Cold snap takes a multi-million toll on economy

As the region continues to face problems caused by ice and freezing temperatures, the costs are continuing to mount at a time when the economy is in a fragile state as it begins to emerge from the recession.

With public services also feeling the impact and councils forced to cope with slashed salt supplies for the roads, the prospect of a thaw has raised spirits.

The Yorkshire and Humber Chambers of Commerce warn many businesses have faced "substantial disruption" as a result of conditions, with some firms losing 10 per cent of their workforce on the worst days. They estimate that at the height of the bad weather, the economy may have lost 34m a day.

Nick Pontone, director of policy at the chambers, said: "The biggest problem has been the extent of snow and ice combined with the prolonged nature of the cold snap which has come at a very bad time, just as the economy was starting to pick up.

"Around half of our members have reported a rise in staff absenteeism, but the problems for business go much wider as many customers and clients have also stayed at home, the usual movement of goods and supplies has been delayed and in the worst cases gas supplies have been cut off.

"Some firms will be able to catch up on lost production, but others will simply take a financial hit that they can ill afford."

With businesses, public services and individuals all used to a coating of snow and ice, weather experts warned of flood risks yesterday as parts of the country began to experience a thaw.

The Government's Cobra emergency contingencies committee met to discuss the latest situation, with reports of some ambulance crews still finding it difficult to respond to emergencies because of snow but the number of schools remaining closed has dropped to less than 1,500 compared with 10,000 last week.

The committee was told the first supplies of salt ordered from the United States and Spain were expected to start arriving in the UK around January 18.

Mr Pontone praised the efforts of the Highways Agency and local councils for their efforts to keep roads running "in very difficult circumstances", and said many businesses and employees had also shown "real commitment" despite the conditions.

But he called for a major review of issues such as grit supplies, school closures and gas storage facilities.

"We accept it simply isn't possible to adequately grit every local road, however, the review should consider whether there are sufficient stock piles of grit given that we have come perilously close to running out," he said.

"In the long term, the Government's decision to redistribute local authorities reserves of salt is a major disincentive to them to maintain sufficient grit supplies in the future. Those that planned well should not pay the penalty for those who didn't."

Meanwhile Leeds North West MP Greg Mulholland has warned the Government not to "penalise" schools whose attendance records are hit because they "heroically" stayed open during the heavy snowfall.

"Teachers, headteachers and staff have heroically kept many schools open in Leeds compared to other areas of the country," the Liberal Democrat told MPs.

"And yet now these schools and their pupils are going to be penalised because of the attendance record of those pupils who could not get in. This is clearly absurd and needs to be changed."

But Commons Leader Harriet Harman insisted that "nobody is going to be penalised" and said it was important to monitor the number of pupils going to school.