Thursday 19 October 2023
A survey of 510 London businesses by the London Chamber of Commerce and Industry (LCCI) reveals that business crime continues to cost micro, small and medium sized firms (SMEs) their hard-earned money. 20% of SMEs hit by crime said they lost up to £10,000 because of being a victim to business crime. At the same time, 19% of large companies affected by crime had to bear a financial loss of up to £50,000.
In addition, 46% of all types of firms in the capital called for greater resources for police investigation to reduce the likelihood of crimes. Out of these, 56% of large business felt an urgent need for deploying more resources as compared to 47% of micro firms and 35% of SMEs.
During the National Business Crime Week of Action, LCCI is calling for a strategic approach to policing, and better funding allocation to the Metropolitan Police and the City of London Police to employ the best and the most skilled officers London needs to prevent further crime.
LCCI data shows that 63% of all London businesses who have suffered from crime have been a victim of theft followed by Cyber crime (26%) and fraud (23%). Data suggests that SMEs seem to suffer the most with 73% of such firms raising theft as their biggest concern.
James Watkins, Head of Policy and Public Impact at London Chamber of Commerce and Industry said:
“London Chamber survey shows that businesses in London need more than just insurance and regular procedural norms to safeguard themselves from a year-to-year increase in business crime.
Since 2020, business members have constantly mentioned a manifold increase in business crime which is costing many firms their hard-earned money. The rise in business crime which comes on top of high energy prices amidst a cost-of-living crisis is preventing London from achieving its full economic potential. For some businesses, the impact of business crime can be a step too far when examining day to day issues such as insurance premiums and monitoring P&L accounts.
We therefore call for an urgent need to adopting a strategic approach to policing. We need to see action for the coming financial year so that London businesses do not fall victim to an emerging new cost pressure – business crime.”
Surprisingly, only 21% of all surveyed businesses said that insurance helped cover all of their losses and 14% reported that insurance coverage didn’t help in covering any loss at all.
LCCI is concerned that the current funding allocations must meet the needs of London’s businesses. The capital contributes over 20% towards UK GDP and this is due to the entrepreneurialism of London’s business community.
The Metropolitan Police has recorded a month on month rise in business crime from February 2020 with boroughs such as Westminster, Camden, Southwark, Newham, Lambeth and Islington, amongst others, being badly affected by business crime such as theft and handling and violence against the person.
Notes to Editors:
- Savanta polled 510 London businesses online between 26 April and 30 May 2023.
- About LCCI’s Business Crime Committee- London Chamber is steadfast in its support of businesses and, to address the challenges that crime poses, the Chamber has formed a Business Crime Committee and launched this dedicated hub, within which businesses can find articles and resources to help prevent, mitigate, respond to, and report crime. Read more about the committee here.
About the London Chamber of Commerce and Industry
LCCI is London’s key hub for the business community. We are accredited by the British Chambers of Commerce and support our members’ businesses through a range of services, products, and events. We are committed to creating business connections and opportunities, and advocate on behalf of London’s business community.
For more information, visit LCCI website.
Kriti Gupta – Media Officer
M:+44 (0) 7967459014
Vittoria Zerbini- Media Assistant
M:+44 (0) 7831 637843
Return to LCCI Press Releases Listing Page