Chamber News

Members of the Norfolk Chamber of Commerce will meet with Ruud Haket, Managing Director of Greater Anglia on Friday 22 June 2012 in Norwich.

The meeting will provide an opportunity for Norfolk businesses to highlight any business issues and concerns to Greater Anglia. What is your opinion about the Greater Anglia rail franchise, do you have any comments?

If you have a comment that you would like the Chamber to raise with Greater Anglia, please email it to [email protected] .

• Annual CPI inflation down from 3.0% in April to 2.8% in May
• Annual RPI inflation down from 3.5% in April to 3.1% in May

Commenting on the inflation figures for May 2012, published today by the ONS, Caroline Williams CEO Norfolk Chamber said:

“The large decline in the May inflation figures is good news. If current trends continue, the squeeze felt by many Norfolk businesses and consumers will begin to ease. Disposable incomes will improve, which will in turn give a significant boost to consumer spending which will help amongst other Norfolk’s key sectors of retail, tourism and hospitality. While inflation is still above the 2% target, it is heading in the right direction. Compared to its 5.2% peak in September 2011, annual CPI inflation has almost halved.

If current trends continue, the squeeze felt by many Norfolk businesses and consumers will begin to ease

“The latest inflation figures may increase calls for more quantitative easing (QE). The Bank of England should not rule this out if the eurozone collapses, as this would put pressure on our banking system. But we know that additional QE has not made much of a difference to businesses on the ground.Unless we are facing a global shock, the government must instead ensure that the measures to improve liquidity and lending to businesses announced last week are implemented effectively and without delay. The government should go further and consider introducing a state-backed business bank to facilitate access to finance for new and growing companies. Deregulation and investment in infrastructure must also be key ingredients of a long-term growth strategy

News bulletin – 18 June 2012

Record fall in ‘NHS satisfaction’ Public satisfaction with the NHS has dropped by a record amount, the British Social Attitudes Survey suggests.

Patients dropped from ‘re-categorised’ NHS waiting lists The Royal College of Surgeons (RCS) has condemned NHS trusts in England for changing the criteria for operations, leading to some patients being taken off operation waiting lists.

Chiropractors continue to treat children despite a lack of evidence The reluctance of chiropractors to change, in the face of a lost court case, the evidence and public opinion, is disconcerting.

Patients do not know how to contact GP outside normal hours: survey Four in ten patients do not know how to contact their GP out-of-hours services, a government survey has found.

Organ donation: Opt-out bill to be published in Wales Legislation to change the organ donation system in Wales will be published on Monday.

SMEs cutting back on PMI and group protection Smaller businesses are cutting back on the level of cover provided by benefits such as private medical insurance (PMI), according to analysis by Mercer.

Dental access figures look promising The Department of Health has published dental access statistics on findings from the second wave of results from the GP Patient Survey (conducted between January and March 2012).

Diabetes: a million not getting all basic checks About a million people with diabetes are at an increased risk of stroke, blindness, amputation and heart attacks because they are not getting all the medical checks they should, an NHS audit has found.

Olympic fever sees spike in A&E sports injuries Accident and emergency departments have seen a 15 per cent rise in sports injuries as an unfortunate side effect of Olympic fever, figures show.

Prime Minister David Cameron is leading a high-level business delegation this week to Mexico, which is hosting the G20 and B20 summits in Los Cabos.

He is accompanied by Chancellor George Osborne, Trade & Investment Minister Lord Green and over 25 UK companies, institutions and universities including Diageo, Rolls Royce, Virgin Atlantic and the Confederation of British Industry (CBI). Also travelling are Business Ambassador Tamara Mellon and pottery designer Emma Bridgewater.

Lord Green said:

“Almost two hundred years ago, the UK was the number one European exporter to Latin America. British expertise helped to build Mexico’s railways and canals, but UK firms currently account for less than one per cent of Mexico’s imports. We need to turn this performance around in one of the world’s most promising markets.”

This year, Mexico is hosting the G20 summit in Los Cabos which is due to focus on growth and employment; strengthening the international financial architecture; financial market reform; and food security and development.

The B20 summit, which immediately precedes the G20 and is due to be opened by Mexican President Felipe Calderón, gathers senior business people to discuss themes such as growth, development, trade and investment.

The UK has made expanding trade with Mexico a priority, and Deputy Prime Minister Nick Clegg led a delegation there last year. Mexico is currently the 14th largest economy in the world and the second largest in Latin America, with a rapidly expanding middle class.

The Prime Minister and the business delegation are expected to arrive in Mexico on Monday and will travel to Mexico City on Tuesday. On Wednesday, the Prime Minister is expected to hold bilateral meetings with Mexican leaders.

UK business leaders accompanying Prime Minister David Cameron to Mexico have underlined the potential of this market.

Dr. Neil Bentley, CBI Deputy Director-General, said:

“This timely visit with the Prime Minister shows British companies are committed to strengthening their ties with Mexico, and is a great opportunity to showcase what the UK can offer, such as retail, luxury and consumer goods, and green technologies. Mexico is a vital trade partner for the UK, with its growing economy and burgeoning middle class, and demand for quality British goods and services is increasing. To achieve a potential £20 billion boost to the UK economy by 2020 through increasing exports, the UK must look beyond traditional markets and strengthen its relationships with fast-growing economies like Mexico.”

Steve Ridgway, Chief Executive of Virgin Atlantic, which last week started direct flights into Cancun, said:

“We are excited to have started flying into Mexico. It is one of the top five long-haul leisure destinations for UK passengers and we see this market as a valuable addition to our network. Early bookings have been strong and it looks set to be one of our busiest routes this summer. We expect to carry over 75,000 passengers in the first year alone, which could generate as much as $20m in tourism revenue to the Mexican economy. We’re very pleased to be involved in carrying the Prime Minister and this important business delegation to the G20 and hope it will further develop relations with this important market.”

Kirk Kinsell, President, the Americas, for InterContinental Hotel Group (IHG), which is headquartered in Buckinghamshire, said:

“Mexico provides many opportunities to diversify in the hotel business, from resort to business destinations. The country can serve several tastes in regards to tourism – adventure, sun, colonial – and it has a growing economy in the trillion dollar range. We see a huge opportunity to grow many of our hotel brands, such as InterContinental Hotels & Resorts, Holiday Inn and Staybridge Suites in Mexico.”

Hugh Richmond, Managing Director of ENER-G Natural Power, said:

“We’re proud that our biogas generation project in Aguascalientes is contributing to the country’s visionary climate change targets, as well as supplying green power to Nissan. ENER-G sees huge investment potential in Mexico’s emerging renewable energy industry.”

Nigel Curson, Director of Integrity Services at London-based Penspen, said:

“Mexico represents a wealth of opportunities for companies like Penspen with a strong track record in oil and gas engineering, project management and integrity services. The country’s estimated 681 trillion cubic feet of shale gas reserves, combined with its aim to replace 100 per cent of extracted oil with new discoveries, make it a crucial market for engineering consultancy, training and knowledge-transfer.”

UK Mexico facts

• The population of Mexico is over 112 million
• The median age in Mexico is 26
• GDP has been growing at five per cent per year over the last decade (3.9% in 2011)
• Mexico has free trade agreements with 44 countries
• Mexico has a $226 billion plan to bring its infrastructure into the 21st century and recently unveiled the world’s second highest bridge across the Baluarte Gorge. At 403 metres, it is higher than the London Shard (310m)
• In 2010, 22.3 million tourists visited Mexico
• The UK is Mexico’s 5th largest investor, having invested just over £5 billion since 2000
• In 2011, UK imports of goods from Mexico were valued at £1.05 billion, led by telecommunications exports (largely mobile phones). The UK’s exports to Mexico last year were worth £952 million
• There are just under four million Spanish speakers in the UK

• UK trade deficit in goods and services was £4.4bn in April 2012, compared with a deficit of £3.0bn in March

Commenting on the trade figures for April 2012, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

The global environment will continue to pose serious challenges for our exporters at a time when they are trying to maintain their positions in international markets.

“The increase in the trade deficit was larger than expected in April. Underlying export volumes were down 7.1% on the month while imports fell by only 3.0%. The importance of one month’s figures should not be exaggerated as longer-term comparisons show that exports have been flat over the past year. This proves that our exporters are facing major challenges, especially given the increased problems in the eurozone and weaknesses in the global economy. In our recent forecast we predicted export volumes of goods and services to grow by a modest 2.6% this year. But on the basis of the figures published so far, it is likely the outcome will be weaker.

“The government’s deficit cutting measures will continue to put pressure on the domestic economy, which means that a lasting UK recovery will depend highly on increased exports, replacing imports with goods produced at home and increased business investment. The global environment will continue to pose serious challenges for our exporters at a time when they are trying to maintain their positions in international markets. British exporters have major untapped potential but the government should do more to help them overcome the obstacles facing them. Our businesses do not want handouts, but they need to see action which allows them to compete with overseas competitors. Clearer routes to market for state backed trade finance and the creation of a business bank would go some way to solving some of the problems firms currently face. We need to get behind our businesses and give them the support they need to drive an export-led recovery.”

Henry Bellingham, MP for North West Norfolk, highlighted the need for greater improvements to the King’s Lynn to London rail service. Mr Bellingham was speaking at a recent meeting with West Norfolk Chamber Council.

Mr Bellingham commented that with First Capital Connect’s franchise agreement coming up for renewal, now was the time for local businesses to lobby for improvements to the rail service.

He said: “The following three criteria should be part of any new franchise agreement: Firstly Selective Locking on the rolling stock to allow for longer trains. At present, some station platforms are unable to take longer trains, due to the length of their platforms. Selective locking would allow longer trains to stops at all stations and carriages not able to reach the platform should be locked for safety reasons.

“Secondly, the Ely junction needs to be upgraded to allow for a faster train service. Lastly, refreshment trollies should be reinstated on the train service.”

• Manufacturing output for April 2012 down 0.7% on the month, down 0.3% on the year

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

“The fall in manufacturing output is not surprising given ongoing problems in the eurozone and the UK’s tough deficit-cutting programme. It is important to avoid pessimism as many firms have shown resilience in the face of these obstacles, and have reserved their skills base during the recession. However, the immediate outlook is difficult. Our most recent forecast has indicated nil growth in manufacturing output this year and on the basis of this figure there is a risk that the sector will record a small decline in 2012.

“The new figures will also reinforce demands for the Monetary Policy Committee (MPC) to increase Quantitative Easing (QE). This would only be helpful if the Bank of England stops focusing asset purchases exclusively on gilts and starts purchasing other assets such as securitized SME loans. We are pleased that Adam Posen has this week publicly supported such a move. Other policies to support growth are also needed, particularly more forceful deregulation and an increase in infrastructure spending within the current spending envelope.”

• Research shows that nearly three-quarters of exporters don’t have an export strategy in place

The findings of a survey released today (Tuesday) by the British Chambers of Commerce (BCC) show that existing regulations and problems around accessing credit are hindering export growth in the UK. The survey of more than 8,000 businesses shows that nearly two thirds of potential exporters (63%) see access to finance issues as a reason not to trade overseas, while a quarter of companies believe that red tape, such as that associated with export licenses, is a barrier to trading overseas (25%). Furthermore, nearly three quarters of companies that are already exporting don’t have an export strategy in place.

Exporting is an important route to growth for companies at a time when the domestic economy is almost flat. Nearly half (44%) of respondents said they would be more likely to consider exporting if sales revenues deteriorated. More than half of companies that are already exporting said they would look to increase exports further if faced with a deterioration in domestic market conditions (56%).

There are still barriers which prevent non-exporting companies from trading overseas, with financial resource and access to credit as major factors (63%). Seven in ten non-exporters said cash flow and payment risk influenced their decision to export. Only 3% of businesses surveyed had used UK Export Finance, with 20% citing lack of awareness as a reason for not doing so. Regulation is still preventing companies from taking that first step towards becoming an exporter, with one quarter of respondents stating it as a barrier. Furthermore, one in three companies (36%) said that overseas regulations prevent them from doing business overseas.

Furthermore, nearly three quarters of exporters (74%) don’t have a formal export strategy in place. While many large exporters lack a formal strategy, there is a clear size divide which shows that small- and medium-sized companies are even less likely to possess one (42% of SMEs have one compared to 15% of micros). The results showed a willingness from firms to adapt their products and services to suit overseas markets, but almost half (49%) of exporting companies said they had become exporters by accident after being approached by potential buyers from overseas.

BCC recommendations:

• • Create a business bank and improve service in existing banks to address issues around access to finance: Our survey shows that problems with accessing finance prevent firms from getting their foot on the exports ladder. In addition, high street banks must train front line staff to be able to explain state-backed financial products to their business customers.
• • Incentivise the take up of training and mentoring: The Chamber Network is playing a leading role in linking businesses to export training and trade missions, but the government must play its part too by offering financial incentives for non-exporters that take up these services such as a reduced rate of tax on early exporting profits
• • Support more businesses to proactively pursue export opportunities: Introduce a variable fee system within the Overseas Market Introduction Service (OMIS) which is operated by UKTI. If this is based on company size, it would prevent smaller firms from being crowded out. Businesses also need to be more aware of UKTI’s Tradeshow Access Programme (TAP) and the government should invest more money into the scheme.

Commenting, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“There are still not enough of our great British businesses taking their products overseas. These results show that many firms lack an export strategy, and many only became exporters by chance. We need to find ways to make our businesses think global, and provide them with the support they need to break into new markets. Not only will this help to boost the UK economy, but it will show the world that Britain remains a major global competitor and a nation to do business with.

“The government can make some simple changes which will go a long way to giving firms the confidence and encouragement they need to trade overseas. Incentivising more firms to take part in trade missions would be a start to getting more companies thinking about adapting their products for the export market. Furthermore, the creation of a state-backed business bank would help solve problems around access to finance, which a large number of firms said prevented them from exporting. We need to get behind our businesses and give them the support they need to drive an export-led recovery.”

Better Broadband for Norfolk Information Sheet 6 (8 June 2012) In May 2011 Norfolk County Council was successful in its bid to secure Governmentfunding to help provide improved broadband speeds and access across Norfolk.

In January 2012 we launched the ‘Say Yes to Better Broadband in Norfolk’ campaign andasked people to register their interest in receiving better broadband so that we coulddemonstrate the demand that exists in the county.

We want to keep the people of Norfolk informed and updated about the project and thework that is underway to provide better broadband services in the county. Please visitwww.norfolk.gov.uk/sayyesnorfolk for more information on the project.

What’s happened since the last update? We’re currently in the procurement phase of the project. This means that we’re indiscussions with potential private sector partners who will help us deliver the betterbroadband project in Norfolk. Because this is a competitive bidding process, we can’t gointo any further detail at this stage. We hope to be able to tell you more in the nextinformation sheet.

Is there anything else happening? We have got another opportunity for people to ‘Say Yes’ to better broadband in personcoming up – you’ll be able to register your interest in the Norfolk County Council tent at theRoyal Norfolk Show on Wednesday 27 and Thursday 28 June. You can also talk tomembers of the Better Broadband for Norfolk team at the show and find out more about theproject.

It’s still important that anyone who might be interested in receiving better broadband saysyes so that the project has as much information about demand for broadband services inNorfolk as possible.

If you’re not coming to the Norfolk Show, you can still sign up on the Say Yes website(www.norfolk.gov.uk/sayyesnorfolk) or by ringing 0344 800 8023 until later this summer. We’re fewer than 100 ‘yeses’ away from 15,000 since we launched the campaign inJanuary and that would be a nice milestone to pass!

If you require further information please telephone Norfolk County Council on 0344800 8020.

• Annual output inflation down from 3.2% in April to 2.8% in May; annual input inflation down from 1.0% in April to 0.1% in May

Commenting on the producer price figures for May 2012, Caroline Williams, CEO Norfolk Chamber of Commerce said:

“The decline in producer price inflation was better than expected, with both output and input measures at their lowest level since 2009. On this basis, we expect consumer price inflation to continue to fall over the next few months. This will ease the pressures facing businesses and consumers and provide a boost to consumer spending.

“But the economic situation at home and abroad remains difficult, and strengthening growth should be a top priority. While the government must persevere with measures to reduce the deficit, it should re-address priorities towards growth within the existing spending envelope. The lower inflation figures may make the MPC more inclined to increase QE, but we believe its focus should be encouraging lending to credit-worthy businesses.”

The New Anglia Local Enterprise Partnership is leading the UK’s transition to a green economy.

On Monday 11th June New Anglia Local Enterprise Partnership will present its Green Economy Pathfinder Manifesto to Government at a reception in the Houses of Parliament.

Attendees will include business leaders, representatives from Government departments, environmental organisations, local authorities and community groups.

The Manifesto, called ‘Leading the Way’, sets out the barriers and opportunities for sustainable economic growth, goals and aspirations and features case studies of business and organisations which are leading the way in developing the green economy.

The Manifesto represents the opportunity to embed good practices in the region’s green economy, across businesses and organisations, locally.

New Anglia helps to grow jobs and remove the barriers to business growth in Suffolk and Norfolk. It is committed to leading the transition towards a green economy, delivering benefits across the region and nationally.

International best practice highlighted by the Manifesto ranges from cutting edge research on the Norwich Research Park to eco-building techniques being pioneered in housing developments across Suffolk and Norfolk.

The Government invited New Anglia to take the lead on the development of the green economy last November and report back with recommendations on how the UK can seize the opportunities presented by the green economy.

Andy Wood, Chairman of New Anglia Local Enterprise Partnership and Chief Executive of Adnams plc said: “The New Anglia area has a wide range of energy resources, which is why we are ideally placed to lead the growth of the green economy.

“New Anglia is committed to building the green economy in a sustainable way and to share our knowledge and expertise across the UK.

“There will be a 45% projected growth in the low carbon and environmental market by 2012/15 and we want to place the green economy at right at the heart of business success – because it makes good business sense.”

Mark Pendlington, the Director, Anglian Water Group, chairs New Anglia’s Green Economy Pathfinder Board.

“New Anglia has brought together a group of talented people with specialist expertise to develop the Green Economy Pathfinder Manifesto”, said Mr Pendlington.

“As part of the Manifesto we have featured case studies of some innovative organisations which are at the cutting edge of developing services and products which will drive forward the green economy.

“The Manifesto provides a route map for all businesses large and small to seize the exciting opportunities of green growth. This will create and secure jobs and help our goods and services to compete and win the global marketplace. It’s a route to economic recovery, and we want businesses in Norfolk and Suffolk to be leading the way – by example.”

The Manifesto will be published on the afternoon of Monday 11th June on the website www.newanglia.co.uk.

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

“The MPC’s decision to maintain current levels of Quantitative Easing (QE) was the right one. Though the clamour for increasing the asset purchase programme has intensified with the worsening eurozone situation, and signs that the US and Asian economies are slowing, the benefits of additional QE would be marginal at present. However, if conditions in Europe worsen, with more pressure on Spanish banks, and heightened debt problems, then there could be a risk to the UK financial system. In that case, additional QE might be necessary over the next couple of months.

The MPC could also consider introducing a 0% or negative interest rate for deposits held by commercial banks at the Bank of England. This could discourage hoarding, and provide an incentive for banks to increase lending. The Monetary Policy Committee should also focus on helping to boost the flow of credit to businesses, in particular small- and medium-sized firms. That means considering the purchase of assets beyond gilts, for example securitised SME loans. Such a move would make the banks less risk averse lending to businesses, thus helping to remove one of the main obstacles to a sustainable UK recovery.

“We need growth in the economy sooner rather than later, and at the same time protect the UK’s credibility. The government could also address the problem of access to finance by creating a business bank.”