Chamber News

Reacting to the ONS Trade data for September 2022, Nova Fairbank, CEO at the Norfolk Chambers of Commerce, said: “The effects of higher inflation and reduced consumer spending globally on UK trade are growing clearer as both imports and exports of goods in September slowed. “On the plus side, UK services trade in September held up, although areas such as hospitality are being hit at home, the demand for financial and business services products abroad remains stronger. “To counter these strengthening headwinds for goods trade, we urge the UK Government to implement the recommendations of our Business Manifesto. “To have any hope of expanding goods export opportunities for firms, the UK’s Export Strategy must be reinforced. This and other measures, such as negotiating reduced red tape in the EU trade agreement, will help mitigate the impacts of rising inflation on consumers and businesses at home.” In Depth Analysis Imports In September, overall goods imports to the UK fell by 5% (£2.8bn) with EU imports down by 7.3% (£1.9bn) and non-EU imports down by 3% (£1bn), primarily down to lower gas imports from Norway and the fall in oil prices globally. Excluding inflation overall imports fell by 6.1% (£2.6bn) in September. Among the largest falls in imports from the EU by sector was in chemicals (down by £0.7bn). Fuel imports from outside the EU, principally Norway, fell the most in September – down by £1.3bn. Exports UK goods exports fell in September by 4.7% (£1.6bn). The drop in exports to the EU was higher than to the rest of the world – 5.1% (£0.9bn) compared with 4.2% (£0.7bn). Excluding inflation, overall goods exports fell by 4.8% (£1.4bn) in September. On exports to the EU the largest falls were in machinery and transport equipment (principally to Germany) and in fuel exports. Falls in non-EU exports were led by drops in the same goods and commodities – mechanical and transport equipment, as well as oil exports. Deficit The overall trade deficit fell by £1.3bn to £23.7bn during September – fairly constant over the past 9 months. In Q3, total UK goods imports rose by 2%, and UK goods exports rose by 3.2%. Imports of machinery and transport equipment from the EU fell by £1.7bn over the quarter and chemicals by £1.4bn over the same period. Total services imports and exports both rose by 3.3% in the same period. Trade in pensions, travel, intellectual property and insurance services remained strong in Q3. More detail on the ONS trade data can be found here.   Image: Chambers Canva Pro 2022

As we approach International Men’s Day on 19^th November we want to recognise and celebrate the fantastic men here in Norfolk. Here at the Chambers, we’re incredibly lucky to work alongside some amazing men (check them out here) as well as being inspired by our amazing business community which showcases some spectacular men. International Men’s Day is held annually and this year it’s focusing on wellbeing, positive conversations, and raising awareness of the charities that are available to support boys and men with their mental health and wellbeing. In 2021, The Office for National Statistics reported that there were over 5,000 suicide deaths in England with over 73% of those males.* The retailer, Next, released a campaign in 2020 on #SayMoreThanOK highlighting the importance of men being able to open up to share that they’re not okay and to have the support they need to take care of their mental health and wellbeing. View their video here. Here in Norfolk, we have some fantastic charities that provide support to everyone in need. Norwich City Football Club delayed the release of their kit this year in aid to raise awareness of mental health. Stephen Fry is not only a NCFC fan, but he is also president of Mind, and bringing the two together, he delivered an inspirational video showcasing just how important mental health is and how it impacts 84% of people in their lifetime. Jason Carlton, Director of Uptech says “A high percentage of men are very good at masking their true thoughts and feelings and not sharing with others their real problems. We have the tendency to allow our thoughts to build up challenges and problems that confront us which in turn can trigger our vulnerabilities that leads to an unclear state of mind into what we think is the way out. Our mental state and wellbeing are clearly not just down to gender or age its a massive problem across for board and is wrapped around different layers in what is perceived to fit in culturally and accepted in our environments and communities which can isolate us and single us out and have a huge impact on our mental wellbeing feeling alone. If there is a takeaway in awareness on mental health issues – I would encourage business owners – leaders to roll out mental health champion training within your organisation.” Alex Wiseman from Norfolk and Waveney Mind says “We are your local mental health charity. We work to ensure that no one has to face poor mental health alone. This International Men’s Day we want to remind you that whether it’s you needing support, someone in family, a friend or a work colleague, we are here for you. You can call our team who will discuss the most appropriate service for you on 0300 330 5488 or visit our website www.norfolkandwaveneymind.org.uk” In the lead-up to International Men’s Day, we’d like to celebrate all those men who inspire us and encourage conversations around mental health. We’d love to give a shout-out to men who are special to you or inspire you, so send us a photo and a short message here for us to share across our social media in the run-up to International Men’s Day. #InternationalMensDay As a member of the Norfolk Chambers, you have access to a wide range of support through Quest. Quest is there to provide free support and guidance on HR, Health and safety, Legal and Tax issues for you and your business. You have access to a large library of documents and direct hotlines to Quest specialists. Get in touch with your account manager to find out more. Find more amazing charities here. *https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/deaths/datasets/suicidesintheunitedkingdomreferencetables

We are delighted to announce that Norse Group Ltd has become Gold Patrons at the Norfolk Chambers. The Norse Group is the largest Local Authority Trading Company in the UK comprising of NPS Group (NPS), Norse Commercial Services (NCS) and NorseCare. They are one of the country’s fastest-growing service providers, with a broad range of services including facilities management, property services and specialist care facilities. Providing commercial solutions which address current and future built environment challenges, we have 22 joint venture partnerships across England and Wales. View their directory here

• 54% of businesses say smoother customs procedures are the key to boosting UK exports
• 42% favour lowering tariffs, while 35% said there is a need to reduce regulatory barriers, and 29% want better support for smaller businesses
• Overcoming the new requirements of the TCA has encouraged one-in-ten (9%) UK exporters to Europe to trade with new non-EU markets

While barriers to trade affect most firms, overcoming recent EU challenges has led some to expand into new markets, a survey from the British Chambers of Commerce (BCC) and DHL Express has highlighted. The survey of almost 1,000 UK businesses – 92% SMEs – shows almost half (48%) said the top barriers to exporting were costs and disruption, alongside tariffs (48%), and customs procedures (47%). A further 41% of businesses said regulatory issues such as product certification were a hindrance to trade, and 37% cited political, social, economic or environmental uncertainty. Only 9% of firms surveyed said their business does not face any barriers to exporting. The lack of engagement amongst businesses with Free Trade Agreements (FTAs) is another stumbling block preventing more international sales. Four out of five firms (79%) had not carried out any assessment into what they may need from a trade deal with major international markets. This falls slightly to 69% for UK exporters. However, businesses want their trading journey to be straightforward and allow them access to new markets with ease and speed. More than half (54%) of respondents said ‘smoother customs procedures’ would be a top priority for future trade deals between the UK and other countries, followed by ‘lowering tariffs’ (42%) and ‘reducing technical barriers’ (35%). When it comes to trading with the EU, almost two thirds (61%) of UK exporters to the EU say they can meet the requirements of the UK-EU Trade and Cooperation Agreement (TCA), while 20% say they can’t. But overcoming the challenges presented by the TCA has offered growth opportunities in new markets for some businesses. Of the exporters to the EU that agree they can satisfy the TCA requirements, 9% say they are now trading with new non-EU markets as a result of this, and a further 9% say they will now consider doing so in future. This highlights the opportunities that trade presents for businesses, especially those who show resilience in the face of challenges.   Commenting on the results, William Bain, Head of Trade Policy at the BCC, said: “Our findings highlight the real priorities traders have for UK trade negotiations with partners across the world, and other trade policy developments. Faster customs processes, tariff reductions, removing technical barriers to trade, focused support for SMEs’ easier labour mobility, and mutual recognition of professional qualifications are the top six issues for the UK’s SME exporters. “For traders exporting to the EU, speed, efficiency and reduced hassle are even more to the forefront of their minds. The BCC has a plan to cut red tape on UK-EU goods movements. We also have ambitions to boost UK exports across our key global markets through new Single Trade Window developments and trade negotiations. “While there are challenges currently facing exporting businesses, there are also of course many opportunities. It’s crucial that in the coming years, SME exporters working with trusted logistics partners feel the significant benefits of global trade as we hopefully see the removal of barriers and the opening up of new international markets.” Ian Wilson, CEO, DHL Express UK said: “Businesses have been through enormous challenges over the last two years, but they have shown incredible resilience. During times of economic uncertainty, having a presence in a number of markets is an effective way to minimise risk, so we need to ensure that UK businesses are encouraged to keep looking for international trade opportunities. “While international trade can be challenging, businesses don’t have to go it alone. We can see from the research that most businesses aren’t aware of what FTAs could mean for them. It’s in everyone’s interest for them to succeed overseas, so we want exporters to feel empowered to talk to Government, their trade bodies and businesses like ours about what support they need.” Link to Infosheet Oct 2022. You can view this original article here 

Norfolk Chambers of Commerce is working closely with VolkerFitzpatrick to bring a Meet the Buyer event to Norwich for the Hornsea Three Onshore Cable Works. VolkerFitzpatrick has been appointed by Ørsted, the world’s most sustainable energy company, to deliver the installation of onshore cables for the Hornsea three offshore wind farm. They are holding a ‘Meet the Buyer’ event on Friday 4 November 2022 at Norwich City Football Club and would like to invite local businesses to explore potential opportunities with them. With a capacity of 2,852 MW, Hornsea 3 will produce enough low-cost, clean, renewable electricity to power around 3.2 million UK homes, making a significant contribution to the UK Government’s ambition of having 50 GW offshore wind in operation by 2030 as part of the British Energy Security Strategy. The project (subject to Ørsted taking a Final Investment Decision on Hornsea 3) will see the installation of 240 km of onshore cables that will connect the offshore wind farm from the landfall at Weybourne in Norfolk to the Norwich Main National Grid Substation. Works are scheduled to commence in March 2023 with an anticipated completion in 2027. Both VolkerFitzpatrick and Ørsted are committed to engaging with the local community and supply chain to maximise the benefits and opportunities for individuals and the local economy.  VolkerFitzpatrick would like to meet the local supply chain to explore any potential opportunities with local businesses. VolkerFitzpatrick have proactively identified a number of the relevant trades, services, commodities and skills required and are working closely with Norfolk Chambers to co-ordinate and facilitate as many opportunities as possible for local, and particularly, for small businesses and individuals to get involved and benefit from this exciting project. Norfolk Chambers of Commerce, Chief Executive, Nova Fairbank said “We’re delighted to be bringing back a Meet the Buyer event. It’s our mission to connect the Norfolk community and what better way than an event like this? We have so many incredible businesses here in Norfolk and many will be able to pitch their services for this fantastic opportunity”. This event is now fully booked 

Reacting to the announcement of the new Prime Minister, Shevaun Haviland, Director General of the British Chambers of Commerce (BCC), said: “We would like to congratulate Rishi Sunak on his appointment as Prime Minister.    “The political and economic uncertainty of the past few months has been hugely damaging to British business confidence and must now come to an end.    “The new Prime Minister must be a steady hand on the tiller to see the economy through the challenging conditions ahead.  “This means setting out fully costed plans to deal with the big issues facing businesses; soaring energy bills, labour shortages, spiralling inflation, and climbing interest rates.    “We cannot afford to see any more flip-flopping on policies – the UK’s businesses need a sustainable, long-term economic plan they can believe in.   “The BCC is writing to the Prime Minister to set out the action needed to tackle the main challenges facing business. It is vital we see progress made in these areas to keep doors open and promote investment.  “Firstly, the Government must provide more certainty on the energy support package for businesses and quickly communicate how the system will work from April. Firms need to know what support to expect in the medium and long term.     “Secondly, they must fix the extremely tight labour market. Without the skilled people to do the jobs businesses need, the economy will stagnate.   “Thirdly, to grow the economy, Government must set out a strategy to boost our international trade and exports.    “People run businesses and businesses rely on people. The new administration must grasp that the cost of living and cost of doing business crises are two sides of the same coin.     “We need a clear long-term vision of how the new Prime Minister will deal with the challenges ahead and create the business conditions that allow firms, and the communities that rely on them, to thrive.”  

Notice is hereby given that the 126th Annual General Meeting of the Norfolk Chambers of Commerce will be held at Banham Zoo, The Zoological Society of East Anglia, Kenninghall Road, Banham, Norfolk, NR16 2HE on Thursday 24 November 2022. The meeting will commence at 9.20am.  Please see attached for all papers relevant to this meeting. The AGM will follow our business networking session  – book your place now. 125th AGM Minutes – 25 Nov 21 v1 AGM Agenda – 24 Nov 22 Memoradum from Chair for Updated Mems & Arts – Oct 22 NCoC Financials to 31 Mar 22 Proxy Form 2022 RSVP Form 2022 Special Resolution – Amending Mems & Arts – 24 Nov 22 Updated Mems & Arts to be apprvd at AGM

Reacting to the PM’s resignation, Nova Fairbank, CEO of Norfolk Chambers of Commerce, said:  “Following weeks of chaos and uncertainty, the Prime Minister has resigned. Her resignation means the UK now faces even greater uncertainty, just as it stands on the cusp of a recession. “It is now vital the Conservative Party speedily comes to a decision on a new leader who can return both political and economic stability. “The new administration must immediately set out how they plan to deal with soaring energy bills, labour shortages, spiralling inflation and interest rates. “Flip-flopping on policies has led to low consumer and business confidence, with four in 10 firms expecting falling profits, as companies have seen little sign of a coherent strategy nor stability in Government decision making. “The challenges that lay ahead of us are building by the day. Two thirds of firms expect to raise their prices and inflation is the top concern. Interest rates are set to climb further in November and energy bills will now rocket again for many in April. “This is unsustainable. Government must work with business to address three main issues, to show it recognises the challenges firms face. “Firstly, they must look again at the energy support package for businesses and communicate quickly how the system will work from April. “Secondly, they must fix the labour market, without the skilled people to do the jobs businesses need, the economy cannot thrive. “Thirdly, to grow the economy they must set out a strategy to boost our exports. “People run businesses and businesses rely on people. The new administration must grasp that the cost of living and cost of doing business crises are two sides of the same coin. “We still need a clear long-term vision on how it will support firms, and the communities that rely on them, to thrive.”

Responding to the Chancellor’s statement this morning, Shevaun Haviland, Director General of the BCC, said: “The Chancellor’s buzzword was stability. But what we’ve seen from him is a plan for today and nothing for tomorrow. “Following the economic turmoil of the last few weeks he had to press the reset button. “But businesses will be dismayed by the decision that looks set to strip back the energy support for firms from next April. This will be a hammer blow for many who were already worried about how they will survive. “The government must commit to a full consultation with firms ahead of that cliff-edge to provide some certainty on where any targeted support will go. Energy costs keep business owners awake at night, alongside rising inflation and interest rates. “Keeping support for the NICs reversal in place will be some relief for hard-pressed firms, but on its own will not be enough. “The Chancellor has a delicate balancing act to carry out. He must restore order to the markets if he is to prevent further damage to business and consumer confidence. But if he is serious about stability and growth, he must speak to our Chamber Network to truly understand the pressures firms face. “People run businesses and businesses rely on people. The Government is failing to fully understand that the cost of living and cost of doing business crises are two sides of the same coin. We still need a clear vision on how it will support firms and the communities that rely on them to thrive. “It must be clear in how it plans to do this, to prove it is serious about helping businesses through the difficult months ahead. Time is of the essence.” Image credit: Chamber Canva Pro

Nova Fairbank, CEO for The Norfolk Chambers of Commerce commented on the latest ONS figures, saying “The 0.3% fall in monthly GDP for August 2022 is a warning sign that the economy was already stalling before the market turmoil of recent weeks.  “Our research indicates that business confidence is falling at an alarming rate. Volatility in the currency and bond markets following recent Government announcements will have only exacerbated this.    “The six months energy support package will have provided some breathing room for businesses facing eye-watering energy costs.   “To build business confidence, Government must rapidly provide more detail on its fiscal policies and supply side reforms, particularly at a time when businesses face the twin crises of rising interest rates and high inflation.”   Image Credits – Chambers Canva pro

• Four in ten (39%) businesses believe their profitability will reduce over the next 12 months  

• Fewer businesses are reporting increased sales; only 33% of firms reported increased domestic sales, down from 41% last quarter. 

• Measures for inflation remain at record highs as more than four in five (84%) firms say it is a growing concern for them 

The BCC’s Quarterly Economic Survey (QES) for Q3 2022 shows a significant decline of key economic indicators, with weakening structural business conditions and confidence a cause for concern.  The QES is the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth. The survey took place between August 22 and September 16, prior to the Government’s energy support package for firms and the mini-budget announcement. The survey of over 5,200 firms – 92% of whom are SMEs – reveals there have been significant declines for indicators of business sales, cashflow, and profit expectations. All indicators of business conditions and confidence have fallen significantly from Q2  More businesses are now seeing their cashflow decreasing, instead of increasing. One in three (32%) firms reported reduced cashflow over the last three months, while 23% reported an increase. Indicators for business confidence have plummeted; less than half (44%) of firms expect their turnover to increase over the next 12 months, while 25% expect a decrease. Those expecting an increase are down ten percentage points from 54% in Q2. Profitability confidence has dropped to an even lower level; only one in three (33%) businesses believe their profits will increase over the coming year, while 39% now expect a decrease. This is the lowest level since Q4 2020 at the height of the Covid crisis. Unsurprisingly, firms are not upping investment in their business. Only 22% reported an increase to plant/equipment investment in the past three months, while 57% reported no change, and 22% reported a decrease. Business activity is taking a hit, with fewer firms reporting increased sales Only 33% of firms reported an increase in domestic sales over the past three months, a sharp decline from the Q2 level of 41%. 24% of firms reported a decrease in sales. The outlook is particularly bleak for the retail and wholesale sector. The sector is now in its second quarter of negative territory; with far more businesses reporting a decrease in sales rather than an increase. 25% of retail/wholesale firms reported an increase in domestic sales, while 39% reported a decrease. Alongside the retail and wholesale sector, other sectors are also struggling; almost three-quarters (71%) of hospitality businesses reported they are operating below capacity. Inflationary pressures are showing no signs of letting up The percentage of firms expecting their prices to rise over the coming months (62%) remains close to last quarter’s record high. 84% of firms also cite inflation as a growing concern to their business – by far the highest level on record. A rising proportion (37%) are also worried about interest rates. Commenting on the Norfolk results, Nova Fairbank, Chief Executive Office for Norfolk Chambers, said: “This quarter’s survey results showed that in both the manufacturing and the service sector, 42% of the QES indicators were down on the previous quarter, the last quarter’s results were particularly subdued. “Manufacturing export sales and orders are in negative territory and have fallen every quarter since this time last year. A likely result of Brexit and the increased costs of exporting – it is estimated that the cost of exporting has increased by approx. 40%. “For our service sector, we saw UK sales increase slightly from the last quarter, however, UK orders have been falling since the start of 2021 and continuing to do so. Since the start of 2021, Export sales and orders are negative and are still falling. “Recruitment difficulties are being reported by both the manufacturing and the service sector. “Confidence in cashflow and turnover are both low and falling. Investment in plant and machinery and training continues to be weak and indicators are dropping – particularly in the service sector. Both sectors are deeply into negative results when asked about their profitability. “Similarly, the service sector dropped in Q2 2021 and then a further in this quarter. We can conclude that the cost of living, inflation and fuel and utility costs are biting hard across all our sectors. “49% of manufacturers and 40% of the services sector are at full capacity.  However, 83% of manufacturers and 56% of service industries are expecting their prices to rise in the next 3 months. For manufacturing, pay settlements, raw material prices, utility bills and fuel costs are the key challenges and for the service sector it is fuel costs and utilities.  Both sectors stated their biggest concern was inflation. “Many firms are caught in the pincer movement of soaring inflation and rising interest rates. The devaluation of the pound has also added a huge cost base for businesses reliant on imports.  Businesses now desperately need to see economic stability in order to rebuild the confidence to invest.”

The Trader support service which helps businesses move goods between Great Britain and Northern Ireland has been extended until December 2023. The free-to-use service has helped businesses and traders continue to trade seamlessly between Great Britain and Northern Ireland. Read the full article below here