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Britain’s heatwave is burning the economy as small businesses and growth suffer

14 July 2025
in Business
Reading Time: 4 mins read
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Britain’s heatwave is burning the economy as small businesses and growth suffer
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Britain’s third heatwave in four weeks is not just pushing temperatures to Mediterranean levels—it’s also turning up the pressure on an already fragile economy.

From Herefordshire farms to high street bakeries, businesses across the UK are feeling the strain as record heat disrupts productivity, slashes sales, and increases costs. For many smaller operators, the summer sun is no longer a seasonal boost—it’s becoming a growing threat to survival.

On his dairy and arable farm in Herefordshire, Rob Davies reports his grass and maize yields have halved. “Grass is a very important crop for us, and our grass yields currently are down by about 50%,” he says. “Maize is also looking to be around 50% down.”

The impact extends well beyond the fields. Lower yields mean fewer baling jobs for contractors, reduced revenue, and mounting pressure on fixed costs. “The impact across the wider economy could be quite profound,” Davies warns.

The wider economic effects are stark. Figures from the Office for National Statistics suggest hot days cost the UK economy £1.2 billion a year in lost productivity—mainly because Britain’s infrastructure and workforce are not equipped to cope with extreme heat.

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