Chamber News

BCC Director General, Shevaun Haviland, will use an appearance at a key Climate Change debate today to call for Government to set out a clear pathway for business on Net Zero. She will be appearing at the Climate Innovation Forum 2023 to debate the UK’s response to the US Inflation Reduction Act and how the economy reorientates towards Net Zero. Among the key arguments she will put forward are:

• All major Government spending and policy decisions should be viewed through a green lens to check they help deliver the UK’s Net Zero aim.
• A partnership between Government and business is vital to meeting this commitment.
• Action must be taken now, if UK business is to remain competitive in a global race for investment.
• Reaching Net Zero means action beyond energy production – including upgrading our transport systems, homes, businesses, and land use.
• There must be a step change in the way we move people and goods, how we heat our buildings and what we produce and consume.

The recommendations are based on a report, by the Advisory Business Group, which has been sent to the Government’s independent statutory Climate Change Committee (CCC) for consideration. The group, which is chaired by Shevaun, was formed last November by the CCC to provide solutions from the business community to keep the UK’s Net Zero commitment on track. Ahead of today’s debate, Shevaun said: “We are already seeing the devastating impact of climate change on our planet, there is no way to sit this out.The damage it will cause to our economy will also be devastating. “At the same time this is a huge opportunity for UK Plc. The US, the EU and China all know this – that’s why they are investing £100bns in sustainable and low-carbon technology. “We don’t have that kind of money, but it is possible for the UK to remain competitive and seize a potential £1trn boost to our economy. “The UK has great strengths – renewable energy, green finance, engineering, professional services, cutting edge manufacturing and R&D. “What we need to see from Government is a deeper policy understanding of the issues and how it plans to steer the economy towards Net Zero by 2050. “Businesses wants greater certainty about the new technologies, systems and services that will form the foundations of Net Zero. “If Government works more closely with us on this, it could set off a chain reaction that will unlock investment, promote innovation and ultimately set the UK on a course to becoming a global leader in this sector.”

As part of the British Chambers of Commerce (BCC) expanded national offering, it is launching a new Insights Unit to provide businesses with best-in-class intelligence on the big strategic issues impacting the UK economy.  

Following on from the recent announcement of the BCC’s new Business Council, the organisation is continuing to expand its offering to UK firms through the launch of a new research unit.  

The BCC Insights Unit will bring together all of the strands of research the BCC currently undertakes, including the Quarterly Economic Survey, the largest private sector business survey in the UK; the Quarterly Economic Forecast, currently ranked by the Sunday Times as the country’s second most accurate; as well as a leading programme of business surveys which inform the national economic debate. 

The BCC will leverage its extensive data, expertise and research platforms to help organisations understand business and consumers views and wider market trends. 

Announcing the launch of the Insights Unit, Shevaun Haviland, BCC Director General, said:  

“It was great to announce our national campaign ‘Where Business Belongs’ at our Global Annual Conference in May, and I’m delighted to share the latest development as part of that campaign with the launch of our new Insights Unit today.  

“Over the last two months, we have set up our expert Economic Advisory Council and developed our Business Council offering as part of the national campaign. The BCC Insights Unit further strengthens the value and power of the BCC for British businesses.   

“We know there is significant demand for top class research from businesses looking to gain invaluable insights into consumer trends and opportunities. With the BCC running some of the largest and most accurate research programmes in the UK, we are perfectly situated to cater to this need.” 

David Bharier, Head of Research at the BCC, said: 

“The economic turmoil of recent years has shown that strong intelligence rooted in clear evidence has never been more important. 

“Our current suite of surveys, which receive tens of thousands of business responses, is used extensively by the Government, Bank of England and private sector to help with their planning and policy development.  

“The Insights Unit brings our research together and builds on this by developing a broader range of polling and analysis services to help organisations get answers to the questions they have.” 

Reacting to the Bank of England decision to raise the base rate to 5%, BCC Head of Research, David Bharier, said: “With CPI inflation stubbornly higher than forecast at 8.7%, it was expected that the Bank would increase the interest rate further. “But, while inflation is still the top concern for businesses, interest rate rises are now causing worry for a rapidly growing number of firms with soaring borrowing costs. Businesses will need clarity on the direction of further changes. “There are several drivers of inflation which could be eased by a policy response. For instance, unprecedented tightness in the labour market is causing firms to bid up salaries, and trade barriers with the EU are driving up costs. “The BCC has been urging the Government to act on these issues for over a year and is ready to work in partnership with it to ease labour shortages and reduce trade barriers. “High inflation, high interest rates and slow growth will be a lethal combination for many. Fundamentally, solutions need to be found beyond the interest rate lever.” Vicky Pryce, BCC Economic Advisory Council member, added: “There should be absolutely no need to drive the economy into recession in a bid to deal with rising prices. “There are already signs that the input cost pressures on firms are waning with PPI dropping by 1.5% since April. And although core inflation remains stubborn this does not prevent the overall CPI rate from falling. “Against this background the Bank must give clear signals on interest rates and commit to cutting them quickly as inflation slows. “There is a fine balancing act to be struck. Push too hard on interest rates and there is a real danger that more businesses will be driven to the wall, impacting the long-term outlook for economic growth and prosperity.” More detail on the Bank of England decision can be found here.

On Friday 16^th June, The Norfolk Chambers were delighted to host another successful Coastal Co.nnect event at Great Yarmouth Town Hall. This was the second Coastal Co.nnect of the year and was attended by a variety of businesses, from local SMEs to larger county-wide businesses and local councils. Once again, we were able to use the fantastic Supper Room at the Town Hall for networking and a chance to hear more about what the Norfolk Chambers and Great Yarmouth Borough Council have planned for the future. We also heard from James Phillips-Crook (Norfolk County Council) about the ‘Go Digital’ offering that is available to businesses in the local area, helping to assess their digital assets such as websites and computers, and provide several hours of free advice from a business advisor, as well as a grant in order to improve their capabilities. This offering is well worth taking up and was vouched for by a business owner attending the event who had previously used it to create an online booking system for his business. In addition, a representative from the UEA Norwich Business School talked briefly about the Good Jobs Project, which aims to understand how people in coastal communities across Norfolk feel about their jobs and what makes a job good for them, with the view to feeding back and creating a plan with key stakeholders to improve the coastal job market. Overall, it was a brilliant opportunity to make key connects in the local business community, and we look forward to the next Coastal Co.nnect event which will take place on 23^rd August, details to be confirmed.

Sponsored by Birketts LLP Supported by Norfolk Chambers of Commerce We were delighted to be asked to attend and support the launch event for this year’s Sleep Out run by charity The Benjamin Foundation.  The Benjamin Foundation was set up in 1994 by Richard and Vanessa Draper following the loss of their son Benjamin in a motorcycle accident at the age of 17.  With a range of services focusing on housing and homelessness, life and work skills, emotional wellbeing, youth, community, and family support The Benjamin Foundation offers vital services to young people in our region. Nova our CEO was asked to speak on behalf of the Norfolk Chambers of Commerce highlighting the support that we are offering with the launch of their yearly sleep out campaign.  Nova highlighted the importance of helping young people in our region to grow, and supporting the next generation of business leaders, entrepreneurs, and professionals.  She went on to outline our Co.next programme which has been designed to empower young people under the age of 35 with a programme of events specifically designed for them. We also heard from Ray Cook who is the Service Manager at Linden House, which is a safe home supporting young people aged 16-18. Ray explained the services he and his team offer and the audience were invited to ask him questions about the safe home and what it provides.  It was extremely heartwarming to hear the success stories that Ray told about young people in their care, specifically about a young lady who had some severe challenges but had turned her life around and was now studying at University. The event not only highlighted the work that The Benjamin Foundation do for our young people but also went on to explain how we could all take part in this year’s Seep Out. There are 2 venues for the Sleep Out this year, The Cloisters in Norwich on Friday 6^th October 2023 and Ipswich Town Football Club in Suffolk on Friday 13^th October 2023. A big thanks to all the amazing speakers: Matt Garrod – Director of Operations, Housing and Homelessness Stephanie Purcell – Events and Engagement Manager Joshua Antcliff – Fundraising Officer Nova Fairbank – CEO (Norfolk Chambers of Commerce) Ray Cook – Accommodation Service Manager Details on how to book your Sleep Out place can be found via the following links Norfolk Sleep Out Friday 6th October 2023 The Cloisters, Norwich Cathedral https://www.eventbrite.co.uk/e/norfolk-sleep-out-2023-tickets-611169653887   Suffolk Sleep Out Friday 13th October 2023 Ipswich Town Football Club https://www.eventbrite.co.uk/e/suffolk-sleep-out-2023-tickets-615746754117

Reacting to news of the Atlantic Declaration, William Bain, Head of Trade Policy at the BCC, said: 

“This is an important milestone in developing ever closer trade, investment and economic relations between the UK and the US. Other than the EU, the United States is the biggest export market for our firms, and the commitments the Declaration provides will open up new opportunities. 

“It sets out clear principles to boost key business sectors on both sides of the Atlantic. On technology, energy co-operation, supply chains, investment and removing trade barriers it outlines a clear pathway for more bilateral trade and investment.   

“We also welcome the clear commitment to negotiate a strong deal on access to the US market for critical minerals like cobalt, graphite, lithium, nickel and manganese that have been extracted or processed in the UK. This will apply to US supply chains in sectors eligible for tax credits under the Inflation Reduction Act, like electric vehicle production.  

“President Biden reflected on the interdependence of our supply chains in his comments this evening – and rightly so.  

“A UK-US Data Bridge when negotiated will reduce red tape on cross border data flows for business which are the lifeblood of growing our £279bn per year bilateral trading relationship.   

“We hope business will be strongly involved in the work of each of the five pillars – including the workplan and Strategic Technologies Investor Council on AI, quantum technologies and other emerging technology and supply chain issues, like advanced semiconductors.  

“The BCC will support both Governments in making even further progress in key areas like cross-border digital trade and supply chains on steel and aluminium.” 

Reacting to the latest ONS inflation figures, David Bharier, Head of Research at the BCC, said: “Today’s CPI rate of 8.7% shows that inflation is remaining elevated for longer than expected. After 18 months of price shocks, the impact of sustained inflation remains the top issue for the vast majority of firms we speak to. What started as a commodity price shock has now created a wage-price spiral. “However, much more positively, the producer input price (PPI) rate has slowed significantly once again to 0.5%. With our research showing that gradually fewer firms expect their own prices to rise, energy and commodity costs may fall away as drivers of consumer inflation. “With the interest rate currently at 4.5% and expected to rise further to tackle inflation, widespread skills shortages, and trade frictions on the rise, the cost of doing business is the highest in years. Action by the Government to help with the squeeze on the labour supply, reform of business rates and support on exports would go some way to helping them face the future with more confidence.”

The Norfolk Project Team will re-schedule the following information sessions:

• 3rd July – Dereham
• 04th July – Aylsham
• 06th July – Happisburgh
• 07th July – Cawston
• 10th July – Reepham
• 11th July – North Walsham

Please look out for updates in the autumn, as to when we will hold the information sessions. The event at Necton Community Hall is going ahead as previously scheduled for updates on works relating to the onshore substation as detailed below: Friday 21st July 09:00 – 20:00 Necton Community Hall, 13 Tuns Road, PE37 8EH Vattenfall is sorry for the short notice of this change. The decision to re-schedule has been taken following a recent update to the programme for the onshore cable works. By hosting the information days later, they will be able to provide more details of the onshore cable installation construction programme, including locations and phasing of works. This is what residents and local stakeholders have indicated to them will best meet your interests and needs for more information. The enabling works being carried out by Vattenfall and National Grid at the onshore substation location will be starting in early July, as planned. The information drop-in at Necton on 21st July will therefore be going ahead. This meeting represents an update to those who missed an event held in 18th April and in the interim, please find the information presented at Necton on the Vattenfall in Norfolk webpage. As previously advised our new project-focused community website is now live www.nowzone.co.uk and will be kept updated. We are keeping active across the region again this summer at community events, providing awareness of our Community Benefit Fund and the Skills & Careers Opportunities relating to the project. You’ll also find members of the project team at the following events: First Light Festival Royal Norfolk Show The Aylsham Show

Reacting to Shadow Foreign Secretary David Lammy’s speech at today’s Trade Unlocked event, BCC Head of Trade Policy, William Bain, said: 

“If we are to build a stronger, more digital and sustainable trading future then it is crucial we look at all the possible ways we can do that.  

“This includes exploring new thinking on trade in services, regulatory reform, issues of alignment or divergence with the EU, and reducing business costs on exporting. 

“The BCC supports greater usage of our diplomatic capacity overseas, working in tandem with the Chambers Network internationally, to link businesses here with new customers or clients in exciting and emerging markets across the world.  

“If we are to reach the Government’s £1trillion export target as soon as possible we need to make trade more digital and scale up the sectors where overseas demand is growing. This should include financial, professional, travel and educational services, advanced manufactured goods, life sciences and pharmaceuticals.  

“The BCC’s analysis of the Brexit deal two years on also provides a strong foundation for achievable improvements on EU trade.  

“We need to look again at how we operate rules of origin, VAT arrangements, professional qualifications, regulatory co-operation and labour mobility. 

“This is in the interests of businesses in both the UK and the EU. The Trade and Business Commission has produced recommendations which amplify our findings. We look forward to future engagement in Westminster, Brussels and among EU member states to develop our common trading and economic ties.” 

Business says a partnership with Government is vital to meet the UK’s commitment to be Net Zero by 2050. The proposal is a centrepiece of a new report from business leaders which recommends how we successfully transition to a Net Zero economy. Among its other recommendations are: Government must ensure the UK doesn’t fall behind on Net Zero, and promote the advantages of a low carbon UK economy. Reaching Net Zero means action beyond energy production – including upgrading our transport systems, homes, businesses, and land use. All major Government spending and policy decisions should be stress tested to check they help deliver the UK’s Net Zero aim. There must and can be a step change in the way we move people and goods, how we heat our buildings and what we produce and consume. Action is needed now, if UK business is to remain competitive in a global race for investment. To truly unlock the UK’s potential, business and government should focus on a five Is framework – Integrity, Investment, Implementation, Innovation and Influence. The report, by the Advisory Business Group, has been sent to the Government’s independent statutory Climate Change Committee (CCC) for consideration. The group was formed last November by the CCC to provide solutions from the business community to keep the UK’s Net Zero commitment on track. It has been chaired by Shevaun Haviland, Director General of the British Chambers of Commerce. The CCC will now consider the report before making its final recommendations to Government. Commenting on the proposals, Ms Haviland, said: “Net Zero is simply about commercial competitiveness and positioning companies to seize the global benefits that the low-carbon transition will bring. “But if the UK is to stand even a chance of hitting the Net Zero target by 2050 then businesses and government must work together to achieve it. “With the right framework in place, UK firms can lead on creating and manufacturing the technology to allow us all to live greener lives. Which is vital for supporting the consumer behaviour required to reach Net Zero. “Everyone understands the imperative, but research also shows that many firms, especially smaller ones, do not fully understand how to capture those benefits. “There is a real danger that these businesses will get left behind unless politicians and business leaders come together to galvanise action. The UK is poised to be a global leader in Net Zero competitiveness and inward investment, but that opportunity may slip from our fingers. “With so many business sectors making up our economy, the pathway to net zero will not be the same in each one – farmers, builders, creatives and accountants will all need to take different routes. “What is essential now is building Net Zero into all aspects of Government policy and spending, to demonstrate the commitment. Giving that clarity and certainty will drive business confidence to invest. “We need to know how businesses will be supported to switch from industrial scale heating systems; plans for electric vehicle charging networks; how our freight systems will be decarbonised, and our energy sources diversified and stabilised. “Once we have the full picture it will then become much easier for firms to make their plans with confidence and work out how they can finance them.” Responding, after receiving the report, Climate Change Committee Chief Executive, Chris Stark, said: “I’m grateful to our Advisory Group on Business for this report, which offers important ideas to realise the potential of business to support the UK’s journey to Net Zero. “Our own analysis emphasises the integral role that the private sector must play in the transition. It is businesses that will develop and deploy low carbon technologies, their capital investment is the majority needed for Net Zero, their offering to consumers will drive the change in Net Zero lifestyles. “The Advisory Group’s recommendations and insights will now feed into a new report we are preparing on the potential for business action on climate change later this year.” The report to the CCC can be found here. The full membership of the Advisory Business Group includes:

• Deborah Allen – Group Director Climate and Environment, BAE Systems
• Miranda Barker – CEO, East Lancashire Chamber of Commerce and Chair of RedCAT
• Bukky Bird – Group Sustainability Director, Barratt Developments
• Sarah Bradbury – Group Quality Director, Tesco
• Ged Ennis – Director, Low Carbon Energy
• David Finlay – Owner, Ethical Diary
• Simon Gadd – Group Climate Change Director, L&G
• Paul Gordon – Managing Director, Relationship Management, Business & Commercial Banking, Lloyds Banking Group
• Neville Hargreaves – Vice President Waste to Fuels and Business Development Director, Velocys
• James Stephens – Vice President Corporate Affairs, DHL
• Alex Sutton – Senior Ethics and Sustainability Manager, John Lewis Partnership
• Solitaire Townsend – Chief Solutionist, Futerra

Reacting to the latest GDP data from the ONS, David Bharier, Head of Research at the BCC, said: “Today’s GDP figure of 0.1% growth for the three months to April further indicates the UK economy is trapped on a low-growth trajectory. Our own forecast expects 0.3% growth for the whole of 2023 as our research continues to show that most SMEs are still holding back on their investment plans. “Our forecast also expects a 4.7% decline in exports this year. Further upcoming changes on trade with the EU, such as new reporting requirements and import charges, will also add more pressure to exporters, many of whom have seen diminished activity due to mounting trade barriers. “Following three years of economic shocks, a stronger investment environment could be created by easing the tightness in the labour market, tackling stubbornly high inflation, and significantly improving our trading relationships.” More detail on the ONS data can be found here.

Reacting to the latest Trade data from the ONS, William Bain, Head of Trade Policy, at the BCC, said: “The recovery in UK goods exports to the rest of the world in April after a disappointing first quarter of 2023 is welcome, but needs to be sustained. “However, trade with the EU remains weak, even before the additional cost pressures on imports due to the introduction of new customs arrangements in the Target Border Operating Model later this year. “The Government’s Export Strategy needs to maximise growth in services exports across a range of business activity this year, but so far in 2023, they have been broadly flat.” Detailed Analysis Trade data for April 2023 showed a welcome rise in exports but goods exports to the EU remained weak declining by 0.5%. Services trade was broadly static. Goods imports values fell by 0.4% in April after removing inflationary effects. Goods exports values rose by 3.4%, this was due to an increase to the rest of the world as they fell to the EU.  EU picture The 0.5% decrease in April was due to falls in miscellaneous manufactured goods offset by rise in fuel exports to Germany and the Netherlands. Goods imports also declined by 3.6% (largely down to lower chemicals imports – medicines and pharmaceutical products from Belgium, and organic chemicals from the Republic of Ireland).  The Rest of the World Non-EU goods exports rose by 7.3% in April (led by increases in car exports to China and mechanical machinery to New Zealand; chemicals and miscellaneous manufactured goods) and goods imports rose by 1.3% (led by machinery and transport equipment – aircraft from the US; manufactured materials and fuel imports).  Overall performance On volumes (excluding inflation), total goods imports fell by 0.4% in April, with imports from the EU falling by 2.6%, and imports from the rest of the world rising by 2.6%. Total goods export volumes rose by 3.5% in April with non-EU goods exports up by 6.9% in April, while goods exports to the EU remained static.   Services exports rose by 0.6% and imports by 1% in April. Services exports still remain 0.3% below pre-pandemic levels in early 2020.   The UK trade deficit narrowed to £12.3bn in April – trade in services surplus rose by £1.9bn to £40.3bn.  More detail on the ONS trade data can be found here.