Commenting on the Office for National Statistics inflation figures for November 2022, BCC Head of Research, David Bharier, said: “Today’s inflation rate of 10.7% may indicate we have passed the peak, but prices are now at a much higher level which will be felt for months to come. “Our research shows that inflation remains by far and away the number one concern for businesses. Even if the rate of increase starts to slow, the damage to business confidence has been significant. “With their margins left razor-thin, very few SMEs are planning to increase investment as they deal with a wall of higher energy bills, input costs, interest rates and taxation. “Over half of SMEs tell us they will struggle to pay their electricity and gas bills after April. They will be nervously awaiting the Government’s expected announcement on the future shape and extent of any energy costs support, which will also impact inflation. “Firms also need to see concrete action on infrastructure, skills, trade, and green tech to create the right environment to invest.”
The final three Town Deal business cases have been approved by Government securing the remaining £15,811,819 of funding for the Multi-User Community Hub, Riverfront Regeneration and Active and Clean Connectivity projects. King’s Lynn was one of only 100 towns in England that were invited to bid for Towns Fund money. A requirement of the funding bid was the establishment of a Town Deal Board. The King’s Lynn Town Deal Board was established in January 2020. Graham Purkins, Chief Technical Officer at Merxin and Chair of the Town Deal Board, said: “Since our inception in January 2020, our role has been to work with officers and members, bringing our private sector business knowledge and experience to the table, and helping to identify and develop projects that we believed would really help secure a positive future for the town. We have been responsible for overseeing the development of the business cases and I am delighted that everyone’s hard work has resulted in us securing the full allocation of £25m for the town. I am very much looking forward to seeing these projects progress through to delivery.” Cllr Graham Middleton, Deputy Leader of the Borough Council of King’s Lynn & West Norfolk, explained: “Securing £25m from the Towns Fund is only part of the story. Many of the projects also feature match funding, so for a contribution of £1.2m by the Borough Council of King’s Lynn & West Norfolk, we are securing £33.7m of investment in the town, thanks to contributions from other partners and funders, including Norfolk County Council. “I want to thank the Town Deal Board members who have given their time so generously to this project and have helped support officers throughout this process. I must also thank our own officers who have worked hard to develop business cases and consult with stakeholders and the public, to get these schemes supported. “It is also vital that I thank members who have reviewed the business cases and signed them off on behalf of the council. It’s been a challenging process through a challenging period of time, and I am really proud of what has been achieved.” The next steps are to progress with refining and developing the proposals along with further public engagement and consultation, so that the appropriate planning permissions can be obtained and projects progressed. Michael Baldwin, Vice President of Norfolk Chambers of Commerce said, “The town deal board have worked incredibly hard to get these projects to the delivery phase we are now entering, and we look forward to west Norfolk finally seeing all of the works coming together over the coming months”. Information about each of the projects can be found on the Vision King’s Lynn website www.visionkingslynn.co.uk.
Reacting to the ONS GDP figures for October, Nova Fairbank, CEO at Norfolk Chambers of Commerce, said: “The monthly growth in GDP for October of 0.5% is overshadowed by the underlying three-month trend revealed by the data, which shows a contraction in the economy of 0.3%. “As September’s figure was depressed by the Bank Holiday for the Queen’s funeral, October’s data was always likely to show a comparative improvement. “But the BCC’s latest quarterly economic forecast expects the UK economy to be in recession for five consecutive quarters. “Business confidence has been falling dramatically as firms face into a wall of higher prices and energy bills, increased taxation, and rising borrowing costs. “Unless the Government helps create a stable environment to allow businesses to invest, Norfolk faces a long-term loss of competitiveness. “Businesses need to see concrete action to resolve the immediate disruptions facing our economy, such as soaring energy costs and the burdens in our trading relationship with Europe. Nova also said, “Norfolk also needs to see a long-term plan on infrastructure, skills, trade, and green innovation – topics we will be discussing at our upcoming event, The Big Debate on Friday February 10th.”
Reacting to the ONS Trade figures for October, William Bain, Head of Trade Policy at the BCC, said: “There was a cloudy trade picture in October as goods exports fell again – well short of forecast 2022 growth. “The ONS Trade data shows a 4.7% fall in the value of goods exports, although services held up better. Overall, though, export performance continued to undershoot the OBR’s 8% forecast growth for this year. “After removing inflationary effects, imports rose, particularly from the EU. As fuel market volatility continued, gas and other fuel imports from the rest of the world were down in October. “But with data for 10 of the 12 months of 2022 now in, it’s clear that the scale of growth in exports predicted last October is not happening. “Nevertheless, over the 3 months until the end of this October, exports in both goods and services held up. Energy market fluctuations had an impact on trade data over this period. “With tougher economic conditions most likely ahead, next year will need a step change in efforts by business and government to develop the Export Strategy to sustain trade volumes.”
It has recently been announced that there will be some price changes that will be applied to all ChamberCustoms declaration and submission fees with effect from 1st January 2023. The changes are as follows.
Import and Export Declaration prices will increase by 10%
Entry submission fee will rise from £2.00 to £2.50p
The BCC expects the UK economy to remain in recession for five quarters before an anaemic recovery in 2024, but inflation has likely peaked at 11%.UK Economic Outlook
The British Chambers of Commerce (BCC) forecasts the economy will not return to growth until Q4 2023.
UK inflation is expected to be 11.0% in Q4 2022 and to slow to 5% by Q4 2023
The economy will grow in 2024 but the recovery will be weak as business investment, exports and household consumption all remain subdued
GDP heading for a five-quarter contraction In the immediate term, the BCC is now forecasting a five-quarter recession for the UK economy which began in Q3 of 2022. The annual expectation for GDP growth in 2023 is now -1.3%, broadly in line with the OBR and Bank of England’s predictions. However, unlike the Bank of England, the BCC expects the economy to grow in 2024, albeit at 0.7%, which is around half of the OBR’s forecast. A key contributor to the 2023 economic contraction is a sharp fall in household spending as consumers face rising energy costs, falling real wages, frozen income tax allowances and higher mortgage payments. A poor outlook for the global economy means exports are also likely to fall, although they will be outstripped by a sharper decline in imports. The mini-budget in September 2022 is expected to have had a long-term impact on borrowing costs for both businesses and consumers. Alongside the effect of changes in corporation tax and business rates on already dwindling business confidence, this is likely to lead to a 3.0% contraction in firms’ investment in 2023. Inflation likely to have peaked at 11% Businesses and consumers will continue to face high costs due to inflation, but the upward spiral is now thought to have peaked for Q4 2022. This is down from the previous BCC prediction of 14.0%, thanks in part to the Government’s energy price guarantee. The CPI rate is expected to slow to 5.0% in Q4 2023 and finally drop below the Bank of England’s target to 1.5% in Q4 2024. However, this simply means prices will stabilise at a very high level and Government plans to reduce energy support after April 2023 could put upward pressure on inflation again. The forecast for the Bank of England’s interest rate has changed dramatically following the mini-budget of September 2022; the rate is now expected to increase to 5.25% by Q4 of 2023. Although the impact of energy and raw material costs on inflation is likely to reduce in 2023, there remains a likelihood of upward wage pressure as workers seek to increase their income. Investment and recovery expected to be anaemic Overall investment is expected to fall by 1.8% in 2023, with business investment expected to fall even further by 3.0% in 2023, down significantly from a previous prediction of a 0.6% increase. This follows recent BCC research showing significant falls in business confidence in recent months. Household consumption is also expected to fall by 2.3% although Government spending is expected to increase by 4.6%. The overall picture for 2024 shows a return to growth but not at a level which will compensate for the five quarters of a shrinking economy. Net exports, household spending and business investment will all return to positive growth but with government spending dropping, the recovery will by lacking in strength. Commenting on the forecast, Alex Veitch, Director of Policy at the British Chambers of Commerce, said: “BCC research has shown that business confidence has been falling for months. It is now clear that the September mini-budget and Autumn Statement have had a further chilling effect. “Very few firms will be willing to invest as they face into a wall of higher prices, interest rates and taxes. “The very real worry is that the UK will get left behind by our competitors, once the economy emerges from recession, as growth remains so weak. “But it is not too late to turn this around. With concrete action on infrastructure investment, skills, trade, and green tech we can put the economy in a much stronger position. “The next Budget, due in March 2023 will be a real acid test of whether the Government fully understands the scale of the problems ahead and is prepared to act. “In the meantime, the forthcoming announcement on energy bill support for businesses will be watched closely by firms for signs that the Government grasps the size of the challenges they face.” Key points in the forecast:
UK GDP growth forecast for 2022 is 4.2%, -1.3% in 2023 and 0.7% in 2024
Following a contraction of growth in Q3 2022 by 0.2%, quarter-on-quarter GDP growth is forecast to continue to decline in Q4 by 0.9%, 0.3% in Q1 2023, 0.4% in Q2, and 0.2% in Q3, before a slight increase in growth of 0.1% in Q4 2023.
Household consumption forecast is for growth of 4.7% in 2022, before shrinking by 2.3% in 2023, and growing 0.3% in 2024.
Business investment forecast is to grow by 4.2% in 2022 before a 3% contraction in 2023, and then an increase of 1.4% in 2024
BCC expects export growth of 7.3% in 2022, -2.7% in 2023 and 0.4% in 2024, compared to import growth of 11.2%, -6.6% and 0%
BCC expects UK unemployment rate of 3.7% in 2022, before rising to 4.5% in 2023 and reaching 5.1% in 2024
CPI inflation is forecast to peak at 11% in Q4 2022, before slowing to 5% in Q4 2023. Inflation is expected to further slow to 1.5%, below the Bank of England’s 2% target, by Q4 2024
UK official interest rates are expected to rise to 3% by Q4 2022 and then to 5.25% in Q4 2023, ending 2024 at 4.5%.
Levelling Up Secretary Michael Gove is in Norwich today to sign historic Norfolk devolution deal
Proposed deal gives Norfolk County Council a directly elected leader with greater control over skills delivery, building, and transport budgets
Agreement means that 50% of England now covered by directly elected leaders – showing important progress since the Levelling Up White Paper.
A landmark devolution deal, which puts money and power over building, regeneration and skills into the hands of leaders in Norfolk will be signed today by Levelling Up Secretary Michael Gove. Norfolk will be devolved power over their Adult Education budget, so they can shape provision in a way that best suits the needs of Norfolk’s economy and will receive immediate support to build new affordable homes on brownfield sites, as well as more capital funding to support the delivery of housing and regeneration. The deal will also see Norfolk County Council handed control over a £600 million investment fund – this will be guaranteed for the next thirty years. This will enable the county to drive growth and plan for the long-term with certainty as it looks to level up and unlock its full economic potential. Norfolk will also get a directly elected leader of the council. This not only provides a single person who is accountable to the people of Norfolk but gives the county a local champion who can attract investment and be a stronger voice in discussions with central government. The Levelling Up Secretary will today attend a ceremony in Norwich with Cllr Andrew Proctor to officially sign the deal. Michael Gove will also visit Suffolk today to sign a devolution agreement with Suffolk County Council, which will transfer further money and power out of Whitehall. The deals follow Cornwall Council who just last week signed their own devolution deal with the government, unlocking powers and long-term funding of £360 million. With three new devolution deals signed in the last seven days, 50% of England will now be covered by a devolution deal and reaffirms the government’s commitment in the Levelling Up White Paper to offer a devolution deal to any area that wants one by 2030. The deal sets out the government’s plans to devolve more power to Norfolk County Council through:
Investment: It will bring decades of funding worth £600 million to the county which will improve the lives of Norfolk’s residents and allow local leaders to spend money on their local priorities.
Housing: The deal will provide almost £7 million to regenerate brownfield land into beautiful, affordable homes and drive growth across the area; Norfolk will also receive greater compulsory purchase powers to help drive regeneration.
Education: The agreement devolves the Adult Education Budget so they can shape provision in a way that best suits the needs of residents and the local Norfolk economy.
Transport: An integrated transport settlement starting in 2024/25, to support the area to improve key transport infrastructure priorities.
Infrastructure: The deal sees £5.9m of capital funding in this Spending Review period to support the delivery of housing, regeneration, and development priorities Norfolk.
Levelling Up Secretary Michael Gove said:“We are putting power into the hands of local leaders in Norfolk because we know important decisions are best taken closer to home, by people who know what their challenges are, not by those sitting behind a desk in Whitehall.“This landmark deal allows leaders in Norfolk to take forward local priorities over the longer term, and it will be for the people of Cromer, Norwich, and Great Yarmouth to elect someone who is best placed to represent their unique interests as a county.“I look forward to working closely with whoever the new leader is to level up Norfolk and unleash the full economic potential of the whole county.”Norfolk County Council leader, Councillor Andrew Proctor, said:“I’m delighted that Norfolk is well positioned to gain additional powers and money to improve people’s lives, thanks to the County Deal we have agreed in principle with the Government.“The aim is for decisions and funding previously controlled in Westminster to be agreed in Norfolk, for Norfolk.“Striking a deal will help us to boost our economy through jobs, training, housing and development, to improve our transport network and to support our environment.“Getting to this point shows that the Government sees Norfolk as a can-do county. I’m confident that we can make a success of this and that more powers and funding would follow.”Nova Fairbank, chief executive of Norfolk Chambers of Commerce, said: “A county deal for Norfolk would be welcomed by the business community. To have guaranteed annual funding over a 30-year period is absolutely going to be for the benefit of the business community. Plus, the ability to make local decisions on jobs, transport, infrastructure, housing, and skills is really important to the business community.” These deals are just the first steps in transferring power away from Whitehall into areas that want them. The East Anglian agreements mean that six of 13 places invited to negotiate devolution deals in the Levelling Up White Paper have now signed agreements with government. Suffolk and Norfolk join Cornwall – who signed their own deal just last week – York and North Yorkshire, and the East Midlands who have already signed devolution deals this year – these deals equate to another five million being covered by a devolution deal in 2022 alone. The deal is now subject to local consultation, a council resolution to change their governance model so that electors directly elect the council leader, and elements, such as the transfer of new powers, require parliamentary approval to secondary legislation. The deal envisages the election of a directly elected leader in May 2024. Subject to the passing of the relevant measures in the Levelling Up and Regeneration Bill, Suffolk and Norfolk would call the directly elected person the “elected leader” of the County Council.
There are only a few days left to nominate your business, favourite retailer or pub for our 2023 Business Awards, sponsored by Big Sky Living. These awards recognise and celebrate the amazing array of successful businesses in both Broadland and South Norfolk District. Businesses are be invited to nominate themselves for an award in any of the 11 categories and residents can support their favourite pub or shop by voting for them as ‘Retailer of the Year’ and ‘Pub of the Year’. By voting for your favourite pub or shop you’ll have the chance to win £100 of shopping vouchers and £100 of pub vouchers in our prize draws. This year’s categories are:
Business Collaboration, sponsored by Pasta Foods
Business Growth, sponsored by Hethel Innovation
Business Innovation, sponsored by Panel Graphic
Business Resilience, sponsored by Mirus
Business Supporting the Community, sponsored by InTouch Systems
Employer of the Year, sponsored by Jarrold Training
Environmental Innovation, sponsored by University of East Anglia
Excellence in Agriculture, Food and Drink, sponsored by Woodforde’s Brewery
Excellence in Financial Services and Insurance, sponsored by fignorwich (Financial Industry Group)
New Business, sponsored by CNC Building Control
Visitor Experience, sponsored by Adnams
Broadland Pub of the Year and South Norfolk Pub of the Year, sponsored by Pub is The Hub – open for public nomination only
Broadland Retailer of the Year and South Norfolk Retailer of the Year, sponsored by Big Sky Living – open for public nomination only
Funding to build a multi-use community hub in the middle of King’s Lynn has been secured by the Borough Council of King’s Lynn and West Norfolk (BCKLWN) and Norfolk County Council (NCC). The Hub will create a place where residents can access a range of public services they value, alongside information and advice they trust, with library and learning at their heart.The business case was approved in November by the Department for Levelling Up, Housing, and Communities (DLUHC) which secured the £7.4 million Town Deal Funding. The Business case was highlighted as being a best practice example that clearly demonstrated the need in the town.This is a significant project for the town, with funding for the project predominantly coming from the Towns Fund and brings a brand-new library and associated facilities, alongside a range of NCC services and programming from Adult Learning and partners which will be tailored to the needs of King’s Lynn residents. This is a fantastic opportunity support the development of the Town Centre, which we know is the heart of the community for many, whilst also creating a brand new and improved community offer.Cllr Margaret Dewsbury, Norfolk County Council cabinet member for communities and partnerships, said: “I’m really pleased that the funding has been secured and we can now move forward with this much needed project. It’s important now more than ever to be able to provide services and advice which people can trust, which is why the hub is so important.“The hub will provide residents with a fantastic place to come together and not just borrow books, but make use of all that is on offer, such as learning, resources, and access to information technology.”Cllr Lesley Bambridge, local member for King’s Lynn North and Central, said: “Over the years, I have seen by my many visits to the library, that much more is offered by the service and the new premises will ensure that the wider community will be able to take advantage of what will be available. It will be a place where people can meet, learn new skills both work-related and hobby activities, focussing on toddlers to the elderly.”Cllr Graham Middleton, Deputy Leader of the Borough Council of King’s Lynn & West Norfolk and member of the King’s Lynn Town Deal Board, added: “Basing many essential services in this prominent town centre location will make them more accessible for a whole range of people as well as increasing footfall in this part of the town. I would like to thank all the partners involved for all their hard work in developing the business plan and securing the funding for this transformational project.”A tender will shortly be issued to provide the construction of the building, and the next stage of the design will start in spring next year. We are keen to involve the public throughout the process and will be carrying out a consultation to co-design the programmes and services that will be based at the hub, as well as help to shape the designs and branding as they develop. The hub is due to open in September 2025.This range of services will provide a core environment of well-being, skills development, learning and information. The project has a budget of £12.4 million, with the Towns Fund is providing £7.4 million, and NCC contributing an additional £5 million.The current library in King’s Lynn will stay open until the opening of the hub in 2025.
Reacting to news of a new Digital Trade Agreement with Ukraine, William Bain, Head of Trade Policy at the BCC, said:“UK companies will be keen to assist in the reconstruction of Ukraine and the first priority is going to be the economy.“To have a strong digital trade agreement in place from the get-go will provide a boost to e-commerce trade in both directions between our two countries.“This agreement should allow businesses and consumers in Ukraine to more easily buy the products and services they need.“E-commerce comprises a growing share of the UK’s net trade so we hope companies will get user friendly advice from the Government to make the most of today’s agreement.”More detail on the new digital trade agreement can be found here.
The Norfolk Chambers of Commerce, in collaboration with the Suffolk Chamber of Commerce, have been selected by the Department of Education as the designated lead for The Local Skills Improvement Plan (LSIP) within Norfolk and Suffolk. The LSIP Project is designed to put the voice of the Employer at the heart of shaping local training and skills provision – over the coming months we will be encouraging employers to provide their insight into the skills required to enable growth. The LSIP will form a major part of shaping local skills provision working collaboratively with local councils and training providers to ensure skills gaps are addressed. We need your views and insight into the skills you need to move your business forward, we will be reaching out from January via digital surveys and 121 meetings, we welcome your involvement! For more information, please contact the team at [email protected]or read more here