THE North-East is the safest place in the UK to do business, according to research.

Insurer Axa's Business Crime Index, based on its claims database, found that Newcastle had the lowest rate of crime against business and Middlesbrough was well below the national average.

The quarterly report found that, between January and March, crime was responsible for 12.2 per cent of settled claims made by businesses on Tyneside, down 17 per cent on the final quarter of last year.

In Middlesbrough, crime accounted for 15.6 per cent of claims, a rise of 11.7 per cent. The national average was 18.3 per cent. Nottingham had the highest number of crimes against business, at 25 per cent. The average cost of business crime was £4,708, up 29.2 per cent on the previous period.

Steven Hill, policy advisor at the British Chambers of Commerce, said: "These figures show that crime continues to plague firms across the UK. Businesses require more support from the police and local authorities in tackling the issue, but there are also a number of relatively simple steps that they can take themselves to combat crime.

"These range from ensuring that all doors and windows are secure, to installing an alarm system."

The most common offences are theft and malicious damage, but the costs have been distorted by an increase in the number of arson attacks.

Arson accounted for fewer than three per cent of crime-related business claims, but more than a third of the total value of settlements.

Neil Mercier, property insurance manager at Axa, said: "These findings confirm what we have experienced with our business customers; namely, that criminal activity against businesses is widespread and costly.

"It is essential that they take measures to protect themselves against the threat - not just by having adequate insurance cover, but by looking at the risks their business faces and finding practical solutions to safeguard their staff, property and other assets."