Cost of crime rises in North West

26 Jun 09

Chambers of Commerce North West’s latest report suggests that the average cost of crime to businesses in the region is £10,000 per annum.

By Brian Sims

Following on from last year’s British Chambers of Commerce National Business Crime Survey, and taking account of the fact that crime traditionally soars during a recession, Chambers of Commerce North West (CCNW) conducted further research into the impacts of business crime in the region by quizzing almost 500 businesses.

Almost half of those organisations responding to the survey were affected by crime in the past year. The nature of those crimes centred on physical damage to property and vehicles, and on the theft of goods.

Thankfully, crimes such as fraud and Internet criminality are demonstrably less common in the region. The type of crime most prevalent in the North West of England is burglary (33%), structural damage (30%) and attempted burglary (25%). The most commonly reported impact of crime on business is disruption to trading.

Specialist Business Parks are targeted

The survey showed the average cost of crime to business in the past year to be £10,389.

It also demonstrates that businesses located in specialist Business Parks are targeted more often by criminals, while the level of crime against businesses in residential areas is considerably lower. Agricultural businesses in the region appear to experience particularly high levels of crime. The transport and logistics, construction and retail sectors are particularly hard hit, suffering the effects of 45% of all reported criminal incidents.

Interestingly, almost 20% of businesses in the region don't report crimes at all.

Established in 1850, the Liverpool Chamber of Commerce is one of the North West’s oldest and most prominent business institutions. With over 1,800 members and accreditation from the British Chambers of Commerce, the Liverpool operation encompasses a fast-paced business network and lobby group for Merseyside companies.

Understanding the nature and extent of criminality

Talking about the survey results, Peter Jones – manager of Business Crime Direct at Liverpool Chamber of Commerce – told SMT Online: “The survey shows the need to understand the nature and extent of business crime. At present, there’s no means of monitoring how effective any business crime-specific actions are in reducing the impact and incidence of criminality.”

Jones feels that one way to address this gap is to start monitoring business crime as a separate reporting line so that improvements can be accurately monitored.

“Business areas should be policed as neighbourhoods, with named officers appointed to the task. This would enable the development of good relationships with local businesses, and a reduction in crime.”

Jones continued: “Training on how to combat business crime ought to be made available for existing Police Community Support Officers. They need to understand the nature of the businesses in their locality, and be made fully aware of the types of crimes that are likely to occur.”

Heavy investment to combat the thieves

The good news is that many businesses in the North West region are investing heavily to reduce crime. 30% of businesses reported spending between £1,000 and £5,000 on security on an annual basis. Over 30% are spending between £1,000-4,000 on their yearly insurance.

Jones concluded: “Business spending on crime prevention would be more effective if it were done in collaboration and consultation with neighbouring businesses. Innovative ways to explore collaboration should be encouraged and supported every step of the way.”