Chamber News

It looks as if the funding gap which had been identified to get the NDR built is the the process of being resolved

Caroline Williams CEO Norfolk Chamber said “The NDR will bring significant economic benefits to Norwich and Norfolk and the news that a £30m funding gap is close to being closed is good news for local businesses

The increase of cost from £148.5m to £178m it is said was due to construction cost inflation and design changes

The council had hoped the Department for Transport would contribute £15m to plug the gap, while councillors were next month due to be asked, at an extraordinary meeting, to agree to match that with £15m from the authority’s transport budget.

However, a deal has been tentatively forged which would close the funding gap. The government has told the county council it is prepared to contribute £10m, the New Anglia Local Enterprise Partnership (LEP) will consider putting up £10m, which would leave the council to find the final £10m.

The government has already pledged a £67.5m contribution, for the section from Postwick on the A47 to the A140 at Norwich International Airport. It has also given £19m for the Postwick Hub element of the project – with work well underway.

George Nobbs, leader of Norfolk County Council, said: “During the last few years, I have had many reasons to complain about the government, but I have no complaints today.

“If this deal does go ahead, then this will be a generous and far-sighted gesture by the Department for Transport and the Local Enterprise Partnership, of which I am a board member.

“The possible three way split between the council, the government and the LEP would be a model of co-operation for the benefit of all the people of Norfolk.”

Mark Pendlington, chairman of New Anglia LEP said: “This road will deliver more than £1bn in economic benefit for Norwich and the wider economy. It is critical in delivering thousands of jobs, new homes and driving the economic growth we need across our region. We have been talking to the Government and Norfolk County Council to see how we can support the additional funding needed to make sure it happens. As a result I will be asking our full board to commit £10m from the LEP’s future Growth Deal funding, when we next meet in early September.”

The council has said initial work on the road, which was given government permission in June, will start in October, with full blown construction work set to start in February or March next year, to be completed in 2017.

A Department for Transport spokesman said: “DFT has considered Norfolk’s request for additional funding to help cover the cost increase and subject to assessing a final business case an additional £10m has been offered on an exceptional basis given the importance of the scheme to growth in the Norwich area.”

Full a full update details on the NDR click here

Norfolk is celebrating another week ofpositive exam results with today’s GCSEs suggesting gains on last year’s results of more than two percentage points.

Of the 8,300 students who sat their GCSEs in Norfolk this summer, early results suggest that 54.8% of students achieved the gold standard of five A* to C grades, including English and maths – a provisional improvement of 2.1 percentage points on last year.

Today’s achievement follows on from record provisional A Level results last week and a significant two-year improvement in the proportion of schools in Norfolk judged to be good or outstanding by Ofsted. Twenty-two thousand more students now attend good or outstanding schools, compared with 2013.

Caroline Williams CEO Norfolk Chamber “We congratulate all our young people who have received their results today, those staying in full time education and those entering the world of work with training. Norfolk can provide enormous opportunities to our young people and they are the workforce of the future who will help us, over the coming years, drive the economy forward”

James Joyce, Chairman of the Children’s Services Committee at Norfolk County Council, said: “I would again like to congratulate the county’s teenagers and their teachers today, for the significant work that has gone into achieving these results.

“Brian Conway, Chair of Norfolk Secondary Education Leaders (NSEL), said: “On behalf of NSEL I would like to congratulate the young people and schools across Norfolk for their hard work and successes in these GCSE examinations. “The improvement of more than two percentage points achieving the gold standard is testament to collective hard work and the drive across Norfolk to improve outcomes”.

New research from BT, conducted jointly with the British Chambers of Commerce shows large numbers of small to medium-sized enterprises have invested in technologies that boost mobile working.

It is therefore more important than ever that Norfolk businesses are able to compete on a level playing field with the introduction of better broadband speeds and mobile signals across the county.

The study, based on interviews with more than 300 directors of smaller businesses, suggests the UK’s SME sector is embracing mobility more enthusiastically than ever before – and enjoying benefits such as improved productivity as a result.

More than nine in 10 of the businesses in the study say they now have at least one member of staff who works from home, either full-time or on a part-time basis, while almost a fifth of businesses said that more than half of their workforce is now working away from their main office location.

To facilitate this shift, many companies have implemented new technologies. Most significantly, the use of cloud computing by small businesses is up by 15 per cent compared to a year ago, BT said. Its research suggests 69 per cent of small companies are now using cloud computing platforms of one kind or another – more than half of these businesses say the cloud has proved critical to their ability to offer flexible and remote working.

However, many businesses are also turning to other technologies as well as cloud computing. Remote access to company data, wi-fi access when out of the office and fibre-optic broadband are all increasingly critical for businesses that promote remote working, the study shows. Wi-fi access, cited by 64 per cent of businesses, and remote access to data, cited by 56 per cent are particularly important, but 33 per cent also said fibre-optic broadband was a must.

More than two-thirds of the companies in the study said smartphone technology had generated more impact than any other innovation on their business over the past 12 months.

Many of the directors interviewed said their businesses were enjoying significant benefits from internet connectivity and mobile working. More than three-quarters pointed to the increase in the speed of communication their companies were now enjoying, while two-thirds said it connectivity had helped to improve customer service.

Dr Adam Marshall, executive director of policy and external affairs at the BCC, said investment in technology would also help the UK’s small businesses to compete on the international stage.

“Cloud and mobile technologies are becoming increasingly important as firms expand into new markets and explore new ways of working – especially overseas,” Dr Marshall said. “It is encouraging to see that so many British firms are adapting their working practices to take advantage of these developments.”

Danny Longbottom, the managing director of UK SME at BT Business, said the increased use of mobile technologies were at the heart of the “dramatic changes we are seeing within the UK SME market”.

From turning up to the office in flip-flops, to struggling to make eye contact with co-workers or quitting after their first day, today’s students often lack the personal skills, awareness and basic self-discipline that is essential in the workplace, John Longworth director general of the British Chambers of Commerce (BCC) has said.

John Longworth called on schools and colleges to shift their focus from good grades to the broader issue of “employability”. British businesses currently have 735,000 job vacancies, he said, and the biggest barrier to filling them was “matching skills with vacancies”.

“Employers will often say that students at all levels – school, college and university level – haven’t really got the essential elements that business is looking for,” said Mr Longworth. He said BCC members had a great deal of “anecdotal evidence” that students were often ill-prepared for work, and cited resilience, communication skills – “so they can communicate in the workplace and with customers” – and motivation as some of the skills often lacking in new employees.

“It’s about developing coaching skills in schools, and working with employers so people can experience and understand what the world of work requires of them from a very early age,” Mr Longworth said.

Some institutions did a better job than others at preparing students for working life, and most employers recognise that new workers “don’t come in as the finished product”, said Mr Longworth. But in general, the education establishment was “driven to focus on grades and academic ability” rather than producing rounded people with the skills required to thrive in employment at work.

The BCC wants to change the focus on grades by encouraging the government to assess schools and colleges in terms of employment outcomes. It could do so by using data from the HMRC to establish how many students from any educational institution have entered the workforce are in work. Some personal skills – an outgoing personality, for example – are prizes won in the genetic lottery. But while “you can’t change who you are, you can change behaviour”, said Mr Longworth. Teaching workplace skills in schools and colleges wouldn’t necessarily resemble conventional management training. Disciplines such as sport and drama were important in terms of for building could build confidence and the ability to work as part of a team.

Young people need to realise that university is only one path to a good job, said Mr Longworth, “There are different talent pools and a variety of routes by which young people can succeed in life, such as apprenticeships and simply training at work.”

The recent news that Vattenfall and Scottish Power have agreed to split development of the rest of the East Anglia Zone shows the confidence of these two major international developers in the East of England.

However Seimans announced last week that it was setting up a factory in Cuxhaven,Germany to produce parts for &MW wind turbines, creating up to 1,000 new jobs.

James Gray, director of the East of England Energy Zone, role is to promote the region’s energy credentials, underlined the fact that to date all 1,450 turbines and 4,350 blades in the UK’s 4.5GW of offshore wind had been made and shipped to the UK from Danish and German factories.

He felt that until there is an indication from government of a long-term policy which would encourage investors and attract more inward investment, supporting the sector’s supply chain wind farm manufactures will continue to choose to invest in other countries like Germany.

Waveney MP Peter Aldous agreed it was time for the government “to set out and articulate a wind energy vision beyond 2020”.

However, he said from his conversations with ministers, including secretary of state Amber Rudd, he was confident of the government’s continued commitment to wind energy.

A spokesman for the Department of Energy and Climate Change said the government had committed tin July to laying out a framework beyond 2020 in the coming months.

Caroline Williams CEO Norfolk Chamber said “The proposals currently being worked up for East Anglia ONE and Galloper wind farms do give a significant opportunity for this area. It is essential that our local businesses are able to take advantage of these new opportunities and that we train up the workforce that this industry will need for its future development.

Our young people need to be aware of what is available here is Norfolk and our campaign to bridge the gap between education and business will looking a new ways to achieve this.”

Adam Marshall Executive Director of Policy & External Affairs at the British Chambers of Commerce gives his thoughts on the news last week on the labour market statistic and the A’level results.

Labour Market stats showed that there are 735k vacancies across the UK and many businesses, as they grow, are finding it increasingly difficult to find the skilled staff that they need. Manufacturing business are expressing a particular difficult time recruiting across all skill levels.

The A’level results did show a small uptake on subjects important to business but the trend is not strong enough to give the business community confidence to the future.

The Chamber campaign, nationally and locally, to bridge the gap between education and business has never been so vital if we are to close the skill gap restricting our local economy and support our young people on their journey into the work place.

Students all across Norfolk will find out today their all-important ‘A’ level results and we are sure the students’ hard work will have paid off with excellent results. Many students will be looking at university options, but others will be considering the benefits of taking an apprenticeship.

Previously apprenticeships have been seen as the ‘poor relation’, however, more and more students and employers are seeing the advantages and benefits of apprenticeships.

The Government wants to create three million more apprenticeships over the next five years, which includes about 27,000 apprenticeships in the East of England. At present about 11% of Norfolk businesses employ an apprentice and this is set to increase. From August 2014 to January 2015, 3,640 new apprenticeships were started. This represents a 16.5% increase on the previous year’s figures.

Apprenticeships will not only give Norfolk’s young people the skills they need, but the experience and ‘on the job’ training. Apprenticeships also offer local employers the chance to mould their new recruits and effectively grow their own future workforce.

One of Norfolk Chamber of Commerce’s key campaigns is ‘Developing the Talent of our Young People’. We are working with our members, stakeholders and the British Chamber’s of Commerce (BCC) to bridge the gap between education and the world of work.

Caroline Williams, Chief Executive of Norfolk Chamber said:

“At Norfolk Chamber our apprentices form an integral part of our work force and are a valuable asset to our business. I would recommend all employers, both large and small, to find out more about apprenticeships and I would encourage those students who have received their ‘A’ Level results today to consider all options, including an apprenticeship.”

One of Chamber’s apprentices, studying for a Business Administration Apprenticeship at Level 2, is Darcy Bayfield. Below she outlines why she chose the apprenticeship route.

Darcy Bayfield – Business Administration Apprentice said:

“During the last year of my A-Levels, I had a very big decision to make – what am I going to do after I have completed my A-Levels? I had my sights set on going to University to study Accountancy and Finance. My sixth form gave me a lot of opportunities to attend various workshops and meet with business men and women. A lot of them told me that they went to university, but a few said they undertook an apprenticeship. I hadn’t even considered an apprenticeship, but wanted to know all my options, so I did some research.”

“The more I learnt about them, the more I liked the idea of becoming an apprentice. Not only do you benefit from not having a university debt, you also gain a better understanding of the company that you are working for. I liked the idea of essentially starting at the bottom and working my way up. You also gain experience in the workplace and you are given many opportunities to develop your skills.”

“I decided to select an apprenticeship in Business Administration. I achieved an ‘A’ in my Business Studies A-Level and I really wanted to put my knowledge to good use. “What I enjoy most about being an apprentice are the opportunities that you are given. Norfolk Chamber has given me numerous opportunities to develop my skills and to be trained up in other departments. I have been trained to do work in the Accounts department and also in the International Trade department. Every day has something different waiting for you, which is great. Upon completion of my apprenticeship I hope to have achieved a qualification that I can add to my CV. Plus, I also hope to have developed my own skills and to have built good working relationships with my colleagues.”

Yesterday’s ONS unemployment figures highlighted that unemployment across the UK rose by 25,000 and employment fell by 63,000, in comparison to the previous 3 months. However, here in Norfolk the trend is somewhat different. Over the last 3 months, those seeking Job Seekers Allowance (JSA) in Norfolk has continued to fall from 6,679 to 6,518.

As a whole, Norfolk’s 18 to 24 year olds claiming JSA saw a small reduction from 1,615 to 1,600, but Norwich’s 18 to 24 year olds claiming JSA increased from 635 to 645.

Commenting on Norfolk’s unemployment figures, Caroline Williams, Chief Executive of Norfolk Chamber said:

“Whilst it is positive news that overall Norfolk is bucking the national trend, the aim should be to get all of our young people either into employment, or undertaking further training. The business community will continue to support the developing the talent of Norfolk’s young people.”

New figures show that the rollout of the government-funded superfast broadband has now reached more than three million homes and businesses

More than three million homes and businesses have been reached by the Government’s nationwide rollout of superfast broadband, figures published today reveal.

The rollout is delivering superfast access – internet speeds greater than 24 Mbps – to those properties not covered by existing commercial networks and is on track to take superfast access to 95 per cent of the UK by 2017. More than four out of five UK homes and businesses already have access to superfast speeds, and the rollout is currently reaching an additional 40,000 homes and businesses every week.

This comes following recent news that BT will make up to £129m available to extend the Government led rollout of superfast broadband across the UK.

However Dr Adam Marshall, Executive Director of Policy and External Affairs at the British Chambers of Commerce feels more needs to be done

“No one should be patting themselves on the back because an unambitious target is likely to be met in two years’ time. Across the UK, far too many businesses and consumers still have insufficient or unreliable broadband coverage, which stops entrepreneurs and exporters in their tracks. While many are in rural areas, ‘not-spots’ plague companies even near our major cities.

“If we want to be the most prosperous country in the world, we need to have the best digital infrastructure in the world, and we’re a long way from that. Ministers and regulators need to set their sights – and their investment commitments – higher.”

Caroline Williams CEO Norfolk Chamber of Commerce said

“Although it is positive that more Norfolk businesses are able to access a better broadband service but there is no room to be complacent. In order to service our growing digital sector we need faster speeds which will allow our businesses to compete on the global stage. In addition many businesses across Norfolk are still waiting to be able to upgrade which is inhibiting their growth.

“However the broadband connection voucher of up to £3,000 is still available in the Norwich area and can help to acquire a faster service. This funding is national and time related to I could encourage any business eligible to check out if they can access this fund to support their business.”

Norfolk County Council has called a special full council meeting for September 2 to close a funding gap ahead of work starting on Norwich’s Northern Distributor Road.

The Leader of the Council, Cllr George Nobbs, and the Chairman of the Environment, Development and Transport Committee, Cllr Toby Coke, will be proposing that the council contributes £15m to cover half the £29.9m shortfall, and is calling on the Government to cover the remainder.

Until now, the NDR cost estimates – developed with the main contractors Birse Civils (now Balfour Beatty Civils) – have been based on 2013 prices.

This has now risen by £29.9m, with construction cost inflation and unavoidable design changes – largely higher standard environmental protection measures – accounting for most of the increase. The NDR is now set to cost a total of £178.45m and Norfolk County Council is pressing the Government to meet half the £29.9million extra cost.

The rise in price is largely due to delays as central government reviewed all major infrastructure projects in the early years of the coalition government. To secure Development Consent, higherand more costly standardsare nowrequired in the design of drainage systems, wildlife protection, landscaping and environmental measures. These include an additional £1million to be spent on bat barns and crossings.

Even at the higher cost the NDR will be very good value for money when assessed on national criteria.

Cllr George Nobbs, Leader of Norfolk County Council, said: “This is a vital infrastructure project for Norwich and Norfolk. It brings real jobs and economic growth, with travel and transport improvement that will benefit thousands of people every day, and a £1bn-plus boost to the Norfolk and national economy.

“It’s hugely disappointing that delays beyond our controlhave caused increased costs and I think it’s right that we press Government to do what’s right by Norfolk and meet us half way. “Norfolk has been particularly disadvantaged by recent Government decisions, so I very much hope that our proposal to meet the Government half way and to put up a further £15m ourselves will be met by an equally generous contribution from them. After all, this is one of the best value for money schemes in the country.”

Cllr Toby Coke, Chairman of the Environment, Development and Transport Committee, said: “I understand why George Osborne pressed the pause button on national infrastructure projects when the coalition government took over in 2010, and also why he was subsequently happy to give the NDR approval. It is good value for the national taxpayer and vital for the prosperity of Norwich and Norfolk.

“The Government wants to deliver infrastructure improvements, and so do we. Splitting the extra cost is a way in which we can ensure that this shovel-ready project really does start on the ground before the end of October.”

An Extraordinary Council Meeting has been called for Wednesday 2 September to present Members with a report on the final target costs for the NDR, and to consider how the NDR budget gap should be handled.

Norfolk County Council obtained Development Consent in June for a 20km dual carriageway to run from the A47 at Postwick to the A1067 Fakenham Road at Attlebridge. The County Council has already submitted a request to the Department for Transport for an additional contribution from national funds. The DfT has allocated £67.5m for the Postwick to A140 (Norwich Airport) stretch, on top of £19m that has already been released for the Postwick Hub A47 junction improvement.

The £29.9m overall increase on previous estimates has been partially offset by a £5m contingency and smaller savings elsewhere and includes:

Total construction cost increase £26.4m(from £77.8m to£104.2m). These include construction inflation, higher environmental specifications andadditions to the designresulting from the Development Approval process.

Land costs up £1m(from £16.2m to £17.2m), reflecting increased land values.

A £1.95m increase in costs associated with obtaining development consent,supervision, and contingency allowances.

Even at £178.45m the NDR has been assessed, using Department for Transport criteria, as achieving a ‘very high’ 6.5 cost-benefit score – giving very good value for money.

As well as offering major travel and transport improvements and over £1bn in economic benefits, the NDR is the single most important infrastructure improvement supporting properly planned growth in the Greater Norwich area, as set out in the Joint Core Strategy and City Deal.

It is a key component in the Norwich Area Transport Strategy, opening up road space for other ‘Transport for Norwich’ schemes drawn from NATS.

The case for the NDR came under detailed independent scrutiny last year (2014) through the examination process, but the project has also had to survive the economic downturn and changes in Government. Although it came through each review successfully, this was at a significant cost in time and now money.

The NDR was originally allocated £67.5m, for the Postwick to A140 stretch (excluding Postwick junction) in 2010. This allocation was confirmed in December 2011 (as part of a joint NDR/Postwick allocation of £86.5m). The County Council has worked hard with Birse Civils (appointed in 2009 – now Balfour Beatty Civils) to keep costs down.

Unemployment in East Anglia rose by 9,000 in the quarter to June, official figures have revealed.

According to the Office for National Statistics (ONS), a total of 146,000 people were unemployed in the region between April and June. The region’s unemployment rate was 4.7pc and saw an increase of 6.6pc during the period.

Nationwide, unemployment increased for the second month in a row, reaching 1.85m.The jobless total went up by 25,000 in the quarter, the first time there have been two consecutive rises for two years.

ONS statistician David Freeman said: “This is now the second consecutive time we’ve reported fewer people in work on the quarter. While it’s too early to conclude that the jobs market is levelling off, these figures certainly strengthen that possibility. Growth in pay, however, remains solid.”

Caroline Williams CEO Norfolk Chamber said: “Although the Norfolk jobs market remains robust, these figures are disappointing because for the second month in a row we have seen unemployment rise and employment fall.

“Overall, these figures are a timely reminder that the UK recovery is still in need of care and attention and we cannot take any unnecessary risks. With average earnings growth relatively stable and inflationary pressures subdued, it is clear that what British businesses need is a period of stability without any threat of interest rate increases for the time being.”

Other figures showed:

• The number of people claiming jobseeker’s allowance fell by 4,900 last month to 792,400 following a slight increase in June.
• 31m people in work in the latest quarter, 63,000 fewer than the three months to March, but 354,000 more than a year ago.
• A record 14.5m women are in work, while employment for men slumped by 71,000 to just under 16.5m compared with the previous quarter.
• Average earnings increased by 2.4pc in the year to June, down by 0.8pc on the previous month, but still ahead of inflation.
• The number of UK nationals in work between April and June increased by 84,000 compared with a year ago to 27.7m. The total for non-UK nationals increased by 257,000 to 3.1m.
• The number of people classed as economically inactive, including those on long-term sick leave or who have given up looking for work, has increased by 7,000 to just under nine million.

The Government pointed out there were nearly two million more people in work than in 2010, with almost half a million more jobs in the private sector over the last year.

Unemployment has fallen by 221,000 in the last year, and long-term unemployment has been cut by more than 210,000 since 2010

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 Quarter 32015 will start on Monday 24 Augustand will be open for three weeks. But why should your organisation take part? Below are just a few of the reasons why your organisation 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 30% 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 most recent QES results from Q2 2015 can be found on the Policy Section of the Chamber website.

So what can your business do to contribute to the QES? During the fieldwork period, the survey can be completed electronically. The more businesses that take part in the survey, the stronger the Norfolk voice will be. There are several ways to access this online survey:

• 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 21 August 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 ‘voice’.