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Chambers and Indeed: Immigration proposals could exacerbate labour shortages
Over half of UK businesses with staff from outside the UK would be negatively impacted by government proposals for the UK’s future immigration system, according to new research released today (Tuesday) by the British Chambers of Commerce and global job site Indeed.
According to a survey of 380 businesses that currently employ non-UK nationals, 53% report they would be negatively impacted by proposals requiring all skilled migrant workers to earn a minimum annual salary of £30k once the UK leaves the EU.
57% of employers say they would be adversely affected by plans to impose a 12-month work and residency limit on lower skilled migrants, requiring workers to leave the UK for at least a year once their visa had expired.
Over a third of firms (34%) would be negatively impacted by an extension of the Immigration Skills Charge to EU nationals. The charge is currently paid by businesses for each migrant worker they recruit from outside the EU, adding to the upfront costs of employment.
Businesses also report a need for access to foreign language skills. 23% of respondents say German and Mandarin Chinese will be important to their business in the next five years, and 20% say French and Spanish will be – highlighting both the importance of ensuring native speakers are available and improving language skills in the UK workforce.
At a time of record low unemployment, when businesses are reporting critical levels of recruitment difficulties, the proposals in the Immigration White Paper would add to the cost and barriers employers face in accessing the skills they need. The leading business group is calling for proposals that ensure firms in all regions and sectors can continue to access skills at every level, when they are unable to recruit locally.
The ending of free movement will present significant costs and challenges for employers. The new Prime Minister must take a fresh look at the immigration restrictions and charges to ensure firms can access the workers they need without undue bureaucracy and costs.
Jane Gratton, Head of People Policy at the British Chambers of Commerce (BCC), said:
“When businesses are unable to recruit skills and labour at a local or national level, the UK’s new immigration system must allow them to access non-UK workers quickly and cost effectively. The survey results reflect the extent of business concerns about future restrictions, charges and thresholds, as these will exacerbate recruitment costs and barriers.
“While companies are investing more in homegrown skills, they will continue to need access to migrant skills, at all levels, for the foreseeable future in order to thrive. Salary thresholds and visa restrictions must reflect economic realities. It’s vital that the Migration Advisory Committee’s review into the salary threshold takes into account the needs of different sectors and regions.
“Business communities will be calling on the next Prime Minister to ensure the UK’s future immigration policy has the right balance of flexibility and controls to alleviate their concerns.”
Pawel Adrjan, UK economist at the global job site Indeed, said:
“Record high employment and declining interest of European jobseekers in British jobs mean businesses in many sectors are finding it increasingly difficult to hire workers with the right skills. Like in any open economy, migration flows are one way to release that pressure valve but as our survey found, new proposals do not appear to flex and breathe depending on employers’ needs. Nowhere in the UK labour market is this need for suppleness more pertinent than in healthcare and construction, which have a high dependency of non-UK workers.
“Communication at work remains essential and language skills in particular have become vital in a connected world in which more businesses than ever operate across borders. While research suggests fewer UK students are learning foreign languages, our data reveals the importance of learning new spoken skills. German recently overtook French as the most sought-after language by UK employers but demand for Chinese languages has rocketed over the past year as businesses consider future trading relations.”
Cocktail Making at the very cool Erpingham House.
Our July 4th informal networking event was on a beautiful, sunny evening in Norwich’s historic Tombland. Our members gathered for prosecco on arrival and canapés and some informal networking before listening to our first speaker of the evening Russell Evans, Managing Director of Bullards Gin. Russell gave an inspiring talk on the ‘Start Up Journey’ and how he first came across the brand in 1985 during his first job from University.
We then moved on to the cocktail making! We had three different stations, the first for Epringham House signature ‘porn star martini’ made with fresh passion fruit. Our second station was Bullards Gin and Tonic made with edible flowers and strawberries. Lastly, the classic Expresso Martini made with freshly ground coffee! After everyone had the chance to make the cocktails and have some very delicious vegan alternative garlic dough balls and hoisin “duck” pancakes we moved on to the last speech of the evening.
Loui Blake, Managing Director at Erpingham House spoke passionately on his own ‘Start Up Journey’, and the best advice he gave us on starting out – “work for someone you love/admire for free, more than once” in exchange for knowledge and connections.
The audience left the evening feeling very encouraged, inspired and slightly wobbly!
Chambers comment on GDP and trade statistics
Commenting on the latest UK GDP and trade statistics, published today by the ONS, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:
“Although there was modest rally in GDP growth between April and May, the continued slowdown on the underlying three-month measure is further evidence that the UK economy is faltering under the weight of relentless Brexit uncertainty and tougher global economic conditions.
“Manufacturing activity picked-up in May as car production reopened, but the longer-term measures point to a sector under pressure from the running down of excess stock, tougher global trading conditions and rising upfront costs.
“There was a welcome narrowing in the UK’s trade deficit in May, largely reflecting both a decline in imports and a rise in export goods. However, Brexit uncertainty, the absence of clarity on fundamentals aspects of trade conditions after October 31st, and a slowing global economy are likely to increasingly weigh on the UK’s net trade position over the medium-term.
“Against this backdrop, it is vital that the next Prime Minister prioritises avoiding a messy and disorderly exit from the EU, as such a departure would likely trigger a marked deterioration in economic conditions. More must also be done to boost the UK’s growth trajectory by delivering the transformative infrastructure projects needed to secure the UK’s economic future.”
Are state owned business bank looking at new options for small business lending?
The Government could use taxpayer money to guarantee loan insurance for small businesses under a plan being considered by the state back business bank.
The plan aims to remove the block on bank lending to small businesses by using the insurance industry. Small businesses would buy insurance to cover the risk of them defaulting on their own loans with they could then offer to banks as guarantee to borrow money.
As the economy starts to grow it is more important than ever that businesses can access funding to invest in their organisations. In this region New Anglia Local Enterprise Partnership have also accessed funds; both grants and loans. So the Chamber would encourage businesses to investigate all options to access funding.
Enter the King’s Lynn Mayor’s Business Awards
The Norfolk Chamber is proudly sponsoring the Customer Care Award for the Mayor’s Business Awards this year. We are aware that West Norfolk Chamber members are successful, dynamic and hard working and one of the key aspects that we keep hearing, is that customer care is central to their business ethos.
Does your organisation pride itself on its exemplary customer care? Have you incorporated initiatives designed to raise service standards and can show increased customer satisfaction? Then highlight your achievements by entering the Customer Care category of the Mayor’s Business Awards.
These awards are important for West Norfolk, as they show the rest of the county what fantastic companies we have here, but for your business, it will demonstrate to a wider audience what you already know – that you are a great company. It is also a wonderful staff motivator to collate all your good points and even better when you win!
Click here to complete the online nomination forms for the Customer Care category
The full list of categories for the Mayor’s Business Awards are:
- Apprentice/Trainee of the Year
- Community Contribution
- Customer Care
- Independent Retailer
- Leisure & Tourism
- Service with a Smith
- Small Growing Business (up to 5 years)
- Business Person of the Year
- Mayor’s Business of the Year
For full information on the Mayors Awards and details on all categories go to www.lynnnews.co.uk/mayors-awards
The deadline for entries is Friday 29 November 2013.
We look forward to seeing lots of our successful West Norfolk Chamber members entering and winning the Mayor’s Business Awards.
Norwich Western Link: Preferred route selected
Norfolk County Council’s Cabinet has agreed Option C as the preferred route for the Norwich Western Link.
Norfolk County Council (NCC) previously recommended Option C – a new dual carriageway route and a short section of dual carriageway upgrade of the A1067 – as the best overall solution and preferred route for the new link road between the A47 and Broadland Northway (formerly the NDR). As it balances all of the issues the project needs to address. It limits environmental impacts, has a high cost-to-benefit ratio, reduces congestion and rat-running on existing roads, minimises the impact on communities and properties, and received considerable support through their recent consultation.
Commenting on the Cabinet’s preferred route option, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:
“The Norwich Western Link will facilitate easier access to both Norwich airport and Great Yarmouth port. It will further help to improve journeys into and around the west of the city, support potential housing and jobs growth; provide the infrastructure to manage the additional traffic this will create, and improve quality of life for people living in the area.
“This final piece of the puzzle will ensure that Norfolk has infrastructure that will meet our growth ambitions. It will create stronger and more effective links to the Midlands and the North and will help Norfolk businesses to thrive and deliver greater economic growth and jobs.”
Confirming the preferred route option is a major milestone for the project and, while there is still much work to be done, having a preferred route brings them a step closer to starting work to construct the Norwich Western Link in late 2022 and opening the road to traffic in early 2025, subject to securing funding and completing necessary statutory processes.
Further surveys and design work will now be carried out to develop the preferred route. This will include the development of complementary measures to mitigate environmental impacts, encourage walking, cycling and public transport use, and limit the amount, speed and type of vehicles using the existing road network in the area where appropriate.
Alongside their work to identify a preferred route, they have also put together a Strategic Outline Business Case for the project which councillors on their Cabinet also approved today. They intend for this to be submitted to the Department for Transport by the end of the month, which will start the process required to secure funding for the Norwich Western Link from the government. NCC have an excellent case for the need for the road and strong support from the public, the business community, emergency services, local councils and MPs, so they’re very hopeful they will be successful.
NCC will continue to advise when there are significant updates about the project, and they will keep the Norwich Western Link pages of the County Council website updated, which you can find at www.norfolk.gov.uk/nwl. There will also be a further public consultation on the preferred route before they submit their planning application.
View from Norfolk Chambers: Brexit Update
As Parliament comes towards the summer recess period – we thought we would give Norfolk businesses a quick update on Brexit and the current political situation.
Everyone is now very aware that we will shortly have a new Conservative Party leader, and in turn, the next UK Prime Minister – the result of which will be announced on 23 July. The House of Commons will then go into the summer recess on 25 July. But what are the positions of the PM candidates regarding Brexit?
Boris Johnson has said that he would ensure that the UK leaves the EU on 31 October with or without an exit deal. While he has said that leaving without a deal is not his preferred option, he has not ruled this out.
Jeremy Hunt has said that – in extremis – he would be prepared to leave the EU without an exit deal. If there is the prospect of achieving a deal, however, he would prefer a further extension. Should it not be possible to secure a new deal, he would back a no deal exit ‘with a heavy heart’.
Regardless of the position of the incoming Prime Minister, it will ultimately be Parliament that decides what happens next on Brexit.
In the meantime, the Labour have a new position on Brexit. They have suggested that they will back a confirmatory referendum on any Brexit deal before it is implemented. It would depend on the content of the deal as to whether they would back the exit deal or remaining in the European Union in this ballot. This position may be subject to change when the Labour Party sets its policy at its annual conference in September.
Attempts to prevent no deal
There continues to be attempts from Parliamentarians to prevent a no-deal exit on 31 October. There are reports that a number of Conservative MPs will back an attempt from Philip Hammond, the current Chancellor, to prevent a no deal exit.
This week an amendment passed to the Northern Ireland (Executive Formation) Bill that requires UK government to update the House of Commons on progress made in the formation of an executive in Northern Ireland. This requires the House to be sitting to debate the government update and is designed to make it harder for a new Prime Minister to prorogue the House of Commons to ensure a 31 October exit. Proroguing Parliament means that the parliamentary session would end, and no further business could be debated or voted on in either House until the Prime Minister chose to convene the House for the Queens Speech and the next session of Parliament would then begin.
Commenting on the current state of play, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:
“The Norfolk business community has to continue to assume that leaving the EU without a deal is a very real prospect and we would encourage all firms to think through the implications for their business, if they have not already done so.”
“We are working with the British Chambers of Commerce and continue to lobby in Westminster with the various government departments to try to get clarity for business. They have recently updated their Brexit Risk Register and the Brexit Checklist. – please have a look as these are good tools to consider some of the most frequently asked questions and decide what your organisation needs to do.”
Also helping to support local businesses, New Anglia Growth Hub are running a free to attend Brexit event at the Forum in Norwich on Wednesday 25 July 2019 – book your place now.
If you have any further questions or need some specific advice, please do not hesitate to get in touch with nova Fairbank on email: [email protected]
Norfolk Business Awards 2019
The Norfolk Business Awards are now open for entries, with 11 categories to enter, its time to showcase your great business. There is no limit on the scale or size of the business who can enter – these awards are open to all, which is great news, they want to hear from all businesses across the board, which is a great opportunity. With just under a month to go until the deadline, it is time to get your application underway, the deadline is Friday 9 August 2019. This year’s the theme for the awards is ‘changing lives.’ With our member Norwich Research Park as the headline sponsor for the awards. The Research Park is a forward-thinking and cutting-edge centre for a number of local and global businesses. For the full details on the awards check out the Norfolk Business Awards site. Outstanding Achievements- Sponsored by Norwich Research Park Best Employer- Sponsored by Pure and Birketts Breaking boundaries- Sponsored by Lovewell Blake Business of the year- Sponsored by Barclays Customer Care- Sponsored by Greater Anglia Director of the Year- Sponsored by Dipples Investing in future Growth- Sponsored by Lovell Knowledge Pioneer- Sponsored by UEA Large Business- Sponsored by City College Norwich SME (Small or medium enterprise/business) of the year Tech Innovator- Sponsored by Computer Service Centre Once your application is all submitted the next date for your diary is the Awards Dinner on Thursday 21 November, this will be held at the Norfolk Showground Arena and hosted by the well known British actor, James Nesbitt.
Norfolk businesses invited to comment on strategies for Norfolk
The New Anglia Local Enterprise Partnership (NALEP) is currently consulting local businesses on two strategies for Norfolk:
EU Investment Strategy
NALEP has opened the consultation process to gather your thoughts and opinions about the future of growth in Norfolk and Suffolk. They are looking to Norfolk businesses to help identify the key growth priorities and where New Anglia LEP should be helping to focus future investment, both domestic and European. The consultation will remain open until the end of August 2013. For more information and to access the online survey click here.
Towards a Growth Plan
NALEP have also developed a ‘Towards a Growth Plan’ document which sets out their vision and strategy to create more jobs and greater prosperity to Norfolk & Suffolk. They would welcome your help to shape our Plan and inform the right decision-making as they focus on investment priorities and growth. The consultation will close on Friday 23 August 2013. For more information and to access the online survey click here.
Diverse quarter revealed by the Norwich Economic Barometer
Norwich City Council has released their quarterly economic barometer. This quarter shows the economy of the eurozone grew by just 0.1% in the July-to-September period, which was down from 0.3% growth in the previous quarter. Whilst the Office of National Statistics reported that the number of unemployed people in the UK fell by 48,000 to 2.47 million in the same period. Firms in this region took on more staff during October and the rate of job creation was the fastest since March 2007.
However, the gap between imports and exports was at its widest for over a year. The trades goods deficit widened from £9.557 billion in August to £9.816 billion now. Mild weather adversely affected the sales of winter clothing, which may account for the fall of 0.7% in retail sales volume. To read more, the full Norwich Economic Barometer is attached.
Norfolk Day 2019
Norfolk Day is just around the corner! This year see’s Norfolk Day on Saturday 27th July, giving us all the chance to celebrate our great county with friends and family over the weekend. Plus, it is also Pride Day, and start of school holiday too- a triple celebration. With over 150 events being held over the county, and some companies launching new products, and discounts, it will be a busy weekend. So, what is your plan? We would love to hear about how you and your businesses are celebrating Norfolk Day this year. Whatever you are planning, we want to hear about how you and your staff members will be celebrating. Maybe you are planning something big or small to mark this day? This year the Chambers for Norfolk Day are doing something different to celebrate our fantastic members, and their innovative businesses. We have been busy collecting our members voices and views on doing business and living in Norfolk. This is a great chance to shine a brighter light on the county. Check out our short audio clips. A very big thanks to our members Alex Wiseman – Indigo Swan, Russell Evans- Bullards Spirits, Chris Starkie – New Anglia LEP, and Fiona Burrage from Nor-Folk, who all lent their voices and Rob Lawrence who edited these super podcasts. Do get in touch with us at the Chambers [email protected] and the EDP are really keen to hear about what you have got planned too [email protected] so we can all spread the word! Remember you can always use #NorfolkDay share your stories and spread the word too.