Chamber News

The Prime Minister in February set out his six-point long term economic plan for the East of England showing what has been delivered, what is underway and what more can be done to make the regional economy prosperous in the long term and set out a specific timetable to deliver the key concepts of this plan over the five years of the next parliament, and the following decade.

The plan aims to deliver 250,000 new jobs and boost the East of England’s growth by over £12 billion between 2015 – 2030.

Timetable for Action – Implementation in the East of England 2015-2030

2015

Employment and productivity

• In the £48.5m expansion of the New Anglia Growth Deal, announced 29 January, government committed to:
• This includes the King’s Lynn Innovation Centre, which will house 15 new businesses, and the Ipswich Waterfront Innovation Centre

Agri-tech and rural economy

• a total of £49.18m has been invested in the East of England between 2010 and 2015 under the Rural Development Programme. Some of the projects funded include:
• £125,000 to build an irrigation reservoir for an arable farming business (Charles Wharton Ltd) in Norfolk. The reservoir increased the irrigable area by 235ha, safeguarding 6 jobs and raising profitability
• first project supporting the Wash East Coastal Management Strategy will be developed in partnership with the Borough Council of Kings Lynn and West Norfolk and the local community. This project will look to provide continued protection to 570 properties and 4,500 static caravans

2016

Transport and connectivity

• government is extending in 2015 the study already underway of the East-West Rail (Bedford to Cambridge) to explore the options for the Eastern section of the line. Specifically the study will consider how East West Rail could connect Oxford with Ipswich and Norwich.

Science, technology and education

• as part of government’s £300m investment, infrastructure work will continue at RAF Marham in order to get it ready as a base for the new Joint Strike Fighter fleet

2017

Science, technology and education

• as part of government’s £300m investment, infrastructure work will continue at RAF Marham in order to get it ready as a base for the new Joint Strike Fighter fleet

2018

Transport and connectivity

• IEP trains start service on the East Coast Main Line – the Intercity Express Programme represents a £2.7bn investment into new rolling stock, maintenance depots including a full maintenance regime serving the East Coast Mainline, increasing the number of seats during morning peak into Kings Cross by 18%. Passengers will benefit from more reliable services, more seats, increased luggage space, faster journey times (from 2019), and improved wi-fi and mobile coverage

Science, technology and education

• RAF Marham will be ready to receive the first Joint Strike Fighters to arrive in the UK, following infrastructure works as part of a £300m government investment
• HMS Queen Elizabeth will begin sea trials for JSF. JSF will be based at RAF Marham

2019

Transport and connectivity

• completion of upgraded railway junctions at Ely and Peterborough and capacity enhancements on the Felixstowe – Birmingham line that will enable both growth in Port of Felixstowe container traffic to be met and growth in Kings Lynn and East Coast main line passenger services

2020

Transport and connectivity

• IEP and Agility will have delivered 122 new trains to replace the InterCity 125 and 225 fleets running on both the Great Western and East Coast main lines – representing £5.7bn of rail investment designed to improve reliability, services and connectivity reducing journey times from the regions

Science, technology and education

• HMS Queen Elizabeth will reach Initial Operating Capability for Carrier Strike with JSF based at RAF Marham

2021-30

Science, technology and education

• blocks in 39 schools in the East of England will have been rebuilt or had their condition needs addressed as part of phase 2 of the Priority School Building Programme

For the full report click here https://www.gov.uk/government/news/prime-minister-announces-long-term-ec…

Abellio Greater Anglia’s Mark III refurbishment programme continues to run to timescale with the first complete set (9 carriages) expected to be rolled out in quarter 2 of this year and the refurbishment being fully completed in quarter 3 of 2016. The refurbishment includes new seat covers, new carpets and new tables, new lighting, new controlled emission toilets, plug points, a complete interior and exterior repaint and an additional 1,600 seats per day.

Network Rail’s consultation on its Anglia Route Study closed on 3 February. The final route study is due to be published in June 2015. The consultation on Network Rail ‘Improving Connectivity’ report (a methodology for a different way of planning the railway) has now closed. Network Rail is running a workshop on their proposed methodology.

The DfT is currently consulting on the specification for the longer-term Greater Anglia franchise which commences in October 2016. This consultation ran until 16 March 2015. DfT had arranged a bidders day at Norwich City Football Club for 5 March.

New Anglia LEP will shortly be publishing a revised version of the Rail Prospectus for East Anglia, which was originally published in 2012. This refresh has been led by Chloe Smith MP. The priorities for rail across East Anglia have been reviewed and updated and the scope of the Prospectus has been widened to include Hertfordshire’s rail priorities. The final version of the prospectus will be used to support the response to DfT’s consultation on the long-term franchise and we expect the new Prospectus will be launched towards the end of March.

The Chambers have been lobbying for a review of the business rates systems for many years so Danny Alexander’s announcement that there will be a “radical” review of the business rates system in England with its findings due in time for the Budget in 2016, is very welcome.

The review ‘paves the way for changes’ to the current system, which has been in place since 1988.However, the outcome is expected to be fiscally neutral, meaning that the total sum collected from businesses will not change.

The review was first announced in December’s Autumn Statement.

The Treasury said the review will look at how firms use property, what the UK could learn from other countries and how the system could be modernised to better reflect changes in property values.

The current arrangement means that companies with similar turnovers can pay dramatically different sums for business rates because their properties have varying “rateable values” depending on the size and location of their premises.

John Longworth, director general of the British Chambers of Commerce, welcomed the review, but said “actions speak louder than words”.

“Unless a root and branch reform of business rates is delivered at Budget 2016, firms will regard this as a missed opportunity to tackle a huge brake on investment and growth,”

The rates paid by English businesses are the highest of any European Union country and can be a company’s biggest expense after wages and rent.

Rates have been blamed for the decline of many High Streets and the rising number of vacant shops.

Business rates are calculated according to the rental value of the property a company uses. They date back to the Poor Law established in 1601.

Current valuations are still based on property prices in 2008, before the economic downturn hit the value of commercial real estate, as the government postponed a revaluation scheduled for last year.

Norfolk Chamber recently attended a workshop on developing socio-economic indicators for the upcoming East Anglia rail franchise. The workshop was conducted by the Rail Safety & Standards Board (RSSB) who are working in partnership with the Rail Executive of the Department for Transport. Together they want to embed the industry’s sustainable development principles into the upcoming new rail franchise.

Discussions centred around the need provide good connectivity between workers and the economic hubs in the region; reliability of services; recognition of regional links i.e. Cambridge, Great Yarmouth, Lowestoft etc, as well as the links to London; quality of services both on board the trains and at the stations; and the importance of regular rural rail transport to areas such as North Norfolk.

The workshop also identified that new rolling stock that included wifi, tables and sockets should be standard; more cyclists needed to be accommodated on the trains; the timetable should take into account the night time economy and the influx of tourists into the region; as well as providing good links for both commuters and young people.

Nova Fairbank from Norfolk Chamber who attended the workshop said:

“Improvements to Norfolk’s rail infrastructure have lagged behind the rest of the UK for many years and to ensure Norfolk businesses remain accessible and competitive, we need a faster, more reliable service. As part of this service, the new rail franchise must deliver a higher quality of rolling stock, with more capacity and automatic doors, together with connectivity across Norfolk, the East of England and down to London. An improved rail service will better enable the Norfolk business community to deliver economic growth and jobs.”

You now have the opportunity to have your say by completing a short online survey. The deadline to complete the survey is Thursday 26 March 2015

The BCC is urging the government to back long-term business investment, by introducing a permanent Annual Investment Allowance of £500,000.

Ahead of the Chancellor’s Budget announcement on March 18, the British Chambers of Commerce (BCC) is urging the government to back long-term business investment, by introducing a permanent Annual Investment Allowance of £500,000*.This would help to achieve better balanced growth and to tackle the unacceptable uncertainty created by the constant chopping and changing of UK tax structures and incentives. This uncertainty is intensified by the current political and economic climate, including the outcome of the general election.

Under current plans the Annual Investment Allowance limit will return from £500,000 to £25,000 after the latest temporary extension ends on 31st December 2015. In addition to a high, long-term Annual Investment Allowance, the BCC’s submission argues that the allowance should be widened** to include improvements to business premises, which would allow companies across the UK to boost productivity, efficiency and hiring.

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

“The huge declines in business investment at the end of 2014, and our forecast for 2015 – which predicts the slowest rate of growth for investment in six years – are a warning sign that more needs to be done to support long-term business investment.

“Businesses are operating in uncertain times – with conflict in the Middle East and Russia and a sluggish Eurozone to contend with. Yet the greatest source of uncertainty is political and home-grown. Businesses have grown tired of constant chopping and changing in the UK tax system. They need long-term certainty, rather than short-term incentives, to help support investment decisions.

“A long-term investment allowance would give businesses of all sizes much-needed certainty. Our proposals would also allow for premise improvements to be included in the scheme, which are crucial to firms looking to expand their workforce or enhance their efficiency.

“We also need to boost business investment’s contribution to GDP, as this will help us move away from an over-reliance on consumer spending, towards better balanced growth that is sustainable in the long-term. It’s time the government acknowledged that by forgoing some tax receipts in the short term, it will reap the rewards later, as businesses invest, hire and generate bigger profits.

“Apermanent Annual Investment Allowance would be a ‘triple win’ proposition – for business, for jobs, and for government.”

Caroline Williams CEO Norfolk Chamber of Commerce, said:

“The Chancellor has said that the budget is all about securing a truly national recovery from building a Northern powerhouse, connecting up other regions of our country, committing to long-term plans that support science and high-speed transport.

“What Norfolk business needs are commitment to better infrastructure road, rail, broadband and mobile, increased support to businesses wanted to increase their market share through international trade, and additional support to help our young people better understand the world of work. We will only ensure that funding comes to the east and not all to the north if our business community is more visible, and successes of getting Norwich recognised by Tech City is a great step forward.”

From local standout to national champion: BCC Chamber Awards will put best of British business on the map.

This year, the British Chambers of Commerce (BCC) are inviting businesses from across the country to take part and showcase their talents and achievements through a series of regional heats, culminating in the national final, which takes place in London on 26 November 2015. There is also the chance of winning a £10,000 cash prize.

Companies can enter eight categories, covering exports, small business, people development, technology, high-growth firms, community, young people and partnerships with the education sector.

The Awards will be demonstrating the very best of British business, highlighting the positive contribution that businesses make to the UK economy and to society as a whole. The categories are:

• Small Business of the Year
• Export Business of the Year
• High Growth Business of the Year
• People Development Award
• Best use of Technology to Improve Business Performance
• Education and Business Partnership Award
• Business in the Community Award
• Young Person in Business Award

The deadline for entries is Friday 26 June 2015, the regional winners will be announced on 28 September 2015, with the national winners being announced on 26 November 2015 at a gala awards ceremony in London. To enter online click here

At a recent meeting, members of Norwich Chamber Council heard from Karen O’Kane, Programme Director for Better Broadband for Norfolk (BBfN) and Annette Thorpe, the Regional Partnership Director for BT on the roll out of broadband across Norfolk. The aim of BBfN is to implement the necessary infrastructure to allow 90% of Norfolk to be able to access broadband by the end of 2017. With 84% coverage expected by the end of the first part of the contract at the end of 2015.

Step one is for businesses to find out if they already have access to better broadband or when they can expect it to be implemented in their area. They need to check on the BBfN website: www.betterbroadbandnorfolk.co.ukThis can be done by adding the postcode into the broadband checker on the top right hand side of the BBfN home page. This website also provides advice and links as to how to find out what your current upload and download speeds are.

If a business finds that they are not eligible or cannot access better broadband, they can send their contact details to Karen O’Kane, who will check whether that specific location is due to receive better broadband in the future and she may be able to advise the business of further steps they can take. Karen can be contacted on: [email protected]

Businesses need to note that Broadband speeds will not automatically improve once the infrastructure has been implemented -businesses need to take further action:

1. Find out whether you can access fibre based broadband – an information sheet is attached
2. Contact your existing broadband provider to see what packages are available
3. If your current provider cannot offer a faster option, then Ofcom have a comparison site which highlights alternative providers, the types of packages offered and the costs involved.https://consumers.ofcom.org.uk/tv-radio/price-comparison

Anglia Log Cabins were the deserved winners of the Norfolk Chamber sponsored Customer Care Award at the King’s Lynn Mayor’s Business Awards. The award was presented at a gala dinner on Friday night at the Corn Exchange in King’s Lynn.

Presenting the Customer Care award was Heather Garrod, President of West Norfolk Chamber Council, she said “Anglia Log Cabins clearly demonstrated that high standards of customer care are the norm and they did not appear to realise that a lot of the service they provided as ‘standard’ would be constituted as exceptional customer care to most people. They consistently went the extra mile – small details such as: additional planting to make the landscaping around the cabin look better; left-over materials turned into benches; and donations of books, Kindles and other IT equipment to school raffles etc are just a few of the extras supplied over and above what they have been contracted for.”

Ahead of the latest ONS trade statistics (Wednesday), the British Chambers of Commerce (BCC) is calling for export and trade growth to be at the heart of the next government’s economic strategy – with a particular focus on working with business to help more companies enter the ‘export game’.

A BCC survey of more than 4,700 businesses including Norfolk Chamber members found that new exporters (0-2 years) accounted for only 11% of exporting firms, while three quarters of exporters (75%) have traded internationally for more than five years. Further findings also show that once firms begin to export they rapidly expand into other markets, as almost two thirds (64%) of exporters trade with six or more countries.

The BCC has proposed a number of measures to assist first-time exporters, and to help existing exporters target new international markets:

• Continue to develop a world-class, global business-to-business network of British Chambers and business groups- linking British firms with customers and opportunities for growth in the fastest-growing overseas markets.
• Continue work to bring UK Export Finance up to par with the world’s best export finance agencies – ensuring UK businesses can access finance needed to seal deals in markets around the world.
• Reform the UK’s passport and visa system – to allow overseas British business people and their foreign counterparts to conduct trade activity with ease, boosting Britain’s export performance.
• Make foreign language learning compulsory from age seven to 16 – supporting more young people to ‘think global’, and acquire the knowledge and skills that are highly valued by Britain’s exporters.

Commenting Caroline Williams Norfolk Chamber of Commerce, said:

“Exporting is like a ‘eureka’ moment for many companies – once they’ve done it for the first time, new business opportunities, ideas and profit follow.

“Business and government can and must work together to help more companies start exporting, and ensure that Norfolk has a steady flow of firms keen to move beyond the domestic market for the first time.

“The key is to make it easier for companies to consider trading internationally, and make it a bigger part of our business culture. That’s why building a strong global British business-to-business network is so important, since it helps a company from Bradford, Bristol or Belfast land on its feet in Bogota, Bangkok or Beijing.

“It will take a concerted campaign to achieve the ambitious export targets set by the Prime Minister. By working together, business and government can eliminate the UK’s stubborn trade deficit – and unlock future economic growth.”

New legislation has come into effect end of last month, which is designed to benefit small businesses, by making it easier for them to bid for public sector contracts.

Central government spent an unprecedented £11.4 billion with small and medium-sized enterprises (SMEs) in 2013 to 2014. The Minister for the Cabinet Office Francis Maude has announced new figures showing that a record 26.1% of government spend went toSMEs.

The new data shows that central government spent 10.3% directly with SMEs, and 15.8% indirectly. View the data oncentral government spend withSMEs2013 to 2014.

A refreshed Contracts Finder website, at www.gov.uk/contracts-finder has been launched. It now has a much better search function, including the facility to search by location. Contracts Finder covers current and future public sector contracts above £10,000 in central government and above £25,000 in the wider public sector. It’s free to use, and you can use it from a computer or a mobile device

Here’s the basic outline:

• At the end of March, new legislation came into force that should open up the public sector’s £187 billion spend each year
• The legislation means the entire public sector supply chain will now be paid within 30 days -vital for small businesses. Everyone in the supply chain must comply with 30 day payment terms, including suppliers and sub-contractors public bodies must publish an annual late payment report, making their accountability more transparent
• A new version of the Contracts Finder website, launched on 23rd February, should make it easier and quicker for companies to find opportunities to bid for. https://www.gov.uk/contracts-finder
• The new rules make it easier for small and medium businesses to bid by splitting up big contracts, removing unnecessary bid criteria and questionnaires for low value contracts. https://www.gov.uk/tendering-for-public-sector-contracts. the bidding process is simpler across the wider public sector – complex forms, such as Pre-Qualification Questionnaires, are now abolished for low value contracts
• A service called “Mystery Shopper” also allows suppliers to anonymously raise concerns about unfair buying practices so they can be investigated and resolved. https://twitter.com/govmysteryshop

East of England feedback from small and medium businesses:

• 43% see late payment from customers as a hindrance to growing their business
• 36% don’t know where to look to find new business opportunities
• 41% find searching for new business opportunities too time consuming
• 31% are wary of working for new clients that might have bad credit
• 35% find putting together bids for new business too time consuming
• 32% don’t know where to get advice or training to win new contracts
• 15% are planning to bid for public sector contracts in the next 12 months

Headlines:

• UK GDP unrevised in Q4 with net trade and consumer spending helping to support growth
• Business investment declined at this fastest rate for six years
• A period of deflation is possible in the coming months, but unlikely to last

Overall, last month’s data releases confirm that the UK’s economy remains strong. However, the recovery still faces several obstacles, intensified by political and economic uncertainty. More must be done to support long-term business investment in particular if the UK is to remain among the fastest-growing countries in the G7

Economic growth in Q4 unrevised at 0.5%

The second official estimate for Q4 2014 economic growth (GDP) was unrevised at 0.5% and therefore remains the slowest rate of growth since Q4 2013. This easing in growth mirrors the results from the BCC Quarterly Economic Survey (QES) over the same period where most of the key national balances are now below the all-time high levels recorded over the last year. In annual terms, UK GDP growth was unrevised at 2.7% in Q4. The latest GDP figures confirm that, despite a recent easing in growth, the UK’s recovery remains strong.

UK exports helping to power growth

The second estimate of Q4 2014 GDP revealed that exports played a major role in driving growth in the quarter. The UK’s trade balance (exports minus imports) deficit narrowed from £13.1 billion in Q3 2014 to £10.4 billion in Q4 2014. This improvement was driven by a 3.5% rise in exports, the biggest quarterly rise since Q2 2013, which more than offset the 1.3% rise in imports over the same period. Consumer spending continues to help power growth, rising by 0.5% in Q4, the fourteenth consecutive quarter of growth.

Business investment weakens

While net trade and consumer spending rose in the final three months of 2014, business investment weakened. UK business investment fell by 1.4% in Q4 2014, the second successive quarterly fall and is the biggest drop since Q2 2009. This fall can be partly attributed to weaker investment by the oil and gas industry, amid falling oil prices. Nonetheless, the fall in business investment over the second half of 2014 is a timely reminder that more needs to be done to promote business investment and achieve better balanced growth.

UK growth likely to quicken this year

In its latest inflation report, the Bank of England expects that the UK economy will grow at a faster rate this year, compared to 2014. The central bank forecasts UK GDP to grow by 2.9% in which if achieved would be the fastest rate of growth for nine years. The Bank of England has upwardly revised its UK GDP forecast for 2016 to 2.9%, from 2.6% and for 2017 from 2.6% to 2.7%. While its growth forecast is higher than our own, their view that UK economic growth has a good chance to regain stronger momentum in the medium term is broadly in line with our own.

Supported by a strong jobs market

In the three months to December 2014, UK employment rose by 103,000 compared with the previous three months to 30.9 million, the highest number since records began. The number of people who are unemployed fell by 97,000 over the same period to 1.86 million. As a result, the unemployment rate was 5.7%, down from 6.0% in the previous three months. This mirrors the Q4 2014 QES where the backward looking employment balances rose in the quarter. However, the youth unemployment rate, at 16.2%, remains almost three times the national average.

Consumers spending power is rising

Average earnings, including bonuses, rose by 2.1% in annual terms in the three months to December 2014. This is more than four times December’s comparable inflation rate of 0.5% and means that wages have their biggest lead over inflation since April 2008. With two-thirds of UK GDP driven by consumer spending, the rise in real earnings and therefore consumer’s spending power is good news for the UK’s near term economic outlook. However, it is important to remember that wage rises can only be sustainable if they are matched by rises in productivity.

To coincide with the launch of National Careers Week, which focuses this year on ‘Life Skills’, a report from the British Chambers of Commerce (BCC) highlights that more than half of UK employers believe a lack of soft skills hinder young people’s readiness for work. This reflects the beliefs of Norfolk Chamber members

The BCC Workforce Survey,Developing the Talents of the Next Generation,found that 57% of employers cite a lack of soft skills such as communication, resilience and team working, as the main reason why young people are unprepared for the world of work. The survey also found that a lack of focus on employability and enterprise in educational institutions (53%) and a lack of careers advice (46%) impacts on young people’s prospects in the world of work.

The Chamber is proposing a number of measures to get educators and businesses working together to help young people develop the life skills they need to succeed in the world of work. This supports the wider activity that Chambers of Commerce are already doing around the country to bridge the gap between the world of education and the world of work:

• Measuring schools on their pupils’ career destinations– by focusing schools not just on ‘teaching to the test’, but also employability and life skills, we can help ensure young people have a smoother transition into work;

• A guarantee of a business governor at every secondary school– making schools more aware of local business needs and helping to build healthy relationships with their local business community;

• Promoting enterprise modules for all higher and further education students– helping students to build up knowledge of business and prepare for the world of work or entrepreneurship;

• Universal ‘experience of work’ in all schools UK-wide to improve employment prospects– ensuring that all pupils leave school with high-quality exposure to business and the core skills needed for work.

Caroline Williams CEO Norfolk Chamber said:

“For too long, many of Norfolk’s young people haven’t had the preparation or opportunities they need to succeed. We are determined to change the system and ensure that businesses, educators, and government shoulder the burden when it comes to preparing young people for work. We often hear from businesses struggling to plug skills gaps, who express frustration that young people lack the soft skills needed to succeed in the workplace. We need to work better to create a pipeline of talent, ready to become the next generation of team players, entrepreneurs and business owners.

“Employers put exposure to work and life skills like team working, determination, and the ability to communicate effectively, at the top of their wish list when looking to hire. Businesses need to play their part by providing experience of work to young people that goes beyond photocopying or making cups of tea – experience that gives a meaningful insight into working life.

“By measuring schools on pupil career destination, putting business governors in secondary schools and giving university and college students the option to take business and enterprise modules, we can help to give young people the best chance of building a successful career. National Careers Week is an excellent opportunity to highlight the range of careers available to people entering the workforce, and the skills that are at the top of the wish list for employers.”

The BCC will be running a chamber network general election campaign throughout March, with a different theme each week. The first week (2nd- 8thMarch) focuses on developing the talents of the next generation. The site goes live today Monday 2ndMarch via this link:https://www.businessplanforbritain.co.uk/. You can also follow the campaign on Twitter: #chambermanifesto