Chamber News

Greater Cambridge Greater Peterborough LEP West Norfolk Skills Survey

As we head into 2014, the Greater Cambridge Greater Peterborough LEP (GCGP) is busy making plans for the future and they need your help. Looking ahead, the Government has determined that the GCGP LEP will have strategic influence over public funded training, as well as the ability to direct European Funds to where they are needed most for the West Norfolk local area and for our local businesses. This is where they need your help.

With increased influence and the ability to help shape the training available to local people the GCGP want to find out what you, as a local business in West Norfolk, need to help your company succeed in the future. Your views are also vital to help secure future funding for the GCGP LEP area. They have launched an online survey to find out more about your current and future skills and training needs to help them ensure that what is delivered locally meets your requirements.

The survey should take no more than ten minutes to complete and they would really appreciate your input. Complete the online survey here.

The GCGP would appreciate your support by completing the Skills Survey and also letting your contacts know about both of these projects where appropriate.

Commenting on statement by Chancellor George Osborne on the minimum wage, John Longworth, Director General of the British Chambers of Commerce (BCC) said:

“Although it is clear that there is an increased disparity between the highest and lowest earners, arbitrarily raising the floor isn’t necessarily the solution and could in fact make the UK economy uncompetitive in the long term. The adverse effects of an unaffordable minimum wage hike would also be predominantly concentrated among SMEs, young people and graduates. If we want to spread the wealth around as the economy recovers, we need a long-term plan to create a high-skill, high-wage economy, including action on infrastructure and access to finance.”

Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:

“Increasing the minimum wage by more than inflation rate could have a detrimental effect on the Norfolk business community, the majority of whom fall into the SME bracket. Economic recovery is fragile and many employers are working hard in challenging markets and increased wage bills would slow their progress to growth.

The Living Wage campaign has been gathering momentum across the the public sector and larger employers and this looks to be a compromise, increasing the minimum wage but keeping it lower than the Living Wage rate.”

China-Britain Business Council and UK Trade & Investment have identified the latest business opportunities for UK companies across various sectors.

This is a fairly long list so make sure you don’t miss out and see if there are any of interest to you and your specific sector.

Please click here for the full listing.

The UK India Business Council has a series of FREE webinars planned which should be particularly valuable to Norfolk businesses.

Their Indian-based sector specialists in Gurgaon are going to be presenting information on recent developments and opportunities for UK companies in the following sectors:

• Healthcare
• Skills and Education
• Advanced Engineering and Manufacturing

This is an exciting opportunity for the India-based Sector specialists to be available to directly answer questions from the webinar attendees.

The short (45 minutes) webinars will be taking place this week. Please follow the above links to book your free place.

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.

David Dukes is the Business Development Manager at the Norfolk County Council who are one of our longest standing members at the Chamber having joined well over 20 years ago.

David’s question to the Chancellor was:

“We are delighted that the A11 is finally being fully duelled. A major milestone. However, we have a 2nd key road that is just as vital. The A47 is our main and really, the only link to the West and North. Yet it presents a major hurdle to business in the county and those serving it, plus the millions of visitors every year. Can you give any indication of improvements in the future?

We are delighted that Norfolk’s superfast broadband is being substantially upgraded. It would be excellent if more funds were to be made available to increase coverage further. However, it is our chronically poor mobile coverage that we really need to address. Far too much of Norfolk – which presents few topographical issues compared to many – are no go areas. That affects business. What comfort can you offer us?

Could the Chancellor offer businesses in Norfolk any advice on accessing Government funding? I am aware of a number of extremely good businesses that have applied for various grants towards projects that will deliver significant growth in jobs, yet they are invariably unsuccessful. We need better knowledge and acceptance of the capability of many of Norfolk’s businesses.”

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.

Clarke Willis is Chief Executive of Anglia Farmers Limited. The Agricultural company that is based in Horningham Thorpe, Colton have been members of the Chamber for over 8 years.

Clarke’s question to the Chancellor was:

“In East Anglia we now have vast tracks of prime land now being used to grow maize to feed AD (Anaerobic Digester) plants to produce gas which in turn producers electricity.

We have a number of large scale (50 acres plus) PV (photovoltaic panels) which again are being constructed on prime agricultural land and finally we have a straw pellet plant in the county which takes up to 50,000 tonnes of straw, uses energy to grind and then pellet the straw to be loaded on trucks to go to Drax power station to produce “green electricity”.

These projects would not be viable except with massive financial support through FiT’s which we all pay for in our utility bills.

On the other hand we are seeing global demand for food increasing which is leading to higher prices and shortages. We are net importers of most of the staple foods we eat and the continued growth of the global population will put massive strains on the supply chain.

We could produce more food. In Norwich we have world class crop and food research facilities but they cannot bring to market the innovative and sustainable developments they have because of the government / EU view on GM technology.”

Find on the attached document the written response from the Department for Environment, Food and Rural Affairs.

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.

Richard Ross is Director at Chadwicks Ltd who have recently reached their one year anniversary as members of the Norfolk Chamber of Commerce.

Richard’s question to the Chancellor was:

“While the recent improvements in employment prospects are to be welcomed I am sure the Minister will join me in agreeing that the persistency of high levels of unemployment in younger people are a source of national shame for which we all – government, businesses, educators, parents – must take our share of responsibility. Those least responsible are the young people, many of whom have worked hard to prepare for a productive life only to have those dreams cruelly snatched away from them.

Can you reassure us that suggestions made by Mr Cameron, and detailed by Mr Gove, to restrict benefits to under-25s were no more than Party Conference over-exuberance and that there is no intention to further ostracise this important future resource by implicitly laying the blame for high youth unemployment at their feet rather than where it should truly sit?”

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

• The UK deficit on trade in goods and services was £3.2bn in November 2013, compared with a deficit of £3.5bn in October 2013, but the October deficit was revised up sharply from the £2.6bn initially estimated
• There was a deficit of £9.4bn on goods in November, partly offset by a surplus of £6.2bn on services
• Imports from the EU increased to £19.2bn in November, a record high
• In the three months to November 2013, exports of goods were 1.5% higher than in the same three months of 2012, but imports of goods were 2.2% higher

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

“Although there was a small fall in the trade deficit, these figures are disappointing, and indicate a large deficit in the fourth quarter. However, it is not entirely surprising – our economy is growing at a faster pace than those of our major trading partners in Western Europe, and imports tend to increase in such circumstances. Longer term comparisons show that exports are increasing, but this is at a slower pace than is needed.

“Boosting exports must be a national economic priority, particularly when it comes to diversifying our exports towards faster-growing economies outside the EU. Even within Europe, there is scope to do this, as central and eastern European economies such as Poland are growing faster than our traditional trading partners. More support for SMEs looking to trade internationally is needed, and this means giving UK businesses more resources in areas such as trade finance, insurance and promotion.”

Tracey Howard, International Trade Director at Norfolk Chamber commented:

“Norfolk exports definitely increased during 2013. It was the busiest year on record for Norfolk Chamber’s International Department. Of the documents that are stamped at our Norwich office, 14% more EC Certificates of Origin were processed during 2013, and just under 50% more Arab Certificates.

Our members are very busy trading overseas and we expect this trend will continue through 2014. With such a varied range of sectors in our region, there are opportunities galore for everyone to tap into. We will be concentrating this year, on making sure the Norfolk business community are made fully aware of these opportunities and assist them in winning new contracts”

Norfolk Chamber of Commerce welcomes the Government approval for the £19m improvement of the A47 Postwick junction, at the eastern end of Norwich Southern Bypass. This is a project which has been on the Norwich Chamber Council’s wish list for a significant time.

Lack of capacity at the junction has prevented existing planning consents for business and housing development in the area from going ahead. Planning permission for the junction improvement has already been granted by Broadland District Council, but the side road and slip road legal orders also needed approval before the scheme could begin on site. A public inquiry into the side road and slip road orders was held last summer and the Secretaries of State for Transport and for Communities & Local Government have now given their approval.

Caroline Williams CEO Norfolk Chamber said” At last the uncertainty is over and we have the result that the business community has been waiting for. We welcome Norfolk County Council’s commitment to start on the site as soon as possible. We see this decision as a catalyst for new housing and business development. The real celebrations however will start with a positive decision relating to the go-ahead for the NDR application which is still waiting for approval and is subject of a public examination during 2014.”

“This is great news for jobs, housing and the Greater Norwich economy,” said David Harrison, Norfolk County Council Cabinet Member for Environment, Transport, Development & Waste. “We will now be moving as quickly as possible to start on site, and I expect that developers whose planning permission depends upon the junction improvement will soon be doing the same.”

Government funding for the Postwick Hub – the junction improvement and expansion of the Postwick Park & Ride – has been available since 2009 when £21m was allocated from the Community Infrastructure Fund for the Postwick Hub, including expansion of the Park & Ride site. The scheme was reviewed by the new Coalition Government and £19m in funding for the junction was confirmed as part of the £86.5m allocation for Norwich Northern Distributor Road (NDR).

Although the Postwick Junction improvement is important for the NDR, it is also vital in its own right to unlock business and housing growth in the area. The Planning Inspectorate is currently reviewing the NDR application as part of the Nationally Significant Infrastructure Project (NSIP) development approval process. Whether the NDR goes ahead depends upon a Development Consent Order being granted and this will be the subject of a public examination during 2014.

(This link will take you to the inspector’s report and decision letter:

www.gov.uk/search?q=Postwick&tab=government-results)

• BCC’s Quarterly Economic Survey is the first major economic indicator of the year, and is closely watched by the Bank of England and the Treasury
• Positive Q4 survey suggests that growth will continue and probably strengthen further in the short term
• Most Q4 key balances are higher than their pre-recession levels in 2007
• Norfolk’s manufacturing export balances continued to increase
• Norfolk’s service sector domestic balances increased considerably
• On the basis of these results, the BCC believes GDP growth in Q4 2013 could be 0.9%

The British Chambers of Commerce’s Quarterly Economic Survey (QES) released today (Tuesday) provides further evidence that the UK economy is growing at a solid pace, and could even strengthen in the short term. The Q4 survey, made up of responses from nearly 8,000 businesses, shows improvements in most areas for both the manufacturing and service sectors, and that all key balances are stronger than their long-term historical averages.

In the manufacturing sector, key balances are at all time highs, and domestic balances in the services sector continue to break new ground. But the recovery must be maintained, as risks persist around access to finance for firms looking to expand, and rectifying this is vital in moving the Norfolk economy from being merely good to being truly great.

Key findings in the Q4 2013 Quarterly Economic Survey:

• For both Norfolk manufacturing and services, all the major Q4 balances are stronger than their long-term averages, and most are higher than their 2007 pre-recession levels.
• Key manufacturing balances remain strong, allaying fears in Q3 that the growth spurt in manufacturing was temporary: domestic orders (+21%), turnover confidence (+45%), and profitability confidence (+35%).
• Export balances in the Norfolk services sector are at record highs for the survey: export sales (+69%), and export orders (+66%).
• In addition, the services sector employment balance rose seven points to +24%.
• But some concerns do exist. In manufacturing, the key Norfolk balances for domestic sales and orders fell slightly, although these are still strong results.
• Manufacturing cashflow in Norfolk fell back from Q3, which underscores the need to promote access to finance, so businesses can expand to meet growing order books.
• Intentions to raise prices rose in both manufacturing and services, while inflation and corporation tax both remain major areas of concern for businesses.

Commenting on the results, Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said: “It is a fantastic to start the New Year with a very positive quarterly survey. Confidence is high and our members are resolute in their determination to take the recovery from being good to being truly great. Firms from all sectors across the County believe they can create jobs, invest, and export. It is especially pleasing that the spurt in the manufacturing has proven not to be a fluke, which demonstrates the dynamism of our small, high value, manufacturing sector. But Norfolk businesses have major ambitions, and to be able to meet them, more support must be provided.”

“Cashflow continues to be an ongoing concern, and may hold businesses back from expanding to meet the growing levels of demand. We must give companies the opportunity to get the finance they need to go out and trade the world if we are to succeed in rebalancing the economy.”

Commenting on the results, John Longworth, Director General of the BCC, said: “As the 2015 General Election looms ever closer, the government cannot afford to get distracted by short-term political infighting. Long-term growth strategies must be delivered with a strong national consensus, particularly around the infrastructure investments that the country sorely needs. Only then will we have an environment that fosters enterprise and an economy which meets its true potential.”

David Kern, Chief Economist at the BCC, said: “With most key balances in this quarter higher than their pre-recession levels in 2007, it is clear that the UK recovery is likely to continue to strengthen in the short term. On the basis of these results, GDP growth in Q4 could well be around 0.9%, and higher full-year growth in 2013 and 2014 could follow. The optimism around medium-term growth prospects refutes the fashionable defeatist talk in some quarters of ‘secular stagnation’.

“The strong export and investment balances confirm that UK business is set to play a key role in rebalancing the economy. However while the overall message from this survey is positive, there are risks that should prevent complacency creeping in. The eurozone’s basic problems have not yet been resolved, which could adversely impact our exporters, and inflation remains a major concern.

“This means it is vital to prevent setbacks as the economic recovery gathers pace. The MPC must continue with its forward guidance on interest rates, and remain steadfast in its plans to keep inflation low and meet the 2% target. On its part, the government has to work to increase the flow of lending to growing businesses through a fully-funded Business Bank, to ease the logjam of those firms striving to expand.”

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The impact of Business Rates on local businesses, and responses to Norfolk County Council’s Putting People First budget consultation, will keep the council’s Environment, Transport & Development Panel in session all day on Tuesday 14 January at County Hall, Norwich.

The morning session (10am, Council Chamber) has been set aside for businesses and their representative organisations to give their views on the current system of Business Rates.* (See release issued 14 December: www.norfolk.gov.uk/News/NCC129490 .) Representatives from Norfolk Chamber of Commerce will be attending this session.

In the afternoon (2pm) the Panel will consider all other items on the agenda, including the public response to savings proposals in the areas of waste and recycling, public transport support, road maintenance, planning and trading standards. These formed part of the ‘Putting People First’ consultation that ran for 12-weeks between September and December and sought views on how Norfolk County Council should plug a predicted £189 million funding gap**.

The report summarises the responses to proposals, including some high profile proposals:

Reducing the subsidy for the CoastHopper bus service by £150,000 over two years (currently £225,000 a year).

The majority of people responding opposed this, citing rural isolation, the impact on tourism and local businesses and the loss of an essential local service during the winter. Three businesses have expressed interest in sponsoring the service, and other suggestions to maintain the CoastHopper included a charge for concessionary pass holders and different fares for visitors and local people.

Reduce highway maintenance for one year (£1 million).

The majority of respondents were concerned about the impact on road surfaces and the potential for greater expense in the future.

Charging was seen as a practical way to maintain some services, but there was also concern that these could lead to higher costs elsewhere, such as increased fly-tipping and reduced recycling because of charging and reduced opening hours at some recycling centres.

There was concern that saving £330,000 on school transport would compromise the safety of children, as well as create difficulties for parents. However, over 100 respondents accepted the proposal with a range of views, some seeing home to school transport as the parents’ responsibility, and others seeing health and community benefits from improvements to footpaths and cycleways.

Scaling back Trading Standards advice to focus on legal responsibilities, saving £373,000, was accepted by some people, while others were concerned that it would lead to more rogue traders and bad business practices, with concern that older and vulnerable people would be at risk.

David Harrison, Cabinet Member for Environment, Transport, Development and Waste, said: “I am not in the least surprised that people oppose many of these spending cuts and new charges, but we have to find some way of plugging the budget gap – and we are still waiting for Eric Pickles’ decision on the Willows, which could add to that pressure.

“What I can promise is that we will do everything we can to reduce the impact on our services and on Norfolk people. The many comments we have received will help us to do this, and I am grateful for the way in which people have put forward their own suggestions. For example, several businesses have shown interest in sponsoring the CoastHopper, and we will certainly be exploring these further because we recognise how much it is valued locally. On Tuesday Panel members will be able to have their say with the benefit of the feedback from Norfolk people and organisations.”

Dan Roper, Cabinet Member for Public Protection, said:

“The only way Trading Standards can make significant savings is by scaling back on services we don’t have to provide by law. In the consultation many people have recognised this, but some have also raised concern that older and vulnerable people will be more at risk from rogue traders and bad business practices. This is something we are already taking steps to mitigate, and if the reduction goes ahead** we will try to minimise the impact by careful targeting and dealing with the areas of highest risk, and by signposting people to other sources of high quality advice.”

Panel members will also have a chance to comment on how its annual allocation of highways and transport capital grant from the Government should be spent. Altogether £28.76m has been allocated to Norfolk, and it is recommended that nearly £25.4m should be spent on the planned structural maintenance of roads (such as resurfacing), nearly £1.4m on bridges and £2m for a range of small scale improvements including public transport, cycling, pedestrian and road safety schemes.

Structural maintenance is paid for by a capital grant from the Government and is used for resurfacing schemes, surface dressing, patching and other repairs.

Please Note: The proposed £1m one year reduction in road maintenance relates to the highways maintenance revenue budget which pays for day to day activities such as winter maintenance, street lighting, pothole filling, traffic light maintenance, verge cutting and weed spraying. The £1m reduction, if approved, would in 2014/15 reduce the refilling of grit bins, and delay some bridge and traffic light maintenance, the replacement of road markings and the renewal of safety barriers.