As water companies seek permission to introduce drought orders, the threat to many small businesses that depend on constant water supplies is becoming clear. The Federation of Small Businesses (FSB) is calling on the Environment Secretary Margaret Beckett to deny the water companies these drought orders. Window cleaners and car washing companies in particular are at severe risk because the main resource for their trade is threatened. To comply with health and safety legislation or to reduce water consumption many have invested several thousand pounds in equipment. A sudden full stop in trade will leave many window cleaners not only out of business but, as they could have put their home up as collateral for their business, could hit many hard working families and cost them their homes as well as their businesses. Insult has been added to injury by the water companies that have submitted their views to the inquiries into whether the Environment Secretary should give the green light to Drought Orders. The submission to the Drought Order inquiry by Southern Water stated: 'Window cleaners and (non-automated) car washing service providers will be greatly impacted by the ban as they source water largely from the network system and use equipment involving a hosepipe. The small scale of many of these businesses means that this economic activity will not cease for just the duration of the ban, but may close permanently. However, the relatively low set up costs for many cleaning businesses means that unmet demand will attract new service providers in the period after a ban. The cost to the economy from the loss of small businesses closing and subsequent loss of jobs in these areas is therefore likely to be relatively low over the medium term.' Ian Handford, Devon FSB spokesman, said: 'The water companies' lack of understanding of the situation of small businesses is staggering and reeks of arrogance. Small firms could well go out of business because of their actions and their dismissal of this as a consequence is shocking.'
