Chamber News

King’s Lynn will launch a colourful trail of model spitfires in the town this Saturday, 11 July. There will be 24 spitfire sculptures, which will form a ‘flight path’ through the old town.

Each spitfire is sponsored and decorated by local organisations and businesses. The project has been co-ordinated by the air cadets from the 42F (King’s Lynn) Squadron Air Training Corps. Visitors will be able to view the trail until the end of September.

Heather Garrod, President of West Norfolk Chamber Council said:

“King’s Lynn has a wealth of historical heritage on which to capitalise. The excellent sound and light shows have attracted many visitors and increased footfall in the town centre, which has benefitted the businesses based there. Together with the recent Hanse business convention and festival in May, helping to increase business awareness of the trading opportunities, this has all firmly put King’s Lynn on the map for both business and tourism.”

“It is hoped that the Air Cadet’s Spitfire Trail will prove to be just as successful and popular as the GoGo Gorrillas trail held last year, and the current GoGo Dragons Trail in Norwich. The Spitfire Trail will not only celebrate the Battle of Britain, but it will help boost visitor numbers to the town centre and contribute further to the local economy.”

(Based on June 2015 data releases)

• Q1 UK GDP growth revised up – driven by less pessimistic construction output figures
• Latest economic data suggests a pick up in UK economic growth in Q2
• Eurozone economy showing signs of improvement, but Greece is on the brink

The UK economy green by 0.4% in Q1 2015, revised up from the previous estimate of 0.3%. The upward revisions were driven by the better performance from the construction sector.

Real earnings are still growing in the 3 months to April2015, the number of people in work rose by 114,000 compared to the previous 3 months. Total pay rose by 2.7% in annual terms for the same period – the fastest rate of growth since 2011.

The Eurozone is improving but Greece remains on the brink. With the possibility of Greece becoming the first country to exist the Eurozone becoming more likely, the decline on its economy has been dramatic.

Overall the economic data provides further evidence that the UK economy will grow. However risks remain, although the risk of contagion to the UK from the Greece debt crisis remains relatively low.

Full details can be found in the attached report.

In her full reaction to the Chancellor’s Summer Budget, Caroline Williams, Chief Executive of Norfolk Chamber said:

“George Osborne has delivered a genius balance of politics and economics that provides stimulus for the Norfolk economy, while continuing the tough task of eliminating the deficit. Steady deficit reduction means the economy still has the oxygen it needs to grow.”

“Norfolk companies will offer a cautious welcome to proposals on transport, training and local decision-making, but will want to see precisely how the Chancellor’s moves will make roads better, improve skills, and allow them more power to determine what happens in our city, towns and county.”

“The Chancellor has confirmed that Britain is open for business. Firms across Norfolk will cheer not just the new permanent Annual Investment Allowance, further Corporation Tax reductions, and lower National Insurance for small businesses, but also commitments to childcare and higher education that help them employ Norfolk’s best.

Ahead of the publication of the government’s Productivity Plan on Friday, she added:

“Several key themes for business – such as export support, compensation for those affected by infrastructure schemes, planning reform, and transport – were conspicuous by their absence in the Budget. Companies will want to see more detail on how the government’s productivity plans help to improve the business environment, because any plan will only make a difference if it becomes easier to do business on the ground.”

Commenting on key additional measures announced in the Budget, Caroline Williams said:

Annual Investment Allowance

“Businesses across Norfolk will cheer the announcement of a permanent, £200,000 Annual Investment Allowance – something we have been advocated for over many years. This will be an important shot in the arm for businesses that are investing for growth. As the one tax break that offers significant support for medium-sized companies, it will support the firms that repeatedly deliver jobs and tax revenue here in the Norfolk.

“It means businesses can plan investment over a reasonable period, and help to deliver the productivity increases Britain needs.

“The Chancellor should in future go further, and extend the Annual Investment Allowance to cover premises improvements and more types of training, not just plant and machinery.”

National Insurance

“The less National Insurance Norfolk companies have to pay, the more confidence they will have to hire new employees. This will be a real boost for small and start-up businesses.”

Corporation Tax

“The Chancellor’s commitment to further cut Corporation Tax is a clear sign that Norfolk and Britain as a whole is open for business.”

Road investment and road tax

“The decision by the Chancellor to commit the revenue raised by Vehicle Excise Duty to a Roads Fund will be welcomed by Norfolk businesses, who have long wanted to see a dedicated source of roads funding. Investing in the country’s infrastructure to deliver promised investment in road and rail is vital for long-term economic growth. We will need to see more detail on how much extra this will deliver to invest in much needed improvement in our road network. In addition to new and upgraded roads, maintaining the existing network is also vital.”

Devolution and local growth

“The British Chambers of Commerce research shows that business people in England broadly support the concept of further devolution to their local area. The announcements today on further powers for cities, local decisions on Sunday trading, and Enterprise Zones for smaller towns will be welcomed by many.

“Greater local-decision-making must come alongside greater efficiency in local government, greater accountability and better results. Our proposal for a ratepayers’ vote on local economic development strategy and funding decisions would ensure that plans for an area’s future have the support and input of the whole business community.”

Apprenticeship levy

“If the government is serious about boosting apprenticeships, it should focus on improving quality of apprenticeships to make them more attractive to employers.Businesses of all sizes need positive encouragement and an apprenticeship system that meets their needs. It’s also disappointing that businesses have not been consulted on the move to introduce an apprenticeship levy on larger firms.”

Housing

“It is disappointing that we didn’t hear anything in the budget to tackle the root problem in the housing market – the lack of supply. The Government needs to put forward credible plans on how it will address this issue.”

Access to childcare

“Expanded access to childcare is a win-win for employers and parents alike, helping more talented individuals to stay in work. We hope that roll out of this measure is done in a cost effective manner.”

Also in reaction to the Chancellor’s Summer Budget, John Longworth, Director General of the British Chambers of Commerce,said:

“Companies will offer a cautious welcome to proposals on transport, training and local decision-making, but will want to see precisely how the Chancellor’s moves will make roads better, improve skills, and allow them more power to determine what happens in their cities and counties.

“Most Chamber member companies already pay their staff at or above the Living Wage. They will want assurances, however, that moves to create a National Living Wage follow an evidence-based approach, and minimise impacts on smaller firms, for whom adjustment will be harder.

“We hope that the Chancellor’s reference to the free movement of aircraft over West London is a portent of a rapid decision to expand aviation capacity at Heathrow, in line with the Airports Commission’s recommendation.”

Commenting on some of the additional measures announced in the Budget, John Longworth said:

Inheritance tax changes

“Passing the fruits of hard work to the next generation appeals to everyone. Yet it is wrong to raise inheritance tax thresholds at the expense of pension saving. This particularly hurts entrepreneurs, who defer their own compensation while investing in their companies.”

Tax avoidance

“As the vast majority of UK businesses diligently pay all the tax they owe, we support the Chancellor’s attempts to create a level playing field for all firms. The employment of aggressive tax avoidance schemes by a small minority continues to be a major source of frustration within the business community.”

Pensions

“Any reform to pension saving and taxation must bear entrepreneurial aspiration in mind. Cutting pension tax relief for those who seek long-term rewards would be a step backwards.”

National Living Wage

“Making ends meet is clearly an issue of huge concern to many in Britain today. And we applaud all of those businesses that pay, or aspire to pay, their staff above the Living Wage. That includes a huge majority of Chamber of Commerce members, with 61% paying all staff at or above the Living Wage, and a further 20% paying most staff above the Living Wage rate.

“They will want assurances, however, that moves to create a National Living Wage follow an evidence-based approach, and minimise impacts on smaller firms, for whom adjustment will be harder.”

A total of 166 employers were fined for failing to comply with their workplace pensions duties in the last three months of 2014, The Pensions Regulator (TPR) has said.

So far, since auto-enrolment started being rolled-out in 2012, 169 employers have been given £400 fines.

Charles Counsell, director of automatic enrolment for TPR, said: “My message to all employers is that failing to declare within five months of your staging date means you risk being fined, which is why we recommend you start your automatic enrolment planning and preparation 12 months before staging.

“It appears some medium employers waited for a prompt from the regulator before completing their automatic enrolment duties.”

He said this was a small number compared to the tens of thousands of businesses which have complied with auto-enrolment, but warned the number of fines could increase.

“With the mass market roll-out of auto-enrolment to large numbers of small businesses in the coming months, we expect to see an increase in how often we need to use our powers,” Mr Counsell said.

Although the vast majority of employers have completed their duties on or ahead of time, he said TPR was still seeing a small minority that required the additional nudge of a notice.

A total of 1,139 compliance notices were issued in the last quarter of 2014 instructing employers to remedy a contravention of one or more of their duties or risk a fine or further action.

The regulator said a significant number of these notices were sent to employers who had missed their deadline to submit their declaration.

Depending on the seriousness of an employer’s failure to comply with auto-enrolment rules, The Pensions Regulator can fine them up to £10,000 for each day of the failure.

• Norfolk manufacturing export sales and orders strengthened from the Q1 results – in contrast to the national results which weakened
• Employment in Norfolk’s manufacturing sector increased by 10 points – whereas the national results decreased by 12 points
• Both Norfolk service and manufacturing sectors reported that they did not intend to increase their prices within the next 3 months
• Norfolk’s service sector balances for home sales and orders reflected the national results, remaining static

The British Chambers of Commerce (BCC) Quarterly Economic Survey (QES) – one of Britain’s largest and most authoritative private business surveys, based on almost 7,500 responses from firms, employing around 800,000 people – shows that in the second quarter of 2015 the national service sector continued its current trend of steady progress but national manufacturing firms reported much weaker growth.

However the Norfolk results for Q2, whilst mixed, showed signs of cautious growth. Norfolk’s manufacturing export sales and orders are stronger and higher than the national results and employment in the Norfolk manufacturing sector rose in comparison to the national results.

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

“The Q2 2015 results for Norfolk point to continued moderate growth in the local economy over the next year. It is encouraging to see that several of Norfolk balances positively ‘bucked’ the national trend, with some results being stronger than the national balances, compared to the last quarter. However concerns over the EU and the possibility of Grexit are causing some uncertainty within the business community and the impact of the reduced oil prices are being felt locally.

“Despite mainly positive results, Norfolk still has some structural issues that are limiting our local businesses’ ability to grow. First, underinvestment in infrastructure and second, insufficient focus on helping more businesses succeed in new markets overseas. The Chancellor’s Budget, the forthcoming spending review and the remainder of this Parliament should focus on tackling these issues for the long-term.” “

Key findings in the Q2 2015 Quarterly Economic Survey:

• In Norfolk services sector, the domestic and export balances recorded mixed movements in Q2, but the overall growth level for sales and orders remained broadly static. The balance for domestic sales fell (+33% in Q2 2015, down from +35% in Q1 2015), as did the balance for domestic orders (+28% in Q2, down from +29% in Q1). However the export sales balance increased by two points in Q2 to +14%, and the export orders balance increased by ten points in Q2 to +10%.
• The Norfolk service sector’s confidence in their cashflow increased with a rise of seven points to +18%. However the balances for investment and employment both dipped – showing that businesses are still being very cautious.
• In contrast, many of the key Norfolk manufacturing 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%). Employment expectations rose by ten points to +23%.
• In Norfolk, the intention to raise prices balance dropped markedly for both sectors (manufacturing +8% in Q2 2015, down from +20% in Q1 2015 and service +11% from +22% in Q1 2015) this was in contrast to the National balance for manufacturing which rose from +11% in Q1 to +23% in Q2 2015. The national service sector balance dipped by three points from +23% to +20%.
• The balance for pressures on capacity were both down slightly (manufacturing +35% in Q2 2015, down from +38% in Q1 2015) and services (+34% in Q2 2015, up from +48% in Q1 2015).

John Longworth, Director General of the British Chambers of Commerce, commenting on the National results, said:

“These figures give us the best, most current insight into business experience and sentiment. Overall, they indicate that we will see continued growth in the economy, thanks mainly to the strength of the services sector. But the difference in results also raises the prospect of the UK experiencing two-tier growth – with modest expansion in services and markedly slower growth in manufacturing and goods.”

Norfolk Chamber is looking for the Chancellor to deliver a business friendly budget tomorrow.

Caroline Williams CEO Norfolk Chamber gives her point of view:

Speculation is mounting ahead of tomorrow’s Budget that Sunday trading laws could be relaxed.

But putting all our eggs in the basket of consumer spend will not deliver long-term, sustainable, great growth for the UK economy. The government needs to focus on improving our road, rail and digital infrastructure as well as promoting international trade and export – that is how we can rebalance the economy and help achieve Norfolk growth ambitions.

It is positive that Norwich and Norfolk will be able to decide locally so that our independent stores which make Norwich’s shopping experience so specialcan have their voices heard

Tomorrow’s Budget presents a golden opportunity for the Chancellor to demonstrate the Government is serious about boosting international trade and hitting its target of having exports worth £1 trillion by 2020. Our small and medium exporters need the same support as the larger companies so we would look for additional support for them as they compete on a global stage. It is an opportunity the Chancellor cannot afford to miss.

The Chancellor must also get to grips with the huge investment challenge facing the country which particularly affects us here in Norfolk. Ageing roads, rail and energy networks need upgrading

Business will no longer accept a ‘make do and mend’ approach and want to see real commitment to supporting the needs of business.

Norfolk Chamber would like to see:

• A commitment to continued infrastructure improvements in roads and rail
• Improved Digital and wireless connectivity through broadband and mobile speed and coverage to support selling and buying online
• We need investment in energy infrastructure to keep production lines and technology running.
• Improved international support for small and medium sized exporters.

Failure to invest in capacity and maintenance in infrastructure is hampering Norfolk’s business growth and potentially costing jobs.

We accept the government’s goal of deficit reduction but it must be achieved without restricting our businesses economic growth which will affect our ability to create and retain jobs.

We are seeing an improvement of the local economy especially relating to manufacturing where Norfolk is showing better results that nationally in the British Chambers of Commerce’s Q2 Quarterly Economic Survey results out today.

However, the economy remains fragile with uncertainty within the business community relating to the situation in Greece and the reduction in oil prices. A business friendly budget is needed.

Norfolk County Council has advised of major road works which will affect Hall Road, Sandy Lane, Bessemer Road and Barrett Road I Norwich for approximately 19 weeks from Monday 13 July 2015.

The road works include:

• Widening and resurfacing of Sandy Lane
• Construction of new store accesses, footways and cycleways
• Construction of Tucan crossings on Hall Road, Sandy Lane, Bessemer Road and Barrett Road
• Construction of Zebra crossing on Hall Road
• Upgrading of existing traffic signals on Sandy Lane/Hall Road and Sandy Lane/Whiting Road

Many of the works will be undertaken simultaneously to attempt to minimise the duration of the road works. One way systems, road closures and traffic management and diversions will be in operation during the works. Full information of the works can be found here.

Norfolk Chamber is situated on the Norwich Business Park on Whiting Road and members should note that they should expect delays when visiting the Chamber offices.

Young people in Norfolk are being urged to think about careers in the county’s six growth industries as part of a new interactive campaign aimed at developing Norfolk’s future workforce.

These six growth are Energy, Advanced Manufacturing & Engineering, Creative Industries, Financial and Insurance and Health & Social Care.

Norfolk County Council has launched the Future You campaign to help address a skills gap in the county and boost the aspirations and careers of young people living in Norfolk.

Aimed at young people aged 13 to 21, the campaign includes the launch of a free mobile careers app which helps young people match their skills and aptitudes to the county’s likely job market. It also offers advice on interview techniques, work experience and CV writing, as well as job roles, apprenticeships, academic courses and career paths.

Caroline Williams CEO Norfolk Chamber of Commerce “The Chamber welcomes this exciting initiative as our young people are Norfolk’s future workforce.

Our members are passionate about supporting young people by offering employment including apprenticeships and working closely with schools.

The new campaign will help raise the profile of what great opportunities there are for young people right here in Norfolk.”

George Nobbs, Leader of Norfolk County Council, said: “One of the County Council’s key priorities and ambitions is to ensure that people who live in Norfolk have access to Real Jobs; career jobs. Not zero hours or seasonal work.

“We especiallydon’t want our young talent to feel that they have to leave this county in order to forge a successful andrewarding career.

“That is why we’ve launched the Future You campaign and app – to ensure our young people are both aware of and encouraged to consider, careers in our key economic sectors.

“Norfolk’seconomy is already growing at a faster rate than nationally. With great potential for further growth,we want Norfolk residentsto be a key part of, we will continue to invest in and champion: the good infrastructure that we need to bring even morereal jobs to our communities.”

The Future You app is available from the AppStore and Google Play Store.

The films are available athttps://www.norfolk.gov.uk/Childrens_services/Schools/Future_You/index.htm

Europe is dominating the news at the moment due to the uncertainty of how the situation with Greece will be resolved. Commenting in the wake of the Greek referendum, which saw voters reject creditors’ bailout terms, Caroline Williams CEO Norfolk Chamber of Commerce said:

“Beyond its immediate impacts on markets and trade, it looks ever more likely that the Greek referendum vote will spark fundamental changes in the Eurozone – and the European Union as a whole.

“The Prime Minister may get an early, and important, opportunity to put the case for fundamental reform of the UK’s relationship with the EU. Businesses will want him to seize this opening, especially as many of the UK’s desired reforms would support the competitiveness of the EU as a whole.”

“There is now broad agreement across the political spectrum that our relationship with the EU needs to change and that the status quo is not an option. Norfolk businesses would like their voice included in the debate, to help the government secure meaningful changes to our relationship with the EU.”

There are five key elements that Norfolk Chamber wants to focus on relating to EU reform:

• In a Europe in which the decisions will be made by and for the Eurozone – a club of which we will never be a member – Britain must have absolute guarantees to protect our economic and other interests within the EU.
• We need to protect our businesses from the regulatory burdens imposed by the EU, particularly those that do not relate directly to trade, again with an opt-out if necessary. The vast majority of the UK’s economic activity is not directly derived from trade with the rest of the European Union – and yet all of that activity is hit by the cost of European regulation.
• It is necessary to sort out the “common market” so that it works for British business. The UK is by and large a service sector economy and yet there is no meaningful internal market in services within the EU and, at the same time, the market in goods is imperfect and unravelling.
• We need a clear and balanced approach to immigration taking into account the need for stability and social cohesion and driven by the skills requirements of our economy, meaning businesses can access the talent they need.
• We need a cast iron opt-out to make sure we do not sleepwalk into an ‘ever closer union’.

If you have an opinion on this issue or would like to give examples of how the current situation with the EU is adversely affecting your business please advise [email protected]

We’re delighted to welcome Plain Speaking Agency as a new member of the Norfolk Chamber of Commerce. Plain Speaking is a straight talking, results focused PR, communications and marketing agency based in Norwich. Founded in 2006, the team is made up of three senior comms professionals – managing director Pippa Lain-Smith, plus Amber Davis and Kayla Dunne – collectively with over fifty years’ PR experience: from global organisations to start-ups, consumer goods to business services, national brands to social enterprises. They are friendly and tenacious, all involved in every element of clients’ work, from developing campaign plans and implementing activity, to measuring success.

The Plain Speaking team believes public relations is about communicating and building relationships with people who are important to your brand; engaging their interest, inspiring their loyalty and encouraging them to do business with you. They help to build, maintain and protect reputations; and take pride in using language that clients understand, avoiding unnecessary jargon. The will only recommend communications tactics that they honestly believe will add value to a business.

Pippa Lain-Smith, managing director of Plain Speaking Agency, said: “Our team has such broad experience that we are able to represent a very diverse range of clients; from retail to telecoms, healthcare to property, and everything in between. We have one simple aim: to help our clients achieve their business objectives. Most of the clients that we work with have been with us for a number of years, which is testament to our commitment to exceeding their expectations.

“We offer more than just media relations: from award submissions, event planning and internal communications; to issues management, copywriting and social media engagement. There is also our Brand Vitals© process which helps clients to develop their brand identity and hone core values. Depending on the brief, our work can cover consumer, business-to-business and trade audiences; on a local, regional, national or international level.

“We joined the Norfolk Chamber of Commerce to engage more with the regional business community. The training, networking and events programme has been highly recommended so we’re looking forward to meeting new people and enhancing our skills base.”

To find out more about Plain Speaking visit www.plainspeakingagency.co.uk , call 01603 487 291 or email [email protected]

Commenting on the final report of the Airports Commission, which has backed anewrunway at Heathrow, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“After three years of deliberation, businesses across the UK will be pleased that the Airports Commission has finally come to a clear recommendation.

“Now that all the evidence is on the table, firms in every corner of the UK want to see an irreversible government commitment to a new runway at Heathrow by the end of 2015, with planning complete and diggers on the ground by the end of this parliament in 2020.

“The ball is now firmly in the government’s court. If ministers duck this decision, and delay airport expansion for yet another generation, British businesses and our overall competitiveness will pay the price.

“Business long ago ran out of patience. The government cannot afford to delay airport expansion any further if it is serious about Britain punching above its weight on the global stage. That means delivering a new runway at Heathrow now, and leaving the door open to subsequent expansion at Gatwick, Stansted and key regional airports as well.”

Ahead of the Chancellor’s Budget announcement on Wednesday 8 July, the British Chambers of Commerce (BCC) is urging the government to commit to rebuilding Britain’s infrastructure, bringing to an end our ‘make-do and mend’ culture.

The BCC’s submission highlights that a lack of investment in infrastructure capacity and maintenance – across transport, energy and digital – is hampering business growth and costing jobs.

Public infrastructure investment has fallen noticeably since the 1970s, despite the UK National Infrastructure Plan identifying around 650 projects required in the next 15 years. Britain also lags behind other developed countries for quality of infrastructure, ranking only 27th in the World Economic Forums’ Quality of Overall Infrastructure table. The UK needs to be in the top 15 by 2020 if it is to achieve the government’s aspiration to become the richest country in the G7, per capita, by 2030.

Businesspeople across the UK are concerned that government spending remains too focused on areas of short-term economic benefit and political convenience, instead of on assets that have a lasting economic impact. The BCC calls for the government to sharpen its focus on growth and put infrastructure measures, capable of boosting productivity, at the heart of the economy.

The BCC submission proposes five key measures* to address this:

• Complete the review and reform of the compulsory purchase process by 2017/18 – the BCC urges the government to speed up the delivery of important projects by increasing compensation for people subject to compulsory purchase orders to 150% of the open market value of the property.
• Rapid action to green-light new aviation capacity following publication of the Airports Commission’s final report and recommendation.
• Deliver promised investments in road and rail schemes of national importance.
• Create a new independent body to decide the UK’s infrastructure needs.
• Remove investment relating to the delivery of the national infrastructure plan from the national debt target.

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

“It is the business community that will deliver jobs and economic prosperity in Norfolk and delays in delivering the vital infrastructure improvements will be to the detriment of Norfolk’s economic wellbeing.

Norfolk has historically lagged behind the rest of the UK in terms of road and rail infrastructure. Greater accessibility is key to ensuring that the Norfolk business community can compete on a national level and infrastructure improvements in Norfolk will open up opportunities for local businesses to deliver more economic growth, housing and jobs for our County.

We would call on the Chancellor to re-confirm the commitments that he made to improve Norfolk’s infrastructure, prior to the General Election, with solid timescales.”

Commenting, John Longworth, Director General of the British Chambers of Commerce said:

“The UK must get to grips with a huge investment challenge over the next decade – ageing road, rail and energy networks need upgrading and replacing and more houses need to be built to meet demand.

“Businesses rely on transport networks to move people and goods, digital and wireless connectivity for selling and buying online and energy infrastructure to keep production lines and technology running. Failure to invest in capacity and maintenance is hampering business growth and costing jobs.

“Britain has relied on a ‘make-do and mend’ approach for far too long, but this is simply not acceptable. While our competitors across the world are making serious, sustained investment towards infrastructure, in many cases we rely on patched up systems built in the ’70s. It’s for this reason that we languish so far down the international league table for quality of infrastructure, as well as investment. Unless the UK overhauls its lacklustre approach to managing infrastructure and gets serious about investment, we risk falling behind in the global race.

“We need the government to make irreversible commitments to new airport capacity and nationally significant road and rail improvements. As well as establishing a national board to oversee the delivery of projects, the government should increase compensation for people subject to compulsory purchase orders to make the system fairer and speed up the delivery of projects that help strengthen the economy.

“Businesses support the government’s goal of deficit reduction, but it must be achieved without detriment to growth. We want this Parliament to be defined by growth and to enable that we need to invest in our infrastructure.

“A world class economy needs world class infrastructure – and if delivered, it will be a triple win for business, jobs and government.”