Yesterday the UK announced the following sanctions against Russia:
Asset freeze on major Russian banks
Legislation banning Russian govt & companies from raising money in UK
More oligarchs sanctioned
Sanctions on major Russian companies including Rostech
Aeroflot ban
Ban on high tech exports to Russia
Limiting deposits Russians can hold in UK bank accounts
Bringing forward parts of economic crime bill
Hannah Essex, Co-Executive Director at the British Chambers of Commerce, said: “With the dreadful news coming out of Ukraine today, all of us at the BCC hope there will soon be a peaceful resolution. Our thoughts are with all those affected in Ukraine and across our Global Network. “The situation in Ukraine will be deeply worrying for many businesses in the region as well as here in the UK. International leaders must focus on seeking a swift resolution to end the invasion and return to peace. “The British Chambers of Commerce will work closely with the UK government to ensure that businesses have all of the advice, information and support they need to make decisions, adapt to these circumstances and navigate the challenging times ahead.” On the impact on trade and the economy, William Bain, Head of Trade Policy, said: “Alongside the enormous human cost, the Russian invasion of Ukraine will create a significant shock to the world economy by weakening global demand, damaging international financial markets and adversely impacting the UK economy. “The UK energy market has a lot less direct exposure to Russian gas supplies than most of Europe. But, as the global market is already tight, a scramble to source supplies will very likely result in further rises to prices in the UK. “There is also a risk of further disruption to global supply chains, particularly those crossing through Russia and Ukraine, with closure of air space likely to have a significant impact on the movement of goods and people. “The cumulative effect of all of this will likely be higher imported inflation and weakening trade flows. “There could also be some supply chain disruption to manufacturers if some items cannot be exported in the event of hostilities and alternative supply sources cannot easily be obtained. This would inevitably further increase cost pressures and limit economic activity.” UK-Ukraine Trade Trade between the UK and Ukraine to the year-end of Q2 2021 was £1.6bn in total. Four fifths of this is in goods – with imports of iron and steel (about a quarter of all Ukrainian goods imports to the UK), cereals and grains (22%), vegetable oils and fats (15%), oil-seeds/oleaginous fruits (14%), and animal feed (3%). Key U.K. exports to Russia are machinery, nuclear reactors, boilers ($743m in 2020), vehicles ($504m in 2020), pharmaceuticals ($293m), electrical & electronic equipment ($153m).
Responding to the Prime Minister’s statement to Parliament on the ‘Living with Covid’ strategy, BCC Co-Executive Director, Claire Walker, said: “Businesses will welcome the ambition of the Prime Minister, which inches us closer to pre-pandemic trading conditions. However, for many firms, this move will not be without its challenges and Government must not pass public health decisions on to the business community, who are not public health experts. On testing “Members continue to tell us that access to free testing is key to managing workplace sickness and maintaining consumer confidence. If the government is to remove this, companies must still be able to access tests on a cost-effective basis. New Guidance “We look forward to consulting with Government to help shape the new guidance for businesses that will be developed. It is critical that a variety of issues and scenarios be fully addressed by this. Businesses need clarity if they are to operate at maximum capacity, as well as keep consumers and employee’s confidence high. Future outbreaks “Businesses also need to understand how Government will respond to further variants of concern – or indeed a future pandemic – and what support would be put in place if new guidance or mandatory restrictions are introduced that have a negative impact on the economy. “Firms will only truly be able to ‘Live with Covid’ when they are confident that a plan is in place for future outbreaks. Uncertainty will put a brake on investment and the shadow of the pandemic could continue to loom over our economy for some time to come.”
Commenting on the inflation statistics for January 2022, published today by the Office for National Statistics, Head of Economics at the BCC Suren Thiru, said: “Rising inflation highlights both the cost-of-living crisis facing households and the uphill struggle for businesses to keep a lid on price rises amid surging cost pressures. “While the headline annual figure remains at a 30-year high, the decline in monthly inflation in January offers some hope that we may be nearing the peak in the current spike in inflation. “Inflation should peak at over 7% in April as reversal of the hospitality VAT cut and the energy price cap rise enters the calculation. However, the current Russia-Ukraine tension could keep inflation higher for longer by triggering a further surge in wholesale energy costs. “Rising inflation could well be a significant drag anchor on UK economic output this year by weakening consumer spending power and damaging firms’ finances and ability to invest. “Increasing inflation means that a March interest rate rise is expected. However, tightening monetary policy too quickly risks undermining confidence and the wider recovery and will do little to curb the global factors behind the current inflationary surge. “More needs to be done to limit the unprecedented rise in costs facing businesses, including financial support for those struggling with soaring energy bills and delaying April’s National Insurance rise.” Photo credit: Getty Images/Chamber Canva Pro usage 2022
71% of exporters say EU trade deal is not enabling them to grow or increase sales
Only 1 in 8 exporters think it is helping them grow or increase sales
Majority think it has pushed up costs, increased paperwork and delays, and put the UK at a competitive disadvantage.
New research* carried out by the British Chambers of Commerce of more than 1,000 businesses has highlighted a host of issues with the UK’s trade deal with Europe. The BCC believes urgent steps should be taken to address these problems so the UK Government’s ambition to increase the number of firms exporting can be met.Overall, just 8% of firms agreed that the Trade and Co-operation Agreement (TCA) was ‘enabling their business to grow or increase sales’, while 54% disagreed. For UK exporters 12% agreed that the TCA was helping them while 71% disagreed. When asked to comment on the specific advantage (for those that agreed) or disadvantage (for those that disagreed) of the trade deal, 59 firms identified an advantage, while 320 cited a disadvantage. Of the 59 comments received on the advantage of the TCA, firms said:
It had allowed some companies to continue to trade without significant change
It had encouraged firms to look at other global markets
It had provided stability to allow firms to plan.
Of the 320 comments received on the disadvantage of the TCA, firms said:
It had led to rising costs for companies and their clients
Smaller businesses did not have the time and money to deal with the bureaucracy it had introduced
It had put off EU customers from considering UK goods and services – due to the perceived costs and complexities.
This follows BCC research in October 2021, which found that 60% of exporters were facing difficulties adapting to the changes from the TCA on goods trade, while 17% found the changes easy. Reacting to the findings, William Bain, Head of Trade Policy at the BCC, said: “This is the latest BCC research to clearly show there are issues with the EU trade deal that need to be improved. Yet it could be so different. There are five relatively simple steps that UK and EU policymakers could take to ease the burden placed on businesses struggling with the trade deal. “Nearly all of the businesses in this research have fewer than 250 employees and these smaller firms are feeling most of the pain of the new burdens in the TCA. “Many of these companies have neither the time, staff or money to deal with the additional paperwork and rising costs involved with EU trade, nor can they afford to set up a new base in Europe or pay for intermediaries to represent them. “But if both sides take a pragmatic approach, they could reach a new understanding on the rules and then build on that further. “Accredited Chambers of Commerce support the UK Government’s ambition to massively increase the number of firms exporting. If we can free up the flow of goods and services into the EU, our largest overseas market, it will go a long way to realising that goal.” The BCC’s five key issues, and the solutions needed, to improve EU trade are: ISSUE: Export health certificates cost too much and take up too much time for smaller food exporters. SOLUTION: We need a supplementary deal on this which either eliminates or reduces the complexity of exporting food for these firms. ISSUE: Some companies are being asked to register in multiple EU states for VAT in order to sell online to customers there. SOLUTION: We need a supplementary deal, like Norway’s with the EU. This exempts the smallest firms from the requirement to have a fiscal representative and incur these duplicate costs. ISSUE: As things stand CE marked industrial and electrical products will not be permitted for sale on the market in Great Britain from January 2023. The same is true for components and spares. SOLUTION: We need action from the Government to help businesses with these timelines. Many firms are far from convinced about a ban on CE marked goods in Great Britain. ISSUE: UK firms facing limitations on business travel and work activities in the EU. SOLUTION: Government needs to make side deals with the EU and member states to boost access in this area as a priority for 2022. ISSUE: Companies starting to be pursued in respect of import customs declarations deferred from last year. SOLUTION: We need a pragmatic approach to enforcement to ensure companies recovering from the pandemic do not face heavy-handed demands too quickly on import payments, or paperwork. Photo credit: Getty Images/Chamber Canva Pro usage 2022
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 previous quarter’s QES showed that Norfolk’s economic recovery had stalled in the fourth quarter of 2021 and firms were facing unprecedented inflationary pressures.
65% of Norfolk firms expect their prices to increase in the next three months and 78% of businesses cited inflation as a concern
1 in 4 (27%) Norfolk manufacturing firms were worried about rising interest rates, as concerns over rate hikes reach record high
Just over half of Norfolk firms (47%) reported increased domestic sales in Q4, compared to 45% in Q3
13% of Norfolk firms reported increases in export sales orders, compared to 17% in Q3
The QES only take a couple of minutes to complete – it is anonymous and your support would be greatly appreciated. The QES Q1 is open for responses until midnight on Monday 07 March 2022. Take part in the QES now. Photo credit: Getty Images/Chamber Canva Pro usage 2022
A brand-new concept for business professionals under 35 was launched on Wednesday 9th February 2022. The Co.next concept was launched; a brand new initiative aimed at empowering, engaging, and encouraging the next generation of business professionals. This was the first opportunity for the Norfolk business community to hear more about the programme and share their thoughts on how this will be shaped going forward. Co.next has been created by The Norfolk Chambers of Commerce to provide a structured, inclusive, collaborative, vibrant, and Norfolk-wide approach to support working professionals and future leaders 35 and under with appropriate, engaging, networking events and knowledge hubs. Chaired by James Groves of Indigo Swan, the board supporting this initiative consists of a range of passionate business leaders, who are on a mission to help shape the next generation of business support. The board consists of Chris Sargisson from The Norfolk Chambers of Commerce, Rebecca Headden from R13 Recruitment, Stokely Howard from Trendy Grandad Creative Agency, Warren Salmons from Morgan Sindall, Kerry-Anne Lyme from Larking Gown, and Alex Sellers from Turning Factor. They are backed by an advisory board of seven dedicated under 35s, who will provide a continuous feedback loop and guidance as to how to ensure the concept stays relevant. The event saw over 90 attendees of all industries and backgrounds. Presentations were delivered by James Groves, Rebecca Headden, and Stokely Howard, followed by an in-depth Q&A with the board. There was a wide mix of feedback and ideas from the audience, which will be used to shape and grow the concept moving forward. Mark Juniper of Ascott Lloyd says, “It was a great event and well organised. I really enjoyed it and the buzz in the room would have given you an idea that all the rest of the attendees did as well.” Grace Appleby of Yawn Marketing says, ‘It was an amazing atmosphere; to be in a room with people who feel so passionately about the same case – promoting and empowering young professionals – was electric”. As part of this offering, The Norfolk Chambers of Commerce has been working in collaboration with Stokely Howard from Trendy Grandad Creative Agency to deliver the highly successful GEN-E events. These are dynamic networking events for under 35s in Norfolk, each of which has seen an incredible response, the last of which sold 100 tickets in one hour. Photo credit: Norfolk Chambers
Apprentice of the year – Intermediate and Advanced Level (Level 2/3) An apprenticeship isn’t just a qualification! Co.ngratulations Sam! We’re so proud of Sam’s journey with us here at the Norfolk Chambers of Commerce! Sam completed an apprenticeship in Business Administration, whilst being thrown in at the deep end in his role within our busy International Trade Department throughout Brexit. The training can be trying and complicated, but Sam worked brilliantly and we are thrilled to see his hard work is being recognised through this award! Meet Sam
Our CEO, Chris Sargisson was proud to be on the panel of Judges for the Broadland and South Norfolk Business Awards. They received an excellent number of nominations, and are delighted to announce the finalists for 2022. Congratulations to all finalists and thank you to everyone who put their business forward for an award, or nominated their favourite retailer. You can read more on the Business Awards and view the full list of finalists here
Responding to the publication of the Levelling Up White Paper, Shevaun Haviland, Director General of the British Chambers of Commerce, said: “This is an important first step in putting local economic prosperity at the heart of Government policy. This step though, must now rapidly become leaps and bounds. Business communities are keen to see the ambitions of this agenda turn into delivery in the very near future, improving prosperity around the country. “We are pleased to see policies the Chamber Network has long campaigned for – such as UK-wide infrastructure reaching London standards, widespread 5G internet, local skills planning and devolution of funding decisions to the local level – take real significance and be enshrined in law. “What must now follow is the detail on the role local business leaders will have in oversight and delivery of the missions laid out. Where necessary, additional funding must be made available in order to drive change. Government must not forget the role that local businesses play in creating opportunity and prosperity in their communities, and should continue to work with British Chambers of Commerce and others to identify further ways to improve the business environment and enable more firms to grow and thrive.” On Devolution “Chamber business communities across England support greater devolution. The centralisation of money and decision making in Whitehall continues to be a brake on cities, towns and counties that are keen to realise their potential. However, businesses only want to see devolution with purpose – not just devolution for its own sake. “Devolution must be shaped by business knowledge of local and regional needs, and be accountable to local businesses and communities. It is vital that time and energy spent on structural changes results in the acceleration of genuine uplifts to prosperity in our regions and nations. On Funding Allocation “Government has heeded our calls to streamline the variety of funding pots and will be taking a more strategic approach to funding. Accredited Chambers would like to see local areas receive larger funds to use within a strategic framework and given greater autonomy to use it to address areas of greatest challenge or opportunity in their local communities over the long term. Commenting on the White Paper, Chris Sargisson, Chief Executive of Norfolk Chambers said: Norfolk Chambers welcomes the ambitions and strategic timescales that underpin the 12 missions in the Levelling Up White Paper. “We certainly appreciate the decade-long range of the proposals, as this gives our business community greater confidence that Levelling Up is a serious and strategic reset. “We are also pleased to note that the East of England has not been lumped in with the largely affluent London and south east regions, as that allows Norfolk and neighbouring counties opportunities based on the realities we face, which are not always understood on a Whitehall spreadsheet. “If Norfolk is given its fair share of these investments, then the county will truly be able to make a catalytic and enduring contribution to long-term national prosperity due to our incredible strengths in renewables, ports and logistics and the broader land-based economy. “To do this, Norfolk needs proper investment in the required infrastructure and skills to unlock our full potential. The prospect of a County Deal, with more powers being exercised locally rather than from Whitehall could be a game-changer in accelerating Norfolk’s productivity drive and by releasing the full economic and social potential of our communities. We very much look forward to working with the county’s public sector partners to support the design of a county deal, and to bring the business voice to the table to ensure that the needs and aspirations of companies are understood so together we can put the best case possible to government for these spending freedoms.”
Responding to the Chancellor’s announcement on the cost-of-living crisis, Hannah Essex, Co-Executive Director of the BCC, said: “While assistance for households is welcome, businesses will be dismayed at the lack of support for those firms also struggling with their energy bills. Many have already been hit by steep rises, with further significant spikes expected as existing fixed tariff contracts come to an end in the coming months. “Smaller firms are particularly exposed as they have neither the protections or financial support provided to households, nor do they have the negotiating power of larger businesses. “Without action, soaring energy bills will force many firms to raise prices further which will, in turn, fuel the cost-of-living crisis for consumers and further drive surging inflationary pressure. “The Government should expand of the Chancellor’s rebate and clawback scheme for households to include small firms, as well as delay the impending National Insurance rise. These steps would give firms a better chance to weather the current storm without needing to pass costs through to consumers in the form of price rises.”