General

On Tuesday 28th February, over 35 delegates joined us to learn about business opportunities in Saudi Arabia at Holiday Inn Norwich. The venue provided a spacious setting where delegates were able to network over tea & coffee, followed by 3 presentations from expert speakers discussing the key areas of trade in Saudi Arabia. Norfolk Chamber’s International Trade Manager, Julie Austin welcomed delegates to the event, introducing our first speaker Chris Innes-Hopkins, UK Executive Director, Saudi British Joint Business Council.    Next up we had Eisa S Alothman, Managing Director, Project Facilitators & Services Company Ltd who covered cultural awareness for Saudi Arabia. Eisa gave an enlightening talk, reviewing the difference between gender culture.    We then took a short break and treated delegates to tea and cake to help them process the information just received.   The second half of the event resumed with a presentation from Phil Ball, Director of Trade Sales, Barclays Trade and Working Capital, Corporate Banking Origination. Phil covered the financial aspects to trading in Saudi Arabia.    Our International Trade Manager Julie also gave a short presentation on how we can help your business to expand overseas. If you would like any more information on how we can help, please visit our International Page or contact the team: T: 01603 729715 E: [email protected]   We closed the event with a Q&A session, after which, many delegates took this opportunity to talk further with the speakers and get in some final networking to make those all-important contacts.    

View the presentation from the event below:

   

Doing Business in Saudi Arabia from Samantha Brown

A delegation from Norfolk Chamber were in attendance at the British Chambers of Commerce (BCC) Annual Conference at the QEII centre in London this week.

Following an opening speech by Francis Martin, the President of the British Chambers, a video montage from the Chief Executives from across the regional Chambers was shown.  It outlined the differences being made locally and helped to articulate how the work the Chambers do locally is collectively contributing to the national economic picture.

Unsurprisingly, Brexit was a re-occurring theme throughout the conference agenda, with the questions from the UK press and media coming in thick and fast amongst the questions from the business audience.

Director General of the BCC, Adam Marshall outlined how he saw an army of civic minded businesses driving prosperity through the process of Brexit.  And that those businesses felt that an ambitious domestic agenda mattered equally as much as any Brexit deal.  He also noted that young people place faith in the transformational power of business and will respect those businesses with civic impact, who can invest in manufacturing and innovation and technology to help support the needs driving modern day society.

One of the panel debates discussed how to grow business in the regions.  Panelists included George Osborne MP, and Andy Burnham MP, the candidate for the Mayoral election in Manchester, as well as Vincent De Rivaz, CEO of EDF Energy.  They debated Devolution, City Deals and the need to transfer power to local regions and what the outcomes of that may be.    All agreed that the regions would benefit from power becoming less centralised, but gave a warning that the real competition for the UK was from outside of our shores and there needed to be commitment from all regions to compete as one nation. 

Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, reiterated how important information and feedback from Chamber members was in providing input into the Industrial Strategy.  “There is no substitute for talking to people, the diversity of connection, challenge and opportunities means everything to those who make policy.”  He went on to invite all UK Chambers to participate in the development of sectoral groups for the Industrial Strategy, saying “local knowledge is irreplaceable and essential.”

The highlight speech of the conference came from Boris Johnson, Secretary of State for Foreign and Commonwealth Affairs.  He opened with analogies about pineapples and closed with haggis and pineapple jam!  His point being that the UK needed to reclaim globalisation.  Historically the UK is the most global of all the developed economies, with the links and friends being created over centuries of being a globally trading nation.  On the subject of the UK in relation to the EU, Mr Johnson said “the UK is the flying buttress supporting the cathedral – UK trade has raised everyone’s standards and there remains opportunities within the EU.”  He went on to say that “the UK should think global to be a safer, more successful and prosperous Great Britain.”

As the British Chambers of Commerce (BCC) publishes statistics that show two-in-five businesses are more concerned about business rates than three months ago, the business group renews its call for action in the Spring Budget this week to ease the burden of rates and bring about fundamental reform to the system.

New interim statistics from the BCC’s Quarterly Economic Survey, based on the responses of over 900 companies, show that 39% of businesses are more concerned about business rates than three months ago, second only to those reporting higher concern around exchange rates (42%) than three months ago.

The results show that it is small businesses who are most worried about the burden of business rates, with one-in-two (50%) saying it’s of greater concern, the highest of any factor.

The business group is calling for the Chancellor to use his Spring Budget to support long-term investment and growth by taking action on this upfront costs which hits businesses unfairly, and irrespective of their economic health or circumstances. 

BCC seeks four key measures on business rates from the Spring Budget:

• Abandon the fiscal neutrality principle in business rates reform – an unacceptable barrier to fundamental reform of the business rates system that is unique to that tax. This would allow the government to help those firms most affected by the revaluation.
• Drop proposals that would restrict the ability of the Valuation Tribunal for England to order changes to business rates liabilities – ensuring businesses access to justice and fairness.
• Bring forward the switch from RPI to CPI, currently planned for April 2020, to April 2017 – limiting annual increases starting more swiftly.
• Longer term, remove all plant and machinery from the valuation of property for business rates purposes.

Caroline Williams, Chief Executive of Norfolk Chamber said:

“The concerns of Norfolk businesses, with regard to business rates is rising.  Norfolk Chamber would call on the Chancellor to take urgent action in the Budget this week. The UK had the highest business property taxes in the developed world even before the recent revaluation – hammering firms in our region with sky-high costs before they turn over a single pound. This undermines business investment, which in 2016, fell for the first time in seven years.”

Dr Adam Marshall, Director General of the British Chambers of Commerce, said:

 “As the new bills kick in from April 1st, many will see this situation get worse with some facing double, even triple-digit growth in the amount they must pay. Businesses face a tipping point: with rates rising for many and the combined costs of currency depreciation, the new National Living Wage, Pensions auto-enrolment and rising energy prices – urgent action is needed to reduce the upfront costs of doing business.

“In the short-term, the Government must provide additional relief to the firms hit hardest by rates and re-visit the detail of reform to the appeals system. It should bring forward the change from RPI to CPI this year.

“In the longer-term, fundamental change is needed, including stripping plant and machinery from rates assessments that does so much to discourage business investment.”

The latest edition of Norfolk Voice is out now, including interviews with Andrew Paine, Head of Offshore Wind Development UK, Vattenfall and David McQuade, Chief Executive, Flagship Housing.

We also have two features dedicated to Norfolk infrastructure and Apprenticeships.

Read it online here.

The A47 Alliance is to push for further investment from central government to make much-needed improvements to the A47, including dualling much of the route.

Highways England, the government company charged with operating, maintaining and improving England’s motorways and major A roads, is shortly set to reveal a set of proposals to make improvements to the A47 in Peterborough, Cambridgeshire and Norfolk. Central government has already committed to funding these improvements, which largely consist of making improvements to junctions along the route, with construction set to begin in 2020.

The A47 Alliance, which includes Norfolk Chamber, local authorities, MPs and others, will now focus its efforts on getting a commitment from central government for further improvements. The priority improvements agreed by the A47 Alliance are:

• Dualling Acle Straight to Great Yarmouth
• Dualling Tilney to East Winch (including Hardwick flyover dualling) in King’s Lynn
• Dualling Guyhirn to Wisbech,
• Junction improvements at:
  • A1101 Elm High Roundabout and B198 East and West in Wisbech
  • Eye Roundabout
  • Junction 15 and Junction 18 in Peterborough

If funding for these improvements is secured, work could get under way between 2020 and 2025.

Nova Fairbank, Public Affairs Manager for Norfolk chamber said:

“Norfolk Chamber will be supporting the A47 Alliance in its plans to step up the campaign for A47 improvements.  We need to show Westminster that we have the support of the Norfolk business community, the local authorities, the general public and all our local MPs by presenting a business care which highlights that the much needed A47 improvements will help deliver greater economic growth and jobs.”

The A47 Alliance will be canvasing public and stakeholder support through the website and newsletter and organising a business breakfast. It will seek to meet the Transport Minister with a portfolio of evidence to try to secure future funding.

Cllr Wilby, Chairman of the A47 Alliance and Chairman of Norfolk County Council’s Economy Development and Transport Committee, said:

“These improvements are crucial to improve the A47. It is the major route across East Anglia and for too long businesses, residents and visitors have had to put up with an inadequate, unreliable route.

“The Alliance was successful in persuading government to invest over £300m for improvements that will start on the ground in 2020. These are a good first step towards the Alliance’s ambition of full dualling of the full A47, with bridges and flyovers being created at key junctions. We have now agreed our priorities for the period after 2020 and will step up our campaign to persuade government of the case for further investment.”

Graham Plant, Vice Chairman of the A47 Alliance and Leader of Great Yarmouth Borough Council said:

“The A47 is the major route that connects our region to the midlands and the north, so it’s vital that we maintain pressure on getting the road improved.

“We welcome the forthcoming Highways England consultation on the currently funded schemes along the A47. The A47 Alliance is pleased to see progress with these schemes starting to come forward after the funding announcement in 2014. We are also pleased to see that the A12 has now been renumbered as the A47 between Great Yarmouth and Lowestoft. This will make journey planning easier for motorists. We will continue to press for further major infrastructure in and around the town including Vauxhall Junction, Acle Straight dualling and the Great Yarmouth Third River Crossing.”

SMEs often find the burden of bureaucracy and red tape overwhelming. The European commission is now carrying out a consultation to find out which are the most burdensome pieces of legislation to smaller companies. The online consultation is now open and will run until 21 December 2012.

Once the consultation is complete, the European Commission will analyse the results and consider how the situation can be improved for SMEs. Areas covered by the consultation include services, customs, employment and social affairs, energy, product safety, environment and taxation.

To take part in the online survey click here.

Rescheduled Bridge Beam Delivery Dates:

The delivery of the 36.7m steel beams for the bridge that will carry the NDR dual carriageway over the Norwich to Sheringham railway has been rescheduled for next week after the police were unable to provide an escort this week.

The five abnormal loads will instead be moved on Tuesday 14 March, Wednesday 15th and Thursday 16th. The route from Middlesborough will be along the A1, the A47 and the B1140 through Panxworth, reaching the bridge site from Plumstead Road, which will be closed for around 15 minutes for each arrival (between noon and 4pm).

The beams – five braced pairs – will arrive in halves and after assembly on site will be lifted into place on Sunday 9 April and/or Sunday 16 April, when the railway will be closed, with Bittern Line trains replaced by buses.

Temporary Traffic Lights:

The location of temporary traffic lights from Week Commencing 13 March will be as follows:

Reepham Road

• Two-way off-peak lights Monday only (13 March) by Bell Farm (tree trimming for BT diversion)
• Three-way lights at Reepham Rd/Holly Lane on Monday (after morning peak) and Tuesday as part of the Hall Lane traffic calming works,
• Two-way lights on Reepham Road at Drayton Lane junction site Wednesday to Friday

Holt Road (B1149)

• Two-way lights at Drayton Lane roundabout site Monday to Wednesday and Friday.
• Three-way lights at Holt Road/Holly Lane on Thursday to form access into the compound off Holt Road next to junction ready for bridge beam deliveries.

Cromer Road (A140)

• The 24 hour two-way lights currently in use will continue throughout next week and are likely to remain until Monday 20 March.

Cyber security is something that everyone within the Norfolk business community should be thinking about. 

The National Cyber Security Strategy 2016 – 2021 stated that in the last year, the average cost of security breaches to large businesses was £36,500.  For small firms the average cost of breaches was £3,100.   With 65% of large organisations reporting that they had suffered an information security breach in the past year, and 25% of these experiencing a breach at least once a month.

On Thursday 18 May Norfolk Chamber are set to deliver a new Cyber Security Conference. The agenda will look to bring speakers from a range of businesses and backgrounds, including live demonstrations, to inform you of how to keep your business safe.

For more information and to book your place click here.

(Based on February 2017 data releases)

Monthly headlines:

• UK GDP growth for Q4 upgraded to 0.7%, but growth for 2016 revised down to 4-year low
• UK retail sales weakens further as inflation continues to rise and earnings growth slows
• German GDP growth picks-up in Q4 as Greece’s economy shrinks

The second official estimate for Q4 2016 UK economic growth (GDP) stood at 0.7%, which was up from the previous estimate of 0.6% and is the fastest rate of growth since Q4 2015.  Overall the latest GDP estimate confirmation that the UK economy enjoyed a solid end to 2016.   Although the UK economy enjoyed a strong end to 2016, higher inflation is an increasing challenge for businesses as well as consumers.

Retail sales continued to declined and fell by 0.4% in January.  Rising prices in fuel and food are significant factors in the slow down with average store prices rising by 1.9% on the year.

The Eurozone GDP growth remains mixed.  The biggest economy is German, which grew by 0.7% in Q4, whilst the economies of Finland and Greece contracted.  Whilst the Eurozone is likely to grow at a reasonable rate there are concerns over the southern European economies and broad political uncertainty could also weigh on their growth prospects.

For full details of this month’s economic review click here.

A lot has happened since the UK voted to leave the European Union.  The Prime Minister, Theresa May states “Brexit means Brexit” and she is sticking to her timetable of triggering Article 50 of the Lisbon Treaty, which gives the UK and the EU two years to agree the terms of the split. by the end of March 2017.   Parliament has now had their Brexit legislation defeated twice in the House of Lords.  The second defeat resulting in the sacking of the Lord Heseltine, who was one of 13 Tories who rebelled against the Government.

At the time of the EU Referendum, there were predictions of an immediate economic crisis, if the UK voted to leave. House prices would fall, there would be a recession with a big rise in unemployment – and an emergency Budget would be needed to bring in the large cuts in spending that would be needed.

The reality was that the Pound did slump the day after the referendum – and remains around 15% lower against the dollar and 10% down against the euro – but the predictions of immediate doom have not proved accurate with the UK economy estimated to have grown 1.8% in 2016, second only to Germany’s 1.9% among the world’s G7 leading industrialised nations.

Most successful businesses recognise the need to stay positive and be able to take advantage of a difficult situation.  They understand that there are opportunities in times of uncertainty, as well as risks.

For the next edition of the Norfolk Voice magazine, we want to hear from Chamber members about the impact of Brexit on them.  What have you been doing, as a result of Brexit and what plans  have you got to take advantage of future opportunities?

Has your company taken advantage of the lower Pound and increased your exports; are you looking at new markets; or trying to source new suppliers – perhaps from within the UK?  What future opportunities do you see as a result of Brexit?

Also, what does your business need to see from the Brexit negotiations?  Just a few of the business comments we have heard so far include: the overall need for clarity; a bureaucratic-free system for EU workers; simplified regulations post Brexit and a reduction in red tape; and to keep tariffs with the EU to a minimum.

Please send your comments to Nova Fairbank.  Email: [email protected] by no later than close of play on Friday 24 March 2017.

The A47 trunk roads form part of the strategic road network and provides for a variety of local, medium and long distance trips between the A1 and the east coast.  The corridor connects the cities of Norwich and Peterborough, the towns of Wisbech, Kings Lynn, Dereham, Great Yarmouth and Lowestoft and a succession of villages in what is largely a rural area.

In 2014 the government published the Road Investment Strategy. This includes a package of 6 schemes to improve journeys on the 115 mile section of the A47 between Peterborough and Great Yarmouth. Together, the proposals will relieve congestion and improve the reliability of journey times for drivers.  The proposals include converting almost 8 miles of single carriageway to dual carriageway and making improvements to junctions across the route. The Norfolk based schemes are:

• A47/A11 Thickthorn junction improvement
•  A47 Great Yarmouth junction improvements
• A47 Blofield to North Burlingham dualling
• A47 North Tuddenham to Easton dualling

Highways England have now started to consult on the route options for each of these improvements.  The consultations provide an opportunity for businesses and the general public to view, discuss and help shape their proposals.  This will help Highways England to understand what is important to businesses and local communities and will help inform the selection of a preferred option.

A47/A11 Thickthorn junction improvement

Highways England have a proposal to improve the A47/A11 Thickthorn junction.  It will create a better junction that will relieve congestion and improve safety.  The full consultation brochure can be found here.

There will be public exhibitions at the following locations/dates/times:

Willow Centre, Cringleford –  Saturday 25 March 2017 from 10am – 2pm

Jubilee Youth Club, Hethersett – Monday 27 March 2017 from 3pm – 8pm

Willow Centre, Cringleford – Tuesday 28 March 2017 from 3pm – 8pm

Norwich City Library (pick up point) – Monday 13 March – Friday 21 April 2017

Have your say now – complete the online A47/A11 Thickthorn Junction consultation now

A47 Great Yarmouth junction improvements

Vauxhall Roundabout including the Station Approach Junction and Gapton Roundabout are located towards the northern end of Great Yarmouth and have been identified as priority junctions in need of fundamental improvement.  The full consultation brochure can be found here.

There will be public exhibitions at the following locations/dates/times:

King’s Centre, Great Yarmouth – Saturday 18 March 2017 from 10am – 2pm

Great Yarmouth Town Hall – Monday 20 March 2017 from 10am – 5pm

King’s Centre, Great Yarmouth – Wednesday 22 March 2017 from 3pm – 8pm

Gt Yarmouth Town Hall (pick up point) – Monday 13 March – Friday 21 April 2017

Have your say now – complete the online Great Yarmouth Junctions consultation now

A47 Blofield to North Burlingham dualling

The Highways England proposals will create a new dual carriageway that will relieve congestion, provide extra road space, improve safety and help provide a free-flowing network.  The full consultation brochure can be found here.

There will be public exhibitions at the following locations/dates/times:

Lingwood Village Hall – Wednesday 29 March 2017 from 3pm – 8pm

Blofield Court House – Friday 31 March 2017 from 10am – 5pm

Lingwood Village Hall – Saturday 01 April 2017 from 10am – 2pm

Have your say now – complete the online Blofield to North Burlingham dualling consultation now

A47 North Tuddenham to Easton dualling

Highways England are consulting on proposals to improve the A47 between North Tuddenham and Easton. Their proposals will create a new dual carriageway that will relieve congestion, provide extra road space, improve safety and help provide a free-flowing network.

They have been working closely with Norfolk County Council to ensure that their proposals align with local and regional plans and aspirations for growth.  There will be a further statutory public consultation before any scheme is finalised.  The full consultation brochure can be found here.

There will be public exhibitions at the following locations/dates/times:

Honingham Village Hall – Thursday 06 April 2017 from 3pm – 8pm

Hockering Village Hall – Friday 07 April 2017 from 10am – 5pm

Easton Village Hall – Saturday 08 April 2017 from 10am – 2pm

Dereham Library (pick up point) – Monday 13 March – Friday 21 April 2017

Have your say now – complete the online North Tuddenham to Easton dualling consultation now

The British Chambers of Commerce (BCC) has today (Tuesday) upgraded its UK GDP growth forecast for 2017 from 1.1% to 1.4%. However, it has downgraded its expectations slightly for 2018 from 1.4% to 1.3%, and published its first forecast for 2019 of 1.5% growth.

The leading business group upgraded its growth forecast for 2017, driven by an upward revision to UK GDP growth data in the final quarter of 2016, and stronger than expected levels of consumer spending. There has also been a slight improvement in the outlook for investment and trade, compared to our previous forecast.

However, economic growth is expected to remain well below its long-term average over the forecast period.

Inflation is forecast to breach the Bank of England’s 2% target this quarter, with companies facing higher input costs, which will be passed through to consumers. While average earnings are expected to hold steady, the inflationary pressures are likely to erode real wages. As a result, consumer spending, a driving force of growth in the economy in recent years, is expected to slow substantially. 

The UK’s net trade position is expected to improve over the next few years. Investment is forecast to contract this year, with subdued growth predicted in the following years, as uncertainties relating to the outcomes of the UK’s negotiations with the EU persist, and increasing input costs and taxes hit businesses.

In this period of uncertainty, there are heightened risks to the forecast. Faster levels of inflation and increased anxiety around the Brexit negotiations could result in more muted growth, however if resilience in consumer spending continues, growth levels could be bolstered. 

Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:

“Thanks to the hard work of UK businesses including Norfolk and the continued resilience of British consumers, the U.K. economy is likely to grow somewhat more strongly than had been previously expected during 2017.

“However, several years of unspectacular growth is expected, which, when coupled with inflationary pressures and the uncertainty of Brexit, means that it is important to tackle constraints, such as our infrastructure, which limits Norfolk business confidence and growth.

“Last week’s Budget was a missed opportunity for the government to provide much needed support on both infrastructure improvements and international trade; and to lower the heavy up-front taxes and costs that undermine business investment.  More thoughtful and radical moves to improve the business environment would give businesses – and GDP forecasts – a boost during a critical and complex time.”

Key points in the forecast:

• UK GDP growth forecast for 2017 is upgraded to 1.4%, but is expected to slow to 1.3% in 2018, before accelerating slightly to 1.5% in 2019. Growth of 0.4% is expected in Q1 2017
• The improved growth forecast for 2017 is driven primarily by stronger than expected household consumption and ONS revisions to Q4 GDP data. GDP growth forecast for 2018 has been downgraded slightly from 1.4% to 1.3%, with consumer spending expected to weaken
• The pace of inflation has picked up faster than expected and is forecast to breach the Bank of England’s 2% target early this year, growing by 2.4% in 2017, 2.7% in 2018 before slowing to 2.5% in 2019. This is higher than the previous forecast of 2.1% and 2.4% for 2017 and 2018 respectively
• Consumer spending is expected to slow substantially from 1.6% in 2017, to 0.9% in 2018 and 1.1% in 2019 as inflationary pressures erode real wages
• Business investment is expected to contract by 0.5% in 2017, before growth levels of 0.2% in 2018 and 1.0% in 2019
• Export growth has been upgraded from 2.3% to 2.7% in 2017, and from 2.9% to 3.1% in 2018, and is expected to be 2.8% in 2019.
• Looking at sectors, construction has been upgraded from -2.0% for 2017 to 0.4% and is expected to grow by 0.2% in 2018 and 1.0% in 2019. The services sector is expected to grow by 1.9% in 2017, 1.5% in 2018 and 1.7% in 2019. Manufacturing is to grow by 1.2%, 0.7% and 1.0% respectively.
• The main downside risk to our forecast is if inflation rises by more than we currently predict which would be a further squeeze on consumer spending and business investment. The upside risk is if consumer spending current resilience continues. Under this scenario, our expectations for GDP growth would be substantially higher.

Suren Thiru, Head of Economics at the BCC, said:

“We have upgraded our growth forecast for 2017, driven by revisions to official GDP data and a stronger than expected end to 2016 for the UK economy.

“That said, the UK economy is still set to enter a more subdued period, with growth expected to remain materially below trend over the near term. The resilience in consumer spending, a key driver of UK growth, will slowly dissipate over the coming months as higher inflation and muted wage growth combine to erode consumer spending power.

“The UK’s trade position will improve across the forecast period supported by the depreciation of Sterling and an improving outlook for the global economy.

“The imbalances in the economy continue to leave the UK increasingly exposed to economic shocks. While household consumption’s contribution to UK GDP growth is likely to decrease over the near term, the slight improvement in investment and trade prospects over the same period is not expected to be enough to prevent a slowdown in overall growth.”