Nova Fairbank Chief Executive of Norfolk Chambers of Commerce “As the voice of business in our county, Norfolk Chambers of Commerce constantly engages with our business community and we are consistently hearing the need for certainty and clarity. Both are vital for any business, in order for them to have the confidence to commit to making their own investments for growth. Since the general election in July, businesses have been holding their breath to see what new Labour government will prioritise, after 14 years in opposition. This is reflected in the recent results of our Q3 Quarterly Economic Survey (QES) – the largest independent business survey in the UK – which showed 70% of Norfolk businesses are not increasing investment and 54% are seriously concerned about taxation. Our business community has shown remarkable resilience, patience and pragmatism, but the uncertainty of a change of government has led to a reduction in business investment. Businesses are calling for clarity, so it is hoped that this week’s budget will end much of the uncertainty around key policy decisions. The potential, and indeed, likely increase in employer national insurance contributions in this week’s budget has resulted in a swathe of comments from our employers across the county. 86% of our members are classed as SMEs and will be disproportionately impacted by this. Leaving less to invest in their staff, recruitment, or growth. Here are just a few of their comments: Sara Docwra from this This is Effective in Great Yarmouth said: “With the added pressure on small businesses, any increase to NI contributions, along with any increase to employer pension contributions would have a detrimental effect on small businesses who are the lifeblood of the UK economy.” Charlotte Notley from Taylor Investigations in Norwich said: “It would be great to see support for SMEs in Norfolk, without it being of detriment to the businesses who employ staff. A possible increase of the employer contribution to NI and to levy NI on employers’ pension contributions could be the difference between growth and recruitment or preventing further opportunities to employ. I would also like to see funding and grant opportunities for businesses to train and retain staff.” James Fowler from Uptech Ltd in King’s Lynn said: “How does any raise on Tax or NI for a business help the economy or an employee? This is likely to be a huge hindrance on SME’s, as it will reduce availability of pay rises and investment. In a digital era, businesses need to be able to invest in tech in order to create growth and to support its people.” Rachel Reeves’ first budget as Chancellor must clearly show Norfolk businesses that this government is on their side. To that end, they are also calling for: An Effective Industrial Strategy – that focuses more on green and digital innovation, especially for our offshore renewables sector and the digitisation of foundational sectors like agriculture, hospitality and tourism. Improvements in our Infrastructure – Norfolk has one of the lowest levels of infrastructure investment in the country. To unlock further growth we need to see improvements to the likes of the A47, our main east / west trunk road. The delivery of the Ely and Haughley rail junction improvements to enable more freight capacity and to get more HGVs off our roads. And digital and mobile connectivity improvements – there are still far too many not spots across our rural county and broadband for everyone which would allow our businesses to compete on a level playing field with the rest of the UK. Greater Support to Improve Skills – Norfolk businesses are keen to see what help can be put in place to help support those on long-term sick or those who are struggling to access the workforce. They would like to see the gaps in local training provision being plugged and for support for helping the long-term sick back into work, plug the gaps in local training provision and critically, longer-term funding for LSIPs and greater flexibility in Apprenticeship Levy use. Employment Rights – businesses are seeking greater clarity on the secondary legislation that will make the Employment Rights Bill a reality. Businesses all support better working conditions for their employees, but a balance is needed to ensure that the policy doesn’t inadvertently push people out of work. Other areas businesses would like to see the Chancellor address, include a more workable R&D Tax Credit System and significant reform of the Business Rates system, which penalises any business before they have even made a profit.
