Chamber News

The UK and India’s “current trading relationship is strong but, more importantly, there is so much future potential”. These were the words of the UK’s International Trade Secretary, Dr Liam Fox MP, on a visit to India in late August.

The fact that four UK ministers visited India since July 2016 highlights the renewed focus on the importance of this economic relationship. As the UK sets about exploring new bilateral trading partnerships with the rest of the world, it will be starting from a position of relative bilateral strength with India.

The UK is the biggest G20 investor in India over the past 14 years. Some 530 British businesses employ almost 700,000 people in India and have an estimated combined revenue of US$54 billion in India, according to the Sterling Assets India Report by CBI, PwC and the UK India Business Council. At the same time, India is the third largest investor in the UK. Indian companies invest more in the UK than the rest of the EU combined. More than 800 Indian companies currently operate in the UK, employing more than 110,000 people, a Grant Thonrton report has shown.

Additionally, with the increasingly positive momentum in the Indian economy and the opportunities continuing to be offered within the UK, we expect two-way progress in trade and investment to continue. Still, the signing of a comprehensive bilateral economic agreement – comprising a trade agreement covering goods and services and a bilateral trade agreement – should act as a huge catalyst to establish bilateral economic relations on an entirely new footing into the 21stcentury.

So far so good. However, the reality is that until Brexit plays out and our ongoing relationship with the EU is decided, the UK remains part of the single market and as such is prohibited by treaty to negotiate any form of bilateral agreements – trade treaties and bilateral investment treaties included. Prime Minister Theresa May has promised to evoke Article 50 by March 2017. It is estimated that it will take two years for discussions on Brexit to be concluded before any direct G2G discussions can commence let alone agreement reached. As a result, signing of a bilateral economic agreement with India could be a way in the future.

Is there anything that can be done now? The short answer is ‘yes’. There has already been an announcement from Dr Liam Fox MP and the Indian Minister of Commerce, Nirmala Sitharaman, that they will convene an ongoing dialogue on what the shape of future trade policy should look like. These discussions will be an important building block in establishing common purpose in any economic dialogue.

The current landscape

Until then we must focus on the current realities – the bilateral economic numbers are good, individual line items could be improved. In absolute terms, UK-India bilateral trade grew by 170% between 2004 and 2014. Yet, India’s overall trade grew by 800% in the same period. In relative terms, UK-India trade fell by around 8% in 2014-15. Additionally, India’s goods exports to the UK grew by 226% between 2004 and 2014. The UK’s goods exports to India grew by 153% in the same period.

In 2015-16, the UK was just India’s 12thlargest trading partner. India trades more with Indonesia, Germany and Japan, than with the UK. Plus, despite the UK being the second largest exporter of services in the world and India having the second fastest growing services sector with a CAGR of 9%, UK-India services trade is disappointingly low. In 2014, the UK imported over 10 times more services from the US than it did from India, and the UK’s service exports to India makes up just 7% of its total service exports to Asia.

At present, Indian companies can buy from and invest in the UK 10% more cheaply than in June, due to the depreciation in Sterling. Indian businesses will find UK companies are increasingly looking to India for partnerships. And, of course, the UK economy remains fundamentally strong – it is the fifth largest economy in the world, the second fastest market in the G7, and one that, in the words of PM Theresa May, is “bold and outward looking.” Just like India.

For UK companies, India is increasingly open to FDI and it is moving up the ease of doing business rankings. Just as importantly, there is a rising interest demand for UK goods, services, technology, and know-how to help achieve the goals set out in programmes such as Make in India, Digital India, Skill India and Swachh Bharat. And there are several areas where more bilateral trade and investment can bring near term benefits to both countries.

The opportunity is now

Time waits for no-one and it is important that companies don’t wait for the Brexit dust to settle and a comprehensive bilateral economic agreement to be inked to do business – the opportunity is now.

A comprehensive bilateral economic agreement does need not be in place for bilateral economic relations to grow. The UK India Business Council continues to argue there is an important mutually beneficial relationship which can be built between India and the UK based on the development of technology and innovation within the UK to the benefit of Indian industry and economy. The opportunities are multiple for UK and Indian businesses to buy and sell right now. A comprehensive UK-India bilateral economic agreement would help further unlock the relationship’s full potential. Here is selection of examples:

Consumer-focussed products.Domestic, consumer-led, consumption are significant drivers in both the UK and Indian economies. Yet there is little trade in the food, drink, fashion, beauty products and FMCG goods. Although textiles and garments are in India’s top five exports to the UK and spices in their top 10, much more can be done in both directions. Looking into India, UK companies will find a fast-growing, aspirational and value conscious consuming class with an affiliation to British brands.

Make in India.There are several manufacturing sectors that offer substantial scope for UK-India innovation collaborations, however, defence and aerospace are perhaps the most prominent. India has extensive modernisation plans for the defence sector, increasing its FDI in defence to 100 per cent from 26 per cent just two years ago.

Healthcare.India is currently looking to roll out universal healthcare – the UK’s NHS system is a prime example of delivery of this level of care and it would be beneficial for Indian healthcare providers to work with their UK counterparts. At the same time, India’s innovative and top quality healthcare providers have developed processes and systems that could be applied in the NHS.

Will it be easy?

Such a comprehensive bilateral economic deal would be a great prize for both countries, but it won’t come easy. The negotiators will need to navigate some of the same issues that exist in the currently stalled EU-India FTA deal. These include:

• The elimination /reduction of tariffs for cars, wines and spirits.
• Addressing key non-tariff barriers, such as licensing, customs regulations etc.
• Improved access to the Indian public procurement market.
• Harmonisation of regulations and standards .
• Liberalisation in India of service sectors such as legal, accounts and maritime services.
• Mode 4 – temporary access to the UK for Indian skilled professionals
• The recognition of India as a ‘data secure’ nation.

On top of these specific issues, UK-India negotiations will take place in a world where populist political rhetoric has led to public protest against globalisation and trade-deals. Specifically, the Trans Pacific Partnership Agreement, the Transatlantic Trade and Investment Partnership, and CETA – the Canada-EU deal.

Opportunity for optimism

Nonetheless, with political leadership and will on both sides, there is a good deal to be done that will create jobs and growth in both countries. There is much cause for optimism, for three reasons:

First, a reason the EU-India FTA negotiations have stalled is a lack of engagement at the ministerial level. That has and never will be an issue between the UK and India. The flow of Ministers in both directions is wide – ranging across departments – and constant. Since Prime Minister, Theresa May MP formed her Government, four UK Ministers, three of them from the Cabinet, visited India – Dr Liam Fox, Secretary of State for the new Department for International Trade Minister and separately from his Minister of State Greg Hands, from Secretary of State for DFID, Priti Patel MP and from the FCO Minister for Asia, Alok Sharma MP. Moreover, this does not include the interactions between the two Prime Ministers in the margins of the recent G20 Summit in China. The rapidity and seniority of these discussions illustrates the UK Government’s intent.

The second reason for optimism is that UK and Indian businesses are already tightly entwined, evidenced by the strong investment relationship. Business leaders therefore know the opportunities to be had by a trade deal, and will show the type of leadership and flexibility needed in support of ministers and negotiators.

Thirdly, to help redraw trade relationships with world-leading countries, like India, the UK Government has set up the Department for International Trade, headed by the Rt. Hon Dr Liam Fox MP, and supported by a team of three ministers, including Lord Price, a former businessman, who has responsibility for trade deals. This shows real intent to make things happen.

The long-term wins

The negotiation process will be difficult, and may not be quick. But there is optimism and positivity on both sides that a deal can be agreed. Recognising the complementary nature of our economic strengths and objectives, there is also currently much goodwill in the relationship.

The devil, as ever, will be in the detail. So, when the discussions turn into negotiations, and obstacles emerge, it will be important that political and business figures retain the positivity and goodwill. They must also show the leadership needed to reach a deal that enables the potential in the UK-India relationship that Dr Fox so rightly highlighted to be realised.

Representatives from Norfolk Chamber, Norwich BID and Norfolk County Council met this week to share the work that Norwich BID have been doing in relation to mapping the traffic usage around the inner ring road and the centre of Norwich.

The software uses Google Maps and tracks mobile phones and can highlight any traffic issues and congestion. The data is refreshed every 15 minutes and has been in place since the summer. Data is also being added in to account for weather conditions.

Norfolk County will be looking at their own existing data to validate the data that Norwich BID have collected. All parties are looking at ways to work together to make the best use of the data and how it can help improve access into Norwich. Norfolk County Council have agreed to carry out a traffic survey of the inner ring road in Spring 2017.

Norfolk Chamber has launched a new Transport and Infrastructure Group. The aim of the group is to consider all aspects of transport infrastructure that impact on Norfolk businesses being able to grow. They will look to lobby and influence the decision makers to gain improvements for the benefit of business in Norfolk and ensure that the views of business are heard.

Members of the group include Norse, Aviva, Westcotec, Jack Richards & Sons and is chaired by the Chamber President, Jonathan Cage, Managing Director of Create Consulting Engineers.

All agreed that reliability of Norfolk’s transport systems is paramount to all businesses and the group also want to look at how technology will play a key role in the future of transport. Topics to be covered at future meetings include: improvements to the A47; Norwich city connectivity; rail links from both Norwich and King’s Lynn to London; and how to make the most of the A47 and A11 growth corridors.

Jonathan Cage, Managing Director of Create Consulting Engineers said:

“We want to ensure that Norfolk has transport infrastructure that is fit for the 21st century. Journey time reliability, safe roads and fast efficient rail services would enable Norfolk businesses to deliver economic growth and jobs for our region.”

If you have a Norfolk transport or infrastructure issue that you would like the Transport and Infrastructure Group to consider, please email details to: [email protected]

From opportunities to get more involved in improving your neighbourhood to a proposed increase in council tax, Norwich City Council wants to hear from the local business community.

They are consulting on their budget for 2017-18 and this is your chance to share your views. The survey runs until Sunday 8 January 2017 and any comments received will be considered by councillors when they meet in February 2017 to set the budget.

Have your say now

Reepham Road will be closed from early on Monday 14 November for five days (to Friday 18th) to complete construction of the NDR roundabout and tie in the surface to the existing carriageway.

The work, which will involve the use of heavy plant, will be carried out between 7am and 7pm, but the road will have to remain closed to all traffic throughout, including pedestrians and cyclists.

Diversion route Traffic approaching the closure from the north will be diverted via Fir Covert Road, the A1067 Fakenham Road, Boundary Road (Norwich Ring Road), returning to Reepham Road at the Boundary Junction. Traffic approaching the closure from the south will be diverted in the reverse direction.

Local access The physically closed stretch of Reepham Road will be between Furze Lane and Drewray Drive, allowing access to Thorpe Marriott from the Norwich direction via Long Dale and Drewray Drive. Access to other premises on Reepham Road will be from one or other side of the closure.

Other NDR traffic management Diversion of utility services, including gas, water and sewerage, electricity and telecom, is continuing at a number of points along the NDR, including Holt Road, Wroxham Road and North Walsham Road. Temporary traffic control may occasionally be needed. Where possible, advance warning will be given, but these signalsmay be imposed and removed at short notice, depending upon the work being carried out.

For many years Norfolk was the forgotten county. To get any investment we had to really fight our corner and in many cases we were unsuccessful.

In recent years this has started to change. The public, private and third sector are working increasing closely together to secure the best possible outcomes for Norfolk’s residents and business community.

Through the partners working together the Chamber has seen many positive changes over recent years including: A11 dualling, NDR, Norwich Cambridge Tech Corridor; investment in our universities and colleges, Kings Lynn Enterprise Zone and the Innovation Centres, to mention just a few.

However there is still a lot to be done and the UK economy is weakening with the prospect for another recession in 2020. We therefore need to ensure that we take every opportunity open to us.

As seen in BCC QES economic surveys, Norfolk businesses are not feeling confident. This is due to current weak trading conditions and uncertainty due in part to the Brexit vote.

This lack of confidence is translating into less financial investment, less job opportunities, a weaker local economy and fewer opportunities for Norfolk’s young people and residents.

However on the whole the business community believe that the Devolution deal on the table could help improve the Norfolk business environment. Suffolk, Peterborough and Cambridgeshire Councillors are all voting for the deal, but our Norfolk County Councillors are divided and may stop this happening at the end of November.

As a starting point, the Devolution deal will give us over a 30 year commitment:

• Control over a guaranteed £225m transport budget for the next 4 years.
• £30m funding over 5 years to support the building of new homes across Norfolk and Suffolk
• Over lifetime of deal 200,000 homes are expected to be delivered.
• Control over an existing c£20m annual adult skill fund
• Control of an existing c£2m annual Apprenticeship grant for employers
• Greater control and influence over transport services across Norfolk
• More control and influence over invest and maintenance in key roads
• A commitment to providing superfast broadband and improved phone reception

The Norfolk business community is not naïve. We understand that there are risks involved in the Devolution deal on the table. But they have weighed up the options of our Councillors signing this deal or walking away and we want to see Devolution deal on the table signed.

The Government is very clear that this is the way they will distribute funds in the future, we do not want Norfolk to slide back into invisibility!

If you agree with us, we need you to let your local county councillor know. You can do this by advising us who your councillor is and providing us with your comments. We will then collate all the comments and share them with each councillor. You can find out who your councillor is by going to the following place: https://www.whereilive.norfolk.gov.uk/

More details on devolution can be found on: https://www.eastangliadevo.co.uk/

Norfolk Chamber recently hosted a roundtable event, in partnership with London Heathrow Airport, involving 16 Norfolk businesses.

The objective of the roundtable was to gather local business representatives together to discuss the opportunities that exist within the Heathrow Airport supply chain and how businesses can be more involved in their future expansion plans.

Heathrow were keen to engage with Norfolk businesses to further understand the business capabilities in our region and hear local views. Discussions centred around the challenges that Norfolk businesses face in joining Heathrow Airport’s supply chain and David Ferroussat, the Infrastructure Procurement Director and Sophie Carter from their Public Affairs Department answered questions about the possible expansion of Heathrow Airport.

Expansion at Heathrow has the potential to create 180,000 jobs and 10,000 apprenticeships. It will allow for 40 additional long haul destinations and more regional connectivity to local airports such as Norwich International Airport.

Should the expansion of Heathrow be agreed next week, the construction period would run from 2020 to 2026. The supply chaincould involve over 8,500 suppliers from large to SME. Heathrow were very keen to identify that there were plenty of opportunities for Norfolk businesses to be included within the supply chain. Any business that wants to be involved canregister on Heathrow’s procurement website – click here for details.

In addition, Heathrow are holding a business summit on Tuesday 08 November and invited businesses to register their interest using the following link:https://www.heathrowbusinesssummit.co.uk/

Discussions also centred around the need for future skills and ensuring that the next generation will be inspired with the support of large infrastructure projects, such as the Heathrow expansion.

Jonathan Cage, President of Norfolk Chamber said:

“It is important that Norfolk businesses, especially SMEs, take advantage of the opportunities that large scale projects such as the expansion of Heathrow could deliver. Whilst a large scale international company is likely to be the lead, there are still plenty of opportunities for Norfolk based companies to subcontract and supply specialist knowledge, skills and demonstrate good use of innovation and technology.”

Gee-Force Hydraulics is a privately owned business offering a wide range of equipment and servicing to the Oil & Gas, Nuclear, Renewables, Marine and Civil Engineering industries.

Gee-Force Hydraulics specialises in the sale and hire of hydraulic torque wrench equipment and other bolting equipment including hydraulic bolt tensioners, pneumatic and electronic torque wrenches, hand torque multipliers and manual wrenches. We also sell and hire mechanical and hydraulic flange spreading and flange alignment equipment, hydraulic nut splitters, hydraulic vertical lifting wedges and hydraulic lifting cylinders.

Through our rental partnership with industry leader HTL we enjoy access to the widest range of bolting and ancillary equipment available in the UK including portable machines, cutting equipment, flushing equipment, test instrumentation, subsea equipment and maintenance equipment.

We operate from premises in Great Yarmouth and Burnley, and in addition to equipment sales and hire we also provide ECITB accredited Mechanical Joint Integrity (MJI) training and testing out of our Great Yarmouth premises in conjunction with HTL’s Training Services Division. We are a distributor for SPX Bolting Systems, SPX Power Team and UK manufacturer Norbar Torque Tools ,as well as a wide range of equipment from other manufacturers. In addition to equipment sales and hire we offer full service, repair and calibration capabilities.

We are looking to expand the company’s activities beyond our Great Yarmouth base, across the whole of Norfolk and the wider South East. By joining the Norfolk Chamber of Commerce, we hope this will play an important part in building our knowledge of and relationships with the County’s business community and by doing so fast-tracking both our profile and growth.

The region’s premier business to business exhibition was back for its 18th opening at Norwich City Football Club (NCFC) on Thursday 13 October.

The day brought together over 100 businesses exhibiting across two floors of NCFC and over 700 attendees for a day committed to business.

The event begun with a welcome from special guest television presenter and Break Patron Jake Humphrey where he told our businesses to ‘believe in yourself and be as ambitious as possible’. Following this Norfolk Chamber CEO Caroline Williams took Jake on a tour of the exhibition to meet our exhibitors and judge the Best Stand Award. This year we are pleased to announce Mayday were judged the winners, doing caricatures of visitors to their stand and printing them as souvenirs of the day on their printer.

In addition, we this year offered attendees the chance to take a break from the busy exhibition floors in our Networking Lounge. Busy throughout the day, we’re sure plenty of business connections were made here. We also hosted four workshops during the event for attendees to brush up their knowledge on networking, digital marketing, business growth and LinkedIn.

Overall the exhibition had a real buzz throughout the day with a variety of great stands on offers from the VR driving simulation from Innershed, to the photograph famous Hazel the eagle and Flint the owl with NBC Environment.

This year’s event was sponsored by osbornenash, Archant, Computer Service Centre, inVoke Marketing, Norse and HEAD | HUNTED Recruitment.

You can already register your name for priority booking for 2017 stands. Don’t forget to add Thursday 12 October 2017 to your diary for a day of doing business.

Did you visit or exhibit at B2B this October? Complete our short survey below:

Visitor Survey

Exhibitor Survey

Major improvements planned, plus special ticket offer to herald the new era

A new era for the railway in East Anglia was launched across our region yesterday. Abellio subisidiary company Greater Anglia is starting a new nine-year franchise to provide passenger rail services to and from London across Norfolk, Essex, Suffolk, Cambridgeshire and Hertfordshire.

People in East Anglia can now look forward to a £2 billion package of improvements to transform rail travel in the region.

Highlights include a complete fleet of brand new trains (replacing every single train in the current fleet with a larger fleet of new trains during 2019/2020 – up from 933 carriages to 1043 carriages); more services; faster journey times; 55 per cent more seats into London in the morning peak period; initiatives to improve punctuality from 89% to almost 93%; £60 million of improvements in stations and new ticket options offering even better value for money.

The majority of major upgrades, linked to the new trains, will be delivered in 2019/2020, but there are a number of other improvements delivered over the first three years of the franchise including 72 additional carriages to provide more seats from summer 2017; free wi-fi; automatic delay repay compensation for season ticket holders and advance ticket holders from early in 2017; ticket vending machines at every station; new customer information screens and help points at every station; at least 1800 additional car parking spaces and 4000 extra cycle parking places at stations around the network; a refresh and deep clean for all stations; significant investment in reliability modifications and interior refreshes for the existing fleet of trains and more investment in customer service and the Community Rail Partnerships.

To mark the start of the new franchise, Greater Anglia is running a “Wake up to Weekdays” offer with special adult return fares – £10, £15 or £20 for off-peak travel. Children can travel for just £2 return. Tickets are available to purchase until 30 October for travel up to 30 November, including the autumn half-term period.

After attending a special franchise launch event at Liverpool Street station, London, with Rail Minister Paul Maynard, there will be events at Chelmsford, Ipswich, Norwich and Cambridge to mark the start of the franchise with regional stakeholders.

Jamie Burles, Managing Director for Greater Anglia said: “This is an exciting time for the railway in our region. This is the first franchise renewal to see a train operator replace its entire fleet with brand new trains. I’m looking forward to leading Greater Anglia as we transform the railway.

“We have a huge programme of improvements planned for trains, stations, timetables, journey times, ticketing, performance and wider customer service standards. Today really is the start of a period of major investment and improvement to upgrade services for customers and communities across the region.”

Stakeholders across the region have welcomed the new franchise and the planned upgrades. At Norwich station, Andrew Goodrum, Greater Anglia Customer Services Director, and Michelle Smart, Human Resources Director, marked the new franchise with James Mason, Board member for Norfolk Chamber of Commerce, Ted Gadsden, Chairman of the Bittern Line Community Rail Partnership (CRP) and Ian Dinmore, Chairman of the Wherry Lines CRP.

James Mason said: “I was delighted to represent Norfolk Chamber at Norwich railway station to mark the commencement of the new Greater Anglia rail franchise. The Chamber has worked very hard to promote great infrastructure for the benefit of the Norfolk economy and the developments expected through this franchise will be most beneficial to business in our region.”

Proposals to improve traffic flow in two busy areas ofNorwich are now open for public comment and feedback.

Both Dereham Road and the centre of Eaton and Cringleford are due for investment through Transport for Norwich, with Norfolk County Council and Norwich City Council calling for feedback on the details of the schemes.

The aims of changes in Eaton and Cringleford include reducing traffic speeds to 20mph, installing traffic signals either side of Cringleford bridge that respond to the flow of traffic in each direction, and simplifying pedestrian crossings in the centre of Eaton. The project is designed to address the needs of general traffic while improving journey times for buses and providing better infrastructure for cyclists and those on foot.

Across the city at the Dereham Road/Sweet Briar Road roundabout, changes are being proposed that will reduce congestion for all traffic, improve pedestrian crossing facilities and provide a better environment for cyclists. By increasing the efficiency of the junction, proposed work also aims to improve the reliability and journey times for bus services in the area.

Jonathan Cage, President of Norfolk Chamber said: “It is just as important that businesses have their say with regard to these consultations and I would encourage any business that could be affected by the plans to ensure that they make their views heard.”

Councillor Bert Bremner, city and county councillor and vice chair of Norwich Highways Agency Committee (NHAC), said: “An important part of finalising proposals on these schemes is to get feedback on them from those using the area, whether they’re drivers, cyclists, pedestrians or bus passengers.

“Information and comments received through the consultations can then help us fine tune the plans and hopefully iron out potential issues to make them the best possible solution that balances the needs of all road users.”

To find out more about the projects, how to comment and to view the associated plans, please visit www.norfolk.gov.uk/derehamroad and www.norfolk.gov.uk/eatoncringleford.

The deadline for responses on Eaton and Cringleford is Friday 4 November, while the Dereham Road/Sweet Briar Road consultation runs until Monday 7 November.

Following any amends to the plans as a result of the consultations, the final proposals for both schemes will be submitted to NHAC to seek approval for construction.

Norfolk Chamber welcomed a trade delegation from Exeter to their flagship business to business exhibition. B2B 2016 was an all-day event, held at Norwich City Football Club.

The delegation from Exeter were exploring how the new daily flight to and from Norwich airport could help foster closer commercial relationships between the two regions. There are many similarities between Norwich and Exeter – both are university cities and have a history in finance and insurance industries, as well as a strong tourism offering.

The Exeter delegation included Exeter Chamber, the Devon Hotels and Restaurant Association, Signs Express (whose headquarters are based in Norwich), Exeter Airport and Flybe. Norfolk Chamber arranged for them to meet their Norfolk counterparts, together with lots of other local businesses.

Vice President of Exeter Chamber, Derek Phillips said: “Exeter and Norwich are both the urban centres of rural areas. Tourism is important: Norfolk has the Broads and we have Dartmoor.”

Caroline Williams, Chief executive of Norfolk Chamber said: “Our two regions are looking for common ground. We hope to organise a follow up trip to Exeter before Christmas to continue to forge stronger business links and ensure that the new flight can boost tourism and business.”