuel prices as the biggest transport burden has risen by 18% in the last year.
David Robertson, chief executive of Bibby Financial Services, said: “Effective and efficient transportation underpins all businesses. The state of the country’s road and rail network is particularly important for smaller businesses as they are more likely to be working within the realms of the UK and from more remote locations outside of London. A package of initiatives to tackle the long-standing transport problems is a must for the future success of the entrepreneurial culture of the UK.”
Federation of Small Business transport chairman Steve Collie said: “It’s disappointing that the small business community still has to struggle to work within a cumbersome transport framework. Problems such as traffic jams, railway cancellations, and never-ending road works impede the day-to-day running of businesses and the negative impacts are likely to manifest themselves in the long as well as short-term.”
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