Chamber News

The US announcement took the EU by surprise, as it was believed that exemptions previously agreed with the bloc – and also with Canada and Mexico – would be extended.

China was hit by exactly the same tariffs in March this year, but negotiations between the USA and the EU, Canada and Mexico were widely anticipated to result in the threat against them being dropped.

The Secretary of State for International Trade, Liam Fox, described the US move as “patently absurd” and said that the UK was prepared for a “tit-for-tat” response.

Speaking for the EU, Trade Commissioner Cecilia Malmström said that President Trump’s decision marked a bad day for world trade.

The Commission confirmed that it would open a dispute settlement case at the World Trade Organization (WTO) and would also impose “rebalancing measures” and take any necessary steps to protect the EU market from any trade diversion caused by the US action.

It has also drawn up a target list of 100 US goods worth €2.8 billion, which is reported to include Bourbon whiskey, Levi’s jeans and Harley-Davidson motorbikes.

However, commenting on the news for the CBI, Ben Digby warned that there would be no winners in a trade war, and that the tariffs could lead to a protectionist domino effect, damaging firms, employees and consumers in the USA, UK and many other trading partners.

“Now is not the time for a disproportionate escalation” he said, “and we urge the EU to consider this when initiating its response.”

For the British Chambers of Commerce (BCC), Dr Adam Marshall observed that, as the UK leaves the EU, the US decision to impose punitive tariffs is a helpful reminder that self-interest looms large in trade negotiations.

Ministers, he suggested, should reflect on this carefully before they pursue any future trade deal between the UK and the USA.

Housing is the key focus of the first episode of this relaunched podcast series, discussing at length the government’s housing pledge, and why generations of governments have failed to build enough homes. Allan Williams and Mike Spicer also review events of the previous fortnight, from train timetables to inflation.

The Chamber Business Awards is our chance to showcase the success of Norfolk businesses to the country. With just 1 month left until entries close on Friday 29 June, we urge you to start your application today.  From the stories of excellence amongst Norfolk organisations in the past year, we know that a Norfolk firm deserves to take home any of the nine award categories being celebrated – you can even enter into all nine!  The categories for 2018 are: 

• Small Business of the Year (Employing less than 75 full time members of staff)
• Export Business of the Year
• Best Use of Technology
• High Growth Business of the Year
• Employer of the Year
• Education and Business Partnership
• Customer Commitment Award
• Workplace Wellbeing Award
• Digital Communication Campaign of the Year

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.  Sarah West from Full Mix Marketing gave us her top tips for an award winning entry, including ‘If it’s worth entering, do it well. Plan your submission and make sure you get someone outside your organisation to proof read it and listen to their comments. If there is scope for visual design, present your entry in a clear, professional and appealing way.’ To see all of Sarah’s tips, please click here. 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.

Whichever of the two options being considered by the Cabinet to replace the existing customs union with the EU is chosen, it will not be in place before Brexit happens, and one of them will cost businesses in the UK billions.

This possibility was explained to Members of Parliament’s (MPs) Treasury Committee by Jon Thompson, Chief Executive of HM Revenue & Customs (HMRC), the man charged with examining the practical problems of implementing the two systems.

The Prime Minister is said to favour a “customs partnership” under which the UK would collect tariffs set by the EU customs union on goods coming into the country.

Some members of the Cabinet, including particularly Foreign Secretary Boris Johnson, have backed what is known as the maximum facilitation (max fac) option, relying on technology and trusted trader arrangements to minimise customs checks at borders.

However, according to Mr Thompson’s calculations, firms would have to pay £32.50 for each customs declaration under the latter system – adding up to between £17 billion and £20 billion a year (more than the UK paid the EU in 2016).

The customs partnership model could end up being cost neutral but, according to Nicky Morgan, who chairs the Committee: “It will take three to five years to get new customs arrangements in place depending on which of the two options is chosen, but that can’t even start until a political decision has been made.”

Given that HMRC has more than 1000 staff working on Brexit at the moment, at a cost of £360 million, she asked Mr Thompson if it would be a relief if Parliament “just voted for a customs union”.

He said that was for MPs to decide.

Downing Street responded to his evidence to the Committee by saying: “The Prime Minister has asked for work to be done on both customs models. That work is ongoing and therefore any speculation about implementation is just that.”

Today (25 May) marks the biggest change to UK data protection law in a generation. The General Data Protection Regulation (GDPR) is an evolution of the current Data Protection Act (1998) and comes into effect today.

Regulated by the Information Commissioner’s Office (ICO), the new law gives people more control about how their data is used, shared and stored and requires organisations to be more accountable and transparent about how they use it. For the last two years, the ICO has been helping organisations prepare for the new law by producing guidance and targeted online resources, holding and speaking at dozens of events and setting up a dedicated helpline for small businesses. Now it is launching a long term campaign to help people understand why their data matters and how they can take back control.

The collaborative public information campaign ‘Your Data Matters’ aims to increase the public’s trust and confidence in how their data is used and made available.

Information Commissioner Elizabeth Denham said: “Almost everything we do – keeping in touch with friends on social media, shopping online, exercising, driving, and even watching television – leaves a digital trail of personal data. We know that sharing our data safely and efficiently can make our lives easier, but that digital trail is valuable. It’s important that it stays safe and is only used in ways that people would expect and can control.”

The GDPR gives people more and stronger rights when it comes to their personal data. Your Data Matters will help people understand how they can exercise those rights.

For more information visit: https://ico.org.uk/ 

When traffic is disrupted at the Channel ports, Operation Stack comes into play with lorries parked up along the M20 – a solution which has unfortunate consequences for residents driving in the area.

New plans announced recently will allow traffic to travel in both directions between junctions 8 and 9 on the motorway while lorries are being queued for the Port of Dover and Eurotunnel. This will mean that drivers can access these junctions, rather than being diverted onto smaller local roads.

Roads Minister Jesse Norman said: “This interim plan will help to minimise disruption and mean people will be able to go about their everyday lives, seeing friends and family or going to work, as well as businesses being able to get to their customers.”

The Department for Transport (DfT) is also intending to improve overnight lorry parking, so that fewer lorries will be left on local roads or parked in lay-bys overnight.

All this is good news, the Freight Transport Association (FTA) has said, and will help to ensure that the logistics industry can continue to supply Britain’s businesses with the goods and services they need.

Its Head of UK Policy, Christopher Snelling, pointed out that efficient logistics is vital to keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods.

“With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain,” he argued, “logistics has never been more important to UK plc.”

A public consultation on a permanent solution to Operation Stack, led by Highways England, will be launched shortly.

The Norfolk Business Awards 2018 are now open for entry. This year, a new name indicates a new approach Archant are taking to the awards programme and ceremony, which they hope will keep them as fresh and relevant as ever.

What hasn’t changed, however, is the fact that the awards they hand out recognise the very brightest shining stars in our county’s business firmament. They highlight the people and companies who are achieving and excelling in our county, setting an example to others and representing Norfolk and East Anglia on a national and international stage.

The theme this year is people. Ultimately that is what business comes down to – and it’s what unites all the winners in recent years. From a cutting-edge AI developer to a leading tourist attraction, manufacturer or law firm, outstanding businesses are made by outstanding people. The Norfolk Business Awards are a chance to celebrate those people, recognise their achievements and inspire further success.

There are 11 categories open for entry, with all the finalists considered for the overall Business of the Year title. Also one individual will be recognised with the Outstanding Achievement award.

The 2018 Norfolk Business Awards take place on Thursday 22nd November at the Norfolk Showground Arena, the black tie event this year will be hosted by comedian Katherine Ryan.

Here are the categories open for entry: 

1. SKILLS OF TOMORROW
2. BEST EMPLOYER
3. KNOWLEDGE PIONEER
4. BREAKING BOUNDARIES
5. ENVIRONMENT & SUSTAINABILITY
6. SMALL BUSINESS
7. DIRECTOR OF THE YEAR
8. TECH INNOVATOR
9. INVESTING IN FUTURE GROWTH
10. CUSTOMER CARE
11. LARGE BUSINESS

Enter today by completing the simple online entry form here: https://norfolkbusinessawards.edp24.co.uk

The British Chambers of Commerce, in partnership with DHL, today (Friday) publishes its latest Quarterly International Trade Outlook, based on survey and documentation data from UK exporters. The Outlook shows exporters are being hampered by widespread labour shortages, particularly in manufacturing, where two-thirds of firms struggled to recruit in the first quarter of 2018.

Both sectors are being severely hampered by the prevalence of skills shortages. Of those recruiting, 66% of manufacturers and 57% of services exporters are struggling to find the right staff, according to the survey of over 3,300 exporters. In the manufacturing sector, the greatest difficulty was in finding skilled manual and technical labour (66%) and in the services sector, it was professional and managerial level positions (53%).

Addressing the growing skills gap is a joint responsibility for business, government and the education sector. Companies themselves must do more to invest in training, but to do that they need to be confident that the apprenticeship and training system is fit for purpose – particularly with regard to the apprenticeship levy and the implementation of new frameworks, where businesses have raised significant issues to government in recent months.

The continued lack of clarity over future immigration rules – and business access to skills from overseas – is also a key issue where urgent action is required.

The survey also shows that in the manufacturing sector, growth in export sales and orders remain stable, while they slowed slightly for the services sector in the first quarter of 2018.

Elsewhere, the BCC/DHL Trade Confidence Index, which measures the volume of trade documents issued by accredited Chambers of Commerce for goods shipments, increased by 2.24% on the quarter, and stands at the second highest level on record.

Key findings from the report:

• 68% of exporting manufacturers and 53% of services had attempted to recruit in the last three months, of those, nearly two-thirds reported difficulty finding staff (66% and 57% respectively) • 42% of exporting manufacturers and 28% of exporting service firms reported increased export sales in Q1. 42% of exporting manufacturers and 25% of exporting service firms reported increased export orders • 45% of exporting manufacturers expect their prices to rise. Of these firms, 82% cited raw materials as a cost pressure. 37% of services expect prices to rise • 56% of exporting manufacturers cite exchange rates as a concern to their business (compared to 66% in the previous quarter), and 42% in the services sector (down from 47%) • The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, rose by 2.24% on the quarter. The Index now stands at 126.82 – the second highest level since records began in 2004.

Commenting on the findings, Julie Austin, International Trade Manager of the Norfolk Chamber of Commerce, said:

“At a time of significant uncertainty and change, it’s pleasing to be able to report that many UK exporters are doing well. Yet many tell us that their future prospects are being constrained because it’s becoming harder and harder to recruit the people they need to grow.

“Businesses with global ambitions are facing critical skills gaps at just about every level. The combination of decades of constant change in the training system, declines in immigration, and tight local labour markets are stopping many firms from making key investments. A stable training system, a reformed apprenticeship levy, answers to practical questions around Brexit and clarity on the UK’s future immigration regime are urgently needed. Get these right, and exporters all across the UK will take risks, invest and grow.

“Price pressures continue to weigh on business, with manufacturers particularly feeling the pinch from costs at the factory gate. While the fall in the pound has provided a boost for some exporters, it’s been a drag for others, who report rising costs for inputs and components. While politicians exhort firms to do their purchasing closer to home, our evidence suggests that for many firms, import substitution isn’t currently a viable option – as many companies simply can’t find or afford the inputs they need on the UK market.”

Ian Wilson, CEO DHL Express UK and Ireland, said:

“The positive Trade Confidence Index, increasing by 2.24% on the previous quarter to be the second highest on record, resonates with the success we’re seeing from UK businesses trading internationally.

“There are of course still many challenges for UK businesses, as this report highlights. The skills shortage is a significant concern, which is why it’s more important than ever to consider your retention strategies and people development programmes. Brexit is also driving considerable uncertainty, and businesses should broaden their portfolio of international markets to spread risk in these changing times. We join the BCC in pushing for decisions to be made to allow UK exporters to continue trading with confidence, as seamlessly as possible.”  

For the full report please click here.

Drivers are being asked to plan ahead in the countdown to the Norwich Dereham Road/Sweet Briar Road roundabout closure next week.

Between Monday 28 May and Friday 1 June, the area will be closed in all directions for five days while resurfacing of the new roundabout and its approaches takes place. Councillor John Fisher, Norfolk County Council Chair of Norwich Highways Agency Committee, says: “Whether you’re commuting or just out and about in Norwich next week during half-term, please take a few minutes to find out more about the closure.

“This is a significant event for the city’s transport network and the decision for a full road closure has not been taken lightly. On balance, this approach represents the quickest, safest and most efficient way to complete the work to the best possible standard. “I’d also like to ask people to help by spreading the word to friends and family. The more informed we are across the city, the better prepared we’ll be to keep the roads moving as well as possible during this time. “We understand that it will be disruptive and frustrating for all those affected and really appreciate everyone’s patience while work takes place.” For full details, including diversion maps and access information, please visit  www.norfolk.gov.uk/derehamroad. This work marks the last phase of the Transport for Norwich project, which is designed to improve journey times for all traffic and increase the roundabout’s capacity for the future.

Thursday’s breakfast got off to a great start with the sun shining, in the beautiful setting of the Norwich Cathedrals’ Hostry. With the theme of the morning being all about the bike, it seemed only right that several of our members and staff choose to dust off their bikes to travel to the breakfast, this also included two of our guest speakers who arrived in style on their ofo bikes. 

Launched in Norwich, October 2017, the ofo bikes have become part of our landscape and even now stretch out into the suburbs too.  No doubt you have seen the bright yellow bikes or even taken a ride on one too. What a great concept which was originally conceived in Beijing, China. You begin your journey by simply downloading the app, find the bike, scan and off you go! ofo has not only revolutionize nationally and internationally commuting time for all the generations, but it also offers everyone a cheap, environmentally friendly, and hassle-free way to travel. 

It was really great to hear about the ofo business journey from Matthew Thomas-Keeping, Regional Operations Manager, and Paul Harding, City Operations Coordinator from ofo. Matthew gave a real insight into the journey of the company and its growth too. Since 2014 when the original company was set up, over 6 billion people have used an ofo bike for their trips. In one day 32 million people across the globe will use an ofo bike, that’s a lot of cycling and on the plus side fewer cars on the road, which is great for the environment. 

With over 100 of our members and some non-members attending too, there was lots of opportunity for Networking and chance to talk to some of the young entrepreneurs from the Norwich School and our business stands included our featured charity Community Sports Foundation, Norfolk County Council’s Pushing Ahead project, Big Fork, St Augustine’s Neighbourhood Forum and East Anglia’s Children’s Hospices. We also heard from Mark Shields, EDP Business editor about the launch of the Norfolk Business awards, which are open for applications https://norfolkbusinessawards.edp24.co.uk/home

The Chambers breakfasts are not just about the coffee and eggs, (although a nice treat). They are focused on building a voice for all our Norfolk Business, the Chamber is here to support and build a strong voice and working relationships for all.

View the event photos.

Don’t miss out on our next Norwich breakfast at Sprowston Manor, or try something new with our evening networking Business & Bowling at The Bowling House! 

In post-Brexit UK, responsibility for investigating unfair practices in international trade will be taken on by a new UK agency.

The Trade Remedies Authority (TRA) will take over the role presently practised by the European Commission.

Confirming that the new agency will be based in reading, the Department for International Trade (DIT) said that its powers are currently being created under the Trade Bill and the Taxation (Cross-Border Trade) Bill, both of which passed their committee stage in Parliament earlier this year.

It will, the DIT confirmed, be set up by the time the UK leaves the EU.

While the UK remains a member of the Union, British companies that believe they are being harmed by unfair trade, such as dumping or by unexpected surges in imports, must ask the European Commission to investigate their concerns.

Once the UK has left the EU, however, companies will be able to ask the newly-created TRA to undertake those investigations on their behalf. Where their concerns are found to be justified, they can expect the authority to recommend appropriate action, such as imposing tariffs on goods entering the UK.

The DIT says it will provide details on the exact location and staffing of the TRA in due course.

In the first quarter of 2018, what growth we saw in the Norfolk economy was due principally to strong global trading conditions, rather than domestic demand, which remained muted. Uncertainty, recruitment difficulties and price pressures remained persistent concerns for businesses of every shape and size, even if short-term confidence levels remain resilient.  Now we are in the second quarter of 2018 – how are Norfolk businesses reacting to the current economic climate? Today (Monday 21 May 2018) is the first day of the fieldwork period for the Q2 Quarterly Economic Survey (QES).  With the economy appearing to ‘tread water’ in the last quarter and with Brexit still delivering uncertainty, it more important than ever that as many Norfolk businesses as possible complete the survey. 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 11 June 2018.  The Q2 results will be published week commencing 9 July 2018 Key Norfolk findings in the Q1 2018 survey: Manufacturing sector:

• The balance of firms reporting increased domestic sales fell slightly from +17 to +16, the lowest since Q1 2017, while domestic orders remained still at +23.
• The balance of firms reporting increased export sales stayed the same +31 – the regional and national figures are now in line with the Norfolk results. 
• The percentage of manufacturers that attempted to recruit in the last three months also remained the same at 83%.  
• The percentage balance of manufacturers expecting their prices to increase fell from +54% to +49%.  The price of raw materials continues to be the primary source of price pressures, with 81% reporting it as a cause (in line with the 80% last quarter). 

Services sector:

• Export sales and orders remained unchanged this quarter at +8 and +6 respectively.  However, domestic sales and orders both increased at +19 for sales and +13 for orders.
• The percentage of businesses attempting to recruit fell slightly from +65 to +63. Of those, the percentage of services firms reporting greater recruitment difficulties fell from 83% to 63%. Professional and managerial roles are the leading areas of hiring difficulties (53%)
• The balance of services firms expecting prices to increase, fell from +49% to +44%. But the balance of firms citing pay settlements as a source of price pressures rose from 45% to 47% 
• The balance of firms reporting cash flow improvements remains quite low at +11 (up slightly from +10 in the previous quarter).