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When we think of the effects of climate change on the economy, drought images in Africa or hurricanes in the Caribbean may be in mind. But even in advanced economies like the UK, the warmth costs heavy.
The last few summer records in the UK have been the hottest. In the summer in 2025, the average temperature in most parts of the country was more than 1.5 ° C as usual, parts of southern England are 2 ° C from normal. What does this mean for the economy?
Heat invites people out. The beaches are filled, the pub gardens flow and the family fires the barbecue. The Trade Association British retail consortium reported that retail sales increased by 3.1 percent in June in 2024 compared to the same month. This is due to the increase in the sale of food, beverages and recreational products. From ice cream visits to rebel makeups and day, the sun usually encourages good, good.
But the hot summer is downward. High temperatures have a huge impact on health, which puts people at risk of heat pressure, heat stroke and even death. The UK has been designed to maintain heat heat, which means that currently, 32 % of houses in London and 17 % of the houses outside London are hot. And in London, the percentage of high -risk homes in the future increases, and the rest of the country increases by 33 %.
People are also affected during heat work. For those who work outside, the health and fitness of the weather can have a serious impact if it is not managed properly. And for indoor workers, a similar trend is as a workplace in the UK – like homes designed to maintain heat.
UK’s warmth has become a problem that some unions are campaigning for maximum temperatures fixed by a 30 ° C law for non -rigorous indoor work. Currently, the minimum temperature (if employees are doing physical work is guided for 16 ° C or 13 ° C.
And problems for workers can start before working: high heat rails mean slow trains or even cancellation.
Cost counting
Some industries face more difficulties not only on the workers, but also due to the heat because of the heat. The heat of 2025 has made it difficult for the farmers, who have seen the harvesting of the grain shrinking, drying the earth and hurting the animals. In some areas, grain and potato crops were lost by half, crops reached two to three weeks ago.
So, are the hot summers good or bad for the UK economy? In our study, more than two decades of local economic data was reviewed all over the UK and mixed with temperature weather records. We have found that the increase in summer temperatures 1 ° C reduces the UK’s economic growth by about 2.4 %.
Effect of an increase of 1 ° C in seasonal temperatures on the UK’s economic growth ( %) ( %)
In practical terms, this means that a slight increase in average heat in the summer can also be shaved billions of pounds from the economy. But why does this happen?
Hot heat disrupts work and production. Businesses can see more staff ill due to heat pressure and its related diseases. Production capacity in offices, factories and fields is often reduced when workers struggle at high temperatures.
Our studies show that the agricultural sector is particularly weak. Hot, dry summers damage crops and livestock, and since most of the UK crops and dairy farming are focused in the south of the country, the area is facing economic losses.
Our results also show that the effects of hot summer are not spread all over the country equally. The wealthy councils (who have more annual GDPs than national average income) are actually weak. In the south of England, southeast (including London), southwest, and east of the east, the fastest economic decline experiences.
This is partly because the south on average is both hot and home for many farms in the country. Only London, which produces more than half of the UK’s financial services, emerges as an important “hotspot” of risk.
We have also found evidence that samples of energy use. During the hot summer, electricity consumption decreases compared to other seasons. Although it may feel like a good thing, it indicates a change in industrial activity, offices closed or working patterns that reduce economic growth.
The message of our research is clear – the summer is not just anxious, they are economically expensive. As long as adaptation is introduced for better cooling infrastructure, workplace concerns and climate-related farming, the UK is at risk of losing billions with heat waves.
Climate change cannot be excluded as a remote challenge. Our research suggests that its economic fingerprints are already visible in the summer of the UK. The preparation of hot summers is not just an environmental problem, but it is an immediate economic priority.
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ReferenceWhy are the hotter for the UK economy (2025, September 28), https://phys.org/news/2025-09-hotter-uad-uk-conomy.html on September 28, 2025.
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