Chamber News

Ahead of the Chancellor’s Autumn Statement and Spending Review on Wednesday (25 November), the British Chambers of Commerce (BCC) demands greater clarity over the scale and scope of the government’s proposed apprenticeship levy.

In a letter to key Ministers, the leading business group has called on the government to address ambiguity over the levy, which has led many firms to put their investment and training plans on hold. The BCC is concerned that the apprenticeship levy is effectively an additional ‘payroll tax’ on large firms, to be used by government to reach its apprenticeship target.

Since the announcement of the levy, there has been no further information on how it will work, what the rate will be and how it will be set, or even a definition of what constitutes a ‘large employer’ responsible for paying it. This has led to huge disquiet among small-and medium-sized companies who fear that they may yet fall within the scope of this new tax.

The government’s levy is supposed to help tackle skills shortages reported by business. However, many companies of all sizes are concerned about the perverse effects this new measure could have on other aspects of business, such as cash flow and existing training plans.

Commenting on the BCC letter to key Ministers, Caroline Williams, Chief Executive of Norfolk Chamber said:

“Norfolk businesses are keen to support young people and they see apprenticeships as a key driver to delivering the workforce of the future. The business community is seeking clarity as to how the apprenticeship levy will work and many are putting training and investment in our young people on hold until they fully understand the implications of the apprenticeship levy.”

Also commenting, Dr Adam Marshall, Executive Director of Policy at the British Chambers of Commerce (BCC), said:

“Businesses want to tackle skills shortages and drive up productivity, but the apprenticeship levy risks having the reverse effect.

“A lack of clarity around the scope, rate and scale is having a huge impact on business confidence. Many firms have decided to put training and investment on hold, and are concerned about the knock on effects of the levy on their cash flow, existing training schemes, and the bottom line. It’s important that this levy doesn’t undermine other types of vocational training, which could be better suited to some businesses.

“While businesses back the government’s drive to boost apprenticeships, they have real concerns about the current approach. The government must focus on improving the quality of apprenticeships to make them more attractive to employers, and provide clarity on how they will be paid for as soon as possible.”

Further overnight closures of theoriginal bridge over the A47 at Postwick will take place next week to allow surfacing work to be carried out as part of the major junction works that are nearing completion.

The bridge will be closed to all vehicles from 8pm to no later than 6am on the nights of Monday 23 November, Tuesday 24thand Wednesday 25th. The next two nights (26th and 27th)may also be used if work has not been completed.

Traffic will be diverted via the new bridge over the A47 and the Postwick Hub access roads. The A47 itself will not be affected beyond the normal restrictions through the Postwick road works.

The off-peak closure of the old bridge to southboundtraffic will continue through next week between 9.30am and 3.30pm.

Norfolk County Council apologises for any inconvenience caused by these closures.

UK manufacturing companies can benefit from a new guide aimed at increasing awareness of the benefits and opportunities of exporting.

Britain’s global adventure: The export opportunity highlights the experiences of four manufacturing companies that are successfully exporting.

Published by EEF, the manufacturers’ organisation, to coincide with the launch of the Exporting is GREAT campaign, the guide also emphasises the range of Government support available to help potential exporters.

Among the four companies featured are BM Catalysts, which manufactures catalytic converters and diesel particulate filters, and Naylor Industries, which makes a range of building and construction products.

The latter exports to 65 countries, with exports making up about 10% of its sales.

Chief Executive Officer Edward Naylor says that trade shows are one of the main ways the company secures overseas orders, and that trade missions are critical for understanding a country’s export potential.

The experiences of contract manufacturer of orthopaedic instrumentation Sheffield Precision Medical, and precision measurement equipment manufacturer Third Dimension Software are also highlighted.

With exports now accounting for 86% of Third Dimension’s turnover, John Kane, the Bristol-based company’s Chief Business Development Officer, described exporting as a real success story.

In his experience, Mr Kane said, there are a lot of resources available to assist companies with exporting, but awareness of them is low.

“If manufacturers realise that there is help out there and they could go and ask for it,” he went on, “it would make a big difference to their ability to create an overseas footprint.”

The new guide not only explains the benefits of exporting, but also includes a Q&A section which aims to answer most of the questions commonly asked about exporting, including issues about resources, languages, market research, and foreign product standards.

The 52-page guide can be accessed on the EEF website

On Friday 20th November over 120 delegates joined the Norfolk Chamber for a morning of learning from and connecting with Norfolk Schools at Holiday Inn Norwich North. Delegates heard from seven different schools with the main focus being upon Simon Fox, Principal at Flegg High School and the Young Chamber Executive Committee from Aylsham High School.

The morning was kindly sponsored by one of our Gold Patrons – Norse, Justin Galliford from Norse spoke to everyone and explained how the key to finding good people in business is to bridge the gap between education and the work place. The event was hosted by Matthew Hudson, ITV Anglia, who took delegates through a busy morning of icebreakers, breakfast, presentations, group discussions and networking. The delegates started with an appropriately themed icebreaker ‘First or Worst Jobs’ which got people thinking about their own career paths and started conversation with other delegates on their tables. We had some very funny results including collecting eggs on a chicken farm and hand modelling, overallit created a great atmosphere in the room.

After this it was then time to hear directly form the Schools, Simon Fox, Principal at Flegg High School spoke first about the challenges and opportunities in education, referring to education as a glacier as its slow moving but ever changing. He touched upon the issues that teachers face with the curriculum as subjects such as coding are becoming more common they are looking to the business community to guide their teachings. He emphasised that trust and communication between education and businesses is important in both directions as we can learn from each other.

Following this we briefly heard from the heads of local schools. Five school leaders joined us on stage to give us a quick overview of how they work with the business community; Steffan Griffiths from Norwich School, Fiona O’Hara from St Nicholas House Prep School & Nursery, Kirsty Von Malaisé from Norwich High School for Girls, Gill Hipwell from Harleston Cluster and Peter Collins from Reepham High School. We had a range of topics come up including careers fairs, work experience opportunities, organising a symposium for Women into Business, realising the worth of your local schools and connecting to young people before they make their GCSE choices at high school. All speakers had just 1 minute on stage to speak to the delegates, despite the short time slot we got some really valuable information from the speakers.

Our final speakers of the morning was the Young Chamber Executive Committee from Aylsham High School, who were introduced by one of their teachers – Emmalucy Auber, who also is head of the committee. The Young Chamber gave an impressive presentation which was highly praised by the audience. They explained what a Young Chamber is, what they get up to in Aylsham High School and when they work with businesses. Delegates commented that it was very good to hear directly from the students and hear their perspective about what really works when connecting business and education and how they have been inspired in the past by businesses.

For the last part of the event we handed the reigns over to the audience to get their thoughts, opinions and feedback on careers fairs, work experience and generally how to connect with schools. During the 20 minute session we had all delegates talking to the schools on their tables about how to move forward with what they had learnt in the event so far. The audience provided their feedback on post-it notes on a board and by the end of the 20 minute session we had a board full of ideas and an audience full of ideas and discussion.

To finish the event, our host Matthew Hudson selected a few of the feedback ideas and got the delegate to elaborate, giving the whole audience a chance to record other people’s ideas and input.

To readmore about the Young Chamber policy campaign, click here.

As the Department for Communities and Local Government revealed that the Treasury collected £21.6 billion in business rates in 2014-15, the British Chambers of Commerce (BCC) is calling on the government to take action to fix the fundamentals of a broken and outdated system.

In October this year the government outlined plans to devolve significant control over business rates to local areas, which would see local councils retain all the revenue they collect in rates, and gain new powers to vary rates in some circumstances.

For business, the focus on changing ‘who controls what’ is wrong – as the government has still failed to address deep-seated problems with the outdated business rates model. There is also no clarity on the status of small business rates reliefs that are currently due to expire at the end of this financial year in April 2016.

In June the BCC called for a new rates system that, while still property-based, had the following features:

• a light-touch annual revaluation regime, to stop businesses being hit hard by an increase every five years;
• the removal of plant and machinery, and micro-generation, from the ratings system, which discourages businesses from investing in their premises;
• the permanent abolition of the annual uplift multiplier, which doesn’t take into account the performance of businesses; and
• the publication of a business taxation review with forward plans for implementing a new regime with a reducing share of business rates revenue as a proportion of overall business taxation.

Caroline Williams, Chief Executive of Norfolk Chamber said:

“The current business rates system discourages investment in premises improvements, plant and machinery, and places a crippling financial burden on many Norfolk businesses.

“We are long overdue meaningful reform of the operation and administration of business rates. Norfolk Chamber welcomed the announcement of a review in the 2014 Autumn Statement, but a year later, ministers and officials are still reluctant to engage on matters of substance or offer clarity around the process and timings.”

Dr Adam Marshall, Executive Director of Policy at the British Chambers of Commerce, said:

“Reform of the business rates system has stalled. Ministers have focused too much on devolving rates powers, and too little on addressing the deep-rooted failings of an outdated and poorly-designed system that hits companies hard before they turn over a single pound.”

Trade statistics for September show that the UK’s deficit on trade in goods and services was £1.4 billion in September. Published by the Office for National Statistics (ONS), the figure represents a narrowing of £1.6 billion from August 2015.

The ONS attributes the reduction to an increased trade in goods, with exports increasing by £0.6 billion to £24 billion in September. Imports of goods fell by £0.9 billion to £33.3 billion over the same period.

Overall, the deficit in trade in goods fell from £10.8 billion in August to £9.4 billion in September.

Despite the fall in September, overall figures for the last quarter (Q3) reveal a deficit on trade in goods and services of £8.5 billion. That represents a widening of the deficit by £5.1 billion compared with Q2.

For the trade in goods, the difference between the two quarters (April to June and July to September) was attributed to a £6 billion decrease in exports to £70.1 billion, and a £0.1 billion fall in imports to £102.3 billion.

Trade in services registered an increase in the deficit between Q2 and Q3 of £0.8 billion (hitting £23.6 billion), due to a fall in imports of 2.4%.

Commenting on September’s figures, the British Chambers of Commerce (BCC) Chief Economist, David Kern, said the quarterly picture was disappointing and confirmed the BCC’s assessment that the improvement recorded in Q2 was only temporary.

The UK needs a national strategy to help exporters, he added.

Details of the UK Trade statistics for September 2015 are available on the ONS website.

Ahead of the Autumn Statement next week, the Norfolk Chamber of Commerce supports the British Chambers of Commerce ( BCC) who has today (Wednesday 18 November) called for tax administration to be a key part of the government’s drive to cut regulation by £10bn this Parliament.

The BCC has written a letter to key cabinet ministers, calling on them to tackle the spiralling cost of tax administration that is holding back British business:

1. Reduce the number of changes to business tax rules by:

• a) Making business tax administration changes subject to Regulatory Policy Committee scrutiny, which would ensure tax changes are properly assessed before being imposed on businesses;
• b) Subject tax administration measures to the government’s ‘one in, two out’ rule, to make ministers think twice about making changes

2. Economic regulators in the UK are subject to a Growth Duty and regular reporting. HMRC should have to do this as well, given its sprawling impact on business and economic performance.

In its submission to the Spending Review, the BCC called for investment in HMRC support for business users, equivalent to the amount spent on improving enforcement. With HMRC recently announcing the restructuring of HMRC tax offices, the BCC further states that HMRC should simplify the tax system, promoting good compliance with tax obligations that would ultimately benefit both business and the Exchequer.

Commenting, Caroline Williams CEO Norfolk Chamber of Commerce said:

“The cost of complying with the UK’s ever-more complicated tax code has rocketed up the list of Norfolk business complaints in recent years.

“Ministers need to put a brake on the number of changes to tax administration and compliance rules, much as they have done with other forms of regulation in recent years.

“HMRC is under a lot of scrutiny from business and individual taxpayers at the moment, and rightly so. By taking steps to reduce the number and frequency of changes to tax rules, the government would at a stroke make a big improvement to the prospects for business.”

A webinar is being organised by UKTI which will provide an overview of the export opportunities available to UK companies in the Kuwaiti Food and Drink sector, and to give an insight into the specific needs and expectations of the local market.

The State of Kuwait imports the bulk of the needs of the population of consumer goods, food and beverages. The Kuwaiti food retail market may not be the biggest in the region, however its profit margins remain healthy; with wholesalers expecting margins of 25% and distributors looking for profits between 10% and 15%.

The webinar is taking place on Tuesday 1 December 2015 from 13.00 to 14.00 (GMT) with guest speaker Mr Garry Walsh, Chief Executive Officer, Mezzan Holding Company who will cover:

• Kuwait’s Food aznd Drink Market
• Export Opportunities for UK Companies
• Tips and Recommendations
• Q & A Session

Please click here if you would like to book for this webinar

The latest figures from the Office of National Statistics showed that unemployment had fallen by more than 100,000 to its lowest level in over 7 years, while the number of people in work reached a record of 31.2 million. This is 419,000 more than the previous year and up by over 177,000 in the three months from July to September 2015.

Average earnings increased by 2.5% in the year to September, down by 0.3% from the previous month. The employment rate has reached 73.7%, the highest since comparable records in 1971. The youth unemployment rate fell to 14.2% in July to September 2015, compared with 16.0% in three months earlier.

Below is a table showing the latest job seekers allowance claimants over the last 3 months with a comparison to the same time last year:

Job Seekers Allowance Claimant Count

Local Authority

Oct 2014

Aug 2015

Sept 2015

Oct 2015

Breckland

1,070

679

639

624

Broadland

662

494

464

471

Great Yarmouth

1,851

1,416

1,475

1,462

King’s Lynn & West Norfolk

1,270

895

880

825

North Norfolk

662

475

482

466

Norwich

2,214

1,701

1,735

1,717

South Norfolk

768

575

573

571

Commenting on the latest labour market statistics, Caroline Williams, Chief Executive of Norfolk Chamber said:

“This is another strong set of labour market figures with employment rising, unemployment falling and inactivity declining.

“The further fall in youth unemployment is good news but it is still almost three times the national average. The Chamber’s recent Business and Education Survey highlighted ways to address this very issue, including reforming schools careers advice to put employer engagement at the heart of it, and embedding the soft skills employers value within the school curriculum.

“While the Norfolk and UK economy remains solid, we can’t rest on our laurels when the international background is becoming more uncertain. Norfolk businesses need stability, supported by low interest rates for the medium term.”

On Thursday 12th November, over 90 members joined us for a Business Breakfast at the Great Yarmouth Town Hall. The venue provided a great setting in the spacious Assembly Room where delegates networked over coffee and breakfast, followed by two presentations discussing the event theme; Trends in the Energy Industry.

In true chamber style, the morning kicked off with a networking activity that was sure to test how awake the delegates were and highlight the energy industry buffs as we got them to solve the Missing Vowel Quiz.

The event was hosted by the President of Great Yarmouth Chamber Council Andy Penman, who was passionate about the subject matter and content provided by our featured speakers Johnathan Reynolds, Nautilus Associates and Joanna Young, ScottishPower renewables.

Two great presentations were delivered by these industry experts, which are now available to view on the event page at your leisure.

Johnathan offered a local energy industry update, complete with some interesting and revealing statistics, whilst Joanna (having stepped in last minute to replace her colleague David Rowland), informed the delegates of the EA1 Offshore Wind Project which is rapidly progressing and subsequently creating many opportunities within the region.

We closed the event with a short Q&A, after which, many delegates took this opportunity to talk further with the speakers and get in some final networking to make those all-important contacts.

Here’s what some of the delegates tweeted about the event:

Excellent turn out at the @norfolkchamber breakfast at Great Yarmouth Town Hall. Very impressive venue. #ChamberNetworking

– Mark Watson (@MarkWatsonAKCJ) November 12, 2015

It’s a great #ChamberNetworking morning in sunny #GreatYarmouth @norfolkchamber @edpbusiness @carlagowing #Energy #Trends #EmploymentLaw

– Hatch Brenner (@HatchBrenner) November 12, 2015

Does this sound like something you’d like to attend? Book now for our next Great Yarmouth Business Breakfast on Thursday 21st January.

The latest Bank of England Agent’s summary of business conditions for November 2015 was released today.

The summary identified that activity had continued to grow solidly on a year ago but at a slower rate than earlier in the year. The slowdown has been most noticeable in manufacturing.

Weaker overseas demand growth and the strength of sterling has continued to weigh down on exports. This again has affected confidence of UK businesses particularly those in manufacturing.

Labour cost growth has remained modest. Pay pressures were reported to be building in some areas where recruitment difficulties were the greatest, such as professional services and construction.

To read the full report, please click here.

The British Chambers of Commerce Q4 quarterly economic survey (QES) is currently underway. As part of that survey, the Chambers are trying to understand just how much the business community is aware of the recent proposals for a new settlement for the UK within a reformed European Union.

David Cameron formally set out his demandsin a letter to the presidentof the European Council Donald Tusk on 10 November, stating that four objectives lie at the heart of the UK’s renegotiations:

• Protection of the single market for Britain and other non-euro countries
• Boosting competitiveness by setting a target for the reduction of the “burden” of red tape
• Exempting Britain from “ever-closer union” and bolstering national parliaments
• Restricting EU migrants’ access to in-work benefits such as tax credits

Mr Cameron hit back at claims by former Tory chancellor Lord Lawson that the four goals were “disappointingly unambitious”, saying they reflected what the British people wanted and would be “good for Britain and good for the European Union”. The Prime Minister also said: “It is mission possible and it is going to take a lot of hard work to get there.”

The Chamber’s QES can be completed online in less than 3 minutes, including the 2 additional questions asking for your thoughts on the UK’s EU Reform proposals. The survey deadline is 5pm on Monday 30 November 2015.