Chamber News

Commenting on the new Small and Micro Business Assessment, which has been announced by Michael Fallon today (Thursday), Caroline Williams CEO Norfolk Chamber of Commerce said:

“Smaller Norfolk companies often find it difficult to comply with regulations, compared with their larger counterparts who have more resource. If this policy directly reduces the time and money that firms spend on needless bureaucracy, then the business community will show its support.

“Smaller businesses have the potential to become the wealth creators of tomorrow, but they do need an enterprise-friendly environment to be able to do this. Part of this is freeing them from red tape ,which prevents them from focusing on more important growth priorities, such as creating jobs and exporting their goods.

“We hope that this policy will help to deliver significant reductions in regulation and provide a more common-sense approach to regulation more generally. The Chamber will keep an eye on this new policy over the coming months to ensure that it is actually making a difference to local firms on the ground.”

The British Chambers of Commerce is today (Wednesday) publishing its submission for the government’s Spending Review, which will be announced later this month. Following extensive research into business’ priorities for the Spending Review, the business group is calling on the Chancellor to shift government spending away from current spending towards capital investment that will help get the economy back on track.

In April, the BCC polled nearly 1,800 firms across the UK, from which three clear messages emerged:

1. Lower public spending matched by lower taxes would deliver the best outcome for the UK economy

• Almost half (42%) of businesses ranked the reduction in public spending and taxes as their preferred option to boost the health of the UK economy
• This compared to only 13% of firms who listed higher public spending and higher taxes as their first choice
• The BCC believes that maintaining departmental ring-fences for short-term political gains is not consistent with a long-term vision of a low-tax, enterprise-friendly and internationally-competitive economy.

2. The top three areas that businesses would like the government to prioritise were economic development, education and transport. Foreign aid and social security were the lowest.

• Economic development (which includes trade promotion and business support) came out as the top priority for government spending at 68%, with education second (57%) and transport third (47%).
• Only 1% see foreign aid – currently protected by a ring-fence from cuts – as a priority area and only 6% see social security – the largest area of spend – as a priority for government spending.
• While the BCC is not calling for the protection of any specific Whitehall department budgets, we reiterate our long-standing call to shift state spending towards supporting the economy.

3. The present balance between capital investment and current spending is far out of line with business perceptions and expectations

• On average, UK businesses wanted to see a 3:1 split of current and capital spending in budget allocations after learning of the actual ratio, which is closer to 13:1.
• This suggests businesses would like to see a massive boost to capital expenditure, which would require a radical reprioritisation of government budgets.
• The BCC is calling for a greater focus on investing in capital assets including transport, energy, education, digital and other local economic infrastructure, such as road maintenance and house building.

PRIORITY SPENDING MEASURES TO BOOST GROWTH

The following priority areas are consistent with the business opinion identified from our survey, and would have a significant impact on economic growth. They are costed, and we believe the government can offset these costs through cutbacks to other, less growth-focused, areas of spending.

Promote access to finance for growing businesses

• The BCC welcomed the initial £1 billion commitment to the new British Business Bank as an important first step, but investment must be on a greater scale if it is to succeed in supporting growing companies
• An additional investment of £9 billion from the government over the next three years would provide the necessary capital base to allow the Business Bank to start lending directly to businesses.
• The government and the Bank of England should use their balance sheets to extend the backing of the Funding for Lending scheme’s billions to the embryonic Business Bank. This would energise a crucial player in the lending market, and help to solve the long-term structural gap in finance that continues to strangle far too many growth businesses across the UK.

Direct Exchequer cost: £3 billion per annum

Immediate infrastructure stimulus to boost house building and road maintenance

• The BCC believes that continued underinvestment in road maintenance will lead to further deterioration in the state of Britain’s road networks; whereas additional investment would boost employment, support local construction and underpin local economies more generally.
• The BCC continues to call for a Road Repair and Renewal Fund, which would need to be at least £12 billion over the next three year period. This would help to address the current backlog of repairs which stands at £9 billion and is growing by nearly £800 million per year.
• We urge the government to directly invest in much-needed new social housing, and for 100,000 more new homes to be added to the Homes and Communities Agency (HCA) target to 2015.
• The BCC strongly believes that house building, not uncertain mortgage market interventions as announced in this year’s Budget, is required to boost the economy and help remove distortions in the housing market.
• Investment in more affordable housing would directly boost the economy through employment in the house-building sector and would benefit mostly UK-based companies.

Direct Exchequer cost: £4.8 billion per annum

Promoting exports

• If we are to successfully rebalance the economy towards exports, the government must do more to enhance the level and effectiveness of support available to UK companies trading internationally
• In the Autumn Statement, UKTI was allocated a budget of £70 million to deliver services to more small- and medium-size exporters and help to refocus UKTI activities on the highest-value opportunities and emerging markets. To date, a small proportion of this funding has been allocated towards the direct support of SME exporters.
• The BCC is urging the government to allocate more funding towards supporting SME exporters, with more funds going directly to the coal face rather than into Whitehall-driven programmes.
• Trade missions, development of in-market support and promotion of market opportunities to companies in the UK must be prioritised. An extra £33.3m per annum over the course of the Spending Review period, if split between the 20 priority markets identified by UKTI, would yield a market development budget of £1.65 million per annum. This equates to £5m per market over the whole Spending Review period.
• The government has issued an export challenge, and wants to see 100,000 more British firms exporting by 2020. Without additional export support on a large scale, achieving this will be difficult.

Direct Exchequer cost: £33.3m per annum

Long-term commitment to renewing Britain’s infrastructure

• Without significant efforts from the government to accelerate and deepen reforms to attract private investment in the country’s infrastructure, the UK’s ability to compete internationally will be further undermined. The government must go further and faster to de-risk private investment in infrastructure. • The Bank of England could also help to lever private investment in infrastructure by providing guarantees to make involvement attractive to investors • Mechanisms that would support infrastructure investment over the longer-term could include establishing a government-backed Infrastructure Investment Bank or a ‘Reverse Sovereign Wealth Fund’. This would allow institutional investors to invest in projects indirectly and at a guaranteed rate of return.

TOTAL COST OF RECOMMENDED MEASURES: Approximately £8bn per annum

Commenting, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“This is the Chancellor’s last chance to make a real difference to the health of the UK economy, this side of the next general election. Our Spending Review submission, based on business opinion, is calling for a radical shift of focus towards areas like infrastructure, economic development and skills – the big enablers of an enterprise-friendly economy. Our submission proves that the government can have its cake and eat it. It can continue to reduce the deficit while investing heavily in measures that will support growth.

“It is unacceptable that ministers continue to ring-fence certain areas of spending for political reasons, and programmes that do little to boost UK output are being protected at the expense of capital investment. Infrastructure spending and radical action on direct house building and road maintenance would provide a significant boost to the construction sector and local growth. Furthermore, the UK’s overall export performance is still not where it could or should be. If we are to win the ‘global race’ described by the Prime Minister, we need a huge increase in the resources dedicated to supporting international trade. But these measures must be focused on frontline support to businesses, not the extension of agencies or bureaucracy in Whitehall.

“Businesses across the UK are crying out for more support to help them drive growth, boost trade overseas and create jobs and wealth. The Chancellor must be brave and listen to the business community, and seize this opportunity to go all out in the name of growth.”

Norwich North MP Chloe Smith visited Norse Commercial Services on Friday 31st May to talk to the team of apprentices about their experience of learning and aiming for a qualification whilst working.

In January of this year, Chloe founded and launched the ‘Norwich For Jobs’ Campaign which is seeking to halve youth unemployment in Norwich in two years. The Campaign is seeking to highlight that various routes available to young people into employment, including apprenticeships. Chloe visited Norse, an employer that has pledged its support to the campaign, in her capacity as Chair of the ‘Norwich For Jobs’ campaign to meet with and discuss the successful apprenticeship campaign that Norse currently runs in order to encourage other employers to consider offering similar apprenticeship programmes.

During her one and a half hour visit, Chloe also took part in a roundtable discussion with the team and senior members of Norse’s human resources and training divisions, about the value of apprenticeships and about the Norse initiative that will see over 100 apprentices on the company scheme during 2013.

Norse already commits over £880k a year to apprenticeships across its three operating companies, Norse Commercial Services, NPS and Norsecare, a figure match-funded by Norfolk County council.

“In 2011 Norse Commercial Services implemented a policy of turning entry-level jobs into apprenticeships,” commented Norse Human Resources Director Tricia Fuller. “We pay them a worthwhile salary that takes them out of the benefits system, provide them with the opportunity to do real work whilst getting accredited to NVQ levels 2 or 3 in their apprenticeship year.”

“We value all jobs the same at the apprenticeship stage, removing any stigma potentially attached to lower paid roles and making all vacancies equally attractive in terms of remuneration,” Fuller added.

Chloe Smith commented, “I really enjoyed visiting Norse again and was interested to learn more about their successful apprenticeship programme, which puts apprentices at the heart of the business. Their acknowledgement of the value that young people can offer to employers is very important and I would encourage other employers to consider offering apprenticeship places.”

“Norse’s inclusion of those ‘Not in Education, Employment or Training’ (NEETs), those with learning difficulties and care leavers is great. It is encouraging that a large employer like Norse helps these young people achieve their potential.”

Linda Savage, Head of Learning and Development at the company said, “At the end of their apprenticeship with Norse, a number will be offered permanent positions within the Norse Group, but everyone that completes the course will have a very portable qualification, putting them in a far better position to get a job”

Nineteen year old Hannah Codling-Thomas has been an apprentice with Norse since January 2013. “My position is Group Support Services Administrator, which means that I support three different functions: environmental, customer services and procurement. Supporting three different functions with three different managers keeps me on my toes, but I enjoy the variation and like a challenge.” “Getting an apprenticeship to me feels like I am able to work, earn and learn at the same time. It feels like I have learnt the skills to do so much more – not just for work but also for myself.”

Another apprentice, Jay Trivedi, also started in January this year, in the sales support team: “I believe that being on an apprenticeship opens up doors for my future, gives me the chance to network with other people, to build my confidence and to gain more knowledge in the company.”

“The skills I am picking up from my apprenticeship have already helped me with external tasks, and I feel like I am learning something every day, which I know I will help me in the future.”

The Norse team of nine apprentices has won through to the finals of the national ‘Brathay Challenge’, aimed at finding the ‘Apprentice Team of the year’.

Having impressed the judges with their regional heat entry, which included taking part in community projects and promoting the value of apprenticeships to both potential apprentices and employers, the team is currently completing further fundraising and awareness raising activity. The Challenge culminates in a series of team building tests, logistical challenges and physical competition against seven other teams at Brathay Trust’s Windermere headquarters from 10th to 12th June 2013.

Norse Commercial Services has signed the latest partnership in its growing portfolio of highly successful local authority Joint Venture Companies (JVCs), forming Medway Norse with Medway Council.

Medway Norse will start trading on the 1 June 2013, providing facilities management services that include cleaning, catering and maintenance for the council’s 140 buildings and for other local organisations The 10-year, £7 million a year agreement is the first of its kind in the South East.

Geoff Tucker, Norse’s Sales Director, said: “We are delighted to be working with a progressive council like Medway, using our experience and commercial expertise to deliver cost savings, and at the same time preserving local jobs and maintaining high quality services.”

“Norse currently has 19 joint ventures with local authorities in the UK,” he added. “The business model is now well proven in helping our partners respond to budget cuts, whilst maintaining and improving frontline services. Medway Norse will also create income for the council by bidding for additional work.” Medway Norse is committed to spending 40% of its budget with contractors who are small or medium sized local businesses, reflecting the firm’s commitment to supporting the local economy.

Medway Council Portfolio Holder for Finance Cllr Alan Jarrett said: “Medway Norse will allow us to continue to protect front line services for the people of Medway while providing value for money. This ground breaking joint venture, with a well-established company that understands the needs and operations of the public sector, offers an opportunity for Medway to share in the profits the joint venture company makes by attracting new contracts from across the South East.”

Norse Commercial Services is the UK’s leading service provider in this type of local authority JVC, and has a forward order book of nearly £1.8 billion.

• British banks and building societies drew down £2.6bn in Q1 2013 from the Funding for Lending Scheme.
• Net lending to businesses decreased by £300m in Q1 2013

Commenting on the latest figures on the Funding for Lending Scheme (FLS), Caroline Williams CEO Norfolk Chamber of Commerce said:

“Although the £300m fall in lending was a smaller drop than the previous quarter, it is a concern that lending continues to contract despite the Funding for Lending Scheme having been in place for nearly a year. It is also worrying that usage of scheme seems to have dropped significantly since the end of 2012.

“The real test for Funding for Lending is whether it is able to get credit flowing to Norfolk’s young and fast-growing small businesses. Unfortunately many of these small business with aspirations to grow are still being left out in the cold when it comes to accessing finance, which prevents them from expanding, creating jobs and helping to drive a business-led recovery. These figures give weight to the argument for the swift delivery of a British Business Bank, which must have both the scale and the infrastructure needed to help young firms grow.”

More details: https://www.bankofengland.co.uk/markets/Pages/FLS/data.aspx

Abellio train operator Greater Anglia has reported its best-ever period of punctuality with 95.7% of all trains on time for the four-week performance period from 28 April – 25 May 2013.

Greater Anglia has consistently delivered improvements in train punctuality since taking over the franchise in February last year, and for the 28 April – 25 May 2013 period, punctuality for the various route sectors of the Greater Anglia network was: Metro & Southend 98.1%, Mainline 96.3%, West Anglia 94.6%, Rural 93.9% and Stansted Express at 93.4%.

This further improved performance by Greater Anglia has also seen the moving annual average (MAA) punctuality figure – which measures performance over a 12 month period – again at a new high of 92.6%, the best MAA figure recorded so far for the Greater Anglia franchise area, which was established in 2004. The current 12 month MAA punctuality for both the Mainline (91.7%) and Stansted Express (90.1%) services are the highest recorded since 2004.

Individually, for the 28 April – 25 May 2013 period, five of Greater Anglia’s rail lines recorded their highest-ever four-week period of punctuality under the current franchise structure. The Norwich to London Intercity service achieved a punctuality of 95.4% and in Essex the services from London to Chelmsford, Witham and Colchester (plus the Clacton, Frinton-on-Sea and Walton-on-the-Naze branches) recorded 96.5%. The London to Shenfield Metro services performed exceptionally well with punctuality of 98% and the services to Southend Victoria at 97.7%. The Marks Tey to Sudbury line recorded 97.6% punctuality.

Ruud Haket, Managing Director Greater Anglia said: “I am very pleased that train punctuality at Greater Anglia continues to improve and we have recorded our best-ever four-week period of punctuality. This reflects our continued and relentless efforts, working in partnership with Network Rail, to provide better train service performance.

“We recognise there is more work to do in achieving greater consistency and will continue to focus on delivering further improvements in train punctuality for our customers across the region.” Richard Schofield, Network Rail route managing director, said: “We have worked very hard with Greater Anglia to improve the train service in the east of England and deliver a safe and efficient railway.

“Our focus has been to drive up reliability levels through continued investment and to improve our contingency plans to help ensure that the service can recover more quickly following any issues on the railway.

“We will continue to work with our colleagues at Greater Anglia to continue delivering consistent levels of service for passengers.”

A survey whose results could lead to a major investment for skills for the Suffolk and Norfolk economy has now been launched.

Taking part in this survey is your opportunity to help inform and be part of the solution to the skills gaps/issues affecting businesses in Norfolk.

The online survey takes just 10-15 minutes to complete and the more information gathered, the easier it will be to understand and resolve the skills gaps and issues facing Norfolk employers.

For more information on the survey and how to take part, click here.

Businesses had identified that new infrastructure was needed to support the development of the Great Yarmouth area and in particularly linking the GY Enterprise Zone with the A143 and A12. It is therefore good news that the Government have recognised the potential of this area and awarded £4.7m ‘pinch point’ funding to road schemes put forward by Norfolk and Suffolk County Councils. The Government has also awarded £4.6m for the Lowestoft northern spine Road which will reduce traffic flows on the A12 Yarmouth Road and A1117 Bentley Drive.

Caroline Williams CEO Norfolk Chamber of Commerce said: “Norfolk and Suffolk Chamber members have been lobbying hard with their public sector partners and the NALEP to ensure that the potential of this area is fully recognised. Improved infrastructure is key to enabling local businesses to reach their full growth potential and to provide new and protect existing jobs. These are positive steps towards what is needed.

“We are however disappointed that the schemes in Brandon and Kings Lynn were not successful and will be reviewing what the options are of getting these schemes funded.”

At a recent meeting of the Great Yarmouth Chamber Council, Great Yarmouth Borough Council Cabinet and local schools, the Chamber challenged schools to work in greater collaboration with the business community.

The meeting highlighted that whilst all the schools have their own careers advice programmes and individual work experience arrangements with businesses, it was apparent that there is a lack of co-ordination between the schools and the business community as a whole. Similarly, the business community are willing to offer their support, but are unsure as to the best access to the schools and need a co-ordinated approach.

The meeting concluded with the schools agreeing to collate all their career advice key dates and provide a timeline to the Norfolk Chamber, to enable co-ordinated support from the local business community to ensure these key dates are supported by the different sectors of industry.

Norfolk Chamber board member Bobby Burrage and his wife Fiona, from The Click Design Consultants proudly showed off eight week old Stanley Thomas at their visit to the Norfolk Chamber of Commerce last week.

• 39% of SMEs reported using any form of external finance, the lowest recorded by the report.
• SME confidence that their bank will agree to a future lending request dropped to 40% in Q1 2013, from 43% in Q4 2012.
• Amongst ‘would-be loan seekers’, 40% said they had felt that ‘discouragement’ had stopped them applying for a loan.
• For those with any appetite for future borrowing, 27% cited access to finance as a major barrier to running businesses in the next 12 months. The current economic climate (43%) was still seen as the biggest barrier to running a business

Commenting on the independent SME Finance Monitor for Q1 2013, published today, Caroline Williams CEO Norfolk Chamber of Commerce said:

“The latest figures from SME finance monitor are concerning because they show a continued deterioration in companies’ confidence when dealing with financial institutions. It is disheartening to see that the availability of external finance remains a barrier to growth for many businesses. Although it is understandable that first-time applicants remain among the least successful when applying for loans, many of these will be young and fast-growing firms who aren’t getting the funding they need to expand. This is why we need to see a swift delivery of the British Business Bank with both the scale and the infrastructure needed to help dynamic businesses to grow.

Locally there are a number of new financial initiatives to help small and medium businesses supported by the New Anglia LEP with new opportunities being added all the time which will put our businesses in a strong position to go for growth”.

Norfolk County Council Leader George Nobbs (Lab) today (Tuesday 28 May) announced a new eight-member Cabinet, comprising five Labour members and three Liberal Democrats.

Cllr Nobbs was elected Leader of Norfolk County Council on Friday (24 May) and immediately announced the creation of two Cabinet posts for Children’s Services, and the appointment of Cllr Mick Castle, Labour member for Yarmouth North and Central, as Cabinet Member for Schools, and Cllr James Joyce, Liberal Democrat member for Reepham, as Cabinet Member for Safeguarding Children.

The full Cabinet announced by the Leader today (Tues) is:

• Cllr George Nobbs (Lab) – Leader of the Council with special responsibility for Economic Development.
• Cllr Mick Castle (Lab) – Schools.
• Cllr David Harrison (Lib Dem) – Environment, Transport, Development & Waste.
• Cllr James Joyce (Lib Dem) – Safeguarding Children.
• Cllr Steve Morphew (Lab) – Finance, Corporate and Personnel.
• Cllr Daniel Roper (Lib Dem) – Public Protection (Public Health, Trading Standards, Fire & Rescue).
• Cllr Sue Whitaker (Lab) – Adult Social Services.
• Cllr Margaret Wilkinson (Lab) – Communities (Adult Education, Libraries, Museums, Customer Service).

In addition to the Cabinet appointments, Cllr Nobbs announced that Cllr Colleen Walker, Labour Group Deputy Leader, will be taking on the vital role of Scrutiny lead.

“A Cabinet of eight Members represents a reduction that reflects the funding cuts the Norfolk County Council is facing from the Government. Although it is a smaller team, it draws upon some considerable experience, and focuses on the most critical areas – in particular Children’s Services when the people of Norfolk expect to see improvements in the performance of our schools, and assurance that our safeguarding services are keeping children safe. These services are so critical to the future of our county that I have separated them at Cabinet level, allowing Cllr Castle to focus upon schools and Cllr Joyce on safeguarding.”

Background of Cabinet Members:

Cllr George Nobbs

Labour member for Crome. First elected to Norfolk County Council in May 2005. Became Leader of the Labour Group after re-election in 2009. Elected Leader of the Council in May 2013. A local historian, writer and publisher, he lives in Eaton Rise, Norwich.

Cllr Mick Castle

Labour member for Yarmouth North & Central. Elected in May 2013, having previously served on the Council as a Cabinet member. Also a member of Great Yarmouth Borough Council where he chairs the Development Control Committee. Chairs the Yarmouth Area Committee and the North Yarmouth Resilience Group. A former chairman of Norwich Airport and the Gt Yarmouth Port Authority, he takes a special interest in economic development. A Norwich City FC season ticket holder.

Lives in Town Wall Road, Great Yarmouth.

Cllr David Harrison

Liberal Democrat member for Aylsham. First elected to Norfolk County Council in a by-election in November 2007 and was the former Lib Dem spokesperson on planning. Also serves on Broadland District Council and Aylsham Town Council. A scientist who has worked in medical and biological research, he has for the last 15 years been teaching science in local schools. Lives in Aylsham.

Cllr James Joyce

Liberal Democrat member for Reepham. First elected to Norfolk County Council in 2005 and was Liberal Democrat spokesman for Adult Social Services. He lives in Wood Dalling and runs a Post Office serving local villages. Previously worked in advertising industry, including Saatchi & Saatchi and J Walter Thompson. Serves on Broadland District Council and Reepham Town Council and several school governing bodies. Chairman of Norfolk Crimestoppers.

Cllr Steve Morphew

Labour Member for Catton Grove. Former Leader of Norwich City Council, elected to Norfolk County Council in May 2013. A full-time officer for NALGO/UNISON for 20 years, he is a consultant in human resources for not for profit organisations and for eight years has been non-executive director on Norfolk & Norwich University NHS Trust. He was a candidate in the Police and Crime Commissioner election. Lives in Catton Grove Road, Norwich.

Cllr Daniel Roper

Liberal Democrat member for Hevingham & Spixworth. Also serves on Broadland District Council where he is Deputy Leader of the Liberal Democrat Group. A qualified Probation Officer, he has worked for Probation for 15 years, most recently as a manager in community roles and in prisons. Previously served on Norwich City Council and Old Catton Parish Council.

Cllr Sue Whitaker

Labour member for Lakenham. First elected to Norfolk County Council in 2001 Re-elected in 2005 before losing her seat in 2009, later winning it back in a by-election in November 2011. Former Leader of the Labour Group and spokesperson on Adult Social Services,former Trust Board Member of the N&NU Hospital. Lives in City Road, Norwich. Governor of the Hewett School, Norwich. Sue is also a trustee of Future Projects in Norwich.

Cllr Margaret Wilkinson

Labour member for Gaywood South. Elected in May. A long-serving member of the Borough Council of King’s Lynn & West Norfolk, she is also former Magistrate. Moved to the Fairstead Estate, King’s Lynn, from London in 1967. Now retired, she worked at the Gayton Road surgical centre for many years. She is married with two children and three grandsons.

For political comment

• Cllr George Nobbs, Leader of the Labour Group and Leader of the Council, on 01603 611406;
• Cllr Bill Borrett, Leader of the Conservative Group, on 01362 860200;
• Cllr Toby Coke, Leader of the UKIP Group, on 01328 838288;
• Cllr Marie Strong, Leader of the Liberal Democrat Group, on 07920 286597;
• Cllr Richard Bearman, Leader of the Green Party Group, on 01603 504124.

For further information please contact: John Birchall Senior media and public affairs officer, Norfolk County Council Tel: 01603 224222 Email : [email protected]