Chamber News

The British Chambers of Commerce has today (Sunday) called on George Osborne to use his Budget speech on 19th March to focus on youth employment, training and enterprise – which are crucial to securing future growth and avoiding a ‘lost generation’ as the UK economy continues to recover.

Overview

In its submission to the 2014 Budget, the business organisation responds to employers’ concerns about the work readiness of young people. We are currently faced with a deficient education, training and skills system, which has resulted in a troubled labour market, high social costs and increased youth unemployment.

This week’s data from the Office for National Statistics showed a fall in youth unemployment by 48,000, and although this is encouraging, the jobless rate among young people still stands at 917,000 which is far too high. In fact, this means that young people are nearly three times as likely to be unemployed compared with the rest of the UK population.1

As a result, the BCC is proposing concrete measures to promote business investment in young people aged 16-24. Our submission also calls on the Chancellor to enhance tax incentives for those investing in companies run by young entrepreneurs, who often say they can’t get growth funding from banks or other sources. BCC Director General John Longworth is urging the Chancellor to play his part in making 16-24 year olds more attractive to businesses, who in return can help the Britain avoid a lost generation.

The BCC submission proposes:

• A new £100m Future Workforce Grant scheme – a £1,000 payment to businesses who hire long-term unemployed young people or a new apprentice, to create 100,000 new jobs in 2014. This will help to bridge the gap before the national insurance exemption for under 21s is introduced in 2015.
• A two-year extension to the successful Apprenticeships Grant for Employers (AGE) scheme to help create 80,000 additional apprenticeships. Demand from candidates has outstripped supply of apprenticeship vacancies by as much as 12 to one.2
• Increased tax relief to encourage investment in young entrepreneurs. Increasing the tax relief available through the Enterprise Investment Scheme (EIS) from 30% to 50% for investors in businesses run by under-24s will help more young people set up and grow their own business.

At just under £400m, the estimated cost of these interventions is less than 0.02% of government current spending for the next three years, and is just a fraction of the projected departmental underspend for 2013-2014 (£7bn).3

The BCC’s letter also encourages the Chancellor to extend the enhanced Annual Investment Allowance for businesses to 2015/16, and consider opening it to premises as well as plant and machinery. Beyond the Budget, the business group plans to make wider proposals for economic reform in the autumn.

Commenting, BCC Director General John Longworth said:

“We all know that politicians are already looking to manifestos and the 2015 General Election. But the crisis of confidence separating Britain’s employers and young people can’t wait for political posturing or the electoral cycle. Businesses across Britain tell me they want to hire young people. Yet many cannot afford to take the risk, especially at a time when other, more qualified applicants are coming forward for the job vacancies on offer.

“If the Chancellor wants to avoid a lost generation among today’s 16-to-24 year-olds, he must use the spring Budget to help businesses take on and train up young people, whether they are going straight into jobs or into apprenticeships. He should also extend tax incentives for individuals with deep pockets who invest in businesses started up by school and college leavers and graduates.

“The Chancellor rightly wants to boost business investment in this year’s Budget and we support measures to do this, but not just for plant and machinery. We know there are many serious structural issues that need to be addressed to create a truly great UK economy, but not all of them can be resolved at this point in the political and economic cycle.

“Getting young people into employment is vital, pressing, and easily affordable right now. Helping British youth in the way we propose would cost less than 7% of what the government spent on overseas aid last year, for example. If government helps businesses overcome the real risks they are facing today, the private sector will invest in a skilled workforce for the future.”

Caroline Williams CEO Norfolk Chamber of Commerce said:

“Ensuring that Norfolk’s young people get the best possible start in the job market is a key priority for Norfolk Chamber members. This relates to the work our members do in schools as well as offering work placements, internships and apprenticeships. Young people bring a positive dimension to any organisation and we totally support the BCC’s call to the Chancellor to make support to business to enable them to employ more young people a priority in his budget.”

The British Chambers of Commerce Quarterly Economic Survey (QES) is used by the Bank of England and the Chancellor to plan the future of the UK economy and over 7,000 businesses across the UK take part.

Q4 2013 showed a fantastic start to 2014 with a very positive quarterly survey. Business confidence was high and Chamber members were resolute in their determination to take the recovery from being good to being truly great.

Firms from all sectors across Norfolk believe they can create jobs, invest, and export. It was especially pleasing that the spurt in the manufacturing was proven not to be a fluke, which demonstrated the dynamism of our small, high value, manufacturing sector.

The last QES results showed that Norfolk businesses are ready to push on. Exports continue to increase and the domestic balances were also strengthening. Are you more confident about your business? Have you employed more staff or are looking to invest in plant, machinery and training? Let us know by taking part in this important economic survey.

The survey takes less than 3 minutes to complete, so please take the time to input into this survey to ensure Norfolk has a voice. The survey needs to be completed online by Monday 17 March 2014.

Complete the Online Survey now.

Commenting on George Osborne’s speech to business leaders in Hong Kong, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“George Osborne hit the nail on the head in Hong Kong when he said that Britain is not investing enough and not exporting enough. Unless our economic recovery broadens out, and companies feel confident enough to implement their growth plans both at home and overseas, it will be merely good rather than truly great.

“On export, one of his top priorities must be to properly resource Britain’s global business network, much as our key competitors do. This would ensure that UK companies have strong support and advice when they land in growing markets overseas. It is gratifying that he chose to make his speech to the British Chamber of Commerce in Hong Kong – one of 41 business groups we are working with across the globe to ensure that British companies can get practical support when they seek to do more business in dynamic, fast-growing markets.”

Commenting on the opportunities to grow through trading internationally Caroline Williams CEO Norfolk Chamber said:

“Norfolk Chamber’s all time high level of documentation shows just how successful our Norfolk businesses are being in expanding their businesses through exporting. Working with the BCC and UKTI we have new resources available in Norfolk for businesses who feel it is time to review whether trading internationally is right for them. It is not for all businesses but you may be surprised just what opportunities are out there and well worth investigating. There is significant free resource to help Norfolk businesses take that first step, so we could encourage any forward thinking MD to at least check out what they may be missing through an email to our International Trade Director: [email protected]“

In this Chamber Session Rachael Shakespeare, Jungle PR, taught the delegates her top tips for developing their PR skills. Rachael’s colourful and fun presentation reflected her enthusiastic and clear presentation skills.

Rachael’s top tip to take-away would be to “look at PR as a strategic, long-term method of managing the reputation of your business”. Rachael thought her Session went well and her highlights were “meeting people and discussing ways to help on the PR front”.

In the first of the lunch time Chamber Sessions, Holly Stibbon, 101Smart gave delegates an energetic understanding into email marketing. Holly emphasised strongly the legal aspects behind email marketing to ensure all delegates fully understood the dos and don’ts to their email marketing. She also gave delegates top tips such as the best times to send marketing campaigns, how to target your audiences and about the more personal touches to your email marketing.

Gemma Neill, The Space, said it was a “very helpful ‘takeaway’ Session” adding that it was information she could “go back to the office and apply today!” Holly’s felt that “It was really good to see people ‘get it’. Taking the thoughts and ideas, applying to their business, asking questions and then the look on their face when they realised what they needed to do to improve. Very satisfying.”

We are currently planning our next series of export events and are looking for local members who would like to share their knowledge and experience of exporting.

You would have the opportunity to explain how easy/hard it is to open up in a particular market, as well as provide advice and tips on what to look out for.

If you’re interested in participating please click here.

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.

Chris Hoddy is Chief Executive at Break Charity in Norwich. Break Charity have been members of the Norfolk Chamber for almost two years now.

Chris’ question to the Chancellor was:

“Is the Chancellor and the Coalition committed to carrying on with Gift Aid?”

Find on the attached document the written response from the HM Treasury.

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.

Liz Chettleburgh is Public Affairs Manager at Aviva Insurance UK Ltd on Surrey Street in Norwich. Aviva Insurance are one of the Chamber’s longest standing members having joined over 30 years ago.

Liz’s question to the Chancellor was:

“What role do you see for the Government in rebalancing the economy towards areas like Norwich?

It takes as long to get a train from London to Norwich as it does to York – how can economic areas like Norwich make the case for more investment in economic infrastructure?

Aviva is a long term business, for example providing pensions or annuities over 20, 30, 40 years. Does the Chancellor think Government policymaking is good at making decisions for the long term?”

Find on the attached document the written response from the HM Treasury.

• Survey of more than 2,400 exporting firms shows that 72% of exporters expect their turnover to improve this quarter – the highest number on record
• More than one third of exporting firms (34%) said that they expected to increase staff over the next quarter
• The overall volume of exports for goods fell by 3.1% compared to Q3 2013, emphasising the need for more support for exporting businesses

The British Chambers of Commerce has published new research in conjunction with DHL Express looking at the health of the UK’s export market. The BCC/DHL Trade Confidence Index, which measures both UK exporting activity and business confidence, shows that turnover confidence among exporters is now at the highest level on record (72%). Confidence was particularly strong among exporting manufacturers, with 69% believing that their turnover is likely to improve, compared with 66% last quarter.

The volume of exports for goods fell slightly this quarter – representing a decrease of 3.1% compared with Q3 2013 and 0.9% compared with the same quarter last year. Businesses are confident, but if we are to reach the government’s target of increasing exports to £1trillion by 2020, more must be done to help firms break into fast-growing markets abroad.

The key findings from the report are:

• Confidence among exporters about future turnover is at its highest level since 2007 (72%), with 69% of manufacturers expecting turnover to increase.
• More than one third of exporting firms (34%) said that they expected to increase staff over the next quarter
• Although the volume of exports in goods fell overall compared with the previous quarter, they increased for nearly half of service sector firms (47%) and for 42% of manufacturing firms in Q4 2013*
• Nearly half of exporters (46%) said their export sales increased in Q4 2013, compared to only 7% who said that they decreased
• More than half of exporters (62%) believe that their profitability will increase this year.
• The number of exporting businesses claiming that raw material costs were adding to price pressures increased from 34% to 38% in Q4 2013.

Commenting, Caroline Williams CEO Norfolk Chamber of Commerce, said:

“What we must take away from this research is that the confidence of our exporters is at a new high. This counts for a lot, as it shows ambition and willingness for businesses to export even more in 2014. But we can’t ignore the fact that the volume of exports were down at the end of last year. We cannot afford to sit back and expect exports to increase without dedicated hard work and support – not if we are to reach the government’s target of increasing exports to £1trillion by 2020.

“Everyone has to take responsibility and play their part – government, civil servants and business alike, so that firms can make some real in-roads in high-growth markets overseas in countries such as Mexico, Nigeria and Indonesia. We are seeing small signs of export reorientation away from Europe and North America towards some of these stronger growth regions, but there is still a lot more to do. As a nation we currently only spend 0.02% of GDP on trade support, which is nowhere near enough if we are going to rebalance our economy towards net exports.

“The Norfolk Chamber of Commerce is doing its bit, by working with overseas Chambers of Commerce and business groups in 41 countries across the globe, so that Norfolk business people have a first port of call when they step off the plane, where they can receive practical advice and support on the ground. But we must all work together if we are to compete on a global scale and put the UK at the forefront of the exporting agenda over the months and years ahead.”

Commenting on the report’s results, Phil Couchman, CEO of DHL Express UK and Ireland, said:

“Confidence is at a record high amongst exporters which shows a marked step change in attitudes compared with previous reports. Despite the fact that the overall volume of goods exported fell slightly, SMEs are feeling positive about the future. This is also reflected in the recent IMF projections for UK 2014 economic growth of 2.4%.

“Positively, there continues to be a high level of demand overseas for “Brand Britain” and newly cited emerging markets, such as the MINT (Mexico, Indonesia, Nigeria and Turkey) countries, present great opportunities for British businesses. With the right advice, product and plan, they have the potential to succeed in these fast-growing emerging markets.

“It is important that these new levels of confidence are not lost and that British businesses have the information and support they need to succeed. To reach the Government’s target of £1trillion by 2020, we must continue to address the challenges and barriers to export.”

Commenting on the opening of the new British Business Centre Mexico – a collaboration between the British Chamber of Commerce in Mexico and UK Trade and Investment (UKTI) – by Deputy Prime Minister Nick Clegg and Trade Minister Lord Livingston, John Longworth, Director General of the British Chambers of Commerce, said:

“It’s great to see a new ‘home base’ for British exporters in Mexico, a huge untapped market for many UK firms. A year of hard work by our colleagues at the British Chamber of Commerce in Mexico and the local UKTI team is now bearing fruit, and the beneficiaries will be small and medium-sized companies with an interest in the Mexican market.

“We are proud to be working with HM Government to build a powerful new global support network for British businesses. Now, UK companies will be able to get advice and practical help with their export journey from British Chambers and business groups at home and in key markets across the world.

“This is an opening to celebrate, but also a sobering reminder that many of our competitor countries have had these sorts of support systems for many years. The UK must continue to invest in practical, business-to-business trade support so that we can see more British Business Centres, in more countries, across the world.”

Tracey Howard, International Trade Director of Norfolk Chamber of Commerce, said:

“It’s great to hear that Mexico now has a Business Centre for UK exporters to approach when looking to enter the market.

We have been negotiating with the British Chamber of Commerce in Mexico, for one of their officers to attend our Mexico event in November 2014. With their Centre now open, they will certainly have plenty to tell us during their presentation”

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.

Chand Chudasama is Assistant Manager at Price Bailey who are based on St Andrews Business Park in Norwich. Price Bailey have been members of the Chamber for around 18 years.

Chand’s question to the Chancellor was:

“In a digital age where knowledge is easily accessible and less relevant in differentiating both candidates for jobs and competing organisations, how does the government plan on creating an education environment that fosters critical thinking and innovation from a young age?

The reason I want to ask the question is that I feel that the changes Michael Gove and this government has made to the education system are based on the regurgitation of knowledge rather than developing staff who can think and add value through innovative ideas.

Much of Germany’s strength in their economic model comes from the financial support and training provide by their ‘Mittlestand’ (or mid-tier) – these long established, family owned businesses are also prevalent in Norfolk but do not have the same level of financial support or integration into the economy as we bundle too much into the ‘SME’ definition.

What is being done to build our middle-tier as much of the economic focus seems to be on start-ups and small businesses which are less secure employers and debtors for lenders?”

Find on the attached document the written response from Elizabeth Truss MP for Education and Childcare.

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.

Tim Green is Site Manager of Briar Chemicals Ltd. The Norwich based company have been members of the Chamber for around two-and-a-half years.

Tim’s question to the Chancellor was:

“We are a Norwich based company with 240 employees and a turnover of more than £45m. Our market is more than 95 percent export based. Our future success relies on our ability to respond quickly and clearly to customer requests. For any change we need comments from the Health and Safety Executive, the Environment Agency and planning permission. These steps take too long- in a recent case HSE took 10 months to comment (positively) on a minor change. What is the government doing to speed up these processes and make the timescales more rigorous?”

Find on the attached document the written response from the Department for Work and Pensions.