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
Thursday 15th September saw the Norfolk Chamber of Commerce’s Talking Tech event return with over 50 business professionals in attendance. Once again hosted at The Space, Norwich, we were happy to welcome 13 speakers, each with unique insights and experience, across three panels covering Everyday Tech, Green Tech and Innovation Tech. Co-hosted by Tim Robinson (COO at Tech East) and Nova Fairbank (CEO at the Chambers), the event began with the Green Tech Panel, addressing some of the most pressing issues facing the business community at the moment. One key topic was the journey to net zero; Julie Furnell (Mobilityways) highlighted that many companies would like to begin their journey but ‘are just unclear on where to start’, a point echoed by many others. Simon Girdlestone (Solinatra) focused on costs and how these could be ‘passed through to the consumer and small business’ by investing in products which ‘[use] less energy to produce’, a key factor in making businesses greener and also easing hardship during the current cost of living crisis. Chris Spinks (Westcotec) spoke about the mission to make green and sustainable products safer and therefore more accepted – they ‘encourage people to cycle to work…because we can provide warning systems to make it safer so use their cycles’. Following this, we heard from our Everyday Tech panel about how advances in tech have allowed advances in business practices, from the needs of those working from home such as access to faster internet connections, as well as the continuing drive to introduce more diversity to the tech world. Clifford Norton (BT Local Business) said it was ‘all about speed nowadays’ and made the point that access to fast internet can help ‘make companies perform better’. James Fowler (Uptech) agreed, adding that ‘There’s a need to build in the infrastructure into a business’ otherwise ‘You lose productivity, which ultimately means you lose money, by people having to wait for things’. Andy Skinner (Norfolk County Council) touched on another key point, saying ‘Education is critical’ for businesses and that they need to ask their customers ‘What do they want?’ in order to avoid a disconnect between their business practices and customer demand. As our work becomes more and more technologically focused, it is also important, said Darren Chapman (CyberScale), as ‘the risks and threats evolve constantly’ and although ‘there’s an awareness of the risk and that something needs to be done’ many businesses ‘don’t always know exactly what that is’. By increasing knowledge about cyber security, businesses can ensure that they keep pace with technology in a way that remains safe and reassures their customers. After a break for lunch, we returned to the main auditorium for our third and final panel on Innovation Tech. As a sector that is constantly pushing for the next advancement, innovation is key to success. We were pleased to welcome Imogen Shipperlee (Hethel Innovation) who questioned whether the focus is too often on ‘coming up with a fancy looking product’ when asked to innovate. James Adams (Tech Educators) added that we need to ask ‘how are we making something that’s solving the needs of tomorrow’ in order to take advantage of the market available. Dominic Mitchell (UEA) expanded on a question raised earlier, that of recruitment; ‘we want to deliver graduates that you want to employ… Big challenges we have are attracting people into the engineering sector’. Hayley Johnson (Artlist) offered one possible explanation by adding ‘the demands of the next generation has jumped hugely’ particularly in the creative industry. Mark Stringer (Lotus) summed the mood of the panel by saying ‘By collaborating we can take innovation in different directions’ A big thank you to our event partner Tech East and our sponsor BT Local Business; without their support events like Talking Tech would not be possible. Thank you also to those businesses who exhibited at the event; Orange Heating Supplies, BT Local Business Norfolk & Suffolk, Upp, Beacon IT, Uptech, Eastern Voice & Data and 101 Websites, Apps & Email Marketing. We would also like to thank everyone who attended; we look forward to seeing you again at Talking Tech in 2023!
We’re delighted to announce that two of our members have won a British Chambers of Commerce regional award. Solinatra is the winner of The Rapid Riser award. Thomas Paine Hotel is the winner of The Community Champion award. The Chamber Business Awards is one of the showpiece events in the business calendar, recognising and promoting the best of British business through a series of regional heats, culminating in a campaign to showcase winning businesses on an international stage. The Chamber Business Awards provide a brilliant opportunity to recognise and celebrate the achievements of the Chamber of Commerce Network. The Norfolk Chambers are invited to nominate members for the awards in any of the following categories. For 2022, there are three new exciting categories to allow members to showcase their talents and business acumen. The Workforce Developer – Commitment to People Award – A business that has shown how their approach to the learning and development of their team has enhanced their business performance. The Rapid Riser – Scale up Business of the Year – An organisation that can demonstrate exceptional levels of growth with a strong plan for sustainable financial performance. The Community Champion – Community Business of the Year – An organisation that facilitates, participates, and enables community engagement, demonstrating the power of giving back. After the regional heats, the British Chamber of Commerce will announce the winners from mid-October onwards. National winners will be announced, and presented with their award at a high-profile event already being hosted by their nominating Chamber.
Commenting on the Chancellor’s Fiscal Statement, Nova Fairbank, Chief Executive of Norfolk Chambers, said: “Norfolk businesses will welcome many of the measures announced today that should boost economic growth, relieve cost pressures and encourage investment. “The announcement to reverse the increase to National Insurance Contributions (NIC) is a big win for the British Chambers of Commerce and the business communities across the UK. This is much needed support for companies during these difficult times. “Firms will also be glad to see the Annual Investment Allowance made permanent. It is a crucial tool which gives them the confidence to push ahead with investment, and will add greater certainty to their plans, now we know it is guaranteed to remain. “Business wants to create the wealth that funds Government spending, and plans for Investment Zones, and steps to encourage new funding in our growth industries have the potential to do just that. “Investment Zones could also finally deliver on the Government’s long-standing promise to level up, if the scheme is truly UK-wide. But lessons must be learned from the past, otherwise they can simply displace growth and investment from one area to another without creating new economic activity. “This is a bold start, but is still looking at the short term, when businesses need certainty and stability to plan their future investment. We now await further detail on the reforms the Treasury have announced, to see if this will develop into a comprehensive long-term economic strategy. “All eyes will also now turn to the forecasts by the Office of Budget Responsibility in the autumn for reassurance on public finances.” On the repeal of IR35, she added: “We welcome this decision. It will allow workers and business owners to have more flexibility, ease skills shortages and ultimately create a more flexible labour market.” On VAT free shopping for overseas visitors, she said: “This is a measure the BCC has been calling for. International inbound tourism is a vital part of the UK economy, supporting people and places, especially industries such as hospitality.” Image credit: Chambers Canva Pro 2022
Commenting on today’s Bank of England interest rate rise, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:“The decision by the Bank of England to raise the base rate to 2.25% is further evidence they are taking a hard line on tackling inflation. Our research shows that unrelenting inflation, largely driven by rising energy costs, is by far and away the top business concern at present. “But the Bank faces an increasingly tricky balancing act. The interest rate is a very blunt instrument to control inflationary pressures that are largely driven by rocketing energy costs and global supply chain disruption. The Bank’s decision to raise rates will increase the risk for individuals and organisations exposed to debt burdens and rising mortgage costs – dampening consumer confidence. “Recent energy price cap announcements will have provided some comfort to businesses and households alike and should place downward pressure on the rate of inflation. “Friday’s fiscal statement by the Chancellor is now a critical moment. He has the unenviable task of shoring up the economy whilst avoiding additional inflationary stimulus. “The Bank, looking to dampen consumer demand, and Government, looking to increase growth, could now be pulling in opposite directions. “What businesses will want to see is a plan to address the short-term drivers of inflation as well as a long-term strategy to promote investment that gives them confidence for the future and counteracts the recessionary pull of rising interest rates.”
Comment from Shevaun Haviland, Director General of the British Chambers of Commerce: “After months of campaigning, today’s Government announcement to reverse the increase to the National Insurance Contribution (NIC) is a big win for the British Chambers of Commerce and the business community. This is much needed support for businesses during these difficult times. “There are a range of other challenges that must be addressed including labour shortages, supply chain disruption, and rising raw material costs. Tomorrow’s mini budget from the Chancellor is now a critical moment. To truly revitalise our economy for the difficult months ahead then tomorrow must bring a clear long-term plan that gives business the confidence to grow.”
Konect bus is kindly providing discounted tickets for those traveling to the B2B Exhibition on 13th October 2022. To claim your discount, simply download the Konectbus App via i-store or Google Play, then register for an account. Once set up, select mobile tickets > Anywhere > Anywhere Adult Day and go to checkout. You will then be prompted to add a discount code: B2B22 A discount of £1.80 will be applied to the normal ticket price of £6.80. The discounted ticket can only be purchased on the morning of travel. The Konectbus service No4 ( Fab 4) takes you direct to the Norfolk Showground, which as you can see from the current timetable operates an hourly service, with the the first bus departing Dereham Market Place at 06.10am and the last bus to Norwich Bus Station is 17.43pm and to Dereham is 18.52pm. From Dereham and Norwich Bus Station, the journey takes around 35 minutes and you would need to get off at the stop at New Costessey, showground.
Norfolk Chambers is part of the A47 Alliance and we are Chair of the A47 Alliance Task & Finish Group. We have helped to draft the below letter to the Prime Minister and we would like business signatures to show the level of support for the full dualling of the A47. The A47 Alliance is a collaboration of 26 organisations covering business leaders, Local Enterprise Partnerships, Chambers of Commerce, local authority members from Norfolk, Cambridgeshire, Lincolnshire, and Suffolk who have come together to make the case for a fully dualled A47. The A47 Alliance recognises that the whole of the A47 cannot be dualled at once and therefore have three priority schemes which we are currently lobbying government to provide funding for in the next trunk road programme, which starts in 2025. These are:
Acle Straight dualling
Tilney to East Winch dualling
Peterborough to Walton Highway dualling
Dualling of these sections of the A47 will increase the economic performance of the eastern region, as well as reduce congestion, improve safety and increase journey reliability along the route. Support from businesses in the East is essential to make the case for A47 dualling as businesses are key to the economic prosperity of the region. As part of the A47 Alliance’s campaigning activities, we are sending the letter (see document below) to the Prime Minister Liz Truss. With a Norfolk MP in Number 10, this is a prime opportunity to campaign for much-needed investment in the A47 and make a strong case for dualling. To show the vast support in the region for A47 dualling and the importance of the route to the businesses in the East, we would like to obtain your support for dualling in the form of a signature to add to the attached letter. Including the signatures of businesses from across the region with show clearly to the Prime Minister just how important A47 dualling is for the economy of the East and supporting our businesses. We would be extremely grateful to receive your signature and organisation logo to include within the letter. Please may you send these to the A47 Alliance mailbox ([email protected]) by Friday 30th September which is when we intend to send the letter to Liz Truss. Letter to PM from A47 Alliance (002)