Chamber News

Norfolk County Council’s partnership with BT has given 185,885 mainly rural homes and businesses access to fibre-enabled broadband, ahead of schedule and under budget.

Originally due to finish this December, it was announced today (Friday, 30 October) that the first Better Broadband for Norfolk (BBfN) programme contract completed three months early, reached more properties than anticipated and made significant savings.

More than 80 per cent of households and businesses in the county can now buy a superfast broadband service (24 Megabits per second and above), nearly double the number who could receive these speeds three years ago before the BBfN programme got underway.

The money saved as part of the first contract will now be reinvested in the next phase of the BBfN programme, which is due to bring faster broadband speeds to even more remote parts of the county. Planning work is already underway and the first services are due to be available from December 2015.

The first areas set to benefit from the second BBfN contract are parts of Burgh St Peter, Barnham Broom, Barford, Bawdeswell, North Creake, Dereham, Ashwellthorpe, Bradwell, Gorleston, Great Yarmouth, Shropham, Hanworth, Starston, Harleston, Hickling, Sea Palling, Thuxton, Cawston, Bradenham, Southrepps, Gunthorpe, Ridlington, East Ruston, Weasenham St Peter, Little Fransham, Topcroft, Woodton and Wymondham.

Faster broadband services for these areas are set to become available by the end of March 2016.The new roadside fibre broadband cabinets serve very localised areas, usually parts of towns and villages rather than whole communities.

Caroline Williams. Chief Executive of Norfolk Chamber said:

“The early completion of the first Better Broadband for Norfolk programme is very good news for our region. However to ensure that Norfolk businesses can be truly competitive on both the national and global stage they need to have access to even better superfast broadband. We also need to see the majority of Norfolk businesses being able to access to superfast broadband in the city, the market towns and the rural villages.”

George Nobbs, Leader of Norfolk County Council, said:

“Improving the broadband reach across the county is absolutely vital to our twin ambitions of improving infrastructure and creating real jobs. It makes Norfolk more attractive to relocating businesses and supports Norfolk’s growing hi-tech business sector. It also helps flexible and home working to reduce business costs, and supports our population gaining skills, accessing services they need and staying connected to the wider world.”

Digital Economy Minister Ed Vaizey said:

“Our rollout of superfast broadband across Norfolk has been a tremendous success so far, reaching more homes and businesses than originally forecast and finishing the first stage three months earlier than planned. The next stage will see even more properties get access to superfast broadband and I congratulate Better Broadband for Norfolk on their excellent progress to date.”

The original BBfN contract was signed in December 2012 after the council pledged a total of £15 million to the scheme. This was matched by the Government and BT made an £11 million contribution in Norfolk towards the cost of installing the fibre infrastructure in addition to covering the ongoing costs of supporting and maintaining the network. In Norfolk a £17.9 million deal to extend the original BBfN programme was signed by Norfolk County Council and BT earlier this year, funded by the Government, New Anglia Local Enterprise Partnership, Norfolk County Council and BT. Once installation work on both the first and second contracts is completed, it is expected that coverage of fibre broadband will reach 90 per cent of Norfolk premises.

And even more investment is planned. An extra £7m has been committed by five of Norfolk’s district councils – Breckland, Broadland, King’s Lynn and West Norfolk, North Norfolk and South Norfolk – and central Government to help Norfolk further contribute to the Government’s national target of making high-speed broadband available to 95 per cent of UK homes and businesses by the end of 2017. In addition, around £5.3m has been made available by BT as a result of Norfolk’s success in delivering higher than expected fibre broadband take-up from local households and businesses.

The high-speed network installed by BT’s local network business, Openreach, is available on an open, wholesale basis to all communication providers, therefore offering Norfolk households and businesses the benefit of real choice from a highly competitive market.

People can check whether their home or business can receive superfast broadband by visiting the Better Broadband for Norfolk website which is updated as new broadband services become available.

The responses from Norfolk businesses in the last quarter (Q3 2015) represented 37% of the total responses provided by the East of England. This was an increase of 7% on the Q2 response rate. The more businesses that take part – the louder the voice of the Norfolk business community will be.

The British Chambers of Commerce, together with the accredited Chamber Network, including Norfolk Chamber, run Britain’s most influential private business survey – the BCC Quarterly Economic Survey (QES).

The next fieldwork period for the QES will start on Monday 09 November 2015 and will be open for 3 weeks. But why should your organisation take part? Below are just a few of the reasons why you should take part in this important economic survey:

1. The QES is Britain’s biggest, and longest-running, private business survey.
2. It’s provided consistent data since 1989, and regularly receives over 7,000 business responses. Compare that to the average business survey, which garners a few hundred responses.
3. Norfolk responses represent 37% of the responses from the East of England. (East of England includes: Norfolk, Suffolk, Cambridgeshire, Essex, Hertfordshire and Bedfordshire).
4. It’s a leading indicator – often picking up big changes in the economy long before other surveys or official statistics.
5. The Bank of England’s Monetary Policy Committee uses the QES as one of its key benchmarks when setting interest rates.
6. HM Treasury and the independent Office for Budget Responsibility use the QES to put together their forecasts for the UK’s economic performance.
7. The European Commission uses the QES to assess the health of the UK economy when it makes policy recommendations for both Westminster and Brussels.
8. The Organisation for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF) use the QES when comparing the UK to competitors worldwide.

Details of the Norfolk QES results from Q3 2015 can be found on the Policy Section of the Chamber website. Historic Norfolk QES results can also be found in this location.

So what can your business do to contribute to the QES? During the fieldwork period, the survey can be completed electronically. There are several ways to access this online survey either:

• Visit the Chamber website under the QES section
• Use the link within the Chamber Policy news article
• Use the link that the Chamber can send direct to you

To be added to the Chamber’s QES email list, please contact Nova Fairbank or Jack Edwards by no later than lunchtime on Friday 06 November 2015. Emails: [email protected] and [email protected].

The online survey takes less than 3 minutes and your input is vital to help ensure that Norfolk business has a strong collective ‘voice’.

The British Chamber of Commerce in the Czech Republic along with Deloitte and UKTI are holding a webinar which will focus on opportunities related to M&A in industrial manufacturing in the Czech Republic.

The topics to be covered:

• Why is the Czech manufacturing sector attractive for UK companies
• How can UK companies access it (greenfield vs. acquisitions)
• What is the typical industrial M&A deal rationale
• How to structure a deal in the Czech Republic
• Case studies of industrial manufacturing deals

The webinar will take place on Wednesday 4 November 2015 at 10.00am (UK time).

For more information and register please click here

Ahead of the Chancellor’s Spending Review and Autumn Statement announcement on Wednesday 25 November, the Norfolk Chamber of Commerce with the British Chambers of Commerce (BCC) is urging the government to fix the deep-rooted structural issues facing the UK economy.

While the Norfolk economy continues to grow at a good pace, the slightly weaker numbers recorded in the BCC’s latest Quarterly Economic Survey, combined with major uncertainties over China and a continued weakness of the eurozone, are a stark reminder that the Norfolk’s economy remains in need of care and encouragement. Business wants three structural issues to be at the heart of the Spending Review:

• Fixing a dysfunctional business finance system
• Delivering business infrastructure fit for the modern age, including promised investments in road and rail schemes, long term energy security at lowest cost and upgrading our digital infrastructure
• Closing huge and worrisome skills gaps, to help young people succeed in tomorrow’s workforce and enable businesses to compete on the global stage

Caroline Williams CEO Norfolk Chamber, said:

“For decades, successive governments have created and disbanded a raft of business support programmes. The limited resources at the Chancellor’s disposal should target the structural issues that are holding us back – in training, infrastructure and finance.

“Norfolk Businesses broadly support the devolution of powers to local areas in England. If done properly, it can drive greater efficiency, accountability, and better results. However devolution must be done for sound business reasons, and not just for political gain. All devolution proposals should have a test, measuring their impact on businesses, before they are taken into legislation. There should be no business taxation without representation.”

The British Chambers of Commerce (BCC) has written to the Chancellor and set out what they see are the fundamental issues which reflect those of the Norfolk Chamber. See submission here

The BCC’s Spending Review submission outlines a business blueprint for the role of the state, and recommends that central government spending prioritises three areas:

• Delivering fundamentals outlined above, that are vital to supporting growth and productivity, including infrastructure, skills, and a stable tax system
• Intervening where market failure exists, such as improving regulatory oversight to support growth and accepting a role for the state in addressing structural issues such as access to finance
• Facilitating the development of markets that are vital to our economic future, including critical intervention in science and research, which underpin tomorrow’s business prospects

John Longworth Director General of the BCC said:

“Given that some areas of expenditure are ring-fenced, the challenge of delivering the remaining £20bn of fiscal consolidation must not be understated, and our ability to generate sufficient tax receipts has been hit hard by the recession.

“Businesses do support a leaner state overall. However it is unacceptable that programmes that do little to boost UK output are being protected at the expense of capital investment, the maintenance of key infrastructure assets, investment in skills and business access to finance. Fixing our productivity problem requires significant investment in people and infrastructure. Anything less and we will struggle to put our economy on a strong footing.”

Specific measures in the BCC submission include:

• Additional funding to clear the backlog of local road maintenance. A functional road network would result in fewer business hours lost queuing in roadworks and congestion (£1.4bn pa in additional spending)
• Safeguard the upgrades to the UK’s railway network (safeguarding £7.6bn pa budget)
• Ensure that any “national infrastructure plan” investment does not contribute to the debt target, meaning that central government expenditure is not burdened
• Invest in ultrafast broadband, including taking the lead in the introduction of 5G technology (£375m pa in additional spending)
• Improve HMRC service to business by match-funding investment in tax avoidance with investment in support and advice (£160m pa in additional spending)

Real terms protection of science and research budgets, and measures to protect IP, and translate this into practical application for the benefit of British business and the UK economy (safeguarding £4.9bn pa budget)

• GDP grew by 0.5% in Q3 2015, compared with growth of 0.7% in Q2
• Services output increased by 0.7% on the quarter, production grew by 0.3%, but construction output plunged by 2.2%

Commenting on the preliminary UK GDP figures for Q3 2015, issued yesterday by the ONS, David Kern, Chief Economist at the British Chambers of Commerce,said:

“The main reason for the slowdown was the sharp fall in construction, a sector which is traditionally volatile and erratic. However, our strong services sector continues to keep the recovery on track.

“Our economic growth remains unbalanced. Although total production is slightly up, expansion in the extractive industries masked a further 0.3% decline in manufacturing output. The trade deficit also widened in this quarter, and we are still heavily reliant on consumer spending.

“Nevertheless, it is good news that real GDP is now 6.4% higher than the pre-recession peak in early 2008. What we need now is further measures to boost growth to support the recovery, with particular emphasis on exports and infrastructure investments. Fixing the fundamentals will place the economy on a surer footing.”

Norfolk Chamber of Commerce is proud to once again support the Lord Mayor’s Awards, and in particular sponsor the Customer Care Award. Helping businesses find new customers, and develop existing relationships, is at the core of Chamber activity. We’ve been providing help and support for the region’s commerce since 1896; always owned and directed by our business members, and always there for businesses of all sizes, and in all sectors.

Heather Garrod, President of West Norfolk Chamber Council said:

“West Norfolk’s businesses have always demonstrated the tenacity and resilience to survive in challenging times, and the innovation and attitude to flourish in brighter days. New technology will provide new opportunities to deliver even better customer care, but established concepts and beliefs, rooted in sound business practice, will underpin the level of customer experience that defines a successful business.

The challenge, to deliver such a level of customer care that is worthy of this award, has never been more demanding. Businesses in our region have raised their game to the highest levels and we are looking for those businesses who stand out above the rest. We are thrilled to be sponsoring this year’s Customer Care Award. It’s never been a more important barometer of West Norfolk’s commercial climate. “

For businesses domiciled in the Borough of King’s Lynn and West Norfolk, there are 9 categories to enter this year:

• Mayor’s Business of the Year
• Business Person of the Year
• Customer Care Award
• Apprentice/Trainee of the Year
• Independent Retailer
• The Community Event of the Year
• Contribution to the Community
• Small Growing Business (Up to 5 years)
• Leisure & Tourism Award

To view the criteria for the categories and to nominate a business online click here.

The closing date for nominations is 5pm on Friday 27 November 2015. The winners will be presented with their awards at a black tie dinner on the evening of Friday 4 March 2016 at the King’s Lynn Corn Exchange.

Commenting on the European Commission’s Single Market Strategy, Caroline Williams, Chief Executive of Norfolk Chamber said:

“At present the EU single market in services exists in name only – to the particular detriment of the UK, Europe’s services powerhouse.

So whilst the European Commission’s drive to make the overall market a more flexible and fairer place to operate is welcomed, Mr Juncker’s plan will be judged on whether a true single market in services and e-commerce emerges.

The European Commission’s new internal market strategy is heavy on measures, many of which appear more cosmetic than substantive. At first glance, it seems less than revolutionary. Firms in Norfolk, the UK and across Europe will hope it is not as light on real actions that make doing business easier.

Business enthusiasm depends entirely on whether these proposals make it easier to trade freely across borders.”

The State Visit to the UK of China’s President Xi Jinping is set to see the completion of a number of wide-ranging trade and investment deals.

Said to be worth £30 billion and credited with creating nearly 4000 jobs across the UK, the latest agreements are in addition to £14 billion worth of deals signed at the UK-China Business Summit last year.

Sectors set to benefit from deals being signed during the visit of the Chinese President include retail, energy, health and technology, financial services, aerospace, the creative industries and education.

It is also anticipated that agreements on commercial opportunities will see British and Chinese businesses forge stronger links.

UK companies looking to expand into China are expected to benefit from new export opportunities, with the retail sector alone said to be in for a £1 billion boost in export deals which will see British companies expanding into the Chinese market.

At home, the UK’s regions will benefit from Chinese investment, according to Ministers. Prior to the State Visit, Chancellor George Osborne showcased a selection of £24 billion worth of investment opportunities in the North of England.

The Northern Powerhouse will enjoy Chinese backing for infrastructure and regeneration investment projects such as the Atlantic Gateway (a series of projects connecting the Port of Liverpool to the City of Manchester) and Science Central (a cutting-edge development in Newcastle).

The State Visit will also provide an opportunity for the UK and China to discuss how they can better work together on global issues such as terrorism and extremism.

The European Union’s drive to complete trade deals across the world has continued with news that the European Commission has opened trade negotiations with Tunisia.

Announcing the launch of the talks, the European Commissioner responsible for trade, Cecilia Malmström, said that the EU wants to mark its support to the political and economic reforms in Tunisia by creating an ambitious partnership on trade and investment matters.

Negotiations will aim to reach agreement on what the Commission calls a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Tunisia.

The talks, which started on 19 October in Tunis, will build on an existing free trade area under the Euro-Mediterranean Association Agreement. Signed in 1995, the Association Agreement focuses mainly on trade in goods. Tunisia was the first Mediterranean country to sign such a deal with the EU.

The new DCFTA will broaden the scope of relations between the two parties to include provisions on a full range of regulatory areas of mutual interest. They include trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, investment protection, public procurement and competition policy.

Liberalisation of trade in services and establishment and of trade in agriculture will also be covered.

EU exports to Tunisia are dominated by machinery and transport equipment (34.9%), fuels and mining products (14.4%), textiles and clothing (12.4%) and chemicals (7.7%).

Machinery and transport equipment (38.1%) are the EU’s main imports from Tunisia, followed by textiles and clothing (24.9%) and fuels and mining products (14%).

In 2012, 62.9% of Tunisia’s trade was with the EU, and in 2014 total trade between the two was worth some €20 billion.

Norwich City Council have released their latest economic barometer. The report shows that the Office of National Statistics reported that Government borrowing fell in the first six months of the financial year and historical data shows that Britain has experienced the strongest recovery of any G7 leading national in both 2013 and 2014.

Business optimism has increased for the first time since February and employment in the region is rising as firms expect growth to continue into 2016 according to BDO.

The latest Markit/CIPS survey data shows that the UK service sector continued to experience a slowing rate of growth, however the construction sector continued to grow, which has been attributed to the easing of pressure on the building materials supply chain.

Weekly wages in the private sector are now growing at an annual rate of 3.6%, which is more than three times the rate of the public sector. A recent FSB survey showed that 38% of small companies expected the plans for the new minimum wage to have a negative effect on their businesses.

A study by ResPublica showed that more people are renting from private landlord than at any point in the last 30 years. 22% of tenants are renting from private landlords and only 9% from public.

For full details of the latest economic barometer click here.

Norfolk County Council is to hold a fresh special meeting of the Council following a legal challenge to its decision to find an extra £9.9m for Norwich Northern Distributor Road. The meeting will be held on Friday 6 November (10.30am) at County Hall, Norwich.

On 2 September the Council voted by 59 votes to eight, with three abstentions, to accept offers by the Department for Transport and New Anglia LEP of £10m each towards a £29.9m increase in the cost of the NDR, and for Norfolk County Council to find the remaining £9.9m.

However, on 1 October a representative of the Wensum Valley Alliance announced a legal challenge to the way the Council reached this decision, and subsequently lodged an application for permission to seek Judicial Review on the basis that councillors were given ‘misleading information’.

Rather than contest this challenge, which could delay and increase the cost of the NDR, the Chairman of the Council, Cllr Rex Parkinson-Hare, has agreed to a further Extraordinary Meeting of the Council, which will be heldon 6 November. This will bring back the matter to members of the Council, to confirm they are taking the decisions with the requisite information before them.

At the meeting of the Council on Monday, 19 October, Council Leader George Nobbs warned Members that this further meeting might be necessary. He said the estimated cost of delay in construction of the Northern Distributor Road was around £0.5m a month.

Hear a quick policy update from Adam Marshall, Executive Director of Policy & External Affairs at the British Chambers of Commerce (BCC). He outlines his disappointment at the Competition and Markets Authority investigation report who appear to have ‘pulled their punches’ on the investigation into the SME banking market.