Chamber News

The UK has voted leave the European Union. Leave vote won with 52% of the vote, whilst the Remain vote was 48%. The Leave vote won by 1,269,501 votes.

The Electoral Commission advised that Britons turned out in huge numbers to vote on their future in the European Union, with 72.2% of registered voters casting their ballots in yesterday’s referendum.

In Norfolk, only the Norwich district voted to Remain, whilst all other areas voted to Leave. Overall in the East of England the Leave vote was 68.8%, with Remain at 31.2%.

Norfolk EU Referendum Results Area Leave Remain East of England 56.5% 43.5% Breckland 64.2% 35.8% Broadland 54.4% 45.6% Great Yarmouth 71.5% 28.5% King’s Lynn & West Norfolk 66.4% 33.6% North Norfolk 58.9% 41.1% Norwich 43.8% 56.2% South Norfolk 51.7% 48.3%

Following this historic result David Cameron has announced that he will be stepping down as Prime Minister. He advised that he will stay on whilst a new Tory leader is elected, but it is expected that he will be gone by the time of the Conservative Party Conference.

Mr Cameron said that it was “not right” for him to be “the captain that steers the country in a new direction”. He went on to say “We must now prepare for a renegotiation with the EU. Above all this will require strong determined and committed leadership.”

More importantly, Mr Cameron said he would not invoke Article 50 of the Lisbon Treaty that will start the process of Brexit – leaving that decision to his successor.

Following the UK’s EU decision, Mark Carney, Governor of the Bank of England, has released a statement. In it he said: “Market volatility can be expected, but we are well prepared for this. The Treasury and the Bank of England have engaged in extensive contingency planning and the Chancellor and I have been in close contact, including through the night and this morning.

“To be clear, the Bank of England will not hesitate to take additional measures as required as markets adjust and as the UK economy moves forward. The bank has stress tested our banks against conditions much more severe than those we currently face.

“A few months ago, the Bank judged that the risks around the referendum were the most significant, near-term domestic risks to financial stability. To mitigate them, the Bank of England has put in place extensive contingency plans. These begin with ensuring that the core of our financial system is well-capitalised, liquid and strong.”

To read the full Bank of England statement click here

Dr Adam Marshall, British Chambers of Commerce Acting Director General, said

“In the wake of the electorate’s historic decision to leave the European Union, the immediate priorities for UK business are market stability and political clarity.

“Some business people will be pleased with the result, and others resigned to it. Yet all companies will expect swift, decisive, and coordinated action from the government and the Bank of England to stabilise markets if trading conditions or the availability of capital change dramatically.

“Firms across the UK want an immediate and unambiguous statement from the Prime Minister on next steps, along with a clear timeline for the UK’s exit from the European Union.

“Firms want help to get Britain back to business at a time of great uncertainty. The health of the economy must be the number one priority – not the Westminster political post-mortem.”

Caroline Williams, Chief Executive of Norfolk Chamber said:

“Norfolk business will want to see a detailed plan to support the economy during the coming transition period – as confidence, investment, hiring and growth would all be deeply affected by a prolonged period of uncertainty. If ever there were a time to ditch the straight-jacket of fiscal rules for investment in a better business infrastructure, this is it.

“Businesses need action to maintain economic stability, a timeline for exit, and answers to their many practical, real-world questions about doing business during and after this historic transition.

“The Norfolk Chamber will be working with local MPs and leaders to ensure that Norfolk business interests are taken into account. We will support our members as we all work through the issues and opportunities which may arise over the coming weeks and months.”

Now that the EU referendum has concluded, the Norfolk Chamber business community would like to see fast-paced decisions to improve the business environment, give confidence and support growth. Norfolk Chamber will continue to support our members as they work through the issues and opportunities which may arise over the coming weeks and months.

The CEO of Norfolk Chamber, together withother Chamber CEOs and the British Chambers of Commerce have already held a virtual meeting to put in place plans to support the needs of the business community whilst the UK transitions out of the EU.

Caroline Williams, Chief Executive of Norfolk Chamber said:

“The business community is facing uncharted waters as the UK now embarks on the process to leave the EU. For many businesses, change will not be immediate, however all firms will face a level of uncertainty in the medium term. Norfolk Chamber, together with the rest of the Chamber network, will be lobbying Government for clarity on infrastructure, funding, housing and skills to ensure that the business community has the economic stability to continue to deliver economic growth and jobs in our region.”

The latest Bank of England Agents’ Summary for Quarter 2 2016 has been published. Key highlights are:

• The annual activity growth rate has remained moderate
• Business services growth has slowed
• Housing market activity has fallen
• Growth in labour costs per employee has risen

Annual turnover growth has remained moderate, with turnover growth easing in the service sector, partly due to decision delays ahead of the EU referendum.

Construction output has remained stable with construction of new industrial property and education facilities remaining sold and more demand for refurbishment of existing commercial space. The housing market activity fell in April and May compared to the heightened activity that was seen in Quarter 1.

Asa result of the introduction of the National Living Wage in April, there has been growth in labour costs per employee. Recruitment difficulties have eased in recent months though they remain higher than normal.

To read the full report click here.

Norwich Chamber Council heard an update from Neil Garner of Whitespace this week on the TechEast initiative. Norfolk Chamber supports Techeast andNeil is the Norfolkmember of TechEast’s Leadership Team.

The Chamber Council’s meeting was held in Whitespace’s offices at St James Mill and members heard how between 2010 and 2014 digi-tech industries grew faster than the rest of the economy and in 2014 they had an overall turnover of £161m. The aim of TechEast is to create ‘one voice’ for technology firms in the East and will link Norwich, Ipswich and Cambridge. It hopes that in succeeding with its manifesto they will create a further 5,000 jobs, generate an extra £650m GVA of economic growth in the East and be one of the UK’s Top 5 tech clusters by 2020.

The September meeting of Norwich Chamber Council will be held at NUA and will look at the incubation centre and what the building can offer and how it is supporting businesses in the digital sector.

Norfolk Chamber has joined politicians and business leaders in reiterating the call for improved journey times between Norwich and London. A joint letter was sent to the Patrick McLoughlin, Secretary of State for Transport reminding him of the delivery promises made by the Chancellor and the Prime Minister ahead of last year’s election.

The main signatures on the letter were Chloe Smith MP and Mark Pendlington, who head up the Great Eastern Mainline Taskforce. Both Norfolk Chamber and Suffolk Chamber were party to the letter and key Norfolk Chamber members who also signed the letter were Bernard Matthews, Aviva, Howes Percival and Anglia Farmers.

Commenting on the much needed rail improvements, Jonathan Cage, President of the Norfolk Chamber said:

“Our region has suffered for far too long with the adverse effect of an inadequate rail service and our priority is to make sure that passengers begin to see the improvements they need, as soon as possible. Norfolk Chamber wants to see the delivery of a comprehensive package of infrastructure improvements by Network Rail; improved rolling stock from the new rail franchisee; and overall journey time improvements, which would see Norwich to London in 90 minutes.”

We have been informed by the Embassy of the Republic of Iraq that with immediate effect the new requirements and regulations for exporting Red Meats to Iraq in any form must comply with the following:

1. All processed fresh red meat should be exported from countries free of Cow Disease

2. All exported red meat should be accompanied with an authorised Health Certificate and legalised by the Iraqi Embassy (Consular Section)

3. Health Certificate of the products includes:

• Suitable for human consumption
• Consumed by domestic population
• Free of cow disease and any other pollution
• Non Genetically Modified (GM) and free of added hormones
• Free of any radiation effects
• Labels to show clearly the production date and validity with a reference

Before the county head to their polling stations, Norfolk Chamber tackled the question on everyone’s minds – whether to stay in the EU or to leave? Europe: The Business Debate saw over 70 delegates attend an interactive panel debate at the Norwich City Football Club on June 10.

Norfolk Chamber’s President Jonathan Cage, Create Engineering, welcomed guests and explained the Chamber’s neutral position on the referendum. The event was hosted by BBC Radio Norfolk’s Nick Conrad who conducted a smooth flowing debate and also brought an element of wit to an otherwise heavy subject.

The event kicked off with a live poll in order to gauge the audience’s initial voting preferences. In contrast to other regional polls, the event poll showed a clear preference with 65% of the audience voting for remaining in the EU. Attendees were then able to hear from both sides of the EU debate with each of the guest speakers providing an opening speech, sharing their views on the vote and how it could affect business.

The expert panel consisted of Stephen Booth co-director of Open Europe, Hussein Kassim Professor in Politics UEA, Chloe Smith Norwich North MP, Stuart Agnew MEP, Derek Wood former Lord Mayor of Norwich and Luke Morris deputy chair for Business for Britain East of England. With so much knowledge and insight present on one panel it enabled the audience to directly get valid opinions on the referendum.

Before the panel Q+A began, delegates were given a short break to allow discussion in order to ready them to face the panel with their all important questions. Panellists then tackled the topics which arose, these include; priorities for change and reform, business regulations, political instability, housing crisis, immigration, TTIP, the economy and the long term implications of the vote.

Numerous key messages came from the panel, Luke Morris campaigning for Britain to leave the EU advised that ‘voters are stepping into uncertainty in whichever box they cross, but unfortunately uncertainty is a fact of life’ whilst stressing the importance of Britain’s ability to make trade deals with countries outside of the EU, advising ‘Getting out of the EU is not going to be the silver bullet to all of our problems but I think it will be a big improvement to where we are.’

The remain panel highlighted the importance of access to a free market, and reminded delegates that the EU supports tackling climate change and provides common security intelligence. Chloe Smith advised ‘To leave the EU would make Britain poorer in GDP terms and poorer in terms of the jobs that are available and to the next generation’, ‘we face a sever shock if we leave which is not worth taking’.

Neutral experts were on hand to either support or deny any allegations made by either side of the debate, Hussein Kassim summarised that ultimately the vote is all about trade-offs, whilst Stephen Booth advised ‘there are challenges on both sides’ noting that the EU still needs reform if we vote to remain in.

After the fast paced Q+A with the panel, the event finished off with another live audience poll. The results showed a 7% increase in votes to the leave campaign, totalling at 42%, however the majority of the audience still voted to remain in the EU.

The closing date for the British Chamber of Commerce Chamber Awards is Friday 24 June.

From local standout to national champion: BCC Chamber Awards will put best of British business on the map.

Businesses from across the country are invited to take part and showcase their talents and achievements through a series of regional heats, culminating in the national final, which takes place in London on 24 November 2016.

Caroline Williams, Chief Executive of Norfolk Chamber said:

“Norfolk companies can boast many areas of business excellence. The Chamber Awards allow us the opportunity to highlight some of our county’s many business achievements and I would encourage any business to showcase their achievements by entering these awards.”

Companies can enter seven categories, covering people development; customer care; business/education; export; and technology.

The Awards will be demonstrating the very best business, highlighting the positive contribution that businesses make to the UK economy and to society as a whole. The categories are:

• Small Business of the Year
• Excellence in Customer Service *NEW*
• Commitment to People Development
• High Growth Business of the Year
• Business and Education Partnership
• Export Business of the Year
• Best use of Technology

The deadline for entries is Friday 24 June 2016, the regional winners will be announced on 19 September 2016, with the national winners being announced on 27 November 2016 at a glittering awards ceremony in London. To enter online click here

NatWest has announced plans to help at least 15,000 UK businesses export their goods or enter overseas markets by 2020.

Working with UK Export Finance (UKEF), the bank aims to provide export finance to help companies secure £2.5 billion of overseas contracts within the next four years.

Alison Rose, CEO of Commercial and Private Banking at NatWest, said: “When companies are ready, doing business overseas can have huge benefits. Businesses only trading in Britain limit their revenue potential to the UK, but each new overseas market represents a new possible source of income.”

She said that the bank will make it easier to trade overseas by developing online tools and more simplified products through digital transformation programme.

It will also work with UK Trade and Investment (UKTI) and other partners to drive UK exports, delivering regional workshops for businesses across the UK and showing firms the specific growth opportunities available to them.

NatWest will also work closely with UKTI and UKEF to make it easier for businesses to apply for schemes and to secure funding for exporting.

Lord Price, Minister of State for Trade and Investment, welcomed the news saying: “The Government and the banking sector share a joint aim – to help budding exporters realise their dreams of building a global business. By teaming up in this way, I hope we can inspire more British companies to take advantage of the world of opportunity out there and to make the most of the worldwide demand for their products, skills and expertise.”

Talks have started to establish a new trade and investment regime between the EU and Mexico, aiming not only to modernise the existing deal, but also to broaden its scope, to reflect similar agreements that both sides have since negotiated with other partners.

Trade relations between the EU and Mexico are currently subject to the provisions of a Free Trade Agreement (FTA) adopted under a wide-ranging Economic Partnership, Political Co-ordination and Co-operation Agreement signed in 1997.

Mexico was one of the first countries with which the European Communities established diplomatic relations over 50 years ago.

The EU is now Mexico’s second biggest export market after the USA, with the main goods exported from the Central American country to the Union being mineral products, machinery and electric equipment, transport equipment, and optic photo precision instruments.

The main services exported by Mexico are in the travel, sea transport, air transport and construction sectors.

Exports going in the other direction include machinery and electric equipment, chemical products, transport equipment and mineral products; services exported to Mexico are mainly in the travel, sea transport, air transport and computer and information services sectors.

The EU is Mexico’s third largest source of imports (8% of foreign trade) after the USA (67%) and China (9%).

It is anticipated that a new deal will further reduce customs tariffs and provide EU businesses with more opportunities to provide services, participate in public procurement and invest in Mexico.

Speaking at the launch of the negotiations, Trade Commissioner Cecilia Malmström described them as a new page in the history of EU-Mexico relations. For more information about EU-Mexico trade, see theEC Tradewebsite.

The holy month of Ramadan begins today (6th June 2016) and will end around 6th July 2016.

During this period the Arab British Chamber of Commerce will adopt, as in previous years, shorter working hours, Monday to Friday (10.00am – 3.00pm).

Equally, all Arab Embassies will also have shorter working hours, therefore, delays in documentation turnaround may be experience.

Furthermore, please note that at the end of the holy month of Ramadan the Embassies will close for several days.

Please do ensure that documents are presented in good time, so as to avoid disappointments.