𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Back-to-back summer heatwaves have wiped £4.4bn from the UK economy so far this year, new research has found, with warnings further losses are likely as scorching temperatures become the new normal.

The losses come from reduced productivity alongside infrastructure and equipment failures in the heat, the report from think tank Verdant found.

Researchers added that the UK could lose a total of £25.6bn from summer heatwaves in the years to 2030 if temperatures continue to intensify at the same rate seen over the past decade.

It dire prediction comes as the UK is currently set to experience its fifth heatwave of the year this week, with droughts declared in over two-thirds of England and the entirety of Wales. It marks the second consecutive year a drought has been declared, and the third in five years.

The extreme conditions led to the deaths of more than 2,800 people in May and June, the UK Health Security Agency (UKHSA) has said.

The Verdant report finds that temperatures in June, when a record daily temperature for the month of 38C was recorded on the 26th, took the biggest toll on the economy, at £2.36bn. May, which recorded a new highest daily temperature of 35.1C for the month, wiped £500m while July, which was the direst on record, saw a loss of £1.5bn.

The estimated losses have been highest for businesses in several London boroughs, researchers added, due to exceptional heat in the south of England.

Financial hotspot the City of London lost £435m this year, followed by Westminster (£371m), Tower Hamlets (£186m) and Camden (£181m).

The only area outside of London to be in the top ten highest losers was Birmingham, with an estimated £60m loss.

This could become a regular pattern in future years, the report found, pointing to recent research by the Climate Change Committee that warned record hot summers “will become the new normal”.

A paper from the advisory group in May found that heatwaves in southern England could regularly exceed 40C in the coming years, with temperatures above 45C possible.

This pattern could hit the UK’s economy by a cumulative £25.6bn by 2050, the verdant report found, and other European countries much harder.

Spain, Germany and Italy are all projected to lose between £100bn and £150bn by 2050, while France could see a loss of nearly £250bn.

Dr James Meadway, Verdant co-director and report author said: “The economic costs of climate change are already with us, and set to worsen in future years. Action by government to protect workers and businesses from the severe effects of extreme heat is well overdue.”

His unit has called for the government to introduce a maximum working temperature and a scheme to compensate employees who are unable to work due to the heat.

Prime minister Andy Burnham is set to chair an emergency meeting of the government’s Cobra emergency committee on Wednesday in response to the ongoing weather conditions – the second meeting of the year sparked by the heatwaves.