HEATWAVES COST UK ECONOMY £4.4BN BY END OF JULY

Repeated heatwaves are likely to have cost the UK economy more than £4.4bn in lost output by the end of July, according to analysis by the thinktank Verdant. The figure updates an earlier estimate of £2.36bn for June's hot weather alone. Verdant warns that if heatwaves continue to intensify at the rate observed over the past decade, the annual cost to the economy could exceed £25bn by 2030. The thinktank attributes the economic losses to reduced worker productivity during extreme heat, alongside infrastructure shutdowns and equipment failures.

The analysis draws on cross-European research by the insurer Allianz, which suggests workers' hourly output falls by 3 per cent for every degree that temperatures rise above 30C. London and the south-east are likely to have experienced the largest economic effects, given their highest recorded temperatures. The estimates exclude indirect costs such as expenditure on fighting wildfires and increased electricity consumption for cooling systems. Research by the Grantham Research Institute at the London School of Economics put losses from June's heatwave alone at more than £1bn, as workers reduced their hours or experienced reduced productivity.

James Meadway, Verdant's director, stated that government action to protect workers and businesses from extreme heat is overdue. The thinktank is calling for introduction of a maximum working temperature and compensation schemes for workers forced to reduce hours. Verdant also recommends investment in urban redesign to create additional cool green spaces in towns and cities. The Met Office issued an amber warning for extreme heat in England following three previous heatwaves in May, June and July, with forecasters predicting the UK is on course to record its hottest summer.