Riots 'hammer blow' to small firms

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Andrew Feinberg

White House Correspondent

Rioters and looters have caused tens of millions of pounds worth of damage and struck a "hammer blow" to struggling small businesses, industry experts warned.

The Association of British Insurers (ABI) has yet to work out the total cost of three nights of violence, but suggested the overall bill will be sizeable.

It will result in the permanent shuttering of a number of small stores and independent businesses that were already suffering as a result of a fragile economy, business leaders said.

Meanwhile tourism chiefs will be fearful of any negative impact that the scenes of destruction will have on people planning a visit to London, especially during Olympic year.

Across parts of London, shopkeepers will today be assessing the damage caused by rioters inflicting another night of destruction on the capital.

Numerous fires were started by arsonists during the rampage, destroying a number of premises.

Among the shops torched was an historic furniture store in Croydon. The 144-year-old House of Reeves burned to the ground.

Meanwhile footage of the riots showed looters smashing their way into high street retailers, betting shops and even a job recruitment agency.

The total cost has yet to be tallied up, but both the ABI and the British Retail Consortium (BRC) agreed that it will be a large sum.

Richard Dodd, spokesman for the BRC, said: "It is clear that the cost of the damage is going to run into the tens of millions of pounds at least in terms of property damage, goods stolen and loss of business.

"Undoubtedly there will be retailers for whom this will be the final horrendous straw and it won't be viable for them to reopen."

Andrew Cave at The Federation of Small Businesses agreed that for some members, the events of the last few nights would result in a permanent shuttering of their businesses.

He said: "In London and across the country confidence levels were already plummeting on the high street and at a time when retail is already suffering this will be a hammer blow to many businesses.

Mr Cave added: "It is heart-breaking for businesses that have worked so hard to cling on through the recession to have their livelihoods destroyed by the members of the community that they serve. It is tragic."

He is also fearful over the ongoing impact of the riots on nearby traders, noting that stores close to those hit would have had to shut up shop.

And it is likely that footfall will be down in the coming days as customers give a wide berth to areas being targeted by raiders.

Meanwhile tourism chiefs in the capital were today trying to mitigate any negative impact caused by nights of rioting, suggesting that the city tends to bounce back from such incidents.

A spokesman for London & Partners, the official promotional agency for the capital, said: "It is currently too early to anticipate the effect on tourism but we are monitoring the situation and we will work with the industry to respond to specific issues as they arise.

"Past experience tells us that London recovers very quickly from such events and we will focus on recovery activity as soon as it is viable to do so."

PA