British banks and building societies drew down £5.5bn in Q3 2013 from the Funding for Lending Scheme. Net lending increased by £5.8bn in Q3 2013.
The Business Bank to receive an extra £250m of funding
Commenting on the latest figures on the Funding for Lending Scheme (FLS) and the announcement of extra funding for the British Business Bank, John Longworth, Director General of the British Chambers of Commerce (BCC), said:
“It is really encouraging that overall lending is rising, as this will boost the confidence of businesses across the UK. However, the real litmus test for the Funding for Lending scheme is whether it can really get finance flowing to SMEs, and unfortunately the improvement in credit availability is still mostly being felt by the usual suspects in the mortgage market and among large firms. Young, high growth businesses that could be the wealth creators of tomorrow are still being left out in the cold when trying to access finance. Lack of access to long-term patient capital is a particular problem for small firms who want to expand, and this cannot continue.
“The re-focusing of FLS towards business lending plus the announcement that the British Business Bank will receive an extra £250m are both positive steps in the right direction. Both are evidence that policymakers are listening to SMEs about the continued difficulties they face in accessing finance. However, there is a long-term structural failure of business finance in the UK, and a fully functioning Business Bank is the most promising way to solve this problem. But the government’s current plans just aren’t ambitious enough. Unless the Business Bank is scaled up, and has the ability to work directly with high-growth enterprises, we will continue to miss out on a British Google, Apple or Samsung.”
Great Yarmouth Chamber Council members recently met with East Norfolk Sixth Form College to discuss employer engagement with their Work Placement Programme. Kasia Beblot, the Work Place Co-ordinator at the college advised that 130 students had currently registered for the Work Placement programme, however there were very few actual work placements available, due to lack of employer participation.
Kasia is very keen to hear from any employer in the Great Yarmouth area that could offer students a work placement of between 6 weeks to 8 weeks for one morning or afternoon per week. In addition, they are also looking for Great Yarmouth business community interaction to conduct mock interviews and help students make the most of their CVs.
John Morse, President of Great Yarmouth Chamber Council, said “It is really important for Great Yarmouth employers to get involved in any way they can. We need to invest time in the young people of today, as they are the workforce for tomorrow.”
For more information and to pledge your support, please contact Nova Fairbank – email: [email protected]
The Norfolk Chamber is proudly sponsoring the Customer Care Award for the Mayor’s Business Awards this year. We are aware that West Norfolk Chamber members are successful, dynamic and hard working and one of the key aspects that we keep hearing, is that customer care is central to their business ethos.
Does your organisation pride itself on its exemplary customer care? Have you incorporated initiatives designed to raise service standards and can show increased customer satisfaction? Then highlight your achievements by entering the Customer Care category of the Mayor’s Business Awards.
These awards are important for West Norfolk, as they show the rest of the county what fantastic companies we have here, but for your business, it will demonstrate to a wider audience what you already know – that you are a great company. It is also a wonderful staff motivator to collate all your good points and even better when you win!
Commenting on the report published by the National Audit office today, Infrastructure investment: the impact on consumer bills, Caroline Williams CEO Norfolk Chamber of Commerce said:
“The current debate over short-term energy prices is missing the point. Politicians should be worried first and foremost about energy security – because if we can’t keep the lights on, businesses can’t grow and nor can the economy as a whole.
“Companies are concerned about the rising cost of energy. Some, particularly SMEs, are demanding far more information and transparency around the rising energy costs they face, and are sceptical about claims made by their suppliers. All businesses, however, are concerned with whether the UK can generate and distribute the power needed for economic success.
“Westminster politicians are thinking short-term, but Britain’s energy issues are long-term. Energy supply is a question of national prosperity and security, not cheap retail politicking.”
Bank of England Governor, Mark Carney, says the 7% unemployment threshold is likely to be reached earlier than expected
Bank of England upgrades economic growth for 2013 from 1.4% to 1.6%
Commenting on the November 2013 Inflation Report, issued today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“We have supported forward guidance since its introduction, as it helps to underpin business confidence. But we have also always said that the 7% unemployment threshold would be reached long before Q3 2016 as initially forecast. These revisions imply that the threshold is likely to be reached around the first or second quarter of 2015. This is a sign that the UK recovery, although not yet secure, is likely to be stronger than people felt three months ago.
“Governor Carney stressed that reaching the 7% threshold would not necessarily trigger a rise in interest rates, and this leads us to believe that there will be no increase until the end of 2015. This will provide stability for businesses to invest and create jobs. In the meantime, the MPC must continue to combine forward guidance with a commitment to maintaining economic stability.
“We support Governor Carney’s statement that the pressure on living standards can only be addressed when productivity increases. Simply raising wages before this happens would make businesses uncompetitive and threaten the recovery.”
Caroline Williams CEO Norfolk Chamber of Commerce, said:
“With the Bank of England now expecting stronger growth this year, the Inflation Report gives us more reason to believe that the upturn in the UK economy is gathering momentum. The improved outlook is testament to the resilience of businesses across Norfolk and the UK in the face of continued economic challenges.
“With the 7% unemployment threshold now likely to be reached earlier, we hope that Mark Carney will continue to reassure the business community that this is simply an indicator and will not automatically trigger an increase in interest rates. Any decision to tighten monetary policy must depend on a lasting improvement in economic conditions.”
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.
Once again, the results from the Q3 2013 showed further evidence that the Norfolk economy was starting to recover, with a strong service sector helping to boost local economic growth.
The Norfolk manufacturing sector, home sales and order strengthened, whilst their exports results showed a slight slow-down and the service sector continued to go from strength to strength in both home sales and orders, as well as exports.
Norfolk Chamber has long-championed the idea that Norfolk businesses have remained confident about their abilities to grow. The QES results show that even more firms now believe they can increase their turnover and sales, and hire more staff, which is a testament to their hard-work, creativity and ambition.
However investment is still a concern, and if Norfolk is to achieve a high productivity, high skill and high wage economy then these areas also need to improve.
Has your business seen the benefit of a recent growth spurt, are you investing in plant and machinery or recruiting more staff? 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 2 December 2013
Congratulations are in order for two Great Yarmouth Chamber members, who both had success at the EDP Business Awards last week. More than 300 firms across Norfolk entered this year’s awards – a record number – with 36 finalists competing to win 12 categories.
Blue Sky Leisure was crowned Barclays Business of the Year. Based in Bradwell, near Great Yarmouth, the company, which runs Kelling Heath and Woodhill Park, has been providing holidays in Norfolk for nearly 40 years. It also includes the Zaks American-style diner brand, which this year announced it was using a franchise model to expand beyond Norfolk.
Ian Hacon, Chief Executive Officer said “We’ve been relentless in driving our vision forward. It means that if you visit any one of our holiday parks or go into any of our restaurants or visit and ask our staff what our vision is they will tell you – we are passionate about our people, service and environment – and they will understand the part they play in delivering it. This award demonstrates the strength of businesses involved in Norfolk Chamber and help raise the profile of THE business network.”
Pasta Foods won the International Business of the Year category. Pasta Foods is a world leader in the production of snack pellets and the UK’s leading dry pasta producer. Based in Great Yarmouth, the company has been established for more than 40 years. With a workforce of approximately 130 people they are one of the main employers in the town and export on a worldwide basis.
Karl Jermyn, the Managing Director accepted the award and said “Winning the International Business award is a fantastic achievement for all at Pasta Foods and is testament to all the hard work that the team have put into the business in 2013. We currently export to 35 countries and growth in the business is being led by our overseas customers, particularly in the US where we have quadrupled our customer base in the last year. The company has also won new business in South Korea and Iraq demonstrating we are a truly global exporter.”
Whilst a speaker at a Norfolk Chamber’s event on 7 November 2013 George Osborne’s announced the creation of a taskforce to deliver the Norwich in 90 rail vision. The campaign was started in 2009 by Norfolk Chamber members and its partners. .
The Norwich in 90 rail vision includes faster, more reliable and more comfortable trains on the Great Eastern main line between Norwich and Ipswich and London.
The Norwich in 90 vision is laid out in “Once in a generation – a rail prospectus for East Anglia” -was produced last year in 2012 by the New Anglia LEP supported by the business community, local authorities, rail user groups and MPs.
Caroline Williams CEO Norfolk Chamber of Commerce said: The Norfolk Chamber membership have collectively been lobbying our local MPs and central Government since 2009 so it is great that the Chancellor has recognised the strength of the argument and is now committed to delivering Norwich in 90. The boost that this investment would generate £3.4bn in economic benefits cannot be underestimated.”
Key improvements identified in the East Anglia rail prospectus to deliver Norwich in 90 include:
New trains to enable faster and more reliable journey times.
A passing loop north of Chelmsford to increase capacity and overtaking
opportunities.
Increased line speeds on sections of the route.End.
Norfolk Chamber members were out in force on 7 November to welcome the Chancellor to Norfolk and to ensure that he was in no doubt as to the potential growth of its business community given the right investment.
As part of the event Chamber members were asked to take part in a text survey to identify their key priorities which will provide the keystone to the Chamber’s priorities in 2014. The clear priority with 34% of the vote was improvements to transport & infrastructure. The Chancellor then heard from Ian Hacon President Norfolk Chamber of Commerce about the Good, the Bad and the Ugly side of Norfolk, who emphasised Norfolk’s potential for growth.
Six Chamber members ranging from rural start-ups to established firms, such as Bernard Matthews and RG Carter, then gave highlights as to what they were particularly excited about relating to their businesses and identified what would help them be even more successful.
It was made clear that Norfolk businesses are at last feeling more confident, but continued to need the support of the Government in key areas. They highlighted how much faster businesses could grow and create jobs with the right infrastructure in place particularly improved broadband and mobile coverage, the railways, NDR and A47.
Young people are Norfolk’s future and Norfolk Chamber members sought assurances that business education would be high on the Government’s agenda.
Ian Hacon, President Norfolk Chamber of Commerce and MD Blue Sky Leisure commented “We were delighted to host a visit from George Osborne, Rt. Hon. Member of Parliament for Tatton and the Chancellor of the Exchequer. I would like to think he left Norfolk with a positive view as to what a great county it is to live and work in, and how a relatively small amount of investment in projects and infrastructure could unlock Norfolk’s potential to continue to play its part in the economic growth of the country.”
Caroline Williams, CEO Norfolk Chamber of Commerce said: “The Chancellor can be in no doubt about the innovation and dynamism of the Norfolk business community after today’s visit. We very much welcome his positive comments about Norfolk and its economy and will continue to encourage him to invest in this area in order to maximise the business community’s potential for growth and jobs.”
The Chancellor, George Osborne, in his speech stated that infrastructure investment was a priority for the government, from broadband and education, to road and rail, but that he was “here to listen, and here to learn”.
“We are doing what we can to create a competitive business environment. But we need your input, your thoughts and your ideas about where to take that next because by definition in a global race you cannot stand still.”
The Chancellor went on to outline that he was committed to the delivery of a faster rail service between Norwich and London (known as the Norwich in Ninety campaign). However, as this will take some time to implement, he also committed his support for the upgrading of the rolling stock, such as power points and refurbishment of carriages.
A number of members had the opportunity to ask the Chancellor questions and those not able to be heard due to time restrictions were assured that their questions would be answered after the event.
Brandon Lewis, MP Great Yarmouth who had organised the visit with Norfolk Chamber had to be in Westminster today but said “The Chancellor’s visit to Norfolk today is a real recognition of the economic potential of the area. I am delighted to have been able to help arrange this important visit and that Norfolk Chamber members had this opportunity to tell the Chancellor more about our area and the fantastic businesses that have made their home here. This is the perfect opportunity to signal to the Government that Norfolk is open for business and will be a key player in the UK’s continued economic growth. I shall continue to work closely with government departments to bring cabinet ministers to our area.”
Caroline Williams continued “The Chancellor has made it clear today that he values Norfolk and its business community and want to help us to reach our full potential. It is essential that we work closely together with our local MPs, our LEPs and public sector partners to take advantage of the exciting opportunities we have in Norfolk. The Chancellor has opened the door to communicate with him and his team and we will b ensure that the Norfolk business voice is heard loud and clear.”
Manufacturing output rose 1.2% between August and September 2013, while total production increased by 0.9%
In the three months to September 2013, manufacturing output rose 0.9% over the previous three months, but when compared with a year earlier, there was only a minimal increase (0.1%)
Commenting on the index of production figures for September 2013, published today by the ONS, Caroline Williams CEO Norfolk Chamber said:
“The stronger than expected recovery in September will boost confidence in the manufacturing sector. However in the latest three months manufacturing has virtually stagnated compared with this time last year, and the sector’s share of GDP has declined over recent years. Nevertheless we remain cautiously optimistic about the sector’s ability to recover despite the tough economic environment at home and abroad.
“Many firms have retained their skill bases during the financial crisis and can begin to innovate and enter new markets. But the future success of our manufacturing sector will rely on active government support for exporters and an improvement in the availability of finance for growing firms.”
Annual Energy Statement Ed Davey, Secretary of State for Energy and Climate Change delivered the Annual Energy Statement to Parliament this month. With energy prices growing as a political issue he used the statement to announce a series of measures to improve the market. He said that the government will work with industry to reduce the length of time it takes to switch to a new energy supplier from the current five weeks to 24 hours. He also said the Ofgem, the energy regulator, will be strengthened and there will be criminal sanctions for the firms if they fix the market. Energy Taxes Alongside the measures in the Annual Energy Statement the government also announced this month a review of green energy taxes, as a means of reducing energy bills. Three of the “big six” energy firms have announced price rises of between 8% and 10% in recent weeks. The Liberal Democrats have accused David Cameron of making a “panicky U-turn” after he announced the review. The outcome of the review will be announced in the Autumn Statement on 4 December. Nuclear power station at Hinkley The government and EDF Group have reached commercial agreement on the key terms of a proposed investment contract for the Hinkley Point C nuclear power station in Somerset. The two sides agreed the “strike price” of £92.50 for every megawatt hour of energy Hinkley C generates. The two reactors planned for Hinkley, which will provide power for about 60 years. France’s EDF Energy will lead a consortium, which includes Chinese investors, to build the plant. Our response is available here. Government guarantee for infrastructure A large number of energy projects have reached their prequalification stage in order to be eligible for UK Guarantee schemes. The scheme has the capacity to underwrite up to 40 billion pounds of investments up to 2016. The government has already awarded a £75m guarantee to power plant Drax for their £700 million programme to partially convert the UK’s biggest coal power station to biomass. Energy Bill The Energy Bill returned to Parliament this month when it began its Report Stage in the House of Lords. The Minister in charge, Baroness Verma, mentioned the BCC in her speech. An amendment to include a decarbonisation target was defeated. The Bill will return to the Commons in a few weeks and is expected to become law before the end of the year. Solar roadmap launched The government has launched a new Solar PV Strategy Roadmap. According to the strategy the four main challenges facing the sector are: cost-reduction; carbon-effectiveness; sustainability; and scaleability. Further work will be completed ahead of publishing the Solar PV Strategy in spring 2014 which will assist the development of policy and the growth of the sector. The aim is for the solar industry to an aspiration of 20GW within a decade. Upcoming developments
OPITO – the skills for oil and gas organisation – in partnership with key industry organisations (including Aberdeen Chamber) publishes an oil and gas Labour Market Intelligence Survey;
Autumn Statement to set out the results of the government review into green taxes;
Energy Bill to complete its Parliamentary stages and become an Act of Parliament;
Offshore wind industrial strategy;
Oil & gas review interim conclusions will be published in the autumn;
A final version of the EMR delivery plan will be published in December.
For further information contact Tom Nolan at 020 7654 5824 or [email protected]
Prior Diesel Ltd was formed in 1981 and is a global leader in diesel driven power solutions, particularly within the Oil & Gas market. The company offers a diverse range of engineering specialities together with representing most of the major names in diesel engines.
The company supplies diesel engines and parts; manufactures and refurbishes diesel engines and products; manufactures, repairs and overhauls Well Service equipment; and also offers a world-wide marine engineering service.
Overseas customers are primarily from the Oil & Gas industry and the company’s parts and products are sold across Europe, Africa, the Middle East and Australasia.
“We started exporting to Africa in the 80s,” says Joint Managing Director Chris Conroy. “It was for a local client with a fleet in West Africa who needed engine parts. That was just the start, and since then we have expanded our exports significantly, both in terms of customers and geographical areas.”
“Our Well Service equipment is manufactured by only a small handful of companies in the world, so we have a very wide reach globally. This means that we don’t necessarily have to go looking for export business, as our products are known by the company’s reputation for quality, which is important when dealing with production from an oil or gas well. Although this market has few competitors, we still have all the usual business challenges and we have worked very hard for the good name that we have.”
Prior Diesel Ltd uses the Norfolk Chamber to support its export activities. “We rely on them for documentation, because that is critical and has to be right,” says Chris. “We also attend their very good export training courses, which have helped us a great deal in understanding how to export. Their translation and interpretation services have also been very useful for us where a language barrier has come into play. They are a brilliant team, very knowledgeable, professional and always keen to help.”
Although Prior Diesel Ltd boasts customers all over the world, this can pose challenges. “It might sound obvious but our biggest challenge is ensuring we get paid, a common problem with many businesses who export. To alleviate this problem we often ask for payment before goods are exported. If that isn’t possible we go to the Chamber and they help us with the relevant documentation.”
Equipment arrives and leaves Prior Diesel in a variety of ways. “Customers sometimes send us their products for repair, or they’ll be purchasing new product,” Chris adds. “It’s dependant on the customers’ business needs as to how it arrives or leaves. They will choose airfreight for speed, but that can be expensive. Sea is another option, it’s less expensive, but it takes longer.”
Chris has some clear advice for businesses considering exporting: “Make sure the documentation is correct, it will ensure that everything runs smoothly. And where possible get payment up front. A contract is a must – some export customers would still have you believe a gentleman’s handshake or “word is my bond’ should be enough, sadly it often isn’t, so to be certain that everything is in writing and if necessary checked by the Norfolk Chamber Export Team.”
