Chamber News

A new digital trade directory is to be produced with the aim of helping UK companies sell their products and services across the world.

To be launched later this year, the Directory of Exporters will, according to International Trade Secretary Liam Fox, revolutionise the way businesses access international markets.

Potential customers and buyers from around the world will be able to search for British companies which are ready to supply the products, services and skills they need.

Dr Fox’s new Department for International Trade will be working with five major high-street banks to get the Directory of Exporters up and running. Business customers of Barclays, HSBC, Lloyds, NatWest and Santander will be encouraged to join the Directory and promote themselves in global markets.

The online tool will be hosted on the Government’s Exporting is GREAT website and will be supported by extensive international marketing aimed at increasing and sustaining the ongoing demand for UK goods and services.

Predicting that exporters will welcome the initiative, the CBI’s Ben Digby said it was encouraging to see the new Department embracing digital innovation as a way of showcasing British export strengths to the world.

For the Institute of Directors (IoD), Allie Renison said that financial intermediaries such as banks are going to be crucial to helping businesses realise export opportunities.

The next step is to make sure these links are forged at the local level, she added, through banks and other professional services firms engaging directly with businesses.

The UK Exporter Directory is currently under development, with the launch scheduled for November this year. Companies interested in being listed are invited to register their interest at www.directory.exportingisgreat.gov.uk

In the first in a series of pieces, the Bank Of England’s regional Agent, Phil Eckersley, comments on the most recent Inflation Report published by the Bank of England.

We are entering what is likely to be a period of significant change for our economy, with the vote to leave the European Union ushering in a new era for the UK’s relationship with the rest of the world.

Some of the adjustments to this new reality may prove difficult and many will take time.

And, while the Bank of England firmly believes that the UK – one of the most flexible economies in the world – can handle this change, there will inevitably be a period of heightened uncertainty as this process takes place.

Last week, the Bank published its latest Inflation Report which explained how the vote to leave the EU has resulted in a material change in the economic outlook.

For example, the big fall in the value of sterling since the referendum will push up import and consumer prices notably over the next three years.

We also now expect growth to be weaker and unemployment higher over the next couple of years than at the time of our last forecast in May.

Importantly, there are signs that this is already materialising: some uncertainty indicators have risen, property markets appear to be weakening, and surveys of activity growth have fallen.

In response, the Bank’s Monetary Policy Committee (MPC) has unveiled a comprehensive package of measures to support the economy.

The package includes a reduction in Bank Rate from 0.5% to 0.25% – the first change in interest rates for seven years – along with a new Term Funding Scheme, worth up to £100bn, to ensure that this cut is passed on by lenders to households and businesses.

The Bank is also expanding its programme of purchases of government bonds by £60bn and launching a new scheme to buy £10bn of UK corporate bonds.

Taken together, these measures should provide a significant stimulus to economic activity, bolstering confidence and blunting the slowdown. And there is scope to extend them if circumstances require.

This package of measures should have a real beneficial impact for businesses and households here in East Anglia. For example, cutting Bank Rate will immediately ease financing conditions as around half of mortgages by value are floating rate contracts and four-fifths of bank loans held by firms are at floating rates.

In the absence of much ‘hard’ data yet on the economic impact of the referendum, the evidence gathered by our regional Agents was particularly important as the MPC tried to assess the state of the economy.

We are really grateful for the time that business leaders have given us over the last few weeks as we’ve sought to better understand how they are being affected by this period of heightened uncertainty.

In the last few weeks, my colleagues Alex, Tim and I have visited companies large and small across all sectors to hold detailed conversations with those people who are making decisions on investment and jobs.

And we have held roundtable discussions and briefings, including co-hosting lunches with members of the MPC, to get a sense of how businesses are feeling.

Although some companies tell us that they have not changed their plans as a result of the referendum outcome, others are more cautious about decisions on investment and hiring.

We recently published our latest Agents’ Summary of Business Conditions which included the findings of our survey on the impact of the EU referendum on our contacts.

The clear result was that the outcome would have a negative effect, overall, on capital spending, hiring and turnover over the coming year.

Our report also highlights a slowdown in growth in business services, partly reflecting a pause in commercial property investment and corporate transactions.

More positively, annual growth in manufacturing exports had turned positive after a period of declining output, helped by the recent depreciation in sterling.

But the weaker pound has already pushed up the price of imported goods for some businesses leading to expectations of price increases in due course.

At challenging times like this, what is always striking is the resilience and versatility of our region’s business community. As circumstances change, companies will adapt to take on new challenges and embrace new opportunities.

We hope that the actions taken by the Bank of England over the past week will play a small part in helping them to do that.

Phil Eckersley is the Bank of England’s Agent for the South East and East Anglia

@BoESouthEast

The Government has awarded a £1.4bn contract to Abellio Greater Anglia to run rail services in our region for the next nine years.

The new service promises to deliver more than 1,040 new state of the art carriages and cut journey times by an average of 10%.

It will also deliver one of the biggest orders for British-built trains – almost £1 billion for 660 carriages from the Bombardier factory in Derby – as part of a contract that will secure 1,000 jobs into the next decade.

Key benefits of the new franchise include:

• At least four 90 minute services (two in each direction) between London and Norwich each weekday and two 60 minute services per day between London and Ipswich

• Free WiFi for all passengers on trains and at stations

• 1,043 new, state of the art carriages between January 2019 and September 2020 to support the faster timetable, with a full programme of refurbishment for the current fleet in the meantime

• Tough new targets for operational performance levels at 93% – up from 89.7% currently

• By 2021, there will be more than 32,000 more seats on services arriving at London Liverpool Street in the morning peak, while the new franchise will introduce 1,144 additional weekday services- an increase of 13% – to stations including Ipswich, Norwich, Stansted Airport, Lowestoft, and London Liverpool Street.

• Most Norwich to Cambridge services will be extended to Stansted Airport.

• There will be later trains between Norwich and Sheringham, Great Yarmouth and Lowestoft.

Transport Secretary Chris Grayling said:

“We are making the biggest investment in the railways since the Victorian era. By awarding this franchise to Abellio East Anglia we will improve journeys for people in East Anglia.

“Abellio’s decision will ensure our train building industry in Derby remains strong.

“This is part of our plan to make an economy that works for everyone – not just the privileged few – by ensuring prosperity is spread throughout the country.”

Dominic Booth Managing Director of Abellio UK said:

“This is great news not only for Abellio but for the whole of East Anglia. We are pleased to become preferred bidder to deliver a transformation in rail services across the region.

“It will enable us to build on the successes of the two short East Anglian franchises we have run since 2012, and we commend the DfT in running a transparent and rigorous procurement process.

“Our plans will greatly improve our customers’ experience with faster and more reliable journeys on new trains with higher frequencies and reduced journey times, to support the socio-economic well-being of East Anglia, one of the country’s most successful and fastest growing areas.”

Jonathan Cage, President of Norfolk Chamber said:

“We are delighted that Abellio, who are a gold patron of Norfolk Chamber, have been awarded the franchise. The new franchise represents a significant investment in our region’s railway and the business community looks forward to seeing a faster, more reliable rail service with new rolling stock as soon as possible.”

Also commenting on the awarding of the new franchise, Caroline Williams, Chief Executive of Norfolk Chamber said:

“Norfolk Chamber has been calling for an improved rail service for many years and we are very pleased with the awarding of the new franchise. The contract will deliver a faster more reliable service; new rolling stock; free wifi; and improved branch line connections for our members. As the franchise has been awarded for a period of nine years, Abellio will have time to deliver a transformation of rail services for commuters and business travellers alike, which will be worth billions of pounds of investment to Norfolk and East Anglia.”

Chloe Smith MP for Norwich North, co-chair of the GEML rail taskforce said:

“Today’s announcement is a great win for East Anglian passengers thanks to our long campaign.

“We have now succeeded in getting huge investment into our rail line in the form of new trains, which are confirmed today.

“These trains are finally what we deserve in the East, giving a more pleasant journey for passengers and most of all giving reliability back to all the people who use the trains for work and jobs. Together with investment in the track and other infrastructure, this is what our campaign has achieved.

“It will deliver ‘Norwich in 90’ along with benefits to all three counties as expected over the next eight years. It means East Anglia is open for business and will bring thousands more jobs to the region, which means a massive boost for the economy and for households.”

Highways England are surveying the road surface along the A47 from New Cut roundabout to Guyhirn roundabout at various locations around King’s Lynn. This will be at Hardwick Interchange, from Monday 8 to Monday 15 August, working on weekdays only.

The surveys will be done overnight, using mobile slow-moving hard shoulder or lane closures. Where the A47 is not a dual carriageway, traffic lights will be used.

This month’s headlines:

• UK GDP growth picks-up in Q2, but the latest QES indicates weaker growth.
• Bank of England cuts UK interest rates to a new record low of 0.25% and expands QE.
• Eurozone GDP growth weakens in Q2, while consumer spending boosts US GDP growth.

The official estimate for Q2 2016 GDP growth highlighted that UK economy grew by 0.6% up from a growth of 0.4% in Q1. Industrial production rose by 2.1%, the fastest rate of growth since Q3 1999. However this is in contrast to the latest QES survey which revealed a weaker picture for the sector.

The Bank of England’s Monetary Policy Committee (MPC) cut the UK interest rate to new record low of 0.25%. This is the first time since March 2009 that interest rates have moved and the MPC also decided to expand the Quantitative Easing (QE) programme. This reflects their view that the UK’s economic outlook has substantially weakened.

Growth in the Eurozone was cut in half in Q2 with a growth rate of 0.3%. In Q1 the growth rate was 0.6%. Whilst in the United States, consumer spending boosted growth. Despite this growth the US economy remain weak and it is unlikely that an immediate rise in US interest rates will be seen.

Bottom Line:

Whilst the decision to cut UK interest rates will do little to support long-term growth, the expansion of the QE programme will play a more substantial role. However increasing economic uncertainty means that it is even more critical to address the long-standing issues facing the UK, including the chronic underinvestment in Britain’s infrastructure such as transport and broadband.

For full details of this month’s economic review click here.

The British Chambers of Commerce along with other organisations attended the Prime Minister’s SME roundtable to discuss the Industrial Strategy, and the vote to leave the European Union.

BCC President Francis Martin attended on behalf of the Chamber Network, and informed the Prime Minister that many businesses remain confident in their future success, but are keen for stability for our markets and economy, clarity on the timetable and approach to our future relationship with the EU, and action on the many issues that require urgent decision to give businesses the confidence to invest and grow.

Francis also emphasised the role that the Chamber Network plays in helping businesses to export all over the world, not just in getting goods to markets overseas but also through our Global Business Network, which connects firms with Chambers and opportunities in dozens of markets around the world

Francis Martin, President of the British Chambers of Commerce, said:

“Our organisation covers businesses of every size, in every part of the country. We have seen first-hand that the ‘business’ view is not monolithic – Many of our members are taking stock and making the best of the decision to leave the EU, seeking the opportunities on offer as well as considering the challenges.

“At the roundtable today we urged the Prime Minister and her new government to focus on the priorities for our member businesses – clarifying the UK’s future trading relationships, the existing EU regulatory framework, and the stability of the pound.”

On Industrial Strategy, Francis Martin added:

“We are supportive of the proposed Industrial Strategy, but it needs to have a broad-based focus that encourages a partnership between business and government, focusing on areas such as the large skills gap in our workforce and infrastructure projects, that benefit every business.

“The government must in particular address the long-standing underinvestment in the UK’s infrastructure. This means action on transport, broadband, and energy generation, which is absolutely vital in driving long-term growth.”

Her Majesty The Queen as patron of British Chamber of Commerce has sent us a special message for our 120th anniversary we are celebrating this year.

The message said: “The Queen was pleased to receive your kind message sent on behalf of the Norfolk Chamber of Commerce on the occasion of your One-Hundred and Twentieth Anniversary, which is being marked at your Annual General Meeting.

“As Patron of the British Chambers of Commerce, Her Majesty much appreciated your thoughtfulness in writing as you did and, in return, sends her warm good wishes to all concerned as you mark this notable anniversary.”

The official date of our anniversary is marked by our AGM on 7th October 2016, on this date in 1896 we were incorporated as Norwich Chamber of Commerce, before later changing to Norfolk Chamber of Commerce.

To commemorate our 120 years we have adedicatedwebpageto share the research undertaken.Take a tour of our President’s Board from 1896; read a brief history of Norfolk’s key industry sectors; find out more about the 120th celebrationevents; and find information on ourChamber Community Fund raising moneyto improve the opportunities and career options open to young people across the county.

Holly Lane, a popular route between Reepham Road and the B1149 Holt Road, will close from Monday 1 Augustfor the rest of the month to allow the diversion of a deep gas main.

Drayton Lane will be temporarily reopened to provide an alternative route, but the difficult bends close to Horsford make this an unsuitable diversion route for HGVs, whose drivers should divert via Norwich ring road. Drayton Lane is crossed by the route of the Northern Distributor Road (NDR) and temporary traffic lights will be in place to allow construction plant to cross safely.

Also from Monday 1 August, access to the control tower area of Norwich International Airport will no longer be possible using Old Norwich Road, Horsham St Faith, which is being closed where it is crossed by the NDR (beyond the Aviation Museum entrance, which will not be affected). Access will instead be via Bullock Hill.

Preliminary work, including moving street lights,will begin next week on adding a segregated left turn lane to the north-west roundabout at the Postwick junction. This phase of workwill have minimal impact on traffic.

On Monday 8 August Buxton Road will be closed for three days for utility service diversions. This is a reduction from a five-day closure originally proposed. Cyclists and pedestrians will be allowed through the closure.

Norfolk Chamber delivered one of a series of three breakfast events in conjunction with New Anglia LEP to discuss the topic of Devolution and its importance to Norfolk businesses.

Devolution offers Norfolk, Suffolk and Cambridgeshire an exciting opportunity to have more control over its funding and greater local decision-making over a range of services vital to our long-term growth. The public consultation is underway and we want the Government and local authorities to hear the powerful voice of business and understand your views.

The speakers at the event were the leaders of East Anglia’s devolution bid, including Mark Pendlington, New Anglia LEP Chair and Andy Wood, CEO of Adnams. The audience of business leaders challenged them to justify the case for business. Concerns included the elected mayor, adding another layer of government, and the Government’s motivation for Devolution.

In response, Mark Pendlington said: “This is about bringing local control and local decision-making here and having business around the table, not just influencing decisions but voting on their priorities.”

He insisted that the four authorities (Norwich, Breckland, North Norfolk and Great Yarmouth) which rejected devolution would not be left behind. “It’s not us against them, and we are not going to say that none of the money is going to come to those parts of Norfolk,” he added.

Andy Wood, who chaired the negotiations with Government, advised that East Anglia should follow the lead of other devolved regions. “This is happening. I don’t think we can afford to be left behind, even if we don’t like some bits of it,” he said.

Also speaking at the event was Chamber President, Jonathan Cage who said: “Norfolk Chamber is backing Devolution. There are so many benefits for business and the local community. Norwich and Norfolk will drop down the rankings, when compared to other regions, if we don’t take advantage of all opportunities.”

The Norfolk & Suffolk Devolution deal would bring £25m a year over the next 30 years to spend on new roads, transport links and a further £100m over the next 5 years for affordable housing. Norwich and Ipswich would receive an additional £30m each over the same period.

Emphasis was put on how important the support of the business community will be to the awarding of the Devolution deal. The call to actions was for those businesses at the meeting to sign the Devolution letter and for as many Norfolk businesses to take part in the consultation by completing an online survey by the deadline of 23 August 2016.

Take part in the survey now

The latest group of Future50 companieswere revealed at a launch event at OrbisEnergy in Lowestoft this week.

We were delighted to learn that no fewer than eight of our incredible members had beenrecognised and selected as part of the 2016 Future50!

Future50 Chamber Members:

• B2B Cashflow Solutions Ltd-Aprivately owned and independent commercial finance, business banking and financial project management consultancy.
• Creative Sponge Ltd-Advertising. Branding.Marketing. Design. Digital.And all the rest.
• Diesel Dynamics Ltd-DDL specialises in providing dual-fuel systems for diesel-engine applications including agricultural machinery, plant, commercial vehicles, generators and marine craft.
• Finn Geotherm UK Ltd– Specialist heat pump and heat recovery company based in East Anglia,with installations teams covering the whole of England and Wales.
• Lintott Control Systems Ltd– Leading innovative designer and manufacturer of engineered Chemical Dosing systems, Intelligent Process Control Systems and Supervisory Control andData Acquisition Systems across numerous industrial sectors.
• Norfolk Norfolk Railway Plc-Heritage Steam railway operating from Sheringham to Holt via Weybourne. Provides attraction for tourists and local residents.
• Swarm Apprenticeships Ltd-Swarm connects entrepreneurial young people with business owners.
• Thunderbrook Equestrian Ltd– Aequine feed and herbal supplement company.

Future50 is an exciting new business growth programme that’s designed to recognise Norfolk and Suffolk’s most innovative companies.They highlight the region’s ‘ones to watch’ to help them accelerate their growth ambitions through quality business advice, innovative multimedia business suport and access to grant funding.

Click out more about the Future50

The Freight Transport Association (FTA) has said that action by the European Commission on pricing rules for shipping lines will bring the industry into the 21st century.

New legislation on General Rate Increases (GRIs), recently adopted by the Commission, follows a three-year EU investigation into price signalling by the shipping lines.

The Commission noted that 14 container liner shipping companies have regularly announced GRIs with regard to freight on their websites, through the press or in other ways.

These announcements are usually made three to five weeks before their intended implementation date.

During that time, some or all of the other carriers announce similar intended rate increases for the same route or similar routes. Carriers are not bound by the increases they announce and there is evidence that some of them may align their rates with those announced by other companies.

Carriers involved included China’s COSCO, Taiwan’s Evergreen, Denmark’s Maersk and Germany’s Hamburg Süd and Hapag-Lloyd.

The Commission has raised concerns over the practice of price signalling, which it said could allow companies to co-ordinate their behaviour and may have increased prices on the market for container liner shipping services on routes to and from Europe.

Following the EU investigation, the shipping lines have agreed to significantly change their pricing behaviour and to cease publishing GRI announcements.

The commitments which they have provided have now been made legally binding by the Commission for three years starting on 7 December 2016.

Welcoming the move, the FTA’s Chris Welsh said: “This new ruling will bring transparency to pricing in the liner shipping industry and will hopefully remove the need for our members to resort to court proceedings for competition damages.”

A free trade deal between the EU and Canada has moved a step closer after the European Commission formally proposed that an agreement between the two should be signed.

Described by Trade Commissioner Cecilia Malmström as a milestone in European trade policy, the Comprehensive Economic and Trade Agreement (CETA) is the most ambitious trade deal ever concluded by the EU.

With CETA removing the majority of customs duties, EU firms will potentially save hundreds of millions of euros each year in duty payments. Removing customs duties will also benefit European consumers, by reducing prices and increasing the range of products imported from Canada.

The agreement will also introduce mutual recognition of conformity assessment certificates for a wide range of products, from electrical goods to toys. To obtain a certificate valid for Canada, EU firms will therefore have to get products tested only once – in Europe.

CETA will also boost trade in services, with new opportunities available for EU companies working in a range of sectors including maritime services, telecommunications, engineering, environmental services and accountancy.

The deal will make it easier for service suppliers to travel between the EU and Canada and will facilitate the recognition of qualifications for regulated professions such as architects, accountants and engineers.

EU companies will also be able to bid for public contracts in Canada at all levels of government: federal, provincial and local. Canadian authorities will publish all relevant calls for tender on a single website, making it easier for European firms to identify opportunities.

Assuming the EU Member States agree, it will be possible to provisionally apply CETA this year, before it formally enters into force.

Further information about the agreement can be found at theEuropean Commission website.