The Chambers Quarterly Economic Survey (QES), the UK’s largest independent business survey, is open today (Monday 24 August 2020) for three weeks.
With the UK officially in a recession and the impact from the phasing out of the furlough scheme starting to be felt, it is therefore more important than ever that both the Chancellor and the Bank of England hear from businesses just like yours.
How has your business performed in the last quarter, what do you see as the challenges and opportunities going forwards? How confident are you about your financial position, your workforce and your future orderbook?
Without this vital local and regional knowledge they cannot make the right decisions and put relevant support mechanisms in place that will ultimately impact on you and your company.
The QES is anonymous, open to anyone and only takes a couple of minutes to complete online.
We need your input, if you only take one survey, then please make it the QES
Join us as we launch our brand-new international trade country focus programme, in September 2020.
This exciting new programme brings together industry figures, government representatives and BCC partners from across the world. It will provide businesses with all the insights, advice and answers they need to fully understand the implications of trading with major international markets that have been identified as priority trading partners for the UK.
Each month will consist of two parts:
Part 1 – Global Leader Insights: a strategic overview
This will be a strategic discussion about current/future trade relations with a senior government representative from the market being featured, moderated by Dr Adam Marshall, BCC Director General.
Part 2 – Global Panel Insights: a deeper dive
A more in-depth discussion with leading local experts to allow participants to:
Explore markets and key sector opportunities to help businesses grow internationally;
Access information, advice and answers to perceived barriers for exploring or growing in markets around the world.
Together these two parts will give businesses a thorough understanding of the implications and benefits of trading in major overseas markets.
The programme schedule is as follows:
September: USA month
October: Australia month
November: Japan / Northern Asia month (Japan, China, Hong Kong)
December: UAE month
Please see links below for the September, USA month, virtual events:
If you’re a customs agent or your company uses agents and intermediaries to trade with the EU you need to understand how to meet customs requirements fast and efficiently after the end of the transition period.
HMRC has made record funding of £50 million available to enhance its Customs Grant Scheme. From 29 July 2020, organisations can apply for funding to reimburse a number of costs associated with increasing their capacity and enhancing their ability to complete customs declarations, ahead of the new rules from January 2021.
Businesses can apply for funding for recruitment, employee training and IT, in preparation for additional customs declarations. Eligible organisations include traders and customs intermediaries (such as customs brokers, fast parcel operators and freight forwarders) who make or intend to make customs declarations for their own goods or on behalf of others. Organisations which recruit, train and place apprentices into customs intermediaries or other organisations which undertake customs declarations activity are also eligible to apply.
All eligible organisations which are currently and have been based in, or with a branch in, the UK for at least a year can apply for all elements of the grant.
This funding can be used for the following courses:
The UK Government has recently published a new Border Operating Model that will change the way in which goods are imported to and exported from the UK from 1st January 2021.
At present businesses have free movement of their goods into/out of Europe, however on 01 January 2021, you will need to produce international trade documentation for all your products both imported and exported to/from the EU. The upshot is that there will be a significant increase in costs for all businesses to process their goods into and out of the UK. The British Chambers Trade Facilitation Director recently wrote an article that highlighted that changes coming: https://www.norfolkchamber.co.uk/news/brexit/no-more-transition-uk-border
To ensure that your business is ready to meet the new import/export regulations on 01 January 2021, you need to have considered the following ten key areas:
Who is currently moving your freight and who do you currently use to process your customs declarations?
Who’s currently holding the liability for your declarations? (direct/indirect representation)
You may already be using a freight forwarder and they will be able to offer you advice and support, alternatively Norfolk Chambers have the expertise to handle your customs declarations and stand ready to help support you in navigating the coming changes, please do ask us for more information.
Do you have an international team? What is the level of expertise in that team?
When did you last review or check your commodity/tariff codes?
Norfolk Chambers are running several international trade training courses that will help you and your team to understand and prepare for 01 January 2021: https://www.norfolkchamber.co.uk/training.
We have also teamed up with the British Chambers to deliver a series of Global Webinars that will also provide insight and knowledge into future international trade. The first two are scheduled for September:
You will also need to ensure that you are fully aware of all your commodity/tariff codes relevant for all your products. Again, you may be using a freight forwarder and we would recommend that you discuss the above with them on an urgent basis. Alternatively, we would be very happy to help you.
What is the likely volume of your imports/exports from the EU?
Which ports/airports do you use?
Do you have your own deferment account with HMRC?
Are your imported goods liable for excise duty?
Do your import/export goods require licences, health certificates or dangerous goods notifications?
You will need to declare all goods that you import/export to the EU. You will also need to arrange clearance of those goods for each port/airport. You may have freight forwarders in each location that can do this for you, alternatively, Norfolk Chambers can clear your goods at any port/airport in the UK on your behalf. We also have the ability make arrangements for you to use our deferment account if that is required.
Norfolk Chambers have the international trade expertise to ensure that you and your business are fully prepared and we are here to help you to navigate through the new regulations to make your Brexit transition as smooth as possible.
To talk to our specialist team and to find out more please contact [email protected] or call 01603 729706.
Last week, the Government announced its Kickstart Scheme, a £2 billion fund to create hundreds of thousands of high quality six-month work placements aimed at those aged between 16 to 24, who are on Universal Credit and are deemed to be at risk of long term unemployment.
The funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
The Kickstart Scheme job placements must be:
6 months
at least 25 hours per week
paying at least the National Minimum Wage through PAYE
paying the statutory employer duties for the health, safety and welfare for young people, National Insurance and pension contributions
including support for young people to help them get work after they finish their Kickstart Scheme job
Larger organisations, that can offer a minimum of 30 new placements, are being asked to apply directly to the scheme. More information is available here.
However, for those firms who are unable to offer such a large number placements, the Government is looking to work with intermediaries, such as Chambers of Commerce, to coordinate funding bids.
Commenting on the new scheme, Nova Fairbank, Head of Policy for Norfolk Chambers said:
“Norfolk Chambers and the UK Chamber network have been working with the British Chambers of Commerce Taskforce and the DWP to develop the Kickstart scheme.
“We therefore welcome the intention of the scheme, but are looking at the detail to ensure that it will indeed create the long-term, quality employment opportunities needed, by ensuring that both businesses and employees are fully supported throughout the placement.
“Norfolk Chambers are happy to support local businesses to access the Kickstart Scheme and we are in dialogue with various partners to explore ways of collaborating our efforts to make the application and delivery processes as easy as possible for businesses.”
If your business is interested in creating a fully funded placement for a young person, please contact: [email protected] and advise how many placements you are thinking of creating.
Commenting on GDP figures for July 2020 published today by the ONS, BCC Head of Economics Suren Thiru said:
“The latest data confirms that UK economic activity continued to pick-up in July as lockdown restrictions eased further.
“The UK economy is currently in a period of temporary calm, with activity buoyed by the government’s emergency support measures and the unwinding of pent-up customer demand as more parts of the economy reopened.
“However, with many firms continuing to face an unprecedented cash crisis and unemployment likely to surge as the support schemes wind down, there remains little prospect of a sustained resurgence unless substantial action is taken.
“To protect jobs and livelihoods, the government should consider extending and adapting the Coronavirus Business Interruption Loan Scheme to ensure businesses are supported sustainably over a longer period, as well as introducing a more significant package of support for firms placed under local restrictions.”
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:
Find out whether you can access fibre based broadband – an information sheet is attached
Contact your existing broadband provider to see what packages are available
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
“Businesses will warmly welcome this milestone free trade deal with Japan, which provides access to a major market for traders across the UK.
“Chambers of Commerce stand ready to work with government to ensure that the benefits of this agreement are felt by businesses on the ground. Firms will want to see the specific provisions to support small businesses replicated in future trade deals to help business communities thrive and grow in future.
“Whilst this agreement is undoubtedly cause for celebration, securing a Free Trade Agreement with the EU remains critical to the future of businesses in the UK. We urge Ministers to redouble their efforts to reach a comprehensive partnership with our largest trading partner at a crucial time in the negotiations.”
Commenting on the ONS labour market figures for September 2020, published today, BCC Head of Economics Suren Thiru said:
“Despite the slight rise in the unemployment rate, the furlough scheme continues to limit the pandemic’s full impact on headline job figures.
However, the decline in employees on payrolls and the rise in the claimant count in August as the furlough scheme began to taper is a clear warning that the full impact of Coronavirus on the UK labour market is yet to come.
“While there was a rise in the number of job vacancies, this is more likely to reflect a temporary bounce as the economy gradually opened, rather than a meaningful upturn in demand for labour. With many firms are still facing waves of cash flow problems, rising costs and an uncertain economic outlook, it is probable that unemployment will escalate sharply as government support winds down.
“To help avoid a damaging cliff edge for jobs more must be done help firms keep staff on through this deeply challenging period. This should include a significant cut in employer National Insurance Contributions and more substantial support for firms placed under local lockdowns.”
In a letter to the Prime Minister, BCC President Baroness Ruby McGregor-Smith has said businesses face “the most difficult trading conditions in post-war history” and set out a series of measures to help government take a “sharper approach” to restarting the UK economy.
The letter reads: “Prime Minister, a successful restart of the economy demands bolder and more ambitious action. We face a difficult winter ahead – even without a significant resurgence of the virus itself. If the Government wishes to avoid mass unemployment, significant levels of business failure, and long-term economic scarring in our communities, we urge you and your colleagues to act now.”
The letter sets out a series of proposals which could help offset the worst of the damage to businesses and livelihoods and begin a return to prosperity.
Comprehensive support through local restrictions
The letter notes that local restrictions are a “single largest blockage” to restarting operations, with BCC research suggesting more than half of businesses (52%) see it as a key barrier. Baroness McGregor-Smith calls for “support for businesses shuttered by local restrictions” – in the form of additional grant funding and wage support, not saddling firms with further debt.
Following local restrictions in Leicester, Aberdeen, Greater Manchester and Lancashire and cases rising across the UK, Baroness McGregor Smith added: “Government should take every step possible to avoid damaging local and catastrophic national lockdowns and instead place the highest possible premium on alternative measures that maintain the economy and keep businesses open, such as rapid improvements to test and trace systems.”
“Businesses are not ready to face the triple threat of further lockdowns, an end to government support schemes and the end of the Brexit transition period.”
She continued: “Government must develop a confidence plan for businesses where it is clear what type of measures are expected for each change in scenario. This will allow business to plan.”
Ambitious fiscal stimulus
The letter notes that “far more ambitious” fiscal stimulus will be needed to deliver a full restart of the UK economy. It reads: “The path to October and beyond appears very challenging, as the Job Retention Scheme, CBILS and BBILS schemes close, creating a perfect storm for otherwise viable businesses.”
Baroness McGregor-Smith sets out a comprehensive stimulus package, including a reduction in the overall cost burden on firms to protect businesses and preserve as many jobs as possible. An 18-month expansion of the Employment Allowance from £4,000 to £20,000 and an increase to the threshold for National Insurance contributions from £8,788 to £12,500 would help businesses with prolonged cashflow difficulties. The latter could save businesses around £500 per job.
Restoring business and consumer confidence
Baroness McGregor-Smith calls on the government to immediately improve its Test and Trace programme so that it is “quickly available to all who need it, results are returned quickly, and positive results tracked.” Only then would businesses and consumers have the confidence “that the disease can be properly managed without further crippling lockdowns.”
Commenting on extended support to prevent business evictions until the end of 2020, announced by the government today, BCC Co-Executive Director Claire Walker said:
“Both tenants and landlords will welcome the government’s flexible and pragmatic approach which may protect firms from eviction who are struggling with their cashflow.
“Today’s announcement will provide much-needed breathing space and give businesses a chance to plan and successfully rebuild their operations.”
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.