Businesses Struggle To Deal With 4.8% Drop In Footfall Amid Fascist Riots In UK

Counter-protesters have flocked to the streets to protect their communities

The riots have flared up in multiple English cities and towns. Photo: AFP / JUSTIN TALLIS AFP News

Businesses across the United Kingdom are facing severe challenges as a wave of far-right riots has led to a significant decrease in foot traffic on high streets. The unrest, which has erupted in various cities, is not only causing physical destruction but also leading to a notable decline in consumer activity, further straining an economy already recovering from the impacts of the COVID-19 pandemic.

The riots, which have targeted people of colour, mosques, and properties associated with asylum seekers and migrants, were triggered by a tragic incident involving the stabbing of three children. Six-year-old Bebe King, seven-year-old Elsie Dot Stancombe, and nine-year-old Alice Dasilva Aguiar were killed in the attack. A 17-year-old named Axel Rudakubana has been charged with both murder and attempted murder. Although Rudakubana was born in Cardiff and has no ties to Islam, the riots have taken on an Islamophobic character, with fascist groups vandalising mosques and shouting anti-Islamic slogans.

Economic Impact on Businesses

The impact of the riots on UK businesses has been significant. According to MRI Software's OnLocation Footfall Index, foot traffic on UK high streets decreased by an average of 4.8% between Sunday and Wednesday compared to the previous week. In regions such as Yorkshire and Northern England, foot traffic plummeted by 12.9%, while the West Midlands saw a 10.6% decline.

The British Retail Consortium (BRC) held an emergency meeting with over 190 representatives from various retail sectors to address the safety concerns of workers and businesses. Helen Dickinson, CEO of the BRC, expressed the gravity of the situation, stating that many retail workers fear for their safety and the security of their stores due to ongoing looting and vandalism. Dickinson called for those responsible for criminal damage to face the "full force of the law."

The Human Toll and Insurance Implications

The human toll of the riots is also stark. According to reports, in Northern Ireland, the owner of a grocery store and café in south Belfast described the devastation he experienced, saying, "Everything is done, my life is done," as he lacks the financial resources to rebuild after the destruction caused by the riots.

For businesses and homeowners affected by the riots, insurance may offer some relief. According to the Association of British Insurers (ABI), most commercial insurance policies cover damages caused by riots, including damage to buildings, stock, and equipment. The ABI advises businesses to document all damages thoroughly and file claims promptly. Additionally, the government's Riot Compensation Act may cover losses not insured by commercial policies, providing further assistance to those affected.

The Ongoing Crisis and Recovery Efforts

The unrest has led to a significant disruption in business operations, with many shops closing early or boarding up due to fears of further violence. On Wednesday alone, footfall on high streets dropped by 7.5% as the threat of new riots and counter-protests loomed. Thousands of counter-protesters have taken to the streets in cities like London, Bristol, and Birmingham to condemn the actions of far-right groups.

Martin McTague, chairman of the Federation of Small Businesses (FSB), described the situation as "mayhem," warning that the damage to local businesses and communities is "having a devastating impact." McTague noted that it could take months and millions of pounds to repair the damage, urging both local and national governments to collaborate on recovery efforts.

As the UK continues to deal with the aftermath of these riots, the economic and social repercussions are becoming increasingly apparent. The decline in footfall, coupled with extensive property damage, is putting immense pressure on businesses, particularly those on high streets. The road to recovery will require coordinated efforts from the government, business leaders, and communities to restore both safety and economic stability in the affected regions.