Credit Crunch

15/05/2009   Crime soars in desperate times

Incidents of arson in business premises spiked 23% last year, marking a rise in crime that is likely related to the recession.

Axa reported the figure in its fifth annual Business Crime Index, which showed that business crime rates went up by 10%. In addition, malicious damage crimes increased 14% and forcible theft increased by 13%, affecting 4% of businesses.

The only crime figure to drop was non-forcible theft, which decreased by 15%.

Gregor Elrick, head of property at Axa, said: "We are really not surprised to see these numbers in the current economic climate and we fully expect to see them continue to rise throughout 2009. Both malicious damage and arson tend to go up in a recession as premises are left unoccupied and unprotected by failed businesses. Additionally, a rise in breaking and entering is typical in a recession with more people turning to crime to make ends meet."

Regionally, the index found that the most significant business theft surges had taken place in London, with crime in East London up a massive 127%, while south west London crime rates rose by 94%.

Meanwhile, Guildford and Leicester saw no change in business crime levels and Redhill and Southend-on-Sea actually decreased, by 28% and 8% respectively. Dundee, Lincoln, Harrogate, Sunderland and Telford had the lowest crime rates.

Axa has submitted its findings to the Home Office, which recently published guidelines for businesses and local crime prevention programmes on how to tackle crime. The insurer has also prepared tips for small businesses, which will be available on its website.

Mr Elrick said: "The way to see more areas make a positive change is through local businesses, police and communities working together. We want to work with our customers and the Home Office to try and keep any rises to a minimum and spare people the trauma of becoming a victim in an already difficult time."