Big freeze 'cost Scottish firms £700m'

The weather disrupted supply channels and delivery routes

The big freeze left smaller Scottish firms facing losses of more than £716m, according to a Bank of Scotland study.

It found 68% of small and medium-sized enterprises (SMEs) had been affected financially by the freezing winter weather.

More than a third saw their premises cut off or closed due to power supply issues, while 42% experienced disruption to supply and deliveries.

Companies with an annual turnover of up to £15m took part in the study.

The results come after 28% of SMEs reported negative growth in the last financial year.

According to the research, 27% of those questioned were forced to close for at least one day due to the winter weather, while one in six (16%) had to halt business for at least five days.

'Combined impact'

Donald Kerr, Bank of Scotland's head of commercial banking for Scotland, said: "Scotland's businesses have faced a double blow over the past few months.

"They have had to grapple with the downturn in trade as a result of the recession as well as the impact of the severe weather conditions.

"The combined impact of both the recession and winter will inevitably have caused cash-flow problems for many firms."

Almost two-thirds of the businesses questioned said the disruption caused by the harsh winter conditions had had a direct financial impact on them.

More than a third (35%) claimed to have taken a financial hit of up to £10,000, while one in six (16%) estimated the cost to have been somewhere between £10,000 and £30,000.

A total of 6% said the cost could be more than £30,000.

However, just over a fifth (22%) said they had been unaffected by the freezing conditions and one in 10 (10%) said they had prospered during the winter months.

The overall cost of the harsh winter to UK SMEs was more than £7bn, the research suggested.