Chamber News

The Norfolk Chamber of Commerce ‘Expanding Overseas’ events continue in 2015 with the next event covering ‘Exporting into the Czech Republic’. These FREE TO ATTEND events offer essential insights into exporting to a country with identified potential.

Sponsored by Lovewell Blake, who will provide help with taxation issues when trading with the countries, the events will give exporters a valuable opportunity to hear from speakers who can help them enter these important markets.

The next event take place at the King’s Centre Norwich on 24 February, 3.45pm – 6.45pm, and is aimed at both the experienced exporter and those new to it. Companies looking to enter the Czech Republic will be connected to British Business Centres Overseas, through which they will be able to access support and services, complementing those already offered by the overseas UKTI posts.

Exporting into the Czech Republic

This high income country represents an exciting opportunity for UK exporters. British products are well received, especially in sectors such as food & drink, consumer goods, retail, science & technology and advanced engineering.

One of the most stable and prosperous of the post-Communist states, the Czech Republic has shifted from a centrally planned economy to a functioning market ethos. However, certain social traditions remain and exporters need to be aware of issues such as the need for punctuality, the decision making processes and important details of conducting oneself in social gatherings.

The Czech Republic is the UK’s 30th largest export market, with two way trade representing some £5bn. Its open economy, widespread use of English as a language and relatively straightforward importing processes make it an attractive option for the informed exporter. Learning the details of how to trade there will prove invaluable.

The Norfolk Chamber of Commerce series ‘Expanding Overseas’ events are geared to helping our region’s businesses maximise their export potential by providing practical, informed, guidance for reaching out to overseas markets.. Caroline Williams, Chief Executive of the Norfolk Chamber said, ‘We are dedicated to helping our members do better business. This free to attend event will provide real help for doing better business abroad. It is a great opportunity to hear from experts and take away knowledge that can be applied immediately.’

A further event, to be held at Barnham Broom Hotel, and focussing on Kuwait, is planned for March 17th 2015

The Community Infrastructure Levy (CIL) came into force in April 2010. It allows local authorities in England and Wales to raise funds from developers undertaking new building projects. The money can be used to contribute to; ‘pump prime’; or help lever in investment for a wide range of infrastructure that is needed to support new development. In order to be considered capable of being implemented a CIL must not have a detrimental effect on development (taken as a whole) in the King’s Lynn & West Norfolk Borough area.

Preliminary consultation took place with the development industry and other interested parties in January 2013, and the consultant used the information and comment as input for the Viability Assessment. The Borough Council of King’s Lynn & West Norfolk has now drawn up a Preliminary Draft Charging Schedule and is consulting on this. This document outlines the possible rates of CIL that could be applied in the Borough.

The deadline for submitted your opinion is Friday 27 February 2015 at 5pm.To have your say click here.

Park Farm Hotel was the venue for Norfolk Chamber’s ‘The Future of Aviation, Connecting Britain. Faster’ breakfast. Businesses heard from Piers Warburton from Gatwick Airport about their expansion plans for a second runway. Gatwick currently provides access to 193 worldwide destinations, handles 38 million passengers and is used by 70 airlines.

The plans for the second runway, will help accommodate the rapidly increasing growth in the Middle Eastern market and will help relieve some of the pressure on London Heathrow’s short and long haul capacity. Crucially Gatwick has said they would look at accommodating slots for aircraft from regional airports, such as Norwich International. Should Gatwick get the go ahead to build a second runway, it could be operational by 2025 and could help generate £90 billion of economic benefits and create 120,000 jobs.

Nova Fairbank from Norfolk Chamber said: “Expansion at Gatwick Airport will help provide more choice for Norfolk’s business and tourism travellers. However it is crucial that our regional airports, such as Norwich International are able to benefit from Gatwick’s expansion, with opportunities to acquire aircraft slots, which will help provide better connectivity in our region and boost economic growth.”

The Airports Commission consultation on closes onTuesday 3 February 2015, so now is the time to have your say. There are several ways you can have your say:Click here to show your support. Take part in anonline surveyor email: [email protected]

Commenting on the GDP figures for Q4 2014, published today by the ONS, Caroline Williams CEO Norfolk Chamber said:

“The national slowdown in Q4 growth was larger than we had predicted, at 0.5% down from 0.7% in Q3, mainly due to a significant fall in construction by 1.8%. However the GDP in Q4 2014 was 2.7% higher than a year earlier and 3.4% higher than its pre-recession peak in Q1 2008. Although business confidence remains high, there is no doubt that the pace of expansion is easing, reflecting a general slowdown in the global economy, particularly in the eurozone.

“While there is ongoing debate about the possibility of a prolonged slowdown, we must reject the defeatist view that this is unavoidable. If the incoming government fosters the growth aspirations of businesses, the economy can regain its dynamism and achieve sustained growth. Norfolk businesses are very astute but no need to look at wider markets particularly overseas as an option for their growth. Improved broadband is key and the news today of an extra £18m to be spent on broadband infrastructure is very welcome”

More details: https://www.ons.gov.uk/ons/rel/gva/gross-domestic-product–preliminary-es…

On a chilly January Morning around 70 delegates joined the Norfolk Chamber at the Comfort Hotel Great Yarmouth for a morning of business networking.

The morning started off with a networking ice breaker that got the delegates laughing and created a really positive, buzzing atmosphere. It was explained to them how the way drew a pig reflected some of their personality traits. It was then onto breakfast followed by safari networking and the ice breaker One Truth, One Lie.

Delegates then heard from key note speaker Ian Hacon, Yellow Brick Road on his 7 top tips to keep them more effective when at work and how to work to your full potential. Ian said we should spend the majority if our time in the ‘non urgent, important stuff’ as this is where the growth in business happens. This was followed by a short Q&A and then some more free networking at the end of the breakfast.

To view photos of the event, visit ourFacebookpage orGoogle+page

Commenting ahead of the introduction of the Scotland Bill – which would see a range of new powers devolved from Westminster to Holyrood – John Longworth, Director General of the British Chambers of Commerce, said:

“As Westminster debates legislation to enshrine new powers for Scotland, business communities across the UK are paying close attention.

“Businesses want transfers of power away from Westminster to be clearly tied to delivering growth and prosperity for the nations and regions, through meaningful consultation and careful consideration of the impact on business.

“Greater tax differences between the nations and regions of the UK may create challenges for business, a fact that has so far been absent from the UK political debate. Administrative boundaries must not become barriers to trade and competition, for the sake of political expediency.

“Businesses in all parts of the UK want their voice heard before sweeping changes to the constitutional settlement are made.”

Commenting on the government’s response to the consultation on apprenticeship funding reform, Caroline Williams, CEO at the Norfolk Chambers of Commerce, said:

“We have long argued that businesses want a bigger say over how training funds are spent, but not all companies are ready to take full control over apprenticeship funding. Ministers have listened – and recognised that different companies have different needs when it comes to apprenticeships. It is now important for them to clarify how apprenticeship funding will work in future, with a focus on keeping the system simple. At the same time, they must work to give companies who are ready a greater say in how apprenticeships are designed, delivered and paid for.”

“It is important that the government provides clear direction to businesses on funding reform as soon as possible, so that firms have the security to invest in developing and training their workforce. We are concerned that this has already been an 11 month consultation, with an unclear outcome, and the general election could prolong uncertainty, potentially discouraging some firms from investing in apprenticeships.”

• Annual CPI inflation in December 2014 was 0.5%, a historically low level, down from 1.0% in November 2014
• The main contribution to the fall was the December 2013 increases in gas and electricity rises, which fell out of the annual calculation, and from the continuing fall in motor fuel prices
• Goods price inflation in December 2014 was minus 1.0% while services inflation was 2.3%

Commenting on the CPI inflation figures for December 2014 published today by the ONS,Caroline Williams, CEO at the Norfolk Chambers of Commerce, said:

“The historically low inflation figure in December 2014 confirms that inflationary pressures in the UK are very low. Although the fall between November and December was exaggerated by the increase in gas and electricity prices a year ago, it is likely that CPI inflation will remain below 1% in 2015.

“However concerns over deflation pressures are grossly exaggerated and risk undermining business confidence. These figures show that inflation in the services sector – which accounts for some 80% of the UK economy – remains persistently above 2%.

“The main factor which counts for the low level of goods inflation, the fall in energy and goods prices, is positive as it boosts consumers’ disposable income and makes it easier for businesses to devote resources to investment. On the basis of current trends we believe that the MPC can afford to wait until 2016 before considering a rate rise.”

Norfolk manufacturing and services firms reported mixed results to end 2014, according to the latest Quarterly Economic Survey (QES) published by the British Chambers of Commerce (BCC).

Shrugging off recent signs of a slowdown, Norfolk’s manufacturing sector recorded increased balances for export orders, however their domestic sales and orders continued a downwards trend, which started in Q2 2014.

The reverse was true of Norfolk’s service sector, who recorded increased domestic sales, which are now back up to levels last seen in Q2 2014, whilst their export orders and sales both dropped drastically to levels not seen since the beginning of 2012.

The survey, made up of responses from almost 7,000 businesses, also shows that Norfolk firms set out to recruit staff at an all-time high rate in the last three months of 2014. BCC’s Director General, John Longworth, advised that firms’ strong performance at the end of 2014 could translate to a strong year of growth in 2015 – but this will depend on unwavering support for business throughout the general election and beyond.

Key findings in the Q4 2014 Quarterly Economic Survey:

• Norfolk manufacturing, export order balances increased substantially (up 27 points to +60% in Q4). However export domestic sales and orders dropped to levels not seen since the beginning of 2013.
• In the Norfolk services sector, domestic sales balances rose (up by 14 points to +51%), yet domestic orders dipped (dropped by 19 points to +17%). The service sector’s export sales and orders continued to weaken.
• An all-time high number of Norfolk businesses have set out to recruit staff in the last three months, in both manufacturing (an increase of 24 points from +76% in Q3) and services (an increase of 32 points from +68% in Q3).
• The balance of Norfolk manufacturing firms operating at full capacity dipped by four points to +27% in Q4, while the number of Norfolk service firms operating at full capacity fell further dropping from +38% to +29%.
• A record number of Norfolk manufacturers invested in training in Q4 (+53%, up from +42% in Q3).
• In the Norfolk manufacturing sector, the turnover confidence balance rose to +80%, a record level not seen since 2010. Confidence in profitability also rose sharply (+86% from +57% in Q3).
• Norfolk’s service sector balances showed more positivity in their investments in plant and machinery, which rose by 5 points (+37% from +32%).

Commenting on the results, Caroline Williams, Chief Executive of Norfolk Chamber, said:

“This is a mixed set of results for Quarter 4 2014 in Norfolk. Whilst Norfolk businesses remain positive, a level of caution is reflected in these latest figures. Although manufacturing employers continued to be confident and invested in staff and training, the service sector employers showed a slight slowdown in terms of investing in training and staff, as their confidence in overall profitability was down. Increased concerns surrounding pay settlements may be one of the reasons for this.

Positively, export orders for Norfolk’s manufacturing sector have improved in both Norfolk and the East of England and the UK sales figures Norfolk’s service sector in this quarter increased from the previous quarter.

In the Chancellor’s Autumn Statement, Norfolk had positive news on funding for the improvements to the A47 and the Norwich in 90 rail campaign. When Norfolk Chamber members recently met the Prime Minister, in addition to the call for a swift commencement of these infrastructure projects, improved broadband and mobile coverage were also identified as key barriers to growth.

These QES results a showed a lower level of concern around business rates, which has been backed up by the Chancellor listening to the Chamber network and committing the government to a fundamental review.”

Commenting on the results, John Longworth, Director General of the BCC, said:

“British businesses are well placed to grow in 2015 – a testament to their hard-work and resilience. It is particularly pleasing to see the manufacturing sector bounce back, despite signs of a slowdown in recent months. However we must aim for growth that is sustainable for the long-term, rather than settle for second best.

With employment and investment intentions at historically high levels, businesses are gearing up for a big year in 2015. It is now vitally important that firms are able to convert their growth ambitions into reality. Strengthening our business finance system, which constrains the growth aspirations of too many firms, will remain a decisive factor in securing a sustainable recovery. Low interest rates and reduced regulation will also go a long way to creating an environment that encourages enterprise and wealth creation.

In spite of our survey showing an improvement in export balances, the UK’s lacklustre export performance and severely adverse current account balance, continue to act as drag anchors on GDP growth. This need not remain the case – lack of growth finance, patchy help on the ground in overseas markets, and a never-ending churn of short-term support schemes must be addressed without delay.

The UK’s economic recovery still faces several obstacles, intensified by the uncertainty of the upcoming general election. Businesses are bouncing back, but their optimism may not last if political point scoring outweighs sound economic policies. It is imperative that all political parties use the forthcoming election campaign to outline their plans to support long-term business growth and investment.

If current and future governments do the right things, there is no reason why the UK should not enjoy sustainable growth driven by re-energised and dynamic businesses. The UK economy is orientated towards the service sector, which is driven principally by people rather than equipment and machinery. The free movement of people in the EU means that capacity is no longer the barrier to growth it once might have been, and upward pressure on wages is much less likely to occur. With no signs of inflation and no upward pressure on wages, there is no justification for an early rise in interest rates.”

David Kern, Chief Economist at the BCC said:

“The latest results support our view that UK growth will stabilise well above 2%, and that Britain’s medium-term economic growth will be slightly higher in the next few years than the recent OBR forecast predicted.

However, many balances remain below the high levels seen earlier this year, indicating that the overall pace of GDP expansion is easing. In the face of a weak eurozone growth and domestic policies aimed at stabilizing our public finances, a slowdown in economic growth may yet occur in 2015 and 2016, despite increased strength and optimism from businesses.

Despite a slight improvement at the end of 2014, the current account deficit is unacceptably large. The UK needs a long-term push to rebalance the economy towards net exports and investment, rather than relying too heavily on consumer spending to keep growth going. With inflation likely to stay around 1% for much of the next year, the MPC must delay interest rate rises for the time being.”

The December edition of the Norwich Economic Barometer has now been published.

The latest figures from the ONS indicate that wage growth in the UK picked up on average by 1.6 percent. Aviva announced they are to buy rival Friends Life in a deal worth £5.2 billion and UK inflation rose to an annual rate of 1.3 percent in October, however the price of food and non alcoholic beverages fell by 1.4 percent. Norwich based technology company Epos Now has opened a new head office at Norwich Business Park on Whiting Road.

The firm supplies electronic point-of-sale equipment and software has recruited 17 new staff in the past month and is seeking 30 more recruits in the New Year.

The full report is attached.

As Europe’s heads of government gather in Brussels to discuss Commission President Jean-Claude Juncker’s economic growth proposals, the British Chambers of Commerce (BCC) is today (Thursday) publishing its latest EU Business Barometer, which tracks the attitude of UK firms toward Britain’s place in the European Union.

The latest survey of more than 3,500 businesses shows that British firms continue to see a recast UK-EU relationship, with Britain remaining a member of the Union, as the most favourable outcome of the ongoing EU debate. More than half of businesses (57%) believe that remaining a member of the EU, with more powers brought back to Westminster, would be positive.

The most notable shift since the Q2 survey is that negative views have diminished on remaining in the EU with no relationship change (down 7% on the quarter to 38% of firms saying this outcome would be negative), and on remaining in the EU with further integration (39% of firms see this as a negative outcome, down 7% on the quarter).

The results of the Q3 EU Business Barometer show:

• Business respondents view remaining in the European Union, but with specific powers transferred from Brussels back to Westminster, most positively. 57% of firms view this scenario as positive, 18% say it would have no impact, 9% view it negatively, and 16% don’t know.
• Business respondents view full withdrawal from the European Union most negatively. 59% of firms view this scenario as negative, 12% say it would have no impact, 13% say it would be positive, and 16% don’t know. However 28% of firms view withdrawal combined with a formal UK-EU free trade agreement as a positive scenario.
• Business respondents view further UK integration with the EU negatively – but less negatively than in previous surveys. 39% of firms view this scenario as negative (- 7% on the last quarter), 16% say it would have no impact, 23% view it positively (+3% on the last quarter) and 22% don’t know.
• Business respondents view ‘no change’ to the UK-EU relationship negatively – but again, less so than in previous surveys. 38% view this scenario as negative (- 7% on the last quarter), 38% no impact, 15% don’t know and 9% positive. Notably, fewer than one in ten firms see ‘no change’ as a positive outcome to the EU debate.

Commenting, John Longworth, BCC Director General, said:

“British firms are pragmatic when it comes to Europe. A majority of businesses continue to tell us that they want to remain in the European Union, but with a reformed relationship that sees a substantial shift of power from Brussels back to member-states. In a nutshell, companies support the Prime Minister’s ‘reform and renegotiation’ agenda, but are unsure of whether and how it can actually be delivered.

“While Britain’s domestic debate on EU membership continues, it is crucial for European leaders to take decisive action to support growth in the UK and all 28 member-states. The European Council must fast-track reforms that deliver a real single market in services and e-commerce – which would benefit Britain’s world-beating professional services and digital companies by enabling them to trade more easily across borders. Businesses want fewer barriers to trade and investment across Europe, but they also want clear safeguards for member-states like the UK that are not interested in further integration.

“While UK business remains level-headed on Europe, it is unfortunate that the Europhobes and Europhiles continue to dominate the debate. Their extreme positions – “exit now” or “in at all costs” – are a turn-off to businesspeople who want to see a pragmatic outcome that is squarely in the interests of UK growth and prosperity.”

Speaking on the Labour leaders visit to Great Yarmouth today, Norfolk Chamber CEO Caroline Williams said:

“Ed Miliband was in Great Yarmouth today presenting the second of what labour said were their five key pledges for next year’s general election relating to immigration.

It did give me the opportunity of behalf of Norfolk Chamber members to ask a question which was in two parts. The first part was to ask for reassurance the road and rail infrastructure funding committed by the Chancellor in his Autumn Statement would be honoured to assist in the connectivity of Great Yarmouth. Although Mr Miliband did confirm that Great Yarmouth needed better connectivity he did not give, in my opinion, an adequate assurance that a Labour Government would fully honour these commitments. I will therefore follow up with a formal request for reassurance as we have been led to believe that improved infrastructure for Norfolk has cross party support.

The second part of the question was to ask what support he would give to the energy sector so important to create the needed jobs in Great Yarmouth. Although Mr Miliband’s answer included a policy statement about Climate Change, he did confirm the Labour party’s commitment to renewable energy in particular offshore wind. This statement will be followed up by us on key areas of concern that we have relating to the local energy sector and to establish Labour’s positioning on these.

Mr Miliband answered many questions on the NHS, housing, benefits and immigration but there were only a couple of questions from business, maybe that was because there were very few businesses in the room and I would suspect there were few businesses invited. It is essential that business has the opportunity to influence all parties’ agendas as we move swiftly towards May 2015. Although businesses do not have the vote, it does not mean that we do not have a voice as in the end it is business that drives the economy and creates jobs whichever party is in power.

Ed Miliband showed great passion on the stage, now we need to ensure that he becomes passionate about Norfolk and fully understands our needs. We will follow up his visit to Great Yarmouth with direct correspondence with Mr Miliband and through the British Chambers of Commerce.

Within the last three weeks, Norfolk Chamber and its members have been able to have one to one conversations in Norfolk, with the Prime Minister, David Cameron, Secretary of State for Business and Innovation& Skills, Vince Cable MP, Leader of the Opposition Ed Miliband and the Secretary of State for Transport, Patrick Mcloughlin. Norfolk has become more visible and we need to ensure that we maximize this opportunity to make our requirements as a business community heard loud and clear.

The Norfolk Chamber’s theme for 2014 and 2015 is ‘Look at Norfolk. See Success’ I feel we are definitely starting to make our Westminster politicians understand the great potential that we have here in Norfolk.