The UK economy lost over £1 billion due to warehouse fires over the last five years.

According to the Centre for Economics and Businesses Research (Cebr), the loss in revenue was equivalent to the annual productivity of the country's soft drinks industry being wiped out. 

The study, commissioned jointly with the Business Sprinkler Alliance (BSA), also revealed that over 5,000 people were made redundant over the period, with as many as 21 local buildings impacted by road closures and air contamination each time a fire broke out. 

The survey found that the direct impact to a business was £230 million per year, while £190 million was lost in productivity and impact to the supply chain. Meanwhile, £11 million worth of carbon dioxide emissions and water was used to fight the blazes.

Professor Douglas McWilliams, Cebr chairman and founder, said: "These fires are hurting our economy and could endanger our recovery. The money going up in smoke could be put to good use elsewhere."

Cebr and BSA have appealed to the government to take action on the issue and review current legislation. They argue that currently only warehouses over 2,000 sq m are required to have sprinkler systems and this should be extended to cover smaller premises.