Chamber News

• Business group downgrades 2012 growth forecast from +0.1% to -0.4%
• Growth forecast for 2013 is revised down from 1.9% to 1.2%
• Headwinds from slowing global economy, crisis in the eurozone, and domestic austerity measures complicating UK recovery prospects
• Continued reports of growth by many Chamber members suggests there is a reserve of business confidence and strong performance in the UK that can be harnessed
• BCC calls for action to create a new model economy for the UK, with immediate measures to support business confidence and investment, a radical long-term growth plan, and a continued commitment to deficit reduction

The British Chambers of Commerce (BCC) today (Friday) published its Q3 economic forecast. The business group has downgraded its predictions for UK growth in 2012 from +0.1% to -0.4%, and its predictions for 2013 from 1.9% to 1.2%. While many Norfolk Chamber members have continued to report positive trading conditions and growth intentions in recent months, the deteriorating global environment has meant that the UK economy as a whole is now likely to shrink in 2012. The Norfolk Chamber and BCC both believe that UK businesses have got what it takes to help the UK return to growth, but they can only do this if the government acts quickly and radically to introduce both short-term stimulus measures and radical long-term policies for growth.

Commenting, Caroline Williams, CEO of Norfolk Chamber said: “A new model economy for Britain cannot be summed up as ‘Plan A’ or ‘Plan B’. Instead, it is about actively supporting the aspirations of the thousands of growing businesses across Norfolk and the UK, as well as our future economic prospects as a nation.

“Since the election of the Coalition Government, the Norfolk Chamber and BCC have supported deficit reduction, and a relentless focus on creating the conditions for businesses to thrive. Two years on though, the UK economy is stagnating, with headwinds from a slowing global economy, difficulties in the eurozone, pressure from domestic austerity measures, low business investment and volatile commodity prices all bearing down on our growth prospects.

“While many businesses out there are growing exports, seeking investment, and creating jobs, more needs to be done so the economy can move from a vicious cycle of stagnation to a virtuous cycle of higher growth and reduced borrowing. Companies now accept they are operating in a tougher and more uncertain environment, but they need an enterprise-friendly government with bold policies if they are to drive recovery.

“That’s why we are adding new calls for immediate and decisive action to our existing recommendations for long-term growth.

“Business wants a hybrid strategy that delivers both deficit-reduction and growth. This means a continued commitment to public spending cuts, support for the economy without a new and damaging consumer credit bubble, as well as a strong push to improve business access to finance and unlock massive private funding to renew Britain’s infrastructure. Success will require both the government and the Bank of England to use their balance sheets – both to invest and for securitisation – at a time when Britain has both market credibility and rock-bottom borrowing costs.

“Politicians need to show leadership. We need an economic action programme so that Britain can excel, and make its way in the world. We are a great country, as we demonstrated during the Olympics. We have the talent and the energy, but we need the political will to focus relentlessly on economic growth. It’s not that nothing else matters, it’s that without it, nothing else is possible.”

One trillion pounds by 2020 – that is the chancellor’s target for the value of the UK’s exports – and if he’s right the opportunities for businesses to cash in on this figure are huge.

One businessman who knows the benefits of trading internationally is Tony Stevens, who owns Tower Scaffolding Supplies, of King’s Lynn. He has worked globally for more than a decade, including supplying materials to companies operating in the Middle East, South Africa, Ghana and the Ivory Coast.

Tony, who runs the business on his own, said: “Small companies can trade internationally and I have worked for companies involved in everything from gold mining to oil and gas. From my point of view, it helps that companies working in Africa like to have UK products, which have high safety standards. They know that the equipment we send out to them will be safe.”

He believes that developing contacts is crucial and for him that has included a good relationship with the Construction Industry Training Board, through which his name became known internationally.

Tony said: “It helped that I was working with CITB because I was able to develop contacts through them. A lot of it is word of mouth. People get to know you then tell other people about you. In construction, you often get people moving from job to job and telling people about you.

“It is crucial to have a decent website so that people can find you and know what you do. I also make sure I know what is happening in various sectors. I go on oil and gas websites and look at magazines to see where the contracts are.”

He also acknowledges that trading internationally has to be a team effort, saying: “I see myself as the middle man. I source the work for international clients and work with a UK company that will organise all the shipping for me.

“It also helps working with the Norfolk Chamber. They have provided me with useful training and support.”

This exciting event is designed to help businesses to unlock growth by tapping into the massive opportunities that exist for trading overseas.

Norfolk Chamber has recognised the power of export as a route to business growth and will be staging a free to attend, half-day event called The Global Marketplace, on 27 September at Norwich University College of the Arts, sponsored by Barclays, UKTI and PwC.

Tracey Howard, Norfolk Chamber’s International Trade Director, commented: “The Global Marketplace is the first of its kind in the region. This exciting event is designed to help businesses to unlock growth by tapping into the massive opportunities that exist for trading overseas.

“Whether you are a seasoned exporter, or looking at trading internationally for the first time, it is the ideal place to find new ideas and help you find out about exciting growth markets in a wide range of countries.”

The show features an exhibition of country specialists – consisting of foreign Chambers of Commerce, embassies and business councils – from countries including China, Egypt, Malaysia, The Netherlands, Brazil, India, Russia, Turkey, Libya and Dubai (United Arab Emirates).

“This means businesses can talk face-to-face with the experts about a number of high growth markets, the business opportunities and how to access them whilst making great connections and building those essential relationships,” explains Tracey Howard. “There will also be a series of workshops will provide key information to help expand your business overseas.”

A host of industry experts will be speaking at the event. They includes Lesley Batchelor, Director General of the Institute of Export, who will be delivering a keynote speech about building relationships and accessing expertise entitled ‘What is the key to export success?’

Also speaking at The Global Marketplace will be David Riches, Operations Director of the British Chambers of Commerce; Victoria Martin, Short Term Products Manager of UK Export Finance (formerly ECGD), the UK Government’s export credit agency; and Simon Nicholson, Head of International and Trade, Barclays.

Commenting on the Holt Review into apprenticeships, which has been published today (Wednesday), Caroline Williams CEO Norfolk Chamber, said:

“Norfolk employers will expect swift implementation of the practical recommendations contained in the Holt Review. Apprenticeships offer a valuable route for young people to earn a wage while developing skills that are valued by employers. Businesses want to support the transition from education to work, but they also want a skills system that is more responsive to their needs.

“Norfolk Chamber of Commerce will build on our work with local schools and the National Apprenticeship Service to ensure young people are able to make informed decisions about their future. Apprenticeships can often offer a more reliable route into a good job than continued academic study, but too many young people don’t get the information and guidance they need to make the right choice for their own future.

“The government’s decision to widen the eligibility criteria for the Apprenticeship Grant for Employers will encourage more employers to take on an apprentice in the 16-24 age bracket. Ministers should go one step further though, and encourage businesses to invest in apprenticeship training for young people who are eligible for Youth Contract wage incentives, by allowing apprenticeship grants and Youth Contract incentives to be combined. Providing the most vulnerable young people with valued skills and a respected qualification that will serve them in the long-term would really be something to celebrate.”

Commenting after the release of the GCSE grades for 2012, Caroline Williams CEO Norfolk Chamber said:

“We congratulate all Norfolk GCSE students today who are reaping the rewards of their hard work . Nationally, the number of pupils achieving top grades has fallen for the first time since the exam was introduced in 1988 although many schools in Norfolk are bucking that trend to report some of their best-ever results.

Young people have a lot to offer, and businesses are keen to employ them. Unfortunately, in recent years too many new employees have lacked basic skills and required remedial training for inadequate literacy and numeracy. Employers must be assured that qualifications reliably reflect a given level of skill, and will welcome an end to artificial grade inflation and planned changes to increase rigour.

“We know that teachers and pupils are working hard to raise genuine skill levels, particularly in English and Maths, and this must remain a top priority. Employers will reject any measure of success that focuses exclusively on the most capable half of students, without supporting other young people in reaching high levels of literacy and numeracy. Norfolk Chamber members are working with schools and their young people to help them understand what is needed from the world of work as they are our employees of the future

“The increase in entries to science exams this summer is good news for business. Young people with strong qualifications in the sciences remain sought-after by employers, and they can expect to succeed in exciting and rewarding careers.

“Chamber research shows that a lack of language skills has been a barrier for Norfolk businesses looking to sell their products and services overseas. One swallow doesn’t make a summer, but we hope the slight rise in entries for modern languages this year is a signal that more students will study a language in future years.”

Commenting on the Montague Report on housing, published today, Jonathan Cage, Managing Director, Create Consulting Engineers Ltd and Chair of the Norfolk Chamber Planning group said:

“The housing market has had little or no government support since the start of the recession unlike other industries, instead it has knuckled down, reshaped and amazingly is ready to meet the challenges as we come out of recession. The last few years has lead to the shortage in houses being constructed dropping further behind the required targets, the whole industry now needs to push forward with confidence to start delivering the much needed housing required in the UK. We now need the recent planning reforms to work, along with the release of funding for developments and motivated land owners. This coupled with a more positive, realistic outlook from the planning authorities will enable the regions house building industry to get on, delivering a quick and much needed boost to the economy.

Paul Clarke from Bidwells said:

“This is a further Government report that confirms how important housebuilding is to contributing to economic growth, and how how as a nation we never meet our housing requirement. The key element to this report is the importance of the private rented sector which could provide high quality accommodation. This form of development could provide flexible accommodation to allow potential employees to take up jobs – the difficulty will be reinvigorating this part of the housing market when financing is not readily geared for it. There remains an inertia in the development system and it fundamentally relates to access to finance. If major investors such as Aviva want to invest in building in the residential market, rather than stocks and shares, then this could help. We can continue to modify and amend the planning system, however, unless landowners are incentivised to release land/buildings, and developers/investors can see an ability to make profit through the delivery of housing, the residential market will remain stalled.

The move in tenure from owner-occupied to private-rented is significant and the ‘Englishman’s home is his castle’ remains a fundamental part of our psyche. It may be long overdue given that the bias in most other European countries is towards private rented. It is important, however, to recognise that an ability for potential employees to take up jobs wherever they may be is vital to a revived and more balenced economy. “

Steve Lucas from paul robinson partnership (uk) llp commented:

“The suggestion of councils to consider relaxing requirements for developers to build affordable social accommodation as well as private housing would seem on the face of it a sensible approach. The housing sector, in particular, is in dire need of invigoration and offering prospective developers the opportunity to maximize their returns could provide the kick-start that is needed. However, yet more ‘tinkering’ with planning policy could, in the short term, actually stall impending housing projects as developers postpone decisions whilst awaiting the outcome of potential legislative changes.”

Caroline Williams CEO Norfolk Chamber commented:

“A housing market that doesn’t deliver the right number of homes, in the right place, at the right price and of the right quality, has a negative impact on business. Studies show that high housing costs cause labour shortages, especially when companies try to recruit workers in high-cost areas at the lower end of the pay scale. Furthermore, a poorly-functioning housing market may force employees to live further away from their place of work which drives up congestion along key routes and is bad for the environment.

“A better functioning private rented sector is essential to improving the Norfolk housing market particularly at a time when the high cost of housing puts home ownership beyond the reach of many. We welcome the measures contained in the Montague Report to improve the private-rented sector, but these measures will not be enough on their own to radically improve the supply of new homes across the country.

“A poorly designed planning system and availability of land has for too long prevented development and growth. We would like a firm commitment from the government to increase the amount of available land, which will go some way to delivering new and much-needed housing. In some cases, it may be necessary to review the greenbelt status of land with little amenity value, which could be better used to provide jobs and homes. At a time when the economy is stagnating, it is vital that the government does everything possible to unlock house building which will in turn, boost much-needed growth in the Norfolk economy.”

The Norfolk Chambers fashion based business networking event, Look the Business, was a resounding success with delegates enjoying the combination of fashion, networking and the story of John Lewis’ s business success.

Starting with an insightful presentation from Selling Operations Manager of John Lewis Norwich, Lesley George highlighting the culture of the company and how its past has helped to shape its future. Lesley also explained the benefits of being a partner in a co-owned business and John Lewis ‘the brand’.

Then the experts from Clarins provided a demonstration into basic skin care and beauty tips for business, and the fashion team and personal shoppers demonstrated how to achieve the ultimate capsule wardrobe by carefully selecting accessories to create different looks. Our models for the evening were both members of Chamber staff, Louis & Nova, who kindly volunteered to be part of the event.

There was also a competition to win a Clarins hamper worth over £100, with the prize being scooped by Josie Hustler from Lexia Media. With the event drawing to a close with some free networking or shopping time.

The format of the sell out event certainly went down well with attendees, with some great testimonials on twitter:The Norfolk Chambers fashion based business networking event, Look the Business, was a resounding success with delegates enjoying the combination of fashion, networking and the story of John Lewis’ s business success.

Starting with an insightful presentation from Selling Operations Manager of John Lewis Norwich, Lesley George highlighting the culture of the company and how its past has helped to shape its future. Lesley also explained the benefits of being a partner in a co-owned business and John Lewis ‘the brand’.

Then the experts from Clarins provided a demonstration into basic skin care and beauty tips for business, and the fashion team and personal shoppers demonstrated how to achieve the ultimate capsule wardrobe by carefully selecting accessories to create different looks. Our models for the evening were both members of Chamber staff, Louis & Nova, who kindly volunteered to be part of the event.

There was also a competition to win a Clarins hamper worth over £100, with the prize being scooped by Josie Hustler from Lexia Media. With the event drawing to a close with some free networking or shopping time.

The format of the sell out event certainly went down well with attendees, with some great testimonials on twitter:

Photos from the event are available to view on the Norfolk ChambersFacebookandGoogle Pluspage.

• July 2012 retail sales volume up 0.3% on the month, up 2.8% on the year
• Annual high street inflation slowed to 0.2% in June, the lowest since 2009

Commenting on the retails sales figures for July 2012, Caroline Williams CEO Norfolk Chamber of Commerce said:

“UK Retail sales made modest but satisfactory progress in July, with the monthly increase higher than expected. The 2.8% annual increase in retail sales volumes supports our belief that some of the pessimism surrounding the recent performance of the UK economy is unwarranted. This figure provides hope that in the third quarter of the year we will see some recovery in economic activity. There is no doubt that retails sales across Norfolk can be patchy but the success of the Norwich BID and the stream of national names heading from Norfolk demonstrates our continued retail strength. We have a lot of talented retailers in Norfolk and we need to ensure that they are supported especially those in the independent sector who are finding the current economic situation particularly challenging.

“The further decline in high street inflation is also welcome news. This will support disposable incomes and consumer spending, at a time when austerity and the eurozone crisis continue to put the economy under pressure.

“Despite the positive job market figures published this week, it is clear economic growth in the UK is still far too weak. We will continue to encourage the government do much more to help businesses to grow and create jobs at a time when the public sector continues to shrink.

“We need to see more measures to boost Norfolk infrastructure and strengthen the construction sector, alongside forceful deregulation and moves towards the creation of a state-backed business bank. It is also important to ensure that the Funding for Lending scheme is made to work effectively so that credit-worthy businesses are able to grow. We are working with our Business and Finance Group (BFC) made up of the key financial businesses banks and accountants to monitor what is happening in Norfolk

Commenting after the release of A-level grades for 2012, Caroline Williams CEO Norfolk Chamber of Commerce said, said:

“We offer our congratulations to Norfolk students who have achieved their goals at A-level.

“Business will welcome the fact that the constant grade inflation seen in previous years has finally been constrained. Companies tell us that they have had a hard time assessing the skills and abilities of job candidates with A-level passes, to the point that only 29% of businesses surveyed in 2011 felt very or fairly confident in hiring a school-leaver with A-level qualifications. An end to grade inflation will improve business confidence in the qualifications achieved by young people.

Business will welcome the fact that the constant grade inflation seen in previous years has finally been constrained

“Yet it’s not all about A-levels and university. With university tuition fees rising and many young people looking for alternatives to higher education, business wants to see more media attention and investment in further education and vocational training.. Norfolk businesses including smaller businesses have a real opportunity to take advantage of the new apprenticeship schemes available to them to ‘train their own’. Norfolk Chamber have recently taken on 2 higher level apprentices and they are very quickly adding real value to the business at the same time as they are gaining valuable work experience.

“From September, schools will have a new duty to secure independent careers advice for students but they do need the business community to work with them to ensure the information is up-to-date and relevant to our long term needs.. Norfolk Chamber members are committed to work closely with the education sector to ensure that vocational options, including apprenticeships, are given as much attention as the option of going to university.”

We have been informed by the Egyptian-British Chamber of Commerces that their certification charges for documents, haveincreased slightly with effect from 1st August 2012.

The new total costs for documents, including Vat, are now:

Certificate of Origin (Original) – Members: £130.10, Non-Members: £160.10

Certificate of Origin (Copy) – Members: £124.10, Non-Members: £154.10

Invoice/Other Document (Original) – Members: £128.90, Non-Members: £158.90

Invoice/Other Document (Copy) – Members: £122.90, Non-Members: £152.90

Please note that payment for these documents would be required in advance, as the certification andlegalisation in London has to be paid at the time of stamping.

The Embassy of the Syrian Arab Republic has recently announced changes to the requirements of legalisation of documents with effect from 9th August 2012.

Please see the official notification received from the Arab-British Chamber of Commerce.

The Middle East Association will be taking a Trade Mission to Egypt from 3rd to 8th November. It will visit Cairo and Alexandria.

The mission will be multi-sector but will have an emphasis on:

• Education and Training
• Financial Services
• Oil and Gas
• Power and Renewable Energy

Other key market sectors in Egypt include Construction & Infrastructure, Environment & Water, ICT and Retail.

Please click here for more information.

The International Trade Team at Norfolk Chamber is delighted to offer a new Training Service from January 2013.

Through our linkage with the British Chambers of Commerce, 6 x Level 2 (VQ Terminology) courses have been identified, which form an export curriculum that provides invaluable basic skills for small and large companies alike.

Candidates will have to demonstrate knowledge of the subject and their performance will be marked by external examiners on the completion of each module.

Successful candidates will receive a certificate; completing all six courses will result in the candidate achieving a nationally recognised Foundation Award in Exporting.

These courses are suitable for both experienced exporters and those with no previous knowledge of exporting.

The 6 course titles include:

• Understanding Exports
• Methods of Payment
• Export Documentation
• Incoterms® 2010
• Letters of Credit
• Import Procedures

These new courses will replace the existing courses that Norfolk Chamber has been delivering for many, many years although, they are very similar.

Click here for further information.

The courses will still be delivered by our trusted and accredited trainer Mike Strawson, who has been working with us for years. Those of you who have attended our courses will know that Mike has an incredible knack of delivering the content in such a crystal clear manner, delegates walk away with a sound understanding of the subject.