Chamber News

Commenting on today’s Monetary Policy Committee (MPC) decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The £50bn increase in Quantitative Easing (QE) announced by the MPC may have only marginal benefits to the real economy. Arguments for increasing QE have been strengthened by the threat posed by the eurozone crisis to the UK’s financial system, but there are other policies that could help boost economic growth.

“While the increase in QE may produce some modest benefits, the policy is not risk-free, and could be counter-productive. It may limit the decline in inflation in the long term. It may limit the decline in inflation in the long term, at a time when we need falling inflation to underpin real incomes and boost demand in the UK economy. QE was the right response in earlier years, but at the present time its benefits for the real economy are at best likely to be marginal.

“There are better and more effective ways to tackle the challenges faced by the UK financial system and the real economy. For example, we believe the government and Bank of England should implement the lending and liquidity schemes recently announced at the Mansion House swiftly. To boost lending to businesses, the MPC must agree to purchase private sector assets, and the government must initiate moves towards the creation of a business bank.

Commenting ahead of the Monetary Policy Committee (MPC) decision tomorrow (Thursday), David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“Given the difficult economic circumstances, both in the UK and across the world, many expect the MPC to announce a £50bn increase in Quantitative Easing (QE). The argument for more QE has been strengthened by the effect of the eurozone crisis on the UK financial system, with the resulting increase in higher funding costs for UK banks harming both businesses and consumers.

“While an increase in QE may have some benefits, the effect will be marginal. Increasing QE is not risk-free, and could be counter-productive. It may limit the decline in inflation in the long term, at a time when we need falling inflation to underpin real incomes and boost demand in the UK economy.

“There are other ways to tackle the challenges faced by the UK economy – for example if the government and Bank of England are able to implement the two recently announced lending and liquidity schemes quickly, and forcefully. To support lending to businesses, the MPC must agree to purchase private sector assets, and the government must initiate moves towards the creation of a business bank.”

Commenting ahead of the Monetary Policy Committee (MPC) decision tomorrow (Thursday), David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“Given the difficult economic circumstances, both in the UK and across the world, many expect the MPC to announce a £50bn increase in Quantitative Easing (QE). The argument for more QE has been strengthened by the effect of the eurozone crisis on the UK financial system, with the resulting increase in higher funding costs for UK banks harming both businesses and consumers.

“While an increase in QE may have some benefits, the effect will be marginal. Increasing QE is not risk-free, and could be counter-productive. It may limit the decline in inflation in the long term, at a time when we need falling inflation to underpin real incomes and boost demand in the UK economy.

“There are other ways to tackle the challenges faced by the UK economy – for example if the government and Bank of England are able to implement the two recently announced lending and liquidity schemes quickly, and forcefully. To support lending to businesses, the MPC must agree to purchase private sector assets, and the government must initiate moves towards the creation of a business bank.”

Norfolk Chamber Board members Jonathan Cage, Create Consulting and Peter Foster Hugh J Boswell, Caroline Williams CEO, joined Norfolk MPs, New Anglia LEP and Senior Public sector figures to unveil a blueprint for the future of the region’s rail services today. This manifesto calls for huge investment in the Norwich to London line and puts forward the case for faster trains, more track and better stations.

The manifesto highlights that due to decades of under-investment the trains in the East of England are not fit for purpose and threatens our economic future. It is to be presented to the Department for Transport with a debate on East Anglia’s rail network due to take place in parliament on Tuesday 3 July.

Full details of the Manifesto

Photos by Archant

The second in the current series of Chill Time, the Norfolk Chambers after hours networking event, got underway last night with a full house at Vodka Revolution with great business being done.

Ben Farrin, Managing Director of the Student Pocket Guide Ltd, shared his story with delegates, how he founded his company in his bedroom in 2005 and how that company turned into a multi-award winning business.

Attendees then took full advantage of the brand new mojito mixer, a networking icebreaker activity that got everyone talking and making new connections. The newly acquainted groups then took to the bar and learnt how to make a cocktail like pros.

A selections of photo’s have been uploaded to the Chamber’s Facebook and Google+ page, be sure to have a look to see fun and successful business networking in action.

Commenting on the deal struck by eurozone leaders in Brussels overnight, Caroline Williams CEO Norfolk Chamber of Commerce, said:

“Norfolk businesses, and exporters in particular, say the eurozone crisis is one of the greatest source of uncertainty they currently face.

“As the political summits drag on, the sense of frustration, concern and exasperation continues to mount across the real economy. Companies across Britain and Europe are tired of false dawns. Though there is still more work to be done over the coming weeks, the deal done last night in Brussels needs to stick. Confidence is the lifeblood of the European economy, and decisive action is needed to stabilise it, and quickly.

“Meanwhile, the UK government must ensure that British companies get improved access to finance from the European Investment Bank in return for the contribution our Exchequer is making to the new all-EU growth package. Tough conditions are required to ensure that the UK, as a major shareholder in the Bank, sees a far greater share of its resulting investment. Otherwise we will have added needlessly to our national debt without any real benefit to our own recovery.”

Commenting on the announcement by the Financial Services Authority that it has found ‘serious failings’ in the sale of financial products to SMEs, John Longworth, Director General at the British Chambers of Commerce (BCC), said.

“The ‘serious failings’ found by the FSA in the sale of interest rate swap products will only damage business’ perception of banks further. Those that feel they are victims of mis-selling must have access to an independent assessment as soon as possible, as business survival may depend on it. Clear guidance and transparent timetables on reaching a judgment should be the bare minimum of any system of redress. “Many businesses look at practices undertaken by some in the financial services industry in disbelief and horror. Relationships between institutions that provide finance and those that receive it must be based on trust. Unfortunately, the revelations of the last week will only erode confidence in the banking system, and it will be a long road back to restore it.

“Lenders will need to do everything possible to rebuild their connections with the business community, so the economy can function in an orderly way again. But trust is hard to earn and easily lost, and a fundamental change in how banks and their business customers interact will not happen overnight. For this reason, the government must do two things to get the economy moving. The first is to breed confidence that wrong-doers will be held to proper account. The second is to create a state-backed business bank that will serve as a trusted source of finance provision. Only then will we see a stable base from which businesses can drive a sustained economic recovery in the UK.”

Commenting on the speech made by the Deputy Prime Minister on youth unemployment today, Caroline Williams, CEO Norfolk Chamber of Commerce said:

“Despite a recent fall in youth unemployment, Norfolk employers remain deeply concerned about the number of young people unable to find work. Businesses want to hire young people, but economic uncertainty, combined with poor skills and a lack of experience, often makes it too risky.

“The Youth Contract is a good short-term solution to reduce these risks, but we have in the past argued for a wider reach and a bigger budget. The Deputy Prime Minister’s announcement is a good first step that will help more employers create opportunities for young people in areas worst affected by unemployment.

“The government could go further though, and remove the restrictions that prevent small firms with experience of hiring apprentices to benefit from grants that could encourage them to take on additional apprentices. There must also be a focus on creating a simpler offer for employers. Businesses are confused by the large number of employment initiatives with similar names and differing criteria, which are regularly launched by different departments, agencies and local authorities.

“Furthermore, the Department for Business and Department for Education must work together to reduce long-term structural youth unemployment. Future generations should leave formal education with the skills and experience to break into the workforce and remain in employment, making them less vulnerable in a challenging economic environment.”

In the beautiful setting of Norwich Cathedral Ruud Haket, MD Greater Anglia updated delegates on his vision for the company at the most recent Chamber Breakfast. He talked about the improvements that Greater Anglia are putting into place with regards to customer service. These included simplifying ticket bookings and improving customer facing through continuous staff training.

He talked specifically on improving the rail service in Norfolk, a key part of this being working to reduce number of weekends affected by disruptive engineering works. He also mentioned actively promoting the region, including partnerships with tourism bodies.

Rail travel being a key issue for many people in the region meant that there were a lot of questions for Ruud and delegates generally left feeling positive about the improvements that are being put in place.

As well as hearing from Ruud, five other delegates were given the chance to talk about a topic of their choice for sixty seconds which ranged from wine tasting with HarperWells to consulting with Gostling Consultancy.

The event closed with safari networking time which proved as popular as always giving local businesses the opportunity to make the right connections and do business. The next Norwich Business Breakfast will take place on 5 October and will incorporate the AGM. We also have Chill Time on 28th June which is our next networking event. To book you placeclick here.

Commenting on the speech by Ed Miliband on immigration today, Caroline Williams CEO Norfolk Chamber, said:

“Ed Miliband is right to say that we cannot close Britain off from the world, and that we need a grown up debate on immigration. But for too long, UK firm including Norfolk have struggled to find the skilled workers they need locally, and in some sectors are forced to recruit from overseas. Employers are concerned about high levels of unemployment, particularly among the young, and want to help local people into work. However, they often find that domestic candidates lack the skills, experience and work ethic they need – it has nothing to do with costs.*

“The government must work together with business to identify skills gaps and to ensure the education system is responsive to the needs of the economy. It should not be about protecting UK workers from foreign competition, but instead we must ensure they are equipped with the right skills to compete with the best in the world.

“Measures to crack down on any businesses that are flouting the rules on national minimum wage are welcome, but it would be wrong to suggest this is a widespread issue. Our members tell us they hire based on skills, not on wages.”

Brandon Lewis, MP for Great Yarmouth met with members of the Great Yarmouth Chamber Council to discuss local issues. Among the topics for discussion were education, rejuvenation of the town centre, improvements to the railway station and the Enterprise Zone.

Mr Lewis advised that there was work to do to inspire ‘aspiration’ with Great Yarmouth’s young people. He was keen to work in conjunction with the education establishments and local businesses to get the message across to students and young people to ensure they understand what exciting opportunities are available to them and how to access them.

Brandon Lewis said “It was good to have the opportunity to discuss matters that were important to Great Yarmouth businesses with the Chamber Council and to work together with them to find ways to support of business growth in Great Yarmouth”.

Norton is a name synonymous with the British motorcycle industry. Founded in 1898, it came under new ownership in 2008 and, after a period of intense research and development, production started at its new home at Donnington Park in Leicestershire.

As interest grew and the order book expanded, it became clear that the production facility would have to be extended to cope with customer demand. Owner and CEO, Stuart Garner, spoke to a number of banks in 2010 to see whether they could find a solution that would fit the company’s specific requirements and circumstances.

Follow their story here.

If the assistance they received sounds like it could help you, contact the Norfolk Team:

Tracy Grazioli, Director of Trade Finance Tel. 07803 377062 EMail. [email protected]

Elaine Mather, Relationship Director Tel. 07787 977989 EMail. [email protected]