Chamber News

The Norfolk Chambers of Commerce is readying itself for a succession in leadership, as it announces the appointment of Nova Fairbank to the position of Chief Executive from August 2022. The Chambers’ current Chief Operating Officer, Nova will succeed Chris Sargisson who completes his five-year term in July. Chris, who was appointed to the role in 2017, was integral to disrupting the business community scene by stripping the Norfolk Chambers of Commerce back to its core and revamping the membership organisation and laying the foundation for a Chambers of Commerce with a vision to connect, support, and give voice to every business in Norfolk. Now is the time, says Chris, for colleague and his number two, Nova, to take the reins for the next important stage in the business’ ambitious modernisation journey. “I can’t believe five years have passed since I first sat in the ‘Big Chair’ with a mission to build on the Chambers’ 126-year history and reputation,” said Chris. “From the start, Nova and I have worked side by side. We connected immediately and have together crafted and shared a long-term vision for how we would like the Chambers to modernise and evolve.” And it’s no mean feat, says Chris: “It’s a long journey, split into two 5-year terms, requiring a different set of skills for each leg. The first, to complete the big-ticket disruption and shift towards a customer-centric culture, complete with the creation of new, bespoke digital programmes, is now complete.” “The next phase looks to build on this strong foundation, creating business-led, customer-centric innovation to achieve the long-term vision to connect with every business in Norfolk, and there is no doubt that Nova is absolutely the right person to lead the Chambers in this next important stage.” Nova is keen to continue the story she and Chris began back in 2017: “A succession of leadership does not mean a change of direction. I’m looking forward to carrying the torch for the Norfolk Chambers of Commerce, continuing the current journey backed up by the new, sturdy foundation and building blocks Chris’ leadership has laid for its future development over the last five years.” “We now have a highly-skilled, incredible team with the digital infrastructure to support our future ambitions and growth. We will continue to deliver excellent customer service, relevancy, and innovation to ensure we are meeting the ongoing needs of our vibrant business community,” she continued. The future is bright for the Norfolk Chambers of Commerce, says Nova, and she has no plans to slow down or shift gear: “We look forward to delivering even more digital innovation, alongside demand-led events and even greater engagement with a wide range of businesses, ensuring that we can connect, support, and give voice to every business in Norfolk.” Photo credit: Norfolk Chambers

Significant progress towards implementing a new funding model which will give nuclear projects the financial support they need and attract private investment.

• Progress made towards securing finance for proposed Sizewell C nuclear power station in Suffolk
• government publishes case for company operating Sizewell C to receive funding under Regulated Asset Base (RAB) model, bringing new nuclear plant closer to becoming reality
• further consultation published on details of how projects would receive RAB financing, which could potentially fund many more next generation nuclear power plants

Today (14 June) the government has published documents which show significant progress towards implementing a new funding model which will give nuclear projects the financial support they need and attract private investment. The new Regulated Asset Base (RAB) model will see projects receive a regulated payment from electricity suppliers, helping these large infrastructure projects come to fruition. The Sizewell C project in Suffolk could be the first nuclear project to use this model, subject to the outcome of current negotiations. Under the previous mechanism to support new nuclear projects – the Contracts for Difference (CfD) scheme – developers had to finance the entire construction cost of a nuclear project up front, and only began receiving revenue when the station starts generating electricity. This model led to the cancellation of recent potential projects, such as Hitachi’s project at Wylfa Newydd in Wales and Toshiba’s at Moorside in Cumbria. Under the new RAB scheme, private investors receive greater certainty through a lower and more reliable rate of return in the early stages of a project, lowering the cost of financing it, and ultimately helping reduce consumer electricity bills. Overall consumers are expected to save more than £30 billion over the project’s lifetime on each new large-scale nuclear power station compared with existing funding mechanisms. This new method of funding nuclear projects will help the government realise its ambitions for a British nuclear renaissance, with plans to approve up to 8 new nuclear reactors by 2030, boosting UK nuclear power capacity up to 24 GW by 2050. Draft reasons for designation of NNB Generation Company (SZC) Limited Sizewell C in Suffolk is a proposed new nuclear power plant which, if built after obtaining all necessary approvals, could power 6 million UK homes, boosting the country’s energy security and potentially reducing bills for households by providing clean, homegrown electricity. Draft reasons for designating the company operating Sizewell C, NNB Generation Company (SZC) Limited, to receive money through the RAB have been published today. They set out the case for the Sizewell C project meeting the criteria of Nuclear Energy (Financing) Act, introduced earlier this year. Their publication brings the government a step closer to deciding on its commercial negotiations with the project developer. As required by the Act, the document is currently being consulted on with the Environment Agency, Office for Nuclear Regulation, Ofgem and the NNB Generation Company (SZC) Limited. The consultation will close on 4 July 2022 and is the first step in potentially allowing the nuclear company to receive funding under the RAB model. Sizewell C is also subject to an ongoing application for development consent, which is entirely separate to commercial negotiations on the project. Consultation on revenue regulations The government is today also consulting on the detail of how nuclear projects would receive their funding under the new RAB model. The consultation launched today seeks views on the proposals to inform the policy behind the regulations, ahead of laying them in draft before Parliament. The revenue regulations will shape how large nuclear projects like Sizewell C receive funding in the future. It is expected the consultation will be of particular interest to the statutory consultees named in section 25 of the Act, which includes energy companies, the National System Operator and Scottish and Welsh government ministers. Other interested groups include nuclear developers and those directly impacted by the proposals. The documents are an important step in implementing a RAB model, bringing private investment into new nuclear and cutting the cost of financing new projects. A large-scale project funded under the RAB model will add at most a few pounds a year to typical household energy bills during the early stages of construction and on average approximately £1 per month during the full construction phase of the project. However, overall, the lower cost of financing the project is expected to lead to savings for consumers of at least £30 billion on each project over its lifetime. This translates to a saving of more than £10 per year for an average domestic dual fuel bill throughout the life of the nuclear power station – which can operate for 60 years – compared to the existing CfD scheme. Additional information

• If built, Sizewell C would produce 3.2 GW of electricity, powering the equivalent of around 6 million homes, and providing greater UK energy security
• in January, the Business and Energy Secretary announced £100 million to advance the Sizewell C project to the next stage of negotiations, and help it attract further private investment
• the deadline for a decision on Sizewell C’s separate application for a development consent order has been set as 8 July 2022
• a RAB model is a tried and tested method, typically used in the UK to finance large scale infrastructure assets such as water, gas and electricity networks. The model enables investors to share some of the project’s construction and operating risks with consumers. This entails consumers paying a charge on their bills, but, by cutting the cost of project finance (which is the main driver of nuclear project costs), it is estimated that the RAB model would mean consumers pay less than for a project using the Contract for Difference model
• a large-scale project funded by RAB would at most add a few pounds a year to typical household energy bills during the early stages of construction, and on average around £1 per month during the full construction phase of the project. Over the 60-year lifetime of a generic new large-scale nuclear power station, our funding model could reduce the project cost by more than £30 billion
• the regulated revenue for a nuclear company will be set by the independent regulator in accordance with the nuclear company’s licence, who will ensure that any money spent is in the interest of users. Under the nuclear RAB model, electricity suppliers will be charged as the users of the electricity system to contribute towards the cost of the construction and operation of the relevant nuclear project, and the economic regulator will be Ofgem
• the government published a statement on the procedure and criteria for designating projects to benefit from the RAB model on April 11 2022, setting out some of the factors the Secretary of State is likely to take into account when assessing the maturity of the projects of prospective nuclear companies, and whether designating a company for the purposes of the RAB model is likely to result in value for money for consumers and taxpayers
• further progress was made in relation to the implementation of the revenue stream for the nuclear RAB model last week (9 June), with the designation of Low Carbon Contracts Company Ltd as a counterparty for revenue collection contracts, in accordance with section 16 of the Act
• the Act gives the Secretary of State powers to make Revenue Regulations to set out the mechanics of the revenue stream through which nuclear companies benefitting from the RAB model would receive regulated revenues for the duration of their project’s regulatory period
• by publishing the draft reasons for designating Sizewell C under the RAB model, the government is going beyond the transparency requirements set out in legislation

https://www.gov.uk/government/news/kwarteng-advances-plans-for-funding-new-nuclear-projects-including-sizewell-c  Photo credit: Getty Images/ Chamber Canva Pro 2022

CHIEF (Customs Handling of Import & Export Freight) System is being replaced by CDS (Customs Declaration Service) which is the new system that supports making import and export customs declarations. From 30th September 2022, CDS will be the only system used for import declarations, and from 31^st March 2023, export declarations will be transferred over also with CHIEF no longer in service. What do you need to do? 1. Register on the Government Gateway Most businesses will already have an account to access for tax purposes and this account can be used to access CDS. If you don’t have one you can register here. 2. Register for the Customs Declaration Service HMRC has now automatically registered all EORIs on CDS. 3. Decide how you’re going to pay duty and VAT Postponed VAT Accounting If you’re currently using this method to pay for VAT you can continue to do so but you will need to register for statements from CDS here. Deferment Account If you have your own deferment account you will need to set up a new direct debit for CDS and will also need to authorise your agent to use this on your behalf via the online service. Cash Account This will replace the current Flexible Accounting System when paying for duties. The Cash Account is your own top up account allowing you to pay your import duty and/or VAT. You should automatically get this when registering for CDS and can access it here. You will be able to make a payment in your cash account and authorise your agent to use your account (you can do this via your Government Gateway).  Other methods of payment You can also pay by other methods which can be found here. Our ChamberCustoms Team are on hand to process export and import clearances and help you to get ready for CDS. You can get in touch with the team  either by email on [email protected] or on 01603 729716. Photo credit: Pixabay/ Chamber Canva Pro 2022

It has been reported that school holidays leave a third of parents feeling stressed!* With that in mind, we’re running a social media takeover throughout the summer holidays purely focused on wellbeing. Every Wednesday we’ll be sharing tips, activities, news, case studies, facts, or services to help you get through the summer holidays. Your wellbeing is important every single day, not just during the summer holidays, so we want to showcase local businesses who are doing amazing things within their firm to support their employee’s wellbeing as well as services that are being provided locally. We’d love to hear from you if your company provides wellbeing services, if you have a fantastic wellbeing programme within your company or if you can provide hints and tips for managing and improving wellbeing. If you would like to be involved, please get in touch by emailing [email protected] by 4^th July 2022. *https://www.walesonline.co.uk/news/uk-news/school-holidays-leave-third-parents-16540000  

Commenting on the latest ONS UK GDP figures published today, which show a 0.3% contraction for April 2022, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:    “The fall of 0.3% in April, following a 0.2% decrease in March, highlights the increasing stress the UK economy is under. All main sectors have seen a fall in growth, the first time since January 2021.   “This decline is the inevitable outcome of surging inflation, supply chain disruption and widespread skills shortages.   “Businesses from all sectors are facing unprecedented rises in raw material costs, soaring energy bills, and wage pressures. The introduction of an increase to employer National Insurance Contributions in April has only further added to firms’ woes.   “This declining output comes off the back of two years of significant damage sustained by small businesses, whose weakened cash positions mean that they are in a far worse position to stomach further pressure. The global aspects to all these problems mean they are likely to weigh heavily on the UK’s prospects for growth for some time.  “Output in consumer-facing services increased by 2.6% in the month, reflecting increased consumer spend on hairdressing and food services. However, the sector remains below pre-pandemic levels, highlighting the significant damage sustained from shutdowns and restrictions.  “Declining business investment remains a serious cause for concern and urgent Government action is needed to halt this fall. Cutting VAT on businesses’ energy bills to 5% would ease the squeeze on firms’ cashflow and give them some room for manoeuvre.”  Responding to the latest ONS Trade figures released today, William Bain, Head of Trade Policy, said:  “It is heartening to see an increase in the rate of exports to the EU and the rest of the world. Nevertheless, continued progress is needed to meet the Office of Budget Responsibility’s (OBR) forecast of a net increase in UK exports of 9% across the whole of 2022.  “On exports to the EU, the welcome increase of 8.8% since March is driven mainly by fuels and, to an extent, by machinery and transport equipment, but exports to the EU in chemicals, food and material manufactures remain flat.    “On the import side, there are early signals on the potential for delays, due to COVID outbreaks centred around major ports in China, which may impact the flow of certain goods into the UK.”  Trade data overview  Exports  UK goods exports accelerated in April 2022 with increases in exports to the EU rising by 8.1% (£1.2bn) and to the rest of the world by 6.5% (£0.9bn). Main factors in increased goods exports to the EU were machinery, transport equipment and fuels (gas and crude oil).  Food, chemicals and material manufactures exports to the EU remained flat in April 2022. OBR forecasts for U.K. export growth in 2022 were 9% and 7% in imports.    Imports  Imports of goods from the EU rose by 4.2% in April driven by increases in machinery, transport equipment and chemicals, but from the rest of the world fell by 2.6% – an overall rise in goods imports of 0.7%. There was a reduction in cars, electrical machinery and other manufactured goods from China.   Trends  Comparing the 3 months to April 2022 with the 3 months to January 2022, goods exports to the EU increased by 15% and to the rest of the world by 2.7% – an overall rise of 8.8%. This is line with OBR forecasts from last autumn for export growth (so far) in 2022. Comparing the 2022 data with that in 2018 – the last stable period before EU exit and changes in methodology – exports were 6.1% higher in the 3 months to April 2022 compared with the 3 months to April 2018.   Early estimates for services exports in Q1 2022 reveal a very modest increase of £0.1bn in that period.   The overall UK trade deficit widened to £21.4bn (ex-inflation) in the three months to April 2022.  Commenting on the latest ONS Labour Market statistics released today, BCC Head of People Policy, Jane Gratton, said:    “An increasingly tight labour market means it’s much harder for employers to fill job vacancies – impacting on their ability to operate normally and retain skills in the business.   “The further rise in the employment rate, together with drop in the unemployment rate are good news but they also reflect how little room for manoeuvre there is for unfilled vacancies on the ground.   “With a new record set for the number of vacancies, and no easy way to fill them for many companies, labour shortages are likely to continue to damage the UK’s growth prospects.  “Despite recruitment difficulties, the damage to firms’ finances from soaring inflation and rising national insurance will limit the extent to which wages can continue rising.     “We need to find ways to bring people back into the UK labour market. Flexible working practices, rapid re-training opportunities and a focus on workplace health can support many economically inactive people to return to the workplace.    “But for some roles, where there is clear evidence of a national shortage of skills and labour, firms need access to people, at all skill levels, from outside the UK. As well as issuing temporary and seasonal visas, the UK government needs to urgently review the Shortage Occupation List.” 

It believes too many smaller businesses are still missing out on export opportunities and says politicians heading to the World Trade Organisation (WTO) Ministerial Conference (MC12) must adopt more practical measures.  It made the call ahead of the start of the four-day meeting in Geneva this Sunday (June 12).   William Bain, Head of Trade Policy at the BCC, said:  “Facing the trade headwinds of the war in Ukraine plus continued supply chain concerns in Asia, smaller businesses need a growth-focused Ministerial Conference in Geneva.   “We urge ministers to take further action on kickstarting e-commerce, improving the commitments on gender equality in trade, reaching agreement on subsidies, and adopting a bold reform agenda to create a trade system which business can more easily engage with, and rely upon.   “It is also vital that delegates do not end the moratorium on customs duties on electronic transmission of goods and services. With the Office of Economic Co-operation and Development and WTO both lowering forecasts for global growth this year and next, the last thing businesses need is the re-introduction of customs duties on electronic transmission.   “They would hurt exporters of UK creative, professional and business services in particular. Leaders in Geneva must deliver practical support to smaller businesses in the UK, and beyond, who are keen to scale up their export capacity in the coming months and sustain global economic growth.”  

The SME community is expected to find time and resources to ‘seek’ and  ‘go figure’ in order to understand, answer and apply new ideas and changes. That’s a big ask so we, a trusted, not for profit organisation want to help every SME business start AND FINISH their net zero journey. We’re delighted to be working with local organisations, and incredible individuals who are helping us, help support Norfolk SMEs on their net zero journey. Find out why our board members are involved with BCL here Everyone in business knows that now is the time to act and every act makes a ‘little by little, bit by bit’ difference so please get in touch via email or by phone 01603 625977.  

A recent survey conducted by the Norfolk Chambers of Commerce has shown that 71% of businesses have started their net-zero journey in some way. Of those who were surveyed, the undertakings of their net-zero journey included buying locally, recycling, using electric vehicles, paperless office, sustainable website hosting, re-useable cups, green pledges, and improved travel plans from staff. 65% of those surveyed said they could dedicate 1-3 hours per month to their net-zero journey and 35% could dedicate 1-3 hours per week. From the findings, it appears that no matter the size of the organisation, all are time poor. Even the larger corporates who could have the resource to develop their journey still selected 1-3 hours per month. Whilst access to finance was stated as a barrier, 71% of those we surveyed, had not yet tried to apply for any funding. Identified barriers to net-zero journey:

• Lack of understanding of approach – how to start and measure the journey
  • Lack of resources and an understanding of how to tackle a company-wide approach. A need to understand how a larger organisation, with a large staff and multiple sites could approach net-zero?
  • Measuring current impact, without incurring the cost of a consultant to help – many small businesses don’t have the budget for that
  • Within aviation, there’s no clear methodology when calculating emissions
  • Bad data quality

• Challenges with Landlords or heritage buildings
  • Legal entanglements between owners of premises and landlords prevent progress
  • Negotiating with the landlord, where for many, their main concern is financial cost.
  • Heritage sites/assets, which can be difficult to retrofit

• Buy-in / lack of engagement from those within the organisation
  • Not getting buy-in to a project from the top of an organisation
  • Lack of interest on the part of others
  • Differing views on the climate emergency between employees.
  • Lack of commitment to see a project through on the client-side

• Financial
  • Lack of understanding on what financial support is available i.e is there any funding from local authorities etc?
  • Grants to aid the net zero journey may not always be as attractive as they first appear. Some businesses have encountered out of date information, empty funding pots, and many stated the time required to process the application and await the award was an issue
  • Many found that large scale procurement framework providers were unreachable – so there was no ability to discuss what could be possible for an SME

• Other Reasons
  • Negative perceptions. e.g. some businesses with electric vehicles were criticised – electricity is generated inefficiently and you are unable to dispose of the main battery at end of life
  • Poor export tariffs to small electricity generators

Whilst there is an ability to debunk some of the perceptions above, it is not surprising that all these contributing factors and barriers, businesses are struggling with where to start and how to achieve net-zero. The Norfolk Chambers of Commerce Business Climate Leaders programme has been designed and developed to help all Norfolk businesses on their road to net-zero with support from experts across the county. Providing a platform for businesses to collaborate and share stories and experiences to build a community of advocates and helping Norfolk as a county on its own net-zero journey.

The Chambers Quarterly Economic Survey (QES), is the UK’s largest independent business survey and is currently open for responses from local Norfolk businesses.

The QES only take a couple of minutes to complete – it is anonymous and your support would be greatly appreciated.

The QES Q2 is open for responses until midnight on Friday 10th June 2022.  Take part in the QES now.

Photo credit: Getty Images/Chamber Canva Pro usage 2022

What You Need Is What We Do. Following its announcement in April, the Government’s Energy Security Strategy has raised the country’s ‘clean energy’ ambitions, increasing the importance of working towards net-zero by 2050, and placing more responsibility on businesses, including SME’s, to contribute towards reducing the impact of climate change. It’s all hands on deck as we Co.llaborate with the Borough Council of King’s Lynn and West Norfolk to help them, help and support local West Norfolk businesses on their net-zero journey. We’re working with their incredible team to launch, share and showcase their upcoming King’s Lynn Climate Change Expo on Tuesday, 21st  June at the Corn Exchange, King’s Lynn. The Climate Expo is a day-long event for not only, businesses but the whole Co.mmunity, with workshops and stands to visit, and it’s free to attend – now is the time to get involved and get Co.nnected with climate change. The aim of the council is to showcase decarbonisation measures available to local businesses and provide advice on how to progress decarbonisation works, to reach the 2050 net-zero target. We have a wide profile of events throughout Norfolk this year and are pleased to include the expo to our summer programme. We launched our Business Climate Leaders (BCL) programme to support Norfolk SME’s starting or continuing their net-zero journey. The BCL program brings together a Co.mmunity of Norfolk businesses and organisations to share and disseminate relevant information that will support businesses in making alternative choices, implementing policy, and changing their behaviours. I’ve spoken recently, saying businesses are more aware than ever that now is the time to take action to tackle climate change, but for many knowing where to start and what to do is difficult to understand and time-consuming. The programme, and the expo are also very much in line with the Chambers vision; to connect support and give voice to every business in West Norfolk. At the Chambers, the objective of the Business Climate Leaders approach is simple; a free-to-access programme for every business, designed to educate, enable and support SMEs to seek, understand and apply appropriate, tested actions and activities that will put them on the path to net-zero. If you can provide services and products to help businesses on their net-zero journey, Co.nnect with us and support West Norfolk businesses reduce their carbon emissions. We have sponsorship and exhibition stand space opportunities available, so get in touch and be part of this sustainable event and raise your profile further across West Norfolk. Call 01603 625977 or email: [email protected]    

Norwich City Council have released their latest economic barometer. The report highlighted: Locally

• Research from Barclays, showed 84% of small businesses in the East of England are optimistic about their future but more than one-quarter feel anxious after taking on debt for the first time.

• More than one-third of East Anglian medium-sized businesses (40%) intend to expand their workforce over the next 12 months and almost one-fifth plan to pay their staff more in order to attract and retain talent.
• Norwich is continuing its post-pandemic recovery with more shoppers making trips into the city centre compared to early 2020, according to the latest survey from Centre for Cities
• According to plans submitted to Norwich City Council, Bakery chain Greggs could open its biggest store in Norfolk

Nationally

• The Office for National Statistics (ONS) reported that since late 2021, the UK has experienced several changes to contributory factors leading to rising costs for individuals and businesses.
• The latest KPMG and REC, UK Report on Jobs survey signalled a further steep increase in hiring activity at the start of 2022.
• The ONS Opinions and Lifestyle Survey for the period 16 to 27 February 2022 found that 81 per cent of adults reported their cost of living had increased over the last month;
• A doubling in corporate insolvencies in January suggests that creditors are now starting to take action over unpaid debts which they have been legally prevented from pursuing pandemic started, according to the Eastern branch of business rescue trade body R3.

NorwichEconomicBarometer April 22

Reacting to news of today’s measures announced by the Chancellor, Hannah Essex, Co-Executive Director of the BCC, said:   “The sheer scale of the cost-of-living crisis facing the British public means the Government is absolutely right to provide additional support to those worst affected.   “For business, the toxic mix of inflation, raw material costs and supply chain disruption is the flip-side of the coin to the problems facing consumers.   “Unless steps are also taken to ease business costs, they will likely feed into the inflationary pressure on the economy and quickly eat into the financial support announced today.  “A reduction in VAT to 5% on businesses’ energy bills would directly alleviate some of this pressure to raise prices.  “The Treasury must urgently consider the actions set out in our call for an Emergency Budget which would provide a way to break the inflationary cycle.  “If we can ease the pressure on businesses then they can keep a lid on the price rises.  Firms will then have the breathing space they need to raise productivity and strengthen the economy.  “But a change, of course, is needed now. If the government does not act quickly then rising costs will put our economy in a stranglehold.”