Businesses Count Cost Of Potholes In Roads

Small businesses across the UK are counting the cost of pothole damage to their vehicles, leaving them out of pocket and at risk of losing business.

New research from the Federation of Small Businesses (FSB) has revealed almost half (47%) of small firms have been negatively impacted by potholes in the last 12 months. This includes damage caused to work vehicles, as well as occasions where business owners and staff were unable to reach customers, missed meetings and appointments, or being involved road accidents.

Key Findings:

• Almost half (47%) of all small firms have been negatively impacted by potholes or road defects in the last 12 months, according to new FSB statistics.

• A quarter (24%) of small firms say pothole damage has cost them more than £300 in the last 12 months.

• The business group calls for pledged cash to be ring-fenced and rolled out swiftly and efficiently to highways departments.

Over a third (37%) of all small firms say pothole damage has cost them more than £100 in the last year, according to the data based on a survey of 1,341 small business owners. A quarter (24%) were forced to pay out more than £300 in the same period, while potholes have caused over £500 worth of damage for more than one-in-ten (13%) small firms.

With an additional £500 million pledged at the Budget to fixing roads over the next year, it’s crucial that local authorities ring-fence funds specifically for potholes and local road maintenance, as well as publish these plans, making sure this money is not absorbed into wider transportation or general funding pots.

FSB also wants to see a national pothole damage compensation claim form template introduced and properly advertised by all local authorities, guaranteeing a fast and simple claim process that links directly with a national pothole reporting app. Many small businesses are unaware that it's their right to claim this money back, and local authorities should be forthcoming in helping those affected.

The business group is calling for a common-sense ‘while you’re there’ approach when fixing potholes. Teams sent to fill in a pothole should ensure they review that section of road for any other defects that need to be fixed before they leave, increasing efficiency and saving money and time in the long term.

Federation of Small Businesses (FSB) Policy Chair Tina McKenzie said: “Potholes are a major blight on our roads and as our new research clearly shows they are causing untold misery to small business owners across the country, resulting in major financial and reliability issues."

“One business owner we spoke to has been forced to pay out for three new tyres in the space of 12 months. Another who provides healthcare workers to care homes and hospitals, regularly gets calls from staff saying they can’t get to their shift due to pothole damage, impacting both her business and her clients’ staffing levels."

“Small businesses are currently under the cosh with increasing costs across the board. Having to pay out to fix costly damage from a vehicle or dealing with other disruption is the last thing they need."

“We were pleased that additional funds have been promised by the government at the Budget - we now need to see this plague of potholes being fixed rapidly and efficiently, resulting in a major improvement in our roads.”