Chamber News

The Export Control Organisation (ECO) is the UK’s regulatory ‘strategic’ export licensing authority and forms part of the UK’s Department for Business.

Recent Notices that they have issued to all Exporters, can be found below:

Notice 2012/41 A new cross-government website known as GOV.UK will be released this October. The site will be the new home for government services and information online, including export control content.

Notice 2012/42 As part of the Government’s export control Service Improvement Project (SIP), the ECO intends to improve the process of applying for OIEL’s.

Notice 2012/43 King’s College’s Centre for Science & Security Studies (CSSS) is holding two further seminars on export compliance and non-proliferation which are specifically aimed at the nuclear and electronics industry respectively. Notice 2012/44 The ECO has introduced new export licensing controls on the export to the United States of the drug propofol, which could potentially be used to execute prisoners on death row by lethal injection. Notice 2012/45 An update to the earlier released Notice 2012/41 relating to the new UK Government website. Notice 2012/46 The European Union (EU) has announced a number of revised sanctions measures against Belarus, Eritrea, Iran, Somalia and Syria. These measures were published via a number of different Council Decisions and Council Implementing Regulations on both 15 and 16 October 2012 (published in the EU Official Journal).

For general export control queries please contact the ECO Helpline on 020 7215 4594 or mailto: [email protected]

• Six in ten businesses (59%) tell BCC that they would feel more confident in securing finance if Britain had a government-backed business bank or finance agency
• Announcement of £1bn funding by Vince Cable an important step in journey toward a fully-fledged British Business Bank
• Significant achievement for BCC campaign for creation of a business bank similar to those in other countries

Responding to the news that Vince Cable will announce a £1bn government commitment toward the creation of a business bank, Caroline Williams CEO Norfolk Chamber of Commerce, said:

“The government has taken a decisive step toward the creation of a British Business Bank by committing real money to get it off the ground.

“We are pleased that ministers are heeding the Chamber Network’s call to create a business bank that goes well beyond a re-badging of existing schemes. The funding announced by Vince Cable is the first step in a journey toward a British Business Bank that enables new and growing companies to get access to capital in the same way that they do in Germany, South Korea, and the USA.

“Six in ten Chamber members*, including those from Norfolk, told us just last week that they would feel more confident in securing finance if Britain had a government-backed business bank. So many companies will be encouraged by today’s news.

“However, there are a number of challenges that need to be addressed to ensure the business bank can support the real economy. At least initially, the business bank will have to work through existing lenders, which could put off some companies who still do not believe that the high-street banks will help them access the capital they need to grow. We also need to better understand how taxpayers’ cash will be used to unlock additional funds for business lending from the markets. And given the fact that growing companies need access to capital for the long term, the funding announced today must be the first, not the last, sum destined to support business lending at this new institution.”

Commenting on yesterday’s announcement on the independent scrutiny of regulations affecting challenger businesses by Business and Enterprise Minister Michael Fallon, Caroline Williams, CEO Norfolk Chamber of Commerce said:

“Ensuring that innovative, growing businesses are not hampered by burdensome red tape is a step in the right direction. Independent scrutiny of outdated regulations is vital if we are to help ground-breaking companies in Norfolk thrive. The Norfolk Chamber supports the call for the role of the independent Regulatory Policy Committee to be strengthened, to ensure regulations that hamper business growth are fully analysed.

“These changes must, however, form part of a wider deregulation package that reduces the burden of red tape for all companies. Only significant deregulation, both domestically and in Europe, will give businesses the confidence to grow, innovate and create employment in the long-term.”

The economic round table discussion, at a recent meeting of the Norwich Chamber Council, highlighted that business are still finding it tough, with many business playing safe and being cautious. However there are some signs of improvement. Broom Boats advised that they have orders for two new hire boats for next year and will be re-launching their own hire boats. WLP also advised that some of their clients are becoming more optimistic, particularly those who have managed to adapt to the changeable economic conditions.

The group also heard about the proposed plans for the former RAF Coltishall from Mike Britch, Group Managing Director, NPS Property Consultants. Mr Britch highlighted that 400 acres of the 600 acre site would be returned to agricultural use. Some of the remaining 200 acres would be used for allotments, self build and community projects, whilst the rest would be for commercial use, which could include options for storage facilities, manufacturing etc. The heritage of the site would also be preserved and Mr Britch confirmed that once details had been finalised, business open days would be held to launch the site, possibly in October

The Bank of England Agents’ summary for September highlighted that spending on consumer goods and services continued to grow at a gradual pace, however promotions and sales remained essential to support demand, with households still focused on finding value for money.

Export growth continued to slow, reflecting the weakening conditions throughout the Euro area and manufacturing growth continued to slow. However turnover in the service sector was now rising a t a gradual pace. To read the full report click here.

Norfolk Chamber and other key stakeholders will be attending the Norfolk Rail Prospectus Workshop, organised by Graham Plant, Cabinet Member for Planning and Transportation and Chloe Smith Norwich North MP, in conjunction with Norfolk County Council on 4th October.

The Prospectus will build on the tremendously successful region-wide prospectus that Local Enterprise Partnerships – backed by local authorities, the rail industry, the Chambers and MPs – delivered to Westminster earlier in the summer.

We are already seeing the results of this. The recent government announcement about rail spending and overarching objectives for the next five years included positive announcements about improving the rail network at Ely, for example, which is vitally important for a number of services including Norwich to Cambridge and King’s Lynn to Cambridge.

Now that the rail industry is developing its detailed spending programmes, and government is renewing the franchises covering the county, we have to follow this up with our detailed requirements.

There will be an opportunity for the business community to reconfirm what is needed on the railways for Norfolk. There is strong backing for ‘Norwich in Ninety’ and half hourly services to King’s Lynn. The workshop will aim to find out what is important elsewhere, and in more detail, to make sure that the railways can meet the needs of Norfolk: to build our economic strengths and capitalise on what the county has to offer.

The Prospectus is for the long term, and the stakeholders seek to maintain a unified, passionate and focused campaign which best positions us at the right time.

Commenting on the MPC minutes published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The decision to hold interest rates at 0.5% and to maintain QE at £375bn was taken unanimously, which was unsurprising. Existing QE is still being implemented, so it is understandable that the MPC wants to wait before another increase. However, the minutes reveal that some members think further stimulus will be needed, and the financial markets are expecting a QE increase around November time.

“Recent measures by the ECB, the US Fed and the Bank of Japan will probably reinforce pressures for an increase. But we still think the MPC should be cautious and refrain from adding to QE unless the UK financial system faces new threats due to developments in the eurozone. It is important that additional QE is not used to limit falls in inflation over the next year, as a temporary fall below the 2% target would support demand.

“Although QE was helpful in the early stages of the 2008/09 financial crisis, its benefits have diminished in recent years, mainly because the scheme has focused exclusively on purchasing gilts. A recovery in business lending will only be achieved if the MPC and the government relies on tools other than conventional QE. The Funding for Lending scheme could be effective, but the MPC could help by purchasing assets other than gilts, including securitised business loans. To ensure credit is reaching new and growing companies, the government should be moving towards the early creation of a state backed business bank.”

The British Chambers of Commerce are carrying out a snap poll on “Access to Finance” this week.

The Snap poll is carried out over 3 days and starting from today, closing at midnight on Thursday.

The BCC have commented as follows:

“Considering the continuing economic challenges faced by UK businesses, we would like to quickly capture your views on how access to finance is shaping the current business environment.

Conducting this very short snap poll of Chamber members will enable us to represent the needs of business as effectively as possible at a time when major changes to the business finance system are being considered both here in the UK and globally.”

Please click hereto take part.

Please remember that the poll will end at midnight on Thursday (20 September).

• Annual CPI inflation was 2.5% in August 2012, down from 2.6% in July
• Annual RPI inflation was 2.9% in August 2012, down from 3.2% in July

Commenting on the inflation figures for August 2012 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The fall in inflation in August was widely expected, following setbacks in July. Current trends suggest that inflation will be down to 2% at the end of the year, and will fall slightly below the target during 2013. There are risks however, that oil and food prices may rise in the coming months, which may put upward pressure on inflation again. Falling inflation benefits the UK economy as it reduces the squeeze on businesses and consumers and underpins domestic demand.

“Since UK inflation has been above the 2% target for prolonged periods in recent years, a temporary fall below this next year should not be a cause for concern. With this in mind, we still believe that the Bank of England should not use additional QE to limit falls in inflation. Instead, the MPC and the government should concentrate on measures that will directly boost bank lending. This can be done through the Funding for Lending scheme and more significantly, through the early creation of a business bank.”

Commenting on the proposals announced by Vince Cable on the proposed employment law changes, Caroline Williams CEO Norfolk Chamber said:

“Norfolk employers will be encouraged that the government is taking steps to reduce the burden of the employment system and create a more flexible labour market. Dismissal is always a last resort, but is at times necessary to protect a business and other members of staff. The fear of malicious tribunal claims and an unnecessarily antagonistic dismissal process has a chilling effect on employment. We would urge the government to move swiftly from consultation to implementation on settlement agreements and lower tribunal awards, as these proposals will boost confidence when businesses on the ground can see them in action.

On settlement agreements:

“In those unfortunate circumstances when businesses have to end the employment relationship, settlement agreements provide a speedy and consensual way to avoid disputes. Companies need to be confident that they can offer an employee a settlement to end the relationship without fear of future claims. We support moves by the government to make the process of offering a settlement easier to navigate without paying for specialist advice.”

On limiting tribunal awards:

“The current maximum award for unfair dismissal vastly exceeds the reality of most cases, but prevents many employers from seeking justice, and puts many more off hiring all together. The upper limit should be reduced and this would significantly increase employers’ confidence to challenge unmeritorious claims and recruit more staff.”

On tribunal reforms:

“These measures form part of a broader government agenda to reform the tribunal system and ensure it becomes less of a barrier to employment and economic prosperity. Although employers have welcomed efforts to deter vexatious claims by introducing fees for claimants, that policy will be undermined if the system of remissions means that just a quarter have to pay the full fee. The government must get a grip and ensure that all those who can afford the fee are made to pay.”

On additional changes needed to boost employment and confidence:

“These measures will boost employers’ confidence and lead them to create additional jobs, but will be undermined by upcoming government proposals on extending the right to request flexible working and shared parental leave. Extending the right to request to all workers will make it more difficult for employers to accommodate requests from those with caring duties. Similarly while we support the objective of helping mothers who want to return to work to do so, we are yet to see proposals on flexible parental leave that are workable.”

The UK’s aviation policy is under wide-ranging scrutiny at the moment, with attention variously on the desirability, or otherwise, of extending Heathrow and the possibility of creating a “Boris island” airport in the Thames.

The Director General of the British Chambers of Commerce (BCC), John Longworth, has widened the argument by suggesting that Stansted Airport can play an important role in boosting international trade and connectivity in support of British business.

On a recent visit to the UK’s fourth busiest airport, he met Stansted’s Managing Director, Nick Barton, to discuss a range of issues affecting aviation and business competitiveness, including aviation policy, infrastructure investment, export opportunities and access to finance.

He described Stansted as a superb airport with world-class infrastructure and noted that it has a burgeoning air freight market with significant spare capacity to take more flights, which would help to boost international trade.

“The UK desperately needs a coherent and comprehensive aviation policy for the short-, medium- and long-term,” Mr Longworth said. “Stansted clearly has a role to play.”

Mr Barton said that the airport had the permissions and facilities in place to serve 35 million passengers a year on its single runway and he was sure that it could help to build the international trade links that are vital for British business and prosperity.

A firm is facing a fine of £10,000 after it failed to inform HM Revenue and Customs (HMRC) that it had changed its name – despite the fact that all it had done was change from a partnership to a limited company.

The unnamed firm had, according to the Forum of Private Business (FPB), an exemplary VAT-paying record and had always submitted its tax returns on time.

What is more, the change of name did not affect its VAT number and HMRC did not lose out on any tax payments. The firm simply failed to tell the VAT authorities that it now had “ltd” after its name.

This meant it fell foul of VAT notification liabilities contained in the Finance Act 1985, and later the VAT Act 1994, and landed the company with a £30,000 fine – since reduced following interventions by accountants and the FPB.

The Forum’s Tax Adviser Andrew Needham said: “It is important that all small businesses are aware they could face steep fines unless HMRC is kept fully updated.”

However, he went on, this heavy-handed approach is the very opposite of the support that is desperately needed at this difficult time and HMRC risks further alienating firms hit by its disproportionate, targeted business records checks regime and widely-reported poor levels of service.