Sizzling Summer: What England’s Heat Wave Means for Businesses and Accountants
1. Context: A Heat Wave on the Rise
England is currently experiencing consecutive days of temperatures reaching 30 °C and above. Met Office studies show such heat waves are becoming longer and hotter due to climate change.
2. Impacts on the Workforce & Workplace
- Health and safety obligations: Under workplace regulations, employers must maintain a “reasonable” temperature. While there’s no official maximum, businesses are expected to act when staff raise concerns.
- Risk assessments: If multiple employees experience heat discomfort, employers are legally required to assess and address thermal risks.
- Recommended measures: These include providing extra water, fans, relaxed dress codes, remote working options, flexible hours, and additional breaks—especially important for outdoor staff or vulnerable individuals.
3. Business Continuity & Infrastructure Challenges
- Operational risks: High temperatures can cause infrastructure issues such as rail buckling, road damage, and pressure on power supplies. Businesses reliant on logistics should assess their continuity plans.
- Absenteeism & reduced productivity: Heat spikes can increase staff absence and reduce productivity, even in traditionally temperate regions like the UK.
4. Employer Costs & Accounting Considerations
- Increased overheads: Businesses may face higher costs for cooling solutions, water provision, remote-working support, and covering absences.
- Capitalize or expense? Large purchases like air-conditioning units may be capital assets, whereas smaller items (like fans) are generally expensed. This affects P&L and depreciation schedules.
- Employee benefits tax: Providing cooling equipment for home use could be a taxable benefit. It’s important to assess potential tax implications.
5. Advising Clients: What Accountants Can Do
- Encourage thermal risk policies: Clients should review and document summer health and safety measures.
- Budget for heat wave expenses: Forecast additional summer costs and include them in cash flow planning.
- Review asset classification: Ensure spending on cooling solutions is correctly accounted for.
- Update business continuity plans: Help clients prepare for weather-related disruptions.
- Provide tax and payroll guidance: Clarify rules around summer-related staff provisions.
- Review ESG and climate reporting: Encourage clients to factor climate risk into wider business strategy.
6. The Broader Picture: Heat Waves as a Recurring Threat
With heat waves becoming more frequent and intense, what was once an occasional inconvenience is now a business risk that can no longer be ignored. Climate adaptation should be part of every business’s long-term planning—from infrastructure investment to reporting and insurance.
Key Next Steps for Accountancy Teams
- Conduct a “heat‑ready” review for clients, assessing policies, budgets, and equipment.
- Run a webinar or circulate a client update with practical guidance.
- Collaborate with other professionals (like H&S consultants or insurers) to offer holistic support.
England’s current heat wave is more than just a weather story—it’s a signal of ongoing change with direct financial, operational, and regulatory implications. Accountants are in a prime position to offer strategic, forward-thinking advice that helps clients adapt and thrive.