Chamber News

Norfolk Chamber’s Representation Council recently held its inaugural meeting. The Representation Council consists of members of the Chamber Board, the chairs of the Area Councils and Special Interest Groups, together with senior representatives of the Chamber’s Gold Patrons. They will meet on a quarterly basis.

Their aim is to set the policy direction for the Chamber and there are three key policy priorities for the Representation Council to consider:

• Promoting a positive message for Norfolk
• Unlocking the potential of young people
• Improving Norfolk’s infrastructure

Discussions centred around how to work collaboratively with Norfolk business organisations, local authorities and MPs as well as other counties, such as Suffolk and Cambridgeshire. In addition the group also received an update from Iain Dunnett, the Stakeholder Manager for New Anglia LEP on their Strategic Economic Plan.

The chair of the Representation Council is the Chamber President, Ian Hacon, who said: “The aim of the Chamber’s Representation Council is to drive the policy aspects of the business agenda for Norfolk and to ensure that the Chamber has a positive influence at a local, regional and national level.”

Photo: Left to Right Back Row: Andrew Barnes, Caroline Williams, John Morse, Bob Crawley and Tracey Howard Left to Right Front Row: Ian Hacon, Jonathan Denby, David Whitehead, Jonathan Cage, Geoff Tucker, Heather Garrod and Bobby Burrage

Business confidence in the Eastern region has grown with recent figures showing a resurgence in office property sector with overall activity reaching £1.6m, the highest level of activity on record. The construction sector is also reporting increased activity in both residential and public sector projects.

Sales in UK High Street shops have grown strongly since last February, rising at their fastest pace since June 2012, according to a CBI survey and the volume of sales easily beat expectations. Last year Norwich International Airport grew at the second fastest rate among the top 30 UK airports, with a 17 per cent increase in total passengers numbers to 463,401 during 2013.

New Anglia LEP has secured an additional £1.4 million from the government’s regional growth fund to expand its existing growing business fund and offer smaller grants of between £5,000 and £25,000 to SMEs in Norfolk and Suffolk.

To find out about the above and more, read the latest Norwich Economic Barometer attached.

• GDP grew by 0.7% in Q4 2013 – unrevised from previous estimates.
• GDP is estimated to have increased by 1.7% in 2013, compared with 2012, revised down 0.1 percentage points from the previous estimate.
• UK business investment rose by 2.4% Q4 2013.
• Trade balance deficit almost halved in Q4 2013, falling from £8bn to £4.2bn.Current account deficit was 5.4% of GDP, in Q4 down 5.6% in Q3.
• The households’ saving ratio was estimated to be 5.1% in 2013 compared with 7.3% in 2012.

Commenting on the revised GDP figures for Q4 2013 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“The unrevised estimate of 0.7% supports Chamber’s view that the UK recovery remains on course. It is also good news that growth was better balanced in Q4, with a fall in the trade deficit and an increase in business investment. However there is little doubt that the further efforts are needed to place the recovery on a broader footing, as we are still too reliant on consumer spending. If our recovery is to be sustainable, we have to ensure that there is more support for those looking to invest and expand into overseas markets.”

As a follow up to the Norfolk Chamber’s ‘Audience with George Osborne, the Chancellor of the Exchequer’ event on the 7 November, we submitted a number of questions from our members to the Chancellor. Responses to those questions are now starting to be received from the relevant Ministers within Westminster.

Jay Mehta is a solicitor at Howes Percival. The Norwich-based company have been Chamber members for over 20 years.

Jay’s question to the Chancellor was:

“The Community Infrastructure Levy (now implemented and in force by Norwich City Council and Broadland District Council) operates as a non-negotiable tax on new development. This is because developers have lost the opportunity to negotiate the levels of contributions payable for new infrastructure and are unable to recover all or part of such contributions if not used within a certain time.

Consequently, is there not a risk that CIL would dissuade developers from developing sites? If so, what measures are being proposed to prevent this from happening and ensuring proposed development remains viable?

The judicial review of planning permissions is a constant source of delay and expense for developers. In practice, such challenges cause significant delays in the building of homes and other developments.

I am pleased to hear that a new dedicated “planning chamber” has been recently proposed to speed up the process, although guidance indicates that this new chamber shall only hear claims concerning “major development.”

Find on the attached document the written response from the Department for Communities and Local Government.

Delegates turned up to this Session ready to be inspired into selling in a tough climate from Nial Adams of The PUSH Academy. Nial stated that he feels his delegates have gained a “wake up call” from the Session, and his highlight was the way the delegates interacted with him by asking different questions. If Nial could give his delegates one top tip, it would be to “try new ideas and focus on value”.

Richard Willner of Further arrived prepared to give the delegates an enlightening presentation on engaging content. Richard’s presentation was full of impact and strong content and he even stated that he felt the delegates seemed fully engaged throughout. Richard felt his highlight from the Session was the interaction between himself and his delegates. He particularly enjoyed the fact that the delegates asked him questions, showing great interest into the subject. Richard’s top tip to take away from the Session would be to “set objectives within that plan and measure those constantly” and to “plan, plan, plan”.

Caroline Williams CEO Norfolk Chamber reacting to the Budget said:

“Our Norfolk business members are feeling quietly confident about the economic future but what they were looking for an acknowledgment from the Chancellor that he understood the needs of business in the form of investment and employment.

We have been lobbying hard to ensure that the Apprenticeship Grant for Employers was extended and it as good to see that was included, as was our call for an extension of the Annual Investment Allowance.

Norfolk exporters are beating all records month on month but more businesses need to be encouraged to take that all important step. Support for exports has never been more important”

Giving his reaction to the Budget 2014, John Longworth Director General of the British Chambers of Commerce (BCC) said:

“Business wanted a Budget that was disciplined, focused, and geared towards the creation of wealth and jobs – and that’s what the Chancellor has delivered.

“With a huge confidence gap still separating employers from young job-seekers, we are very pleased to see the Chancellor heed our call to help firms take on and train tomorrow’s workforce. Overcoming that confidence gap means more investment in young people, more apprenticeships, and more jobs, which are critical with more than 900,000 16-to-24-year-olds still out of work.

“Osborne’s focus on investment, exports, house-building and economic resilience passes the business test. By making a better business environment his top priority, the Chancellor has recognised that successful and confident companies are the key to transforming Britain’s growing economic recovery into one that is felt in homes and on high streets.

“As with any Budget, there were some populist measures that were not at the top of business’s wish list. Luckily, these were far outweighed by considered measures to support business growth and wealth creation.

“Many of these measures are excellent for now, and for the future. Yet the nurturing of a truly great economy requires more action than one Budget can deliver. At the upcoming General Election, Britain’s entire political class must commit to a long-term programme that delivers better infrastructure, a stronger skills base, access to finance for growing companies, even more export support and a clear, consistent tax environment. Otherwise some of the Chancellor’s welcome moves might not have the desired effect in years to come.”

Commenting on the new forecasts published today by the Office for Budget Responsibility in conjunction with the Chancellor’s Budget, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“The OBR’s upgrading of its December economic forecasts was widely expected. Our own economic forecast – released just last week – tells a similar story. The pace of growth over the coming years will be satisfactory, but slightly below the pre-recession historical average.

“On the public finances, we agree that there will be gradual falls in the budget deficit, but we believe that the pace of the reduction will be slightly slower than the OBR envisages. It is too ambitious to take the view that the UK will generate a budget surplus in 2018. We believe it will take one or two additional years to eradicate the deficit, because tax receipts have suffered from a fall in oil and gas production and problems in the financial sector.

“The government must continue with its plans to streamline current public spending, to ensure that the public finances improve over the medium term, and the private sector can generate a lasting recovery.”

Commenting on specific announcements within the Budget, BCC Director General John Longworth added:

YOUTH EMPLOYMENT

“We told the Chancellor very bluntly that he needed to extend the Apprenticeships Grant for Employers if he wanted to see companies creating enough apprenticeship places to meet demand. His actions demonstrate that he was listening, to the benefit of businesses and young people alike. Helping companies take on apprentices is one of the best ways for a Chancellor to invest limited resources in Britain’s future.”

BUSINESS INVESTMENT

“Consistent allowances help companies invest with confidence. Given that business investment remains far below its pre-recession level, it is fantastic that the Chancellor has responded to our call to extend the Annual Investment Allowance, and that he has doubled the amount covered to £500,000 from 2015. That will give many growing and medium-sized companies the confidence to push ahead with investments they’ve long wanted to get off the drawing board.”

SUPPORT FOR EXPORTERS

“Export finance problems stop many companies from getting their goods and services into new markets. To support our exporters, Britain’s export finance support must match that of our global competitors. The moves made by the Chancellor to increase the support available, and to lower the interest rates charged to companies, are a big step in the right direction. Ensuring awareness of this support amongst the growing and medium-sized firms that stand to benefit is crucial, however, to this policy’s success. Chambers of Commerce will continue to work closely with UKEF to help businesses get their goods into market with the best possible finance support.

“While finance for international transactions is important, so is the level of support for businesses looking to expand into new and fast-growing markets. Moves to improve international transport connections through regional airports, and to simplify Air Passenger Duty, are a good start. Yet we could do even more, particularly through the Overseas British Chambers and business groups that BCC and UKTI are linking together to form the first-ever global British business network.”

ENERGY

“The Chancellor’s Budget clearly recognises the damage that unilateral measures can do to the competiveness of British businesses. Our members will welcome the cap in the Carbon Price Floor, which will help all companies, and the extension of compensation for energy intensive industries.

“Furthermore, by taking forward all the recommendations contained in the Wood Review of Offshore Oil & Gas, the Chancellor has made a significant step toward maximising oilandgasrecovery in the UK as part of a diverse energy mix.

“Looking ahead, it is crucial to ensure that energy does not contribute ever further to the rising cost of doing business in the UK – so continued attention and investment are required.”

INFRASTRUCTURE

“The BCC has long called for more funding for road maintenance – a key bugbear for so many businesses – and welcomes the new pothole fund announced in the budget. Incremental support for other capital projects and flood defences are also positive. Yet, as ever, infrastructure projects both large and small are judged on how quickly they are delivered on the ground. Infrastructure delivery is the key business priority, so the government must move swiftly from announcement to action, on road repairs, house-building, flood defences and more.”

PENSIONS AND SAVING

“The unexpected and radical modernisation of pension rules and ISAs will be welcome news for many businesspeople and their employees. Greater flexibility and choice, combined with an end to some of the arbitrary and punitive tax rules that undercut prudent savers, favour aspiration, enterprise and long-term planning.”

The Highways Agency (HA) is developing Route-Based Strategies for the strategic road network as the basis for the infrastructure investment plans heralded by the Government after the last Budget in Investing in Britain’s Future.

The HA is producing evidence reports for each of the 18 routes that make up the strategic road network. These are available at https://www.highways.gov.uk/route-based-strategies

One of the routes of particular importance to businesses in Norfolk is the ‘East of England’ route, which covers the A47, A11, A12 and A120.

In connection with that route the Department for Transport is currently conducting a feasibility study into the A12/A47 corridor from Lowestoft to Peterborough with a view to establishing the economic and employment benefits to prioritise further investment. To provide evidence for the feasibility study, Norfolk and Suffolk Chambers of Commerce have been asked to survey their members about their use of the route.

If you are a regular business user of the A12/A47 between Norwich and Lowestoft or beyond, we would therefore very much value your responses to a few questions by Wednesday 26 March 2014.

The road use survey will only take a few minutes of your time and can be completed here.

From local standout to national champion: Chamber Awards to 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 November 27th 2014. Companies can enter nine categories, covering people development; manufacturing; sustainability; international business; innovation; technology; young people; and entrepreneurship.

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
• Commitment to People Development
• Manufacturer of the Year
• The Sustainability Award
• Entrepreneur of the Year
• Achievement in International Business
• Excellence in Innovation
• Best use of Technology to Improve Business Performance
• Young Person in Business Award
• Entrepreneur of the Year

The deadline for entries is Friday 27 June 2014, the regional winners will be announced on 22 September, with the national winners being announced on 27 November 2014 at an awards ceremony in London. To enter online click here

At a recent meeting of Norwich Chamber Council, members received an infrastructure update from Tom McCabe, Interim Director for Environment, Transport and Development for Norfolk County Council. He outlined the progress on the NDR, the A47 improvement campaign, Better Broadband for Norfolk’s improvement project and the Norwich in Ninety campaign.

Council members also provided an overview of how the economy was starting to improve in Norwich. RG Carters advised that they were seeing an upturn in construction with a mix of residential and public spending. Arnold Keys said that the commercial property market was performing well and they were seeing investors starting to review their property investment portfolios. The residential market was also picking up.

Hugh J Boswell were cautiously optimistic, trading well, and seeing growth of 6%. Similarly, Naked Marketing were also doing well, their turnover for the year was up and they had a long order book. They also advised that they would be looking to recruit another member of staff as well as an apprentice this year.

Birketts provided an update on employment regulations. Since new regulations came into effect in November 2013, introducing fees for bringing an employment tribunal, there has been a significant drop in employment tribunal cases of between 60% – 70%. They also noted that as of 1 April 2014 there would be mandatory ACAS conciliation requirements for employment disputes.

John Lewis, Norwich advised that they had not seen the traditional drop in sales in January. As a result, they had retained six of the temporary Christmas staff on permanent contracts. Their online sales were also up by 20% and their fashion sales were also picking up.

Caroline Williams, CEO of Norfolk Chamber confirmed that Chamber members’ overall feedback was that they were beginning to feel more optimistic, although still cautious. Businesses were still not investing heavily, but there were signs of more confidence in recruiting staff.

Delegates turned up to this Session ready to be engaged by Sarah Daniels of RedCat Partnership. She gave an enthusiastic presentation to the delegates for her top tips to presenting well. Sarah said she “really enjoyed the Session” and that “every delegate was friendly and keen to learn and discuss.” Sarah got delegates interacting throughout the Session and she feels her delegates have gained “more confidence and the skills to make their presentations more effective.” Her top tip to take away would be to prepare for presentations as thoroughly as possible.

The A11 will be closed from Fiveways to the B1106 traffic lights at Elveden from 10pm on Saturday 22 March until 8am on Sunday 23 March.

The closure is to allow bridge beams to be installed over the A11 for Gibson’s Bridge. The diversion will be via the A1065 to Brandon and the B1107 to Thetford.

If bad weather prevents this taking place, the closure will take place the following night (Sunday 23 March-Monday 24 March) instead.

See the Highways Agency website for further information on the A11 Fiveways to Thetford improvement.