Chamber News

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’.

It was recently announced that a further £5.3m is to be invested in Norfolk’s broadband rollout. This will further extend the reach of high speed fibre broadband across Norfolk and is part of the Better Broadband for Norfolk (BBfN) programme.

The additional amount is from funding that BT is making available to extend Broadband Delivery UK (BDUK) projects across the UK as a result of the success of the projects in delivering higher than expected take-up levels. The money is being made available to Norfolk to reinvest in providing further superfast broadband coverage to even more homes and businesses and much earlier than originally planned.

The £5.3 million is being made available as a result of a ‘gain share’ clause in the phase 1 BDUK contract BT agreed with Norfolk that allows the funding BT has received to be reinvested over a number of years into further coverage if take-up is better than the 20 per cent* expected in BT’s original business case. This announcement is bringing forward that investment and making it available much earlier than planned. The higher take-up rate to date has resulted in BT making a new business case assumption of reaching 30 per cent take-up in these areas.

Better Broadband for Norfolk is currently working with BT to obtain the extra money and to decide how it could be used to extend coverage throughout the county, targeting many of those properties in hard to reach places. It is expected that by the end of 2015 it will be known what additional coverage the extra funding will have achieved.

Dr Marie Strong is Chair of the Broadband Working Group and member on the Better Broadband for Norfolk Steering Group said: “This extra money means we will be able to bring high-speed broadband to a significantly greater number of rural homes and businesses in Norfolk. With public money invested in the Better Broadband for Norfolk programme, it’s vital that we get the best value for money from the contract and recouping over £5 million that we can reinvest in the project is an excellent result.

BBfN continues with the overall rollout across Norfolk but there is still more work to be done. Many villages and market towns have already benefitted from high speed broadband. To date over 169,000 premises now have access to faster broadband. However some of the more remote parts of Norfolk will prove more of a challenge to deliver better broadband to them, due to the cost of rollout. The extra funding will help meet some of those challenges.

Another broadband provider trying to achieve better coverage in the more remote/rural areas of Norfolk is Chamber member, Wispire.They have just appointed a new Chief Executive, Steve Maine who has joined WiSpire after holding management roles at BT, Kingston Communications and mobile service provider Solaris Mobile.WiSpire was launched four years ago by the Diocese of Norwich.It is a local provider of high speed broadband across Norfolk who use a combination of exchanges and parish churches across the county as the platform to deliver high speed, reliable broadband and leased line internet access. Mr Maine said: Non-availability of broadband will become more and more important, especially in relation to rural counties such as Norfolk.”

Caroline Williams, CEO of Norfolk Chamber said: “To enable Norfolk businesses to communicate more effectively and be instrumental in creating jobs for Norfolk and moving the economy forward, we need access to high speed broadband. Improving broadband is as equally as important to the Norfolk business community as road and rail improvements. Extra funding will boost the BBfN programme and help deliver improved broadband to more homes and businesses.”Norfolk Chamber also welcomes the appointment of Mr Maine as Chief Executive of WiSpire and we look forward to a continuing to support WiSpire through their Chamber membership.”

* This 20 percent take-up rate was based on international comparisons and BT’s experience in its own commercial roll-out.

• UK Manufacturing output in June 2015 was up 0.2% on the month and up 0.5% on the year
• Total UK Industrial production in June 2015 was -0.4% on the month and up 1.5% on the year

Commenting on the index of production figures for June 2015, published yesterday by the ONS, Caroline Williams,CEO of Norfolk Chamber said:

“Although UK manufacturing output returned to modest growth in June, after declining in May, the sector’s overall performance remains mediocre. Year on year growth is below 1% and the level of manufacturing output is still almost 5% below its pre-recession peak in the first quarter of 2008.

However locally the last BCC Quarterly Economic Survey showed that the Norfolk results for Q2, whilst mixed, showed signs of cautious growth. Particularly, Norfolk’s manufacturing export sales and orders were stronger and higher than the national results and it was encouraging to see several of Norfolk QES balances positively ‘bucking the national trend. However concerns over the EU are still causing some uncertainty within the Norfolk business community and the impact of the reduced oil prices is being felt locally.”

Also commenting on the index of production figures for June 2015, David Kern, Chief Economist of the British Chambers of Commerce,said:

“The manufacturing sector is up against a number of headwinds, including difficult global circumstances. While there have been modest improvements in the Eurozone, which will help exporters in coming months, progress will be difficult because of the recent strength of the sterling against the euro. Any premature action on interest rates is likely to make these problems worse.

“The UK economy will remain dependent on its dynamic and competitive services sector but manufacturing remains a vital sector for exports, innovation and productivity. The government must reinforce its efforts to encourage manufacturing firms to explore international export markets, particularly beyond the European Union.

Mouchel has been appointed by Norfolk County Council and Broadland District Council to investigate the potential for new stations at Rackheath and Broadland Business Park and to consider whether there is a business case to improve the frequency of the train service along all or part of the line.

The support of stakeholders is a key part of developing a good business case and Mouchel will be contacting local stakeholders along the line with a view to obtaining their views on:-

• The existing line in general
• Whether new stations at Broadland Business Park and Rackheath can be justified
• Improving the level of train service frequency

Study Background

At present the Bittern Line provides an hourly service between Norwich and Sheringham. It offers travellers a good means of access to Norwich city centre and onward rail connections, to schools and colleges along the route, and to tourist destinations on the north Norfolk coast.

Over the last 10 years the total number of entries and exits at all stations on the line have increased by an average of 64% representing significant growth, and this growth is expected to continue. Partly in recognition of the growth and the existing service the Norfolk Rail Prospectus (2013) and Anglia Route Study (2014) both state a desire to increase the service between Norwich and Sheringham to two trains per hour.

Substantial housing growth is planned adjacent to the Bittern Line, in particular at Rackheath (near to Salhouse Station) where a total development of up to 4,000 dwellings in addition to 25 hectares of employment land is planned. As part of the outline masterplan the potential to include a new station was proposed.

Furthermore, on the eastern edge of Norwich city centre adjacent to the Bittern Line, the Broadland Business Park provides a range of employment units and a hotel. Adjacent to the Business Park is the Dussindale housing estate. Together these sites are a major generator of car trips and with more housing and employment planned for the area the demand for travel will increase. In the Broadland District Council Local Plan, land was reserved for a new station.

As part of a planning application for development north of Dussindale an alternative site was identified for a new station.

This Study

Given the increased patronage on the Bittern Line, and the opportunities to support more sustainable modes travel to and from areas of existing and planned development this study will:

• Assess the suggested locations for new stations at Broadland Business Park and Rackheath to establish if they are technically viable and identify the potential challenges and opportunities associated with each location;
• Investigate whether a new station or stations would be feasible in railway operational terms and what operational changes would need to be made to accommodate them;
• Identify options to optimise the existing station demand; and
• Establish the viability of increasing the service frequency from one to two trains per hour and identify any operational and technical changes that may be required to support this.

The outcome of this study will be a strategic outline business case to demonstrate whether a case for investment exists.

If you have any comments on the Bittern Line, please email them, by the closing date of 31 August 2015 to:

Adam Banham, Broadland District Council

| E: [email protected]

David Cumming, Norfolk County Council

| E: [email protected]

David Wildman, Mouchel Consulting

| E: [email protected]

Hear a quick policy update from Adam Marshall, Executive Director of Policy & External Affairs at the British Chambers of Commerce (BCC). Today he outlines the results of the Bank of England’s ‘Super Thursday’ and gives the business opinion of the Bank of England’s decision to leave interest rates unchanged.

Commentating on today’s interest rate decision announced by the Bank of England, Caroline Williams, Chief Executive for Norfolk Chamber of Commerce, said:

“The Bank of England’s Monetary Policy Committee (MPC) has shown composure and sound judgement in keeping rates unchanged.

“It would have been imprudent to push through a rate rise at this moment when our economic recovery remains in need of care and encouragement. Rates will eventually have to rise and when they do it should be done slowly and steadily. Until that moment, the Bank of England is right to keep interest rates at current levels.”

David Kern, Chief Economist at the British Chambers of Commerce, said:

“Those who advocate higher interest rates, underestimate the fragility of the economic recovery, especially in the face of a highly uncertain international backdrop.

“The MPC will be watching increases in earnings closely. But any adverse inflationary pressures will be mitigated by the declines in oil and commodity prices and by the strength of sterling seen over recent months. Our view remains that inflation will remain below the 2% target until well into 2016. That being the case, the MPC should keep interest rates at current levels for the foreseeable future and, in doing so, it will not take any undue risks.”

The Government has launched a new toolkit which aims to help SMEs understand and present the value of the Intellectual Property (IP) to potential lenders.

Developed by the UK Intellectual Property Office (IPO), it will support small businesses to use their intellectual property assets to secure the finance they need for company growth.

The toolkit has been developed to

• help lenders and businesses talk the same language when understanding the value ofIP
• encourage and guide businesses to document theirIPassets ahead of any application for finance
• help businesses to develop more effectiveIPmanagement and commercialisation strategies
• raise awareness of the wide variety of finance options available forIP-rich businesses

Minister for Intellectual Property, Baroness Neville-RolfeDBEsaid:

“The UK now invests more in ideas and brands than factories or machinery. Small businesses are the economic bedrock of the UK and it is vital that we help them exploit theirIPto secure appropriate finance and grow.”

“Too often businesses and lenders do not fully identify and value theIP they have. It’s essential that we continue to create the right environment for them to flourish, so we can benefit from their creative designs, inventions and ideas. TheIPFinance toolkitis an important step towards businesses making the most of theirIP.”

“TheIPFinance toolkitwill help businesses to present the security and financial worth of theirIPwhen seeking finance and help banks recognise the value ofIPin a business. It will assist businesses which are rich in intangibles, but lack traditional assets, to make a stronger case when they need to access the finance they need to grow.”

The 6 week legal challenge period, following the granting of the Development Consent order by the Secretary of State, Patrick Mcloughlin, has now passed without any challenges being received. This now means that work can start on the £148.5 million Norwich Northern Distributor Road (NDR). Norfolk County Council has revealed that initial work will start on the NDR in mid October. The route runs for 12.5 miles from the A1067 Fakenham Road at Attlebridge to Postwick on the A47.

A Norfolk county Council spokesperson said: “The courts have confirmed that there have been no legal challenges made, which is positive news. It means the next step is to secure full funding from the Department of Transport and final approval from councillors.”

“We anticipate that initial work will start on site around mid October. This will be in the form of utility diversions and some advance environmental and archaeology works. The main road and bridge construction work would start on site in February/March next year, with all construction expected to be completed in December 2017.”

Norfolk’s business leaders have welcomed the granting of the NDR Development Consent and are pleased that work will now start in October:

Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:

“A confirmed start date for work on the NDR is another positive step toward getting the improvements to Norfolk’s infrastructure, which the business community has been calling for. The NDR is not just a piece of road, but the opportunity to unlock jobs and new homes for the city and surrounding area.”

Peter Foster, Chair of Norwich Chamber Council / Managing Director of Hugh J Boswell Ltd

“I am delighted with the positive outcome for the NDR. It is incredibly clear to me that some of the northern aspects of our city and indeed County will benefit enormously. I know that in recent years there are certain areas that we have traditionally transacted less business for pure logistical reasons. Intuitively I believe that the NDR will transform the northern part of the city and encourage growth in areas such as Holt, Sheringham, Aylsham and North Walsham. This bid certainly has the support of the Board at Hugh J Boswell Ltd.”

Richard Marks, Head of Branch – John Lewis Norwich

“John Lewis supports the Norwich Area Transport Strategy which is so dependent on the NDR coming to fruition – removing through traffic from Norwich City Centre and increasing pedestrianisation will be of huge commercial benefit to city centre retailers”

Mark Proctor, Partner – Lovewell Blake

“I am pleased to hear the positive news on the NDR. The benefits to the city and wider city area will be significant. It will greatly improve transport links for the north ofNorwich, which will assist businesses togrow and enhance inward investment opportunitiesfor Norwich and Norfolk. TheNDR will form an essential part of the overall growth in housing planned for Norwichand thereby willplay a key part in the growth of the local economy formany years ahead.”

The latest British Chambers Monthly UK Economic review was published today. The key headlines were:

• UK economy grew by 0.7% in Q2, driven by a strong output from services and oil and gas
• Labour market conditions in the UK weaken and inflation falls back to zero
• Outlook for global growth weakens amid continued concern over China and Greece

The UK service sector accounts for three quarter’s of the UK’s economic output and it rose to 0.7%. However the UK manufacturing sector output fell by 0.3%. This UK-wide data was reflected in the results of the last Quarterly Economic Survey for Quarter 2. Although many of the key Norfolk manufacturing QES balances rose in Q2 2015. Both export sales and orders balances rose (sales by eight points to +29% and orders by 2 points to +18%).

Despite the overall UK oil and gas output being strong, it should also be noted that many in the oil and gas sector in Norfolk and Suffolk are finding the current economic conditions challenging, as the impact of the reduced price of oil is being felt.

In the three months to May UK employment fell. Again, our region bucked this trend, with continued decreases in those claiming Job Seekers Allowance (JSA).

With the outlook for Greece still looking uncertain and the Chinese stock prices plummeting, the outlook for global growth weakens.

For more detail and to read the full report click here.

Hear a quick policy update from Adam Marshall, Executive Director of Policy & External Affairs at the British Chambers of Commerce (BCC). He outlines what has been happening in Westminster last week and gives details of the webinar with Columbia, an emerging export market,and the expected results from the latest BCC International Trade survey being published this week.

The results of the BCC International Trade survey can now be found here.