My business head hurts

The ‘depression stigma’ is costing British business billions.

As the UK economy slips back into recession, it’s almost possible to hear the collective sigh of the country, fearing for their jobs, their futures. It is of course a technicality. Not a lot has changed since yesterday but it’s a great media story and one that will ripple across the UK business community, questioning its fragile confidence and prodding its stomach to see if it is made of stern stuff that can cope with bad news.

Of course no entrepreneur or business leader worth their salt would cave under the pressure. Unthinkable. But what about the staff? What about the people that make the business tick, that sell and create and organise? What if they cannot cope? What if they have a sea of problems at home and this news, leading to a fear of redundancy, is the final straw? Do they need to just buck-up and carry on?

Depression costs British businesses £9bn a year in potential lost earnings (All Party Parliamentary Group on Wellbeing Economics – Dec 2011) yet there is a stigma attached to depression and stress that is seemingly hard to shift.

Depression is one of those terms that is perhaps a little over-used. We’ve all done it and all heard it. Most people have at some point talked about “being depressed”, usually about the weather, but there is a belief, particularly within business, that it’s just an excuse to get off work for a bit. This has a knock-on effect. Depression is not taken seriously and real sufferers can be ignored and sometimes bullied.

It’s not just a British problem either. Earlier this month some statistics emerged from the World Health Care Conference claiming that mental health issues cost North America and Europe about four per cent of their combined domestic product, or $1.3 trillion each year. It also reported that 90 per cent of all mental health issues relate to depression and approximately 18 per cent of people in the workforce are currently battling depression.

Those are big statistics but they will do little to convince the sceptics. However it is quite clear that depression at work, whether you believe in it or not can lead to poor business performance. Brushing it under the carpet only exacerbates the problem and can lead to lost business opportunities and revenues.  That’s surely a language any business can understand.

Interestingly last year, Jo Swinson MP tabled a number of early day motions in Parliament to promote well-being, including a proposal to improve access to psychological therapies. She proposed a motion that the House “regards depression as a serious condition that can profoundly diminish a person’s wellbeing and recognises that psychological cognitive-behavioural therapy is an effective and scientifically validated form of treatment.”

It’s essentially why we set up Black Dog Tribe, to provide a sort of social therapy platform, where sufferers and carers can share experiences and hopefully help each other. What was really most healing for me when I had depression was meeting my own people, my tribe. It’s important to know you’re not alone and there is a kind of comfort in knowing that you both feel like the walking dead. It’s also such a relief to be with someone who will never say, “Perk up.”

These are small steps we are taking but what is ultimately the root cause for many people is individual business culture.  Not all businesses behave the same but where there is a culture of high octane sales and a need to impress the boss 24/7 with lots of success charts and high fives, the pressure can often be telling.

It was interesting to see the Bergen Work Addiction Scale' get some publicity recently. It looks at the kind of behaviour that is displayed by all kinds of addicts but related to the workplace. Work addiction is getting worse, according to the scale because the boundaries between home and office are becoming blurred, which leads to increased stress and in some cases breakdown. Surely these things are common sense? Businesses are as good as the people driving them but if you don’t look after your drivers you are going to crash.

 

Recession depression, Photograph: Getty Images.

Ruby Wax is the founder of Black Dog Tribe.

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.