Chamber News

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.”  

We are delighted to welcome eight new Board members to join our existing Board. Following their recruitment, an induction to the Chambers, our team and the current Board took place on Monday 16^th May 2022 hosted by Paul McCarthy, Vice President of the Board and General Manager of Chantry Place. The eight new Board members are: Lexi Brackpool – Managing Director of Furthermore Marketing Carole Burman – Managing Director of MAD-HR Kelly Cartwright – Owner of Core Recruiter Gez Chetal – Owner of Thomas Paine Hotel Lizzy Dring – Head of Corporate events at Huxley Events Neil Foley – Owner of Business Growth Club Simon Girdlestone – Chief Commercial Officer of Solinatra James Howells – Director of Turning Factor They will be joining the current Board members: Lynsey Sweales – CEO at Social B (President) Paul McCarthy – General Manager of Chantry Place Shopping Centre (Vice President) David Armstrong – CFO at Flagship Housing Group (Treasurer) Michael Baldwin – General Manager of Bank House Hotel (WN Chamber Council President) Jonathan Cage – Managing Director of Create Consulting Engineers Helen Lewis – Director of Research and Innovation Division at University of East Anglia Chris Sargisson – CEO of Norfolk Chambers of Commerce Glen Webster – Area Business Manager at Barclays Bank Lynsey Sweales, President of the Board says, “To support businesses in Norfolk successfully, we not only have to have our finger on the pulse but have the eyes and ears represented on the board.  I’m delighted that our latest board recruitment puts the Chambers in an even stronger position to take us to the next stages and innovations of what businesses want and need to see from us.  Paul and I were really impressed with not only the calibre of applications but the passion and drive that Gez, Lizzy, Carole, Kelly, Lexi, James, Simon and Neil had towards helping businesses in the region.” Having a diverse board from all sectors and experiences and geographic coverage will bring insights and support to the Norfolk Chambers of Commerce.  We are also delighted to bring a much younger age range, as well as diversity and equality to our Board. Lexi Brackpool, Managing Director of Furthermore Marketing “I’m really excited to join the Chamber board and support the Chamber in growing its membership and further digitalisation of its services for greater accessibility.” Carole Burman, Managing Director of MAD HR says: “I am deeply honoured to be invited to join the Norfolk Chamber of Commerce Board.  We have a growing number of clients who are based in Norfolk, and I very much hope my role on the board will continue to ensure the voices of these and so many organisations can be reflected and heard on both local and national issues.” Kelly Cartwright, Owner of Core Recruiter says “I’ve noticed that the more successful you are, the more forceful and vocal people are with their opinions. And I’ve realised that the sad truth is that there are plenty of people who want to see you fail. I want to be a part of an inclusive, supportive Norfolk community that encourages and champions everyone. We all have our strengths and weaknesses’ but we should have a network around us, that we can lean on, and use other people’s strengths to help us.” Gez Chetal, Owner of Thomas Paine Hotel says “Highly honoured so that I can help society and others businesses to succeed with my knowledge and expertise.” Lizzy Dring, Head of Corporate Events at Huxley Events says “I feel incredibly lucky to have the opportunity to work with such a thriving and supportive organisation with an amazingly bright future. The journey over the next few years is definitely going to be exciting and I’m looking forward to helping represent the voice of Norfolk businesses to help the Chambers go from strength to strength (especially SME’s, female led businesses and supporting young people in business).” Neil Foley, Business Growth Club “The more we can stimulate the economy the better for all of us” Simon Girdlestone, Chief Commercial Officer of Solinatra UK says: “I am very pleased to be appointed to the Norfolk Chambers Board, having lived in Norfolk my whole life I really wanted to get involved to help local businesses thrive, particularly in the manufacturing sector.” James Howells, Director of Turning Factor “By joining the Chambers Board, I hope this will allow me to make a considerable contribution towards Norfolk’s economy.”  

• Four out of five employers (81%) say they have been impacted by the increase in National Insurance contributions
• Higher prices, reduced investment and increased staff costs were among the main effects cited
• Employers expect wages to increase by a median average of 5% over the next year

Research carried out by the British Chambers of Commerce, of more than 1,100 UK employers, has uncovered a series of negative impacts from the increase in National Insurance contributions. Firms said the rise in employer contributions to National Insurance (NI) from 13.8% to 15.05% had increased staffing costs, forced some to put up their prices, and meant they would be limiting their investment. As part of its call for an Emergency Budget, the BCC is calling for the rise to be immediately reversed for at least a year, as firms battle surging costs on multiple fronts. The BCC is calling for action to give businesses a chance to keep a lid on rising prices, boost productivity and ease cost pressures. Hannah Essex, Co-Executive Director of the BCC, said:  “Businesses are telling us that the rise in National Insurance contributions has been a body blow as they try to get back on their feet. “When firms are already facing a toxic mix of surging inflation, rising energy costs and supply chain disruption, this increase is very hard to swallow. “The tight labour market is already pushing up staff costs and the NI rise has only served to exacerbate that pressure, without having a positive impact on recruitment. “With firms’ profits also taking a further hit, after two years of the pandemic, it is no surprise that their investment intentions are also weakening. “But it is not too late to change tack and push the increase back until firms are in a better place to take on the extra burden. “The costs crises facing firms and people in the street are two sides of the same coin. If we can ease the pressure on businesses, then they can keep a lid on the price rises. “Acting now will also put businesses in a better position to create the future profits needed to fill tax coffers.” The other two Emergency Budget proposals include:

• Help firms manage the impact of rising energy prices by cutting VAT on their energy bills from 20% to 5% for a minimum of one year.
• Address labour shortages by reinstating free Covid tests for companies to ease the strain on productivity caused by persistent high absences

Photo credit: Getty Images/Chamber Canva Pro usage 2022

Commenting on the ONS Labour Market statistics for May 2022, BCC Head of Economics, Suren Thiru, said:  

“Although payroll employment continues to rise and the unemployment rate is falling, the headline figures more reflect several distorting factors, including rising economic inactivity, rather than the reality on the ground. 

“Record jobs vacancies highlight the perilous hiring crunch facing businesses. With rising economic inactivity confirming that the UK workforce is shrinking, labour shortages are likely to persistently drag on UK growth by stifling firms’ ability to operate at full capacity. 

“Although total earnings growth rose sharply, the robust headline figure more reflects strong bonus payments rather than a meaningful improvement in underlying wage growth. Despite recruitment difficulties, the damage to firm’s finances from soaring inflation and rising national insurance will limit the extent to wages can continue rising.  

“While demand for workers is currently strong, the squeeze on firms’ finances from soaring energy bills, surging inflation, and the increase in national insurance is likely to weaken recruitment intentions and weaken wage growth in the near term. 

“An emergency budget is urgently needed to give firms the breathing space to recruit and retain staff, including reversing the recently introduced National Insurance increase until at least the next financial year.” 

Responding to the details of the Government’s legislative plan set out in today’s Queen’s Speech, Shevaun Haviland, Director General of the BCC, said:  “Today’s Queen’s Speech had some welcome measures for business, but unless the Government takes immediate action on the economy, they will come too late to help many firms.  “An emergency budget is needed to provide firms with the breathing space they need to raise productivity and strengthen the economy.  “The costs crises facing firms and people in the street are two sides of the same coin. If we can ease the pressure on businesses then they can keep a lid on the price rises being driven by surging energy bills, staff shortages and higher taxes.  “Only after an emergency budget will some of the legislation set out in the Queen’s Speech have a chance to drive our economy forward.  “Businesses will then be able to focus on supporting the missions set out in the Levelling Up and Regeneration Bill, as well as reaping the benefits from the infrastructure programmes outlined today. However, to really speed up delivery of infrastructure projects, much wider reform of the planning system is needed to speed up the process and reduce complexity.  “The Higher Education Bill gives a welcome commitment to create a flexible lifelong loan entitlement that allows adults to upskill and reskill for the changing workplace. Funding for modular learning is crucial to help people gain technical skills and ensure employers can access a skilled workforce.   “The Brexit Freedoms Bill has the potential to unlock innovation and expansion in a range of new and developing technologies, especially the expanding world of Net Zero products and services.  “We will want to look closely at how any changes will help business domestically but also their impact on our trade links and exports with the EU.  “What we don’t want to see is deregulation for its own sake. We should not complicate our trading relationship by diverging so far it makes UK goods and services unsellable into Europe. 

The British Chambers of Commerce is calling for an immediate emergency budget to deal with the costs crises facing businesses and people throughout the country. It has developed a three-point action plan that would allow firms to keep a lid on rising prices, boost productivity and ease cost pressures. The proposals include:

• Ease upfront costs of doing business by reversing the recently introduced National Insurance increase until at least 2023/24.
• Help firms manage the impact of rising energy prices by cutting VAT on their energy bills from 20% to 5% for a minimum of one year.
• Address labour shortages by reinstating free Covid tests for companies to ease the strain on productivity caused by persistent high absences

Together the three steps would take the pressure off businesses that are battling to keep the economy afloat and offer a route to higher productivity and tax receipts in the future. Shevaun Haviland, Director General of the BCC, said:  “These are simple, straightforward measures that can be quickly reversed when the economy is in better shape. “The Treasury and HMRC have proven their ability during the pandemic to implement similar changes quickly and efficiently. Making these changes would have an immediate benefit for both businesses and the public. “The costs crises facing firms and people in the street are two sides of the same coin. If we can ease the pressure on businesses then they can keep a lid on the price rises being driven by surging energy bills, staff shortages and higher taxes. “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 immediately then rising costs will put our economic recovery in a stranglehold that will have repercussions for years to come. “The government has a variety of financial levers it can pull, and this is the time to use them. Acting today will then give businesses a chance to create the future profits needed to fill tax coffers.” The measures in more detail:

• Postponing the rise in National Insurance Contributions would not only ease the immediate pressure on companies’ balance sheets but it would also put money back into the pockets of people – boosting consumer confidence. When supply chain disruption has unwound and global factors influencing inflation have receded the economy will then be in a much stronger position to bear the increase.
• Cutting VAT on business energy bills to 5%, for all businesses, would provide another quick release valve on soaring costs for firms. For example: a small business which has an energy bill of £10,000 and currently pays the standard 20% rate would pay £2,000 VAT. Our proposal would see that cut to £500. This measure could be adjusted over time to take account of those sectors most in need.
• Many businesses in the UK are still seeing above average absence rates as Covid continues to impact the workforce. Around two thirds of more than 1,100 firms surveyed in April by the BCC reported staff absences due to Covid symptoms or self-isolation. Bringing back free testing would allow firms to limit the disease’s spread among employees. With wider structural staff shortages continuing to limit productivity this would be a key measure to keep the economic recovery on track.  New sub-variants of Omicron are reportedly leading to rising infection rates in the US and South Africa.

Our Biker Breakfast Co.llaboration with Westcotec has been in the diary since spring 2020, so it was only fitting that two years later this long-awaited event could finally happen under glorious sunshine at the beautiful Barnham Broom Hotel. The breakfast started with networking, teas, and coffee amongst an array of helmets and chatter. Chris Sargisson, Norfolk Chambers CEO welcomed our guests and explained that “this event is an opportunity for us to say thank you, where thank you is needed to be said. The Biker community stepped up to the challenge during the pandemic and showed genuine community spirit, supporting the NHS, care homes, and delivering to those in need”. Chris Spinks, CEO of Westcotec said, “We’re proud to sponsor the biker breakfast event and work in Co.llaboration with Norfolk Chambers”. Chris spoke of his previous career within the Norfolk and Suffolk Constabulary and seeing firsthand the results of not following road safety. We also heard from Andy Lawer, part of the Safe Rider Scheme within the Norfolk Constabulary.  Andy spent 20 years riding Police bikes in London, before moving to Norfolk. He has worked for NATO, escorting PMs and dignitaries, and members of the royal family.   He spoke of the superb training he received as an advanced rider and elements of the role, “it’s about educating riders and talking, and asking if they (the riders) can see, that what they are doing isn’t right”. “We take the guidelines we’re given, we pass them on to the public and it makes people safer on the road. Above all, we want people to thoroughly enjoy riding, and then get home safe”.   Following a delicious breakfast, we heard from Lydia McClintock, Manager of Infinity Norwich. Lydia talked of the improvements and developments to safety rider wear, showing examples with new custom clothing, and grading standards, and talked of new certifications coming into play to enhance rider safety. Our event charity was Nelson’s Journey, with guest speaker Gary Stevens. Nelson’s Journey is an incredible charity. Nelson’s Journey supports children and young people in Norfolk who’ve experienced the death of a significant person. We provide a range of resources and services, and accept referrals from families and professionals for those who may need our support. Since 1997, Nelson’s Journey has helped thousands of bereaved children and young people in the county. It is thanks to the tremendous support of our local community that our work is possible. Finally, Tim James, Design and Development Engineer at Westcotec closed the event, with a run-through of the route back to Norwich. The 90km route included stops at Lings Triumph, Seastar Superbikes and C J Ball Honda & Suzuki.  

We were delighted to be part of the launch of Thetford’s Business Awards launch. This prestigious event is now in its third year. The Launch was a Co.llaboration with the Award Founders and the Norfolk Chambers, and held on April 21st and hosted at the award-winning Thomas Paine Hotel in Thetford. The hotel is reputed to be the birthplace of Thomas Paine the celebrated free thinker and campaigner of the 18th century who wrote the Rights of Man, on which the American Constitution is based. The evening of canapes and Co.nnections was a celebration of this year’s launch, with guest speakers Daniel Mayhew and Matt Morton. Daniel started his career in sales in the mobile phone industry. He quickly became successful by the age of 20. In the years to follow, Daniel became a worldwide leader with Fintech & Ecommerce Eco-System.  Working for UK, Israeli, American, and other international businesses, specialising in Cross Border Payments, E-Commerce, GTM Strategy, and Commercialisation. and, an experienced entrepreneur specialising in sales, relationship management, and strategy. His career boasts a successful track record across both ideation & implementation helping brands to achieve huge growth in the health, fitness, sports & technology industries. In his early career, he cut his teeth working for some of the biggest brands in their field such as Grant Thornton and Life Fitness but where he really excelled and thrived was the fast-paced and creative world of start-up & SME. Matt is an experienced entrepreneur specialising in sales, relationship management, and strategy. His career boasts a successful track record across both ideation & implementation helping brands to achieve huge growth in the health, fitness, sports & technology industries. In his early career, he cut his teeth working for some of the biggest brands in their field such as Grant Thornton and Life Fitness but where he really excelled and thrived was the fast-paced and creative world of start-up & SME. He has set up, scaled, and managed sales teams both locally and globally. Our Connector, Andrea Wilson, Account Manager and Energiser, Amy Wright, Events Manager attended and networked with local Breckland businesses and Chamber members. With thanks to Gez Chetal FMBII, Executive Director of the Thomas Paine Hotel and his staff for a very warm welcome and incredible hospitality.   All photographs are credited to Thetford Photography  www.thetfordphotography.co.uk

• 4 out of 5 (78%) firms that attempted to recruit facing difficulties in finding staff
• Hospitality, construction, logistics and manufacturing firms most likely to report difficulties (80% or higher) but all sectors have significant issues
• Smaller firms reporting increasing wage pressures are making it harder to compete for staff

Latest figures released today by the British Chambers of Commerce show the pressure on firms struggling to recruit staff remains at record high levels. The data for the leading business group’s Quarterly Recruitment Outlook survey for Q1 2022 was drawn from a survey of 5,500 businesses.  Attempted recruitment in Q1 was down slightly with 60% looking to recruit staff (64% in Q4). However, the proportion of firms reporting difficulties filling roles remains at a historical high at 78%, dropping just one percentage point from the previous quarter (79%). The hospitality sector was facing the most challenging recruitment issues, with 85%, reporting difficulties, up from 83% in Q4 2021. This was closely followed by construction on 83%, logistics on 81% and manufacturers at 80%. Retail and wholesale firms were the least likely to report difficulties at 69% but the proportions of firms that cannot find the staff they need remains worryingly high. Views from Business Firms reported a broad range of issues which contributed to the overall recruitment squeeze – this included disruption due to Covid and a drop in the availability of foreign staff. More firms are also reporting that wage competition is proving disruptive. “We are finding it difficult to recruit all levels of staff. Applicants are able to choose between several employers as we are all chasing the same people. They feel we are on the edge of the Midlands but still expect Wolverhampton / Birmingham salaries.” Medium sized professional services firm in Shropshire “We are prepared to pay more for the right people, but there just seems to be no one to employ. If we cannot get staff our service slips drastically because we don’t have enough people to serve our customers.” Micro hospitality firm in Scotland Responding to the findings, Head of People Policy at the British Chambers of Commerce, Jane Gratton said: “It’s now harder than ever for businesses to fill job vacancies and there are no signs of improvement.   In an increasingly tight labour market, competition for skills is ramping up wage costs, leaving many firms unable to recruit the people they need. “When combined with the escalating price of energy, shipping, raw materials and other costs, it is a precarious situation for businesses.  Inevitably, it is the smaller firms, with little in the way of cash reserves after two years of pandemic, who are most exposed to the risk all this presents. “The UK government needs to take concrete action to address labour shortages as they are a key factor in the economy’s stuttering recovery. If firms cannot get the people they need then productivity and revenue are two of the first casualties. “Government must also ensure that people can access rapid retraining opportunities for in-demand jobs at all skill levels in the workforce.  At the same time, where there is clear evidence of national shortages damaging the economy, we need temporary visas for hard working people willing to come to the UK to work in the essential every-day roles that we all rely on. “Businesses are investing more in developing home grown talent – and creating a more inclusive and diverse workforce – but this won’t solve pervasive skills shortages overnight.  Right now, the priority has to be to improve access to skills and ease the wider cost pressures facing business.”  

• Proportion of UK exporters reporting increased export sales (29%) was largely unchanged for the 4^th quarter running
• Proportion reporting decreased sales historically high at 25%, also little changed since 1 year ago in Q1 2021
• Exporters more likely that non-exporters to expect increases to their prices in coming months

A survey of over 2,700 UK exporters has revealed that export sales growth has been effectively stagnant for the past year. The BCC’s quarterly Trade Confidence Outlook showed the proportion of exporters reporting increased overseas sales to be unchanged from Q4 at 29%, while those reporting a decrease rose 1 point to 25%. The data showed that manufacturers were more likely to report increased export sales than either business to business service firms (such as lawyers or accountants) or business to consumer service firms (like online clothing stores). In past 3 months exports sales have… Exporting manufacturers Exporting B2B Services Exporting B2C Services Increased 32% 26% 26% Remained constant 42% 56% 42% Decreased 26% 17% 32% Conversely, B2B service exporters were more likely than either manufacturers or B2C service exporters to expect profitability to increase in the coming year. Over the next 12 months, do you believe your profitability will… Exporting manufacturers   Exporting B2B Services   Exporting B2C Services   Increased 44% 55% 45% Remained constant 29% 29% 30% Decreased 27% 16% 24% Responding to the findings, Head of Trade Policy at the British Chambers of Commerce, William Bain said: “This data confirms our concerns – that for the last year there was a broadly flat picture for UK exports. This is in contrast with the performance of our near neighbours, with Germany’s exports both within and outside the Single Market steaming ahead by double digit margins and with trade losses from the pandemic already effectively recovered. “UK exporters are facing the headwinds of higher red tape costs from trading with the EU, raised raw material pressures, and ongoing issues in global shipping markets. If we are to realise the aspirations of the UK Government’s Export Strategy then 2022 has to be the year where these structural factors holding back our exporters are addressed. “Sustained export growth should be powering our economic recovery from the pandemic. Chambers and their members are already working hard to increase exports but need more substantive measures from Government now.”