Chamber News

With the second quarter of 2018 behind us, and amid growing international uncertainty, from escalating trade disputes to oil price rises, the UK economy continued to grow at a sluggish rate. Brexit was a key factor – but long-standing structural issues also continued to hold companies’ growth back.

The dominant service sector, consumer-facing industries, such as hospitality and retail, reported tougher trading conditions. Cashflow and investment intentions fell significantly for retailers as consumer spending continued to remain subdued.  Meanwhile the UK manufacturing sector reported improved domestic sales orders and Norfolk manufacturers reported increases in their export sales and orders. 

Is the uncertainty of Br3exit impacting on your business; have you seen an increase in sales and orders; are you having recruit difficulties or facing supply chain challenges, it’s more important than ever that as many Norfolk businesses as possible complete the survey.

Now we are in the third quarter – how are Norfolk businesses reacting to the current economic climate? Today (Tuesday 28 August 2018) is the first day of the fieldwork period for the Q3 Quarterly Economic Survey (QES).

The QES is the largest independent business survey in the UK and is used by both the Bank of England and the Chancellor of the Exchequer to plan the future of the UK economy.  It is also closely watched by the International Monetary Fund.

You can have your say by completing the QES online NOW   It takes less than 3 minutes.  The completion deadline for this survey is midnight on Monday 17 September 2018.  The Q3 results will be published week commencing 08 October 2018

Key Norfolk findings in the Q2 2018 survey:

Norfolk Manufacturing sector:

• The balance of firms reporting increased domestic sales rose from +16 to +35, while the balance reporting improved domestic orders also rose, from +23 to +35
• The balance of firms reporting increased export sales rose from +31 to +44. The balance reporting improved export orders also rose, from +26 to +31
• The balance of firms increasing investment in training fell, from +33 to +5, while the balance of those increasing investment in plant and machinery also fell from +33 to +30
• The percentage of firms looking to recruit remained steady at +30 while the number of those struggling to recruit rose significantly from +67 t0 +82
• Cashflow continues to be a concern within manufacturing, with just +10% reporting improved cashflow.
• The balance of firms expecting turnover to increase remained static +45 (from +46)
• 67% of firms in the sector expect the cost of their raw materials to rise in the next three months
• Confidence that profitability will improve over the next twelve months dipped from +35 to +30

Norfolk Services sector:

• The balance of firms reporting increased domestic sales rose from +19 to +34, while the balance reporting improved domestic orders rose considerably from +13 to +28
• The balance of firms reporting increased export sales also rose, from +8 to +35. The balance reporting improved export orders also rose substantially, to +22 from +6
• The balance of firms increasing investment in training rose to +22 from +13
• The percentage of firms looking to recruit rose from14% to 37%, but the number of those struggling to recruit also rose to 82% (from 63%)
• Cashflow is a concern, with just 12% reporting improved cashflow.
• The balance of firms expecting turnover to increase in the next year increased, from +24 to +59
• Confidence that profitability will improve over the next twelve months increased from +15 to +36

Notice is hereby given that the 122nd Annual General Meeting of the Norfolk Chamber of Commerce & Industry will be held at The Open, 20 Bank Plain, Norwich on Tuesday 02 October 2018.  Registration will be at 9.45am, for meeting commencement at 10am.  Please see attached for all papers relevant to the meeting.

Commenting ahead of the publication of technical notices from the government relating to the possibility of ‘no deal’ in the Brexit negotiations, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“Businesses have waited too long for answers to some basic questions around Brexit – and have been particularly frustrated by the lack of clear guidance on some of the issues that are within the UK government’s own control. ‘No deal’ preparations should have happened far earlier, and the onus is on government to move quickly and give businesses as much detailed technical information as possible to avoid significant disruption in any scenario.

“Our test for the Government’s ‘no deal’ notices is straightforward: do firms now have the clarity they need so that they can continue to conduct business both here at home and across borders on March 30th 2019?

“Companies need to know how the UK government will handle customs and VAT procedures at the border on day one after Brexit. Companies need to know what the immigration rules will be on day one, both to reassure existing staff and to recruit successfully. Firms need to know what they need to do to ensure that their contracts are valid, their transactions processed, and their rights protected.

“We will be assessing the content of these notices with businesses around the UK – and we will not hesitate to tell ministers if we find the content unclear or unhelpful to business decision-making.”

The UK’s new Customs Declaration Service (CDS) has opened for business.

HM Revenue & Customs (HMRC) has announced that it has successfully implemented the first software release for CDS, which means that a selected group of importers will be able to start making certain types of supplementary declarations on the system.

The majority of importers will start using CDS from November 2018, once their own software provider or in-house IT team has completed development of CDS-compatible software. Exporters will start using CDS at a later date.

The existing Customs Handling of Import and Export Freight (CHIEF) system will continue to operate in parallel with CDS during a transition period which is scheduled to end early next year.

The CDS will, HMRC claims, deliver a modern system for importers and exporters who have to complete customs declarations when trading outside the EU.

It will, however, meet the requirements of the Union Customs Code (UCC) as well as supporting the anticipated growth of UK trade.

Describing the software release as a major milestone, Kevin Franklin, HMRC’s Customs Transformation Programme Director, said that going live on time was a great step towards fully introducing the new system.

“Our priority now is to make sure software developers, agents and their clients are ready and we will continue to work closely with them throughout the transition,” he continued.

Software providers are advised to consider what changes will be needed to their products and how they will approach the roll-out of the new system. Information about how HMRC intends to introduce the new Service can be found at www.gov.uk.

The B2B Exhibition has always been a highlight in the Norfolk Chamber calendar, attracting both local and nationally known organisations for a day of face-to-face business.  Today (23 August) we sold out all our exhibition spaces. 104 exhibitors will be joining us across two floors of Norwich City Football Club, as well as Anglia Car Charging exhibiting at the entrance to the exhibition. We’ll be hosting a range of businesses and sectors including charities, venues, accountants, software developers and even a trampoline park. View all exhibitors. This day is a unique opportunity to find new products and services from the region’s top businesses. Our exhibitors run discounts, special offers, competitions and giveaways during the event helping you get the most out of your day.  This sold out event is free to attend as a visitor including access to two floors of exhibition, our dedicated networking lounge and the four masterclasses running throughout the day.  Visit the networking lounge to set up meetings, pop in to see who you might find or just enjoy a break from a busy day at B2B. The bar will be open for refreshments so utilise the space during the day to make notes, build relationships or find potential clients. The masterclasses give you an opportunity to learn something new and boost your business. The four topics our experts will be teaching you about are networking, sales, LinkedIn and business growth – all vital topics in the business world. Make sure you check out the schedule and make a note of which ones you’d like to go to. Find out more. B2B can often be an overwhelming day. You think you’ll have enough time but the day flashes by. We’ve written a handy top 10 tips list for visitors to get you prepared ahead of the day. View top tips. We hope to see you there this year as we present another sold out exhibition. Book your tickets. 

If you have a .eu web domain but do not have a presence in the EU, you may be at risk of losing your domain as a consequence of Brexit. Only firms that are established in a Member State are allowed to own .eu domains, and therefore some firms that are based in the UK, but own a .eu domain could be at risk of losing their website. More information on potential scenarios can be found here. If you are at risk of losing your .eu domains, please contact Mark Carvell, Head of International Online Policy at DCMS.

The British Chambers of Commerce, together with the accredited Chamber Network, including Norfolk Chamber, run Britain’s largest and most influential private business survey – the Quarterly Economic Survey (QES).  The next fieldwork period for the QES will start on Tuesday 28 August 2018 and will be open for 3 weeks. 

But why should your organisation take part?  Nova Fairbank, Norfolk Chamber’s Public Affairs Manager outlines why she wants more input from Norfolk businesses:

“The QES is Britain’s largest, and longest-running, private business survey and it’s a leading economic indicator – often picking up big changes in the economy long before other surveys or official statistics.  With the uncertainty of Brexit and the UK economy effectively treading water at present, it is more important than ever that as many businesses as possible take part. 

“By completing the QES you are helping to identify how strong our local economy is and how well it is performing against the national averages. Norfolk has many dynamic and innovative businesses, we need to have a strong voice and ensure our region gets the credit and investment that it deserves.”

Below are just a few more reasons why your organisation should take part in this important economic survey:

1. It’s provided consistent data since 1989, and regularly receives over 7,500 business responses. Compare that to the average business survey, which garners only a few hundred responses.

1. Norfolk responses represent over 34% of the responses from the East of England.  (East of England includes: Norfolk, Suffolk, Cambridgeshire, Essex, Hertfordshire and Bedfordshire).

1. The Bank of England’s Monetary Policy Committee uses the QES as one of its key benchmarks when setting interest rates.

1. HM Treasury and the independent Office for Budget Responsibility use the QES to put together their forecasts for the UK’s economic performance.

1. The Organisation for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF) use the QES when comparing the UK to competitors worldwide.

The more Norfolk businesses that take part – the louder the voice of the Norfolk business community will be. 

Details of the previous QES results from Q2  2018 can be found under Policy on the Chamber News section of the Chamber website. 

So what can your business do to contribute to the QES?  During the fieldwork period, the survey can be completed electronically.  There are several ways to access this online survey either:

• Use the link within the Chamber Policy news article or;
• Use the link that the Chamber can send direct to you

To be added to the Chamber’s QES email list, please contact Nova Fairbank or Jack Edwards.  Emails: [email protected] and [email protected].

The online survey takes less than 3 minutes and your input is vital to help ensure that Norfolk business has a strong collective ‘voice’.

The Third River Crossing scheme involves the construction, operation and maintenance of a new bridge over the River Yare in Great Yarmouth.  The crossing links the A47 at Harfrey’s Roundabout with south Denes Road.  

In Spring 2019 Norfolk County Council intends to make an application to Secretary of State for a Developer Consent Order for the Third Crossing.

They are proposing a double leaf bascule bridge (a type of lifting bridge – similar in operation to the existing Haven Bridge.) Although the height and horizontal alignment of the bridge deck is already fixed, they would like to retain some flexibility regarding the range of structure design and opening mechanisms being considered.

Before making this application Norfolk County Council would like your views on the scheme that they propose to submit.  Subject to gaining development consent, construction is due to start in late 2020 and the aim is to have the bridge finished and operational by early 2023.

If you would like more information, a series of consultation events are also being held.

• Great Yarmouth Library, Tolhouse Street, Great Yarmouth, NR31 2SH. Saturday 25 August 2018, 10:00 – 16:30
• Priority Centre, Priory Plain, Great Yarmouth, NR30 1NW. Thursday 30 August 2018, 10:00 – 21:00
• Gorleston Library, Lowestoft Road, Gorleston-on-Sea, Great Yarmouth, NR31 6SG. Tuesday 4 September 2018, 10:00 – 20:00
• Kings Centre, 30 Queen Annes Road, Southtown, Great Yarmouth, NR31 0LE. Wednesday 12 September 2018, 10:00 – 20:00

The consultation is open until Friday 05 October 2018.

Have your say now

At the Government’s launch of their new Export Strategy, Dr Adam Marshall, Director General has delivered the opening speech to the Secretary of State, and other Ministers.  Below is the transcript of Dr Marshall’s speech:

Secretary of State, Minister, Ladies and Gentlemen – good morning.

My name is Adam Marshall, and I am the Director General of the British Chambers of Commerce.

It is my great pleasure to be here with you today, and to partner with the Department for International Trade for the launch of its new Export Strategy.

INTRODUCTION

As many of you know, international trade is at the core of the mission of Chambers of Commerce all across the UK.

Every year, Chambers directly support more than 30,000 businesses exporting goods and services overseas. Last year alone, Chambers helped ensure that over 680,000 shipments cleared customs around the world, ensuring British exports worth over £22bn reached their final destination. British Chambers from Birmingham and Bristol to Buenos Aires and Bangkok helped thousands of UK companies take their first steps into new markets and win new business.

Chambers don’t just talk about international trade – it’s right at the heart of what we do. We work with other private sector organisations, and with the agencies and departments of HM Government, to make trade happen day in and day out.

TRADE STRATEGY

Over the decades, we have seen a number of trade and export strategies and schemes come and go.

We’ve learned from experience, that businesses hear of a strategy or initiative after one year, engage after five, and only truly feel comfortable after ten. So it is absolutely critical, at a time of immense change for the UK economy, to get our national approach to trade and export right.

Ladies and Gentlemen, we believe export success has four ingredients:

• First, the best possible business environment at home – where dynamic companies have every incentive to invest and grow.

• Second, products and services that are second to none – where quality and reputation underpin competitiveness.

• Third, consistent efforts to promote the best of British around the world, and

• Fourth, a strong trade policy that helps UK companies and sectors build on their competitive advantages.

The comprehensive Export Strategy that the Minister and Secretary of State will launch today is crucially important. So, too, is ‘fixing the fundamentals’ to support growth here in the United Kingdom.

‘FIXING THE FUNDAMENTALS’

What do I mean by ‘fixing the fundamentals’? 

Airports with capacity for direct flights to link British businesspeople and goods to customers around the world.

Digital infrastructure that’s in the global top 10, not languishing at 35th place in the rankings – and frustrating the aspirations of our world-beating services firms.

Clear immigration and training policies, that let UK firms secure talent from around the world – and train up the next generation of entrepreneurs here at home.

Good access to finance, sensible levels of regulation and low up-front taxes and costs, to encourage businesses to invest, rather than avoid risk.

Yes,

EXPORT STRATEGY

The issues we will discuss today – around how to encourage, inform, connect and finance UK exporters – are fundamental.

Getting day-to-day support for exports right is as important as efforts to negotiate new trade deals – which seem to capture much of the political and media attention.

We have amazing firms in this country. In Chamber membership alone – I kid you not – we have UK firms that export sand to Saudi Arabia, tea to China, ice cream to customers above the Arctic Circle, and much more besides.

Trusted, face-to-face support is key to their success.

When firms get the information and connections they need to develop new markets and find new customers – that is when we see confidence, investment, and results.

Working together, business and government have a real opportunity to help our fantastic firms raise their sights even higher.

We warmly welcome the government’s pledge in the new Export Strategy to work hand-in-hand with business to unlock opportunities for UK firms all across the globe. 

Working together here at home and overseas, we can provide a springboard for many more companies to take risks – and go for growth.

CONCLUSION

Ladies and gentlemen, it is now my privilege to introduce Baroness Rona Fairhead, Minister of State for Export Promotion – who will introduce the new Export Strategy.

The UK Government is seeking to enhance trade with China, and is now at a crucial point in bilateral discussions where it needs to understand key opportunities and constraints in the Chinese market, and the priority negotiating areas it should focus on. It would be very helpful if you could give your views on the following questions:

• What are the five current Chinese regulations or policies that have the greatest negative impact on your business today?
• What are the most significant potential opportunities for your business in China that you are restricted from accessing today?
• What are the most effective steps you’ve seen taken to improve bilateral trade and investment with China? (this could include by other countries)
• What are the most effective steps that DIT (or other parts of the UK government) should take to increase bilateral trade and investment in your sector with China? What are the areas and opportunities in your sector that you would expect the Chinese government or businesses to have as their key asks of DIT? If these were agreed to, would they have material impact on your business?

Please could you submit your answers to [email protected] by close of business on 6 September 2018.

In what it describes as a significant development for exporters in the sector, the Department for Environment, Food & Rural Affairs (Defra) has announced that Taiwan is to accept imports of British pork.

In a deal which could be worth more than £50 million over the next five years, UK exporters will also be able to ship parts of the pig carcass that are not commonly purchased in the UK, such as offal.

Even better news, Defra says, as this means that UK farmers and pork processors will be able to generate income from the whole carcass.

Exporters will be able to take advantage of the new market once the administrative listing process is completed and export certification is made available.

Speaking for the Agriculture and Horticulture Development Board (AHDB), Dr Phil Hadley said that the estimated value of some £50 million is based on current UK export capacity.

However, he noted, if that were to rise to match the strong demand for pork imports in Taiwan (where in 2017 imports rose by 26%) then the opportunity could be worth more than £100 million over the next five years.

In 2017, UK pork was exported to over 80 markets, generating an estimated £290 million for the economy.

Commenting on the announcement, Food Minister George Eustice said that access to Taiwan is great news for British farmers and producers, and will give a welcome boost to the pork production industry which is already worth £1.3 billion to the UK economy.

Norfolk Chamber has partnered with Currys PC World Norwich to bring its members a unique new event for the business calendar. They have recently re-launched their business centre giving business account holders a range of exciting benefits for their technology needs.

Held at Currys PC World on Thursday 25 October, the evening event will not only give you the chance to network with fellow Chamber members, but also give you live demonstrations and exclusive discounts with the latest tech.

Currys PC World have secured experts from a range of high profile brands including Fitbit, LG, Samsung, Google, Neff and more. These experts will be giving demos around the store allowing you to get hands-on with all sorts of gadgets and gizmos.

As well as all of your work tech, they’ll be bringing you the best from home too! There will be food cooking on the ovens, and drinks flowing from the coolest coffee machines.

Been thinking about updating your tech recently? This is the perfect opportunity! Once the store has closed to the public you’ll get to shop till you drop with exclusive, one-night-only, Chamber member discounts!

Did I also mention it’s free to attend?!

You can find out more about the event including times, and more of the brands that will be joining us on the evening by clicking here.