Crime against businesses is becoming a significant constraint on UK economic growth, according to a new report from the British Chambers of Commerce, which warns that firms are increasingly diverting resources away from investment and expansion to deal with theft, fraud and cyber threats.

Research conducted by the organisation last autumn found that 42 per cent of UK businesses experienced some form of crime over the previous year. Larger companies were particularly exposed, with the proportion affected rising from 32 per cent among microbusinesses to 58 per cent among firms employing more than 250 people.

Manufacturing businesses reported the highest incidence of crime, with half of firms in the sector saying they had been affected.

Cyber attacks and fraud are also becoming more widespread. According to the BCC’s findings, 21 per cent of firms experienced cyber incidents during the past year, while one in five reported fraud or scams.

The report argues that business crime should no longer be viewed as an isolated operational issue, but as a “structural constraint” on economic performance that is weakening productivity, investment and growth.

The warning comes at a time when businesses are already contending with rising operating costs, labour shortages and weaker economic confidence. Industry groups say the cumulative impact of crime is adding another layer of pressure, particularly for small and medium-sized enterprises with limited resources to absorb losses or strengthen security infrastructure.

Among its recommendations, the BCC is calling for a national strategic assessment to better measure the economic impact of business crime, alongside the creation of a unified cyber-attack reporting system to simplify reporting and improve intelligence sharing.

The organisation is also urging the establishment of regional business crime hubs bringing together police forces and business crime partnerships, as well as expanded support to help SMEs improve cyber resilience and invest in preventative measures.

Ellis Shelton said firms were increasingly being forced to spend time and money dealing with risks that were becoming more sophisticated and persistent. “Crime against business is now a serious barrier to growth and investment across the UK,” he said.

The report reflects growing concern among business groups that the economic impact of crime is often underestimated, despite its effect on confidence, operating costs and long-term competitiveness.