Chamber News

If business and political leaders in the southeast of England get their way, then it will soon be possible to book a direct flight from London Stansted Airport to destinations in China.

To help promote the initiative, a new body has been established to represent the interests of companies and organisations wanting to strengthen trading ties between the region and China.

The inaugural meeting of the East of England-China Forum brought together representatives from a range of organisations, including business groups, local councils, tourism agencies and universities.

The forum is intended to help establish a new partnership between the region and China, secure a direct air link between the two regions and foster new trade and investment opportunities in the East of England.

Last year, China accounted for 30% of all global economic growth and created a surge in UK-bound tourism and investment as well as increased demand for British education, research capabilities, goods and services.

In 2016, the combined value of imports and exports between the East of England and China was thought to be worth £4.3 billion.

“As China becomes an increasingly important force in twenty-first century global trade, it is of paramount importance that the East of England, plus north and east London, has in place a clear strategy that allows it to nurture long-term economic ties with the country,” Ken O’Toole of London Stansted explained.

By building its coalition, the forum feels it will be well placed to demonstrate the size of the opportunity to airlines.

Its ambitions are also rooted in the knowledge that a similar coalition in Manchester has helped secure direct links to both Hong Kong and Beijing in recent years.

Time is running out for businesses and the public to share their experiences and opinions on transport problems to the west of Norwich, as an eight-week consultation will draw to a close early next month.

Norfolk County Council is asking people for their views on any existing transport issues in this area and whether improvements are needed. The consultation is being carried out in response to calls from many people to fill in what they see as a ‘missing link’ between where the Norwich Northern Distributor Road (now called Broadland Northway) ends at the Fakenham Road (A1067) and the A47.

More than 1,200 responses to the consultation have been received over the last seven weeks, with most people going online to give their views via www.norfolk.gov.uk/nwl. Nearly 1,100 people have also come to a series of consultation events to speak to council staff and respond to the consultation in person.

Martin Wilby, Chairman of Norfolk County Council’s Environment, Development and Transport Committee, said: “This consultation has shown, if there was any doubt, that many people have strong opinions on transport in the area to the west of Norwich. We’re getting lots of valuable insights from local residents and those who travel through the area, and they’ll be very useful as we come up with some options for things we could do to help tackle these problems.

“If you feel strongly about this too but you haven’t responded to the consultation yet, I would urge you to tell us what you think – it should only take around 10 minutes.”

While building a new road between the end of Broadland Northway and the A47 is one potential option, the consultation asks people to identify any options which they believe could tackle transport issues in the area. These include improving public transport and improving existing routes as well as an option to do nothing.

The consultation will close at midnight on Tuesday, 3 July. The council will analyse the responses over the summer and let people know the results later this year and what, if anything, it proposes to do to tackle any of the transport issues identified.

For more information and to respond to the consultation online, visit www.norfolk.gov.uk/nwl.  

The latest World Trade Outlook Indicator (WTOI) is 101.8 which remains above the index’s baseline value of 100 but is below the previous value of 102.3.

According to the World Trade Organization (WTO), which produces the index, this suggests continued solid trade growth in the second quarter (Q2) of 2018 but probably at a somewhat slower pace than in the first quarter.

“The recent dip in the WTOI reflects declines in component indices for export orders in particular but also for air freight, which may be linked to rising economic uncertainty due to increased trade tensions,” the WTO suggests.

The latest results are broadly in line with the WTO’s most recent trade forecast issued on 12 April 2018, which predicted a moderation of merchandise trade volume growth from 4.7% in 2017 to 4.4% in 2018.

While the air freight index remains above trend (102.5), it has lost momentum in recent months. Container port throughput remains above trend (105.8) but shows signs of plateauing, while automobile sales (97.9) and agricultural raw materials (95.9) are currently weighing down the WTOI.

The WTO cautions that the index is designed to provide “real time” information on the trajectory of world trade relative to recent trends, and is not intended as a short-term forecast, although it does provide an indication of trade growth in the near future.

The full World Trade Outlook Indicator is available here.

We, here at the Norfolk Chamber of Commerce would like to ask you to support our Just Dual It! Campaign. The main aim of this very important campaign is to get the entire A47 converted into dual carriageway.

Since the beginning of March 2018, we, along with the EDP and the Norfolk County Council have been campaigning to persuade the Government to fully commit to dualling the whole length of the A47. This road is one of the main truck routes in Norfolk, which stretches from Lowestoft on the East, to Peterborough in the West.

Nova Fairbank, the Public Affairs Manager here at the Norfolk Chamber of Commerce has said:

“It is vital for our county’s economic growth that we can clearly show that Norfolk is ‘open for business’ – which makes it more important than ever that the A47 is fully dualled.  We are now calling on a wide range of businesses across Norfolk,  from Great Yarmouth, to Dereham, to King’s Lynn and beyond, to show their support for our Just Dual It! Campaign by providing a supporting letter which outlines the impact of the A47 on their business.  We need to be able to demonstrate to Government what the benefits of a fully dualled A47 could deliver in terms of greater economic growth and jobs.”

As it stands, only 47% of the A47 major route is dual carriageway. £330m has already been allocated by Highways England to carry out improvements, however, even with is funding, significant stretches of the A47 will be left as single carriageway, and with no current plans to dual them in the near future.

Whilst we have received a huge amount of support across the East of England, the Government has recommended that we need to get support from key local businesses along the A47 route to increase our chances of success in gaining further funding.

This is where we need your help. If you agree with the Just Dual It! Campaign, then please help us make this campaign as strong as we possibly can. You can do this by completing the enclosed outline template and returning it to us by either email: [email protected]

Or by post:

Nova Fairbank

Norfolk Chamber of Commerce

9 Norwich Business Park

Whiting Road

Norwich

NR4 6DJ

It shouldn’t take you more than a few minutes to complete and your combined support will greatly increase our chances of securing the much needed funding to dual the entire A47.

The deadline for your responses is Friday, 06 July.   We will be taking all the business responses, together with the completed Just Dual It! Postcards down to Westminster later on in July to present our case to Department for Transport ministers.

Please help us make it impossible for the Government to ignore us.

Complete your form today!

Commenting on the draft rules on the EU Settlement Scheme statement of intent, published today by the Home Office, Mike Spicer, Director of Research at the British Chambers of Commerce (BCC), said:

“The guidance published today will be welcomed by employers and EU employees alike. It provides clear information on the status of EU nationals resident in the UK and those who arrive during the transition period after March next year. We know that some businesses lost European employees in the aftermath of the referendum, owing to the uncertainty they faced, so assurances that they can stay are a positive step forward. The next step is for the draft rules to be laid before Parliament and we urge all Parliamentarians to ensure this stage is concluded swiftly.

“We look forward to working with the Home Office to ensure greater clarity on this and other areas in the long term.”

The deadline to enter your business into the Chamber Awards 2018 is this Friday at midnight! This is your chance to showcase the success of your business, with 9 categories you can enter into including Export Business of the Year, Small Business of the Year and Employer of the Year.  Sarah West, Full Mix Marketing has given us her top 5 tips for award winning entries:  1. Answer the question 2. Keep it short and concise 3. Tell a story 4. Find the pearl 5. Take your time Read the full tips by clicking here.  Businesses who enter the awards will compete with fellow entrants from across our region; for us that’s the East of England. Once regional winners have been chosen, they will go on to compete for the national titles. The awards are free to enter and open to Chamber members only. The deadline for applications is midnight on Friday 29 June.  You can find full details on the Chamber Awards by clicking here. If you need any help with your application, or have any questions about the Chamber Awards you can get in touch.

We’re only a few days away from The Royal Norfolk Show, and we want to make our marquee the place to business at the biggest county show in the region!

Norfolk Chamber are returning to The Royal Norfolk Show on stand 74 with a range of activities to show you what your Chamber is all about. We have a dedicated business lounge serving refreshments throughout both days of the show. Invite your clients and business relations to meet you at stand 74 for a catch up, or come along to see what new business contacts are around. Enjoy a break from the madness of the show and see what new connections you can make.

At 3pm on the Wednesday we’ll be holding Gin O’clock with St.Giles Gin! Enjoy one of their speciality gin cocktails as you network in our lounge. Want to come along? Email [email protected] to let us know!

Throughout the show you’ll be able to come and meet our team to find out how we can support you; from networking to exporting abroad. We also want to know how we can better help your business with our ‘What do you need’ boards. Come and tell us what you need to help continue grow your business in Norfolk. We’ll also be highlighting two of our key campaigns with activity boards at the show; Not More Not-Spots and Just Dual It.

You can find out more about what we’re doing at the show here.

Norfolk Chamber members can get a 10% discount on Norfolk Show tickets using code RNS45 when booking tickets on The Royal Norfolk Show website.

Additional duties are to be imposed on a range of products from the USA after European Commissioners endorsed a decision to retaliate against the recent tariffs applied by the USA on imports of steel and aluminium from the EU.

Commissioners agreed that selected imports from the USA should be subject to additional duties, which are expected to apply from July.

The additional duties range from 10% to 50% and cover a wide range of items, including: playing cards (10%); cranberry juice (25%); cast steel tubes or pipe fittings (also 25%); paper hand towels (35%) and cordless infrared remote control devices for video game consoles (50%).

The full list of products concerned and the duties which will apply to them can be found at trade.ec.europa.eu.

In total, the theoretical additional duty collected will amount to $1.6 billion the Commission calculates which is far below the estimated €6.4 billion impact that the US measures will have on EU exports.

The EU is therefore reserving the right to impose further measures at a later stage (either in three years’ time or after a positive finding in a World Trade Organization (WTO) dispute settlement procedure if that is made sooner).

Characterising the decision as “a measured and proportionate response to the unilateral and illegal decision taken by the United States”, Trade Commissioner Cecilia Malmström confirmed that the EU’s action is fully in line with international trade law.

The imposition of rebalancing duties is part of what the Commission describes as a three-pronged response to the US action, with the other two elements being the launch of legal proceedings against the USA in the WTO and the possible triggering of safeguard action to protect the EU market from disruptions caused by the diversion of steel from the US market.

The British Chambers of Commerce (BCC) has today (Monday) slightly downgraded its growth expectations for the UK economy, forecasting GDP growth for 2018 at 1.3% (from 1.4%) which, if realised, will be the weakest calendar year growth since 2009, when the economy was in the throes of the global financial crisis. The BCC has also downgraded its GDP growth forecast for 2019 from 1.5% to 1.4%.

The downgrades have been largely driven by a more lacklustre outlook for consumer spending, business investment and trade. While real wage growth has returned to positive territory, the UK’s leading business group does not expect this to translate into materially stronger spending over the forecast horizon, with weak productivity expected to limit the extent to which wages will increase, and household finances are likely to remain stretched amid historically low household savings and high debt levels. 

Business investment growth is expected to slow in 2018 to 0.9%, from 2.4% in 2017. The high upfront cost of doing business in the UK and the ongoing uncertainty over the UK’s future relationship with the EU are expected to continue to stifle business investment.

The UK’s net trade position is expected to weaken over the next few years by more than expected in the previous forecast. Exporters will struggle to recover the ground lost in the year so far, as growth in key markets moderates.

Growth in service sector output, a key driver of UK GDP growth, is expected to slow to 1.2% in 2018, which would be the weakest outturn since 2010. Consumer-focused industries such as retail and hospitality are expected to remain under the most pressure amid weak consumer spending.

If realised, the forecast suggests the economy is in a torpor, with uncertainties around Brexit, interest rate rises, and international developments such as a possible trade war and rising oil prices, all having an impact. The BCC urges the government to focus as much as possible on the domestic business environment, reducing the uncertainty that firms face, and take action on skills shortages and poor mobile connectivity, which lower productivity and hold UK businesses back.

Key points in the forecast:

• UK GDP growth forecast for 2018 is downgraded from 1.4% to 1.3%, down from 1.5% to 1.4% in 2019, rising to 1.6% in 2020 (unchanged)
• Quarter-on-quarter GDP growth is forecast to rise by 0.4% in Q2 2018, from 0.1% growth in Q1 
• Growth in household consumption for 2018 is expected to slow to 1.0%, before rising to 1.4% in 2019 and 1.7% in 2020
• Inflation will continue to ease, but will not fall below the 2% target until 2020
• The next interest rate rise, by 0.25%, is forecast to occur in Q4 2018, followed by a further increase to 1.0% in Q2 2019, with no further rises expected over the remainder of the forecast period
• Average earnings growth will continue to slightly outpace inflation over the forecast period, with growth of 2.7%, 2.9%, and 3.0%, compared with inflation of 2.5%, 2.3%, and 1.9%
• Export growth is expected to grow by 2.8% in 2018, 2.9% in 2019, and 2.9% in 2020. This compares with import growth of 1.7% in 2018, 2.5% in 2019, and 3.0% in 2020
• Growth in the construction sector is expected to slow significantly in 2018, with 0.7% growth, compared to 5.7% in 2017. The sector picks up slightly in the remainder of the forecast period, with 1.3% and 1.5% in 2019 and 2020 respectively
• Services sector growth is expected to slow to 1.2% in 2018, before picking up to 1.5% in 2019 and 1.9% in 2020
• Business investment is expected to remain weak, with growth across the forecast period of 0.9% in 2018, 1.2% in 2019, and 1.7% in 2020

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

“A decade on from the start of the financial crisis, the UK now faces another extended period of weak growth amidst a backdrop of both domestic and global uncertainty. 

“Our forecast should serve as a wake-up call to government – as it demonstrates that ‘business as usual’ is not an option when it comes to the economy. 

“With firms facing ongoing Brexit uncertainty, increasing global protectionism and instability in some parts of the world that will impact on costs and profits, now is the time for more robust action to support business confidence and investment. 

“Brexit cannot be Westminster’s only priority. Businesses across the country want to see far more urgency around fixing the fundamentals here at home and a concerted effort to lower the high costs of doing business. 

“The next few years are set to be a testing time for business in the UK. What firms and their employees need is much more visible evidence that ministers are committed to getting the basics right – which would enable business in turn to invest, take risks and grow.” 

Suren Thiru, Head of Economics at the British Chambers of Commerce, added:

“While the bad weather had a demonstrative impact on the economy in Q1 2018, the latest outlook suggests that the loss of momentum suffered by the UK in the first quarter is more than just a temporary soft patch, with UK growth forecast to remain well below its historic average for the foreseeable future unless action is taken.

“The downgrades to our forecast reflect a broad-based weakening in the outlook for key areas of the UK economy including consumer spending, business investment and trade. Consumer spending is expected to be more subdued over the near term from a combination of sluggish real wage growth and stretched household finances. Trading conditions for UK exporters are expected to become more challenging over the forecast period as growth in key markets start to moderate. Against this backdrop, the case for sustainable increases in interest rates continues to look rather weak.

“While Brexit uncertainty and the weakness in sterling have weighed on overall UK growth, it is the failure to deal with the longstanding structural issues from weak productivity to the deep imbalances in the UK economy that continue to undermine the UK’s growth potential.

“The risks to the outlook are on the downside. A messy departure from the EU would likely slow UK GDP growth further over the medium term. The prospect of an escalating trade war is now a key downside risk to our forecast as it could mean much weaker export and business investment growth than implied by the current forecast.”

Norfolk Chamber holds a regular series of evening networking where we like to take Norfolk businesses to new and upcoming venues in the Norwich area. On Thursday 14 June we took a trip to the Bowling House, which opened its doors in March this year.  Our delegates joined us after work, grabbed their bowling shoes and commenced the evening with drinks and networking. The evening got into full swing as we took over the 5 intimate lanes at the Bowling House, perfect for building relationships with teammates and competitors.  There were some interesting bowling techniques on the lanes, but at least one player from each team made a strike, with plenty of cheering and celebration. Our high scorer for the evening was Ross Taylor from Towergate Insurance who scored 157 with 3 strikes from his 10 bowls! This was followed closely by Alexandra Lynch from the UEA with a score of 155.  Following the bowling, all delegates sat together to enjoy the amazing food served by the Bowling House. We were spoilt for choice with so many delicious dishes, including their famous nachos and crispy jalapeños.  Our next evening networking event is Cocktails & Pizza! We’ll be taking you to the hottest new cocktail bar in Norwich: Chambers Cocktail Company! You can enjoy making a cocktail with one of their expert barmen, as well as enjoying a fresh pizza delivery from Brick Pizza!  More details.

Commenting on reports that the Home Office is to exclude non-EU doctors and nurses from the Tier 2 visa cap, Jane Gratton, Head of Business Environment and Skills Policy at the British Chambers of Commerce (BCC), said:

“This is a positive first step. Non-EU doctors and nurses make up a large share of visas granted under the Tier 2 regime, so removing these workers will help many businesses across the UK economy to access the skills they can’t recruit from the UK. The cap on Tier 2 visas has been routinely under pressure from many sectors, with businesses having to compete for vital skills to fill growing shortages.  

“However, if the UK is to truly become Global Britain, then this must only be a first step. The government should go further and remove the arbitrary migration target, and scrap the cap on Tier 2 visas across industry. The current policy hurts business and dissuades some of the best and brightest from coming to the UK, and any changes must help firms compete on the global stage.”

Leaving aside any transition period, the UK will withdraw from its membership of the EU on 29 March 2019.

At that point – or on whatever date is finally agreed between the two sides – it will become what the EU calls a “third country” (a non-member).

One of the consequences of that new status will be that UK businesses will no longer benefit from preferential trade arrangements agreed by the EU with other countries, as it presently does.

In particular, both importers and exporters will have to get to grips with Rules of Origin (ROO) requirements, explained by the European Commission in a recent notice.

Among the points made by the Commission are that UK materials or processing operations (aka “inputs”) will be considered as “non-originating” under a preferential trade arrangement for the purpose of determining whether the goods incorporating them are entitled to preferential tariff treatment.

For goods exported from the EU, an EU free trade agreement (FTA) partner country might consider that goods having an EU preferential origin before the UK’s withdrawal date no longer qualify, due to UK inputs no longer being considered as EU content.

Similarly, for goods imported into the EU, UK inputs incorporated in goods obtained in third countries with which the EU has preferential trade arrangements and imported into the EU as of the withdrawal date will be considered non-originating.

Exporters in third countries might, therefore, have to prove the EU preferential origin of the goods they wish to send to the EU.

Is that a problem? This may sound very technical but the Dutch Government has already advised its manufacturers who buy components from the UK that they might want to start looking at suppliers from within the EU27 to ensure that they do not fall foul of ROO rules after Brexit.

In a useful article on Rules of Origin (ROO), Professor Catherine Barnard and Emilija Leinarte of the University of Cambridge suggest that the rules seem to place a big question mark next to the UK Government’s “frictionless trade” objective.

“Every exporter – small or large – will have to determine whether their goods originate in the UK or abroad according to the complex technical and legal rules,” they write.

Customs delays are likely to appear as the application of ROO will require checks – something that could become a hurdle to manufacturers who often work on a precise, and often last minute, schedule to avoid storage.

UK ports do not currently have technical infrastructure to ensure an efficient application of ROO, they warn, and the requirement will also impact on the Ireland/Northern Ireland border issue.