The Forum of Private Business (FPB) has warned that recent government proposals to tackle business crime represent just the first step in tackling a rapidly escalating problem.

Secretary of State for Justice Jack Straw has unveiled plans to force offenders to return to crime scenes, apologise and pay for losses and property damage. But the FPB drew attention to the British Chambers of Commerce's 2008 crime survey, which demonstrated that the cost of business crime has increased by more than £2bn since 2004 and now stands at £12.6bn.

FPB chief executive Phil Orford welcomed Straw's proposals but counseled that more needed to be done to prevent business crime taking place. "Many firms are faced with the costs incurred by repeated crimes against their premises. This significantly impacts on growth and, in many cases, their ability to survive," he said.

"The knock-on effect for local economies, in terms of inward investment, employment and community confidence, can also be devastating. We need a more visible, proactive police presence. There must also be a change in the culture of not reporting crimes, so that the perpetrators stand a greater chance of being caught and are prevented from re-offending."

A survey undertaken by the British Retail Consortium during 2006 and 2007 revealed that 29 per cent of businesses felt reporting crime was too time consuming, while 36 per cent were not confident of a satisfactory response from the Police.

FPB member and owner of Nottingham-based carpet retailer Blacklock Carpets, Samuel Blacklock, said his shop was targeted by thieves four times a year on average. "In one incident, just before Christmas, they came in broad daylight wearing long trench coats and made off with about £600 worth of rugs. The police station is about 400 yards away and we phoned to say they could be caught, as they were driving right past," he said.

"We have been targeted repeatedly, and on occasions, our neighbours or members of the public – not the police – have intervened. There have also been incidents of vandalism, and all of this is a direct result of the failure of the local police service."