Chamber News

William Bain, Head of Trade Policy at the British Chambers of Commerce, said: “Business will welcome an Agreement in Principle between the UK and New Zealand covering trade in goods and services. “We particularly welcome the intention to agree comprehensive chapters on market access, labour mobility and professional qualifications, digital trade, and green goods and services. In the year prior to start of the pandemic, the UK had a £366m surplus in services trade with New Zealand, with particular strengths in insurance, pensions, travel, communications, other financial services and intellectual property. “New Zealand-UK trade is currently between £2-3bn per annum. When this agreement is translated into a final free trade agreement it should provide new opportunities for UK exporters as well as resulting in some small falls in the price of New Zealand wine and other goods imports. “UK road vehicles, pharmaceutical and other manufacturing exporters will welcome these improved trading terms, with cars accounting for a fifth of all UK goods exports to New Zealand. The agreement on green trade also has the potential to set a new benchmark on a commitment to sustainability within free trade agreements globally. “We look forward to engaging with the UK Government and the New Zealand Ambassador in the final stages of these negotiations and to giving our views on the draft text at the earliest opportunity.” Photo credit: Getty Images/Chamber Canva Pro

Intensive discussions between the UK government and the European Commission will begin over the Protocol on Ireland/Northern Ireland. The Cabinet Office Minister, Lord Frost CMG gave a speech in Lisbon on Tuesday seeking the replacement of the Protocol. On Wednesday, the Commission published four papers on customs, agri-food, medicines and governance on the arrangements between GB and NI, seeking to reduce checks on customs and goods movements. We will be seeking engagement with both the UK government and the Commission given the importance of this issue in NI and also in relation to the entire UK-EU trading relationship and terms. Further briefings are to follow. The latest ONS UK trade data was published yesterday. While there was a modest rise in UK goods exports to the EU in the three months to August compared with the three months to May, exports are around £2 billion less this August, than in August 2018. Read our comments on the data. The ONS has also published the regional trade in goods data for Q2 2021 with a new methodology. Click here to find out more. The Department for International Trade (DIT) has launched a consultation on a prospective trade deal with the Gulf Co-operation Council countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE). Responses are welcome, until Friday 14 January,  here to the following questions. We hope to organise an engagement event on the consultation with DIT officials in due course. The Chamber took part in a discussion with the Cabinet Office last week chaired by Michael Ellis, the new Paymaster General. There was a packed agenda around mutual recognition of professional qualifications, services access, business travel and short term visas in the EU. We discussed legal services, financial services, architecture, auditing & accountancy. Please let us know of those cases where your members are finding services trade with customers in the EU difficult since January As discussions on trade and fossil fuel subsidies in Geneva move quickly towards the WTO 12th Ministerial Council, G20 Trade Ministers reached an accord on WTO reform, health, trade in services and sustainability at the summit in Sorrento this week. The Department for International Trade also announced further details and speakers for its Global Investment Summit on Tuesday 19 October in London and Windsor.

Launched on 22 September 2021, the project supports micro, small and medium-sized businesses to develop digital technology tools through funding and one to one support and continues a successful pilot conducted in early 2021.

Go Digital is delivered by Norfolk County Council, in partnership with local district authorities, to help businesses based in the county identify digital opportunities. It will provide expert one-to-one consultancy and the ability to apply for grants of up to £500. Digital opportunities could include how to sell products and services online, reach new customers using social media, build customer databases, develop new or existing websites and attract new visitors, or how to work out the best homeworking options for teams. Successful Go Digital applicants will be assigned an experienced business advisor who will conduct a ‘digital audit’ and provide a comprehensive report to identify digital opportunities. The advisor will help the business put together an action plan and then businesses will have the opportunity to apply for a grant of up to £500 to help them deliver projects using this plan.

Businesses can find out more and apply on the Norfolk County Council website at www.norfolk.gov.uk/GoDigital.

The funding for 600 additional spaces on Go Digital has been enabled by the Interreg EU funded C-Care Project. C-Care project is a cross border France – England project, aiming to support people and businesses to recover from the impact of the Covid pandemic.

If you have any enquiries about the scheme, please contact the NNDC Economic Growth Team.

A campaign is currently underway to raise awareness of the continued need to fully dual the A47.

It is vital for our county’s economic growth that we clearly demonstrate that Norfolk is ‘open for business’.  From tourism to logistics; energy and manufacturing; to research and agriculture; all sectors across our region rely heavily on the A47, as our main artery East to West and onwards to the Midlands.  Improvements to this route are vital to help us to remain accessible and competitive. 

Commenting on the need to fully dual the A47, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said:

“The full dualling of the A47 is a ‘must have’ for Norfolk Chambers and the wider business community in order to deliver greater economic growth and jobs in this region. 

“The passion and commitment of our business community to achieving a fully dualled A47 is clear and the economic benefits are evident – a fully dualled A47 is a necessity, not a want.”

The ‘Just Dual It’ campaign has been revitalised and Norfolk Chambers is calling on the business community to demonstrate their support and to articulate the benefits that a fully  dualled A47 would have on their businesses. 

At present, further A47 improvement works, including the dualling of the Acle Straight and the Tilney to East Winch stretch, have not been included in the next Road Instructure Strategy (RIS2) funding.  Therefore we need the continued support of the Norfolk business community to help lobby and influence Ministers and the Department of Transport.

Please send your business support quotes, preferably together with a head and shoulders image to be part of the Just Dual It to : [email protected] and [email protected]. 

On Wednesday 13 October the A47 Alliance are doing a digital takeover please add your support quotes to social media, using the hashtags: #JustDualIt and #JustFundIt.

• Business activity improving as more Norfolk firms report increased domestic sales (45%)
• Inflation expectations hit record highs as 59% of Norfolk manufacturers expect their prices to rise in the next three months
• 16% of Norfolk firms reported a decrease in cashflow, with a further 45% seeing no improvement
• Investment lagging the wider recovery as 12% reported a decrease and 56% no change
• Nearly two thirds (60%) of Norfolk respondents cited inflation as an increased cause of concern

The BCC’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – has shown that while businesses continue to recover from the deepest recession on record, persistent weakness in several indicators highlight concerns over the strength of the recovery.

The survey of over 5,700 firms, including those from Norfolk, showed that some indicators, such as domestic sales and orders improved in Q3. However, it also revealed stagnation in the proportion of firms reporting improved cashflow and increased investment. Worryingly, firms’ expectations of price increases and fears about inflation are hitting record levels. 

Business activity:

45% of respondents overall reported increased domestic sales in Q3 (compared to 43% in Q2), while 16% reported a decrease (10% in Q2). 

In the services sector, the balance of firms reporting increased domestic sales dipped slightly to +45% in Q3 from 47% in Q2. The balance of services firms reporting increased domestic orders rose to +48% in Q3,  up from +35% in Q2. 

In the manufacturing sector, the balance of firms reporting increased domestic sales was +45% in Q3, an increase from +33% in Q2. The balance of manufacturers reporting increased domestic orders rose to +24% in Q3, from +13% in Q2      

Firms in the hospitality sector were most likely to have seen increased domestic sales as restrictions eased, with nearly 2 in 3 (63%) reporting as much. This was followed by transport/distribution, and marketing/media, both on 50%.  

Cash Flow:

39% overall reported increased cash flow in Q3 (compared to 27% in Q2), much lower than the percentage of firms who reported a rise in domestic sales (45%).  

16% of firms reported a decrease in their cash flow, while 45% reported no change. Given the dramatic worsening of cash flow at the onset of the pandemic in Q2 2020, the failure to see any significant increases in this metric is a cause for concern. 

Micro (28%) and small (20%) businesses were also more likely than medium (17%) or large (12%) businesses to report a decrease in cash flow in the quarter. 

Investment:

28% of firms overall reported an increase in investment in Q3 (nearly unchanged from Q2 at 29%), far lower than the percentage of firms who reported a rise in domestic sales (45%). The failure to see any positive upward movement in investment is another troubling warning sign for longer term recovery. 

Meanwhile, 14% of firms reported a decrease in investment in Q3, and a further 58% said they had seen no change.  

Inflationary Pressures:

51% reported overall expect their prices to increase over the next three months (46% in Q2) with just 1% expecting prices to decrease (unchanged from Q2). 

In the services sector, the balance of firms reporting expecting to increase their prices rose to +48% in Q3, up from +38% in Q2.

In the manufacturing sector, the balance of firms expecting to increase their prices rose to +59% in Q3, down from +74% in Q2. 

60% of respondents cited inflation as an increased cause of concern (40% in Q2). 64% for manufacturers (46% in Q2) and 57% for service sector firms (44% in Q2). 

95% of manufacturers cite raw materials costs as the driver of price increases.  

In contrast, just 33% of manufacturers cite pay settlements as a driver of price increases, still below its pre-pandemic level. 

Within the survey, firms provided details of the wide range of inflationary pressures on their business, such as 150% increases to some steel products, and 600% increases in shipping containers 

Comment:

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“”Our latest data indicates a disappointingly modest uptick in economic activity in the third quarter as the boost from the end of restrictions was increasingly stymied by supply and staff shortages and rising cost pressures. 

“The key services sector recorded the strongest improvements as consumer-focused firms, including hotels and hospitality, received the biggest boost from the easing of social distancing restrictions. Manufacturers saw more limited gains as increasingly severe supply chain disruption stifled their ability to fulfil orders and meet customer demand.   

“The results point to an underwhelming three months for business investment as the damage done to firms’ cash flow by the pandemic and growing concerns over a more burdensome tax regime squeezed investment intentions. 

“Acute supply shortages and rising raw material costs drove an historic surge in inflationary pressures in the third quarter. However, with little evidence in our figures that higher inflation is stoking a broad-based escalation in pay settlements, the MPC should have enough leeway to keep interest rates steady over the medium term.  

“Though the UK economy remains on track for moderate growth in the third quarter, with staff and supply shortages increasingly having a suffocating effect on economic activity and price pressures intensifying, a spell of stagflation maybe inevitable.”  

Commenting on the finding, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said:

“The supply chain crisis, alongside wider labour shortages and spiralling price rises, is clearly starting to drag on Norfolk’s economic recovery from Covid-19. 

“Our businesses are being battered by a deluge of up-front cost pressures, including huge increases in the prices of key raw materials and shipping, as well as now facing a rise in National Insurance Contributions. At the same time, they are losing out on opportunities for growth due to the labour shortages, despite many already raising wages and offering training. “

Responding to the findings, Director General of the British Chambers of Commerce Shevaun Haviland, said:      

“The focus must now be on creating the best possible environment for businesses to grow and thrive. By supporting firms through the difficult months ahead they can begin to generate wealth, create jobs and support communities. That is by far the best way to sustainably deliver the tax revenue the government needs to support public services and the wider economy. 

“That’s why I am calling on the government to place a moratorium on all policy measures that increase business costs for the remainder of this parliament and to finally deliver fundamental reform of our broken business rates system. 

The Prime Minister must take action now, with plans not plaudits, or businesses across the country, and our wider economic recovery could falter under the weight of these pressures.”  

Further to Norfolk Chambers recent announcement that we were unfortunately closing to new Kickstart applications at the end of September 2021, we are delighted that, as a result of the Chancellor’s surprise announcement yesterday (04 October), we are now able to remain open to new Kickstart applications. 

The Chancellor, Rishi Sunak announced at the Conservative Party Conference, that the DWP Kickstart Scheme would be extended by a further 3 months to March 2022.  The Kickstart Scheme delivers funding for employers offering new job roles for 16-24 years old who are currently in receipt of Universal Credit.

This announcement means that the DWP and Gateways like ourselves, can continue to support young people into jobs and can continue to support and build the skills, knowledge and experience of young people at risk of long-term unemployment well into 2022.  We can also continue to support employers to access the young people to fill their Kickstart placements.

The Chancellor announced that with the support of employers across the UK, including those in Norfolk, over 76,900 young people have now started in their Kickstart job with 3,600 continuing to start in roles each week.  Employers across Great Britain have created over 295,000 Kickstart jobs so that young people can find a job that is right for them.

In Norfolk alone, the scheme has been extremely well supported by the Norfolk business community with nearly 1,400 placements being created by local employers across the county, which is fantastic news.  However, it does take time to recruit young people into these roles, and as a result, the extended deadline gives employers more time to find the most suitable candidates for their current live Kickstart vacancies.  In addition, the revised deadline allows for new applications to the Kickstart Scheme from employers and variations from Gateway organisations until Friday 17 December 2021.

Also announced yesterday, Mr Sunak advised that the £3,000 incentive for employers taking on new apprentices will be extended until the end of January 2022, which is great news for employers wishing to take on their Kickstart placements with an apprenticeship.

For more information, please talk to the Norfolk County Councils Apprenticeship Team [email protected]. Or Apprenticeships Norfolk https://apprenticeshipsnorfolk.org/contact-us.

We look forward to continuing to support you.  If you have any questions, please contact Charlotte Upcraft via [email protected]

24 Degrees is a business born out of the pandemic. We collaborated on projects before March 2019, but it was when the country moved into Lockdown that we formalised our partnership. The biggest part of that decision was our desire to help businesses stay visible, keep connected and discover new ways to sell their products and services. That’s where wonderful organisations like the Norfolk Chambers came in.

The Norfolk Chambers encouraged us as a new business and gave us a platform by providing us with a space to deliver a series of Webinars and Masterclasses. We have also been privileged to have our content featured on the Norfolk Knowledge Hub.

The 24 Degrees philosophy is to put the businessperson at the heart of their learning, development and business growth. So, when it came to exhibiting at the B2B Exhibition, there was no question about it. An opportunity to meet loads of people we have only got to know by delivering training and support online – who wouldn’t want that?

Our sponsorship of the Networking opportunities during the Exhibition comes from the same place. Businesspeople meeting other businesspeople for mutual support; that’s our philosophy in a nutshell.

Oh, and to have fun too – that’s why the networking at this year’s B2B may be a bit different to what people have experienced before!

Norfolk Chambers of Commerce is proud to announce that BT Local Business Norfolk & Suffolk  are going to be Headline sponsors of B2B this October.

Clifford Norton, Managing Director says, ” we are really excited to be the headline sponsor at this event, and looking forward to meeting all the other local companies.”

Following the announcement of the DIT’s ‘Europe Export Support Service’, David Cowan, International Declaration Manager at Norfolk Chambers Of Commerce said:

“There is no doubt, that since Brexit, trading overseas has become more complicated for our members and clients…

..We are very proud of having been there to support them since the start, and always welcome services designed to simplify process, and encourage and help businesses to explore International Trade with confidence. ChamberCustoms has been evolving over the last ten months, to offer unrivalled service, and innovative systems. The Norfolk Chamber’s International team looks forward to working in partnership with the new support service, and passing on the benefits of this collaboration to our members and clients as soon as possible…

…On the 15th November 2021, we are hosting an ‘unlocking international trade’ event at Norwich City Football ground, which is an opportunity for experienced traders, and those considering international trade to come together, and discuss all things relating to Import and Export. This is one of the many way we keep trade moving in Norfolk.”

William Bain, Head of Trade Policy at the BCC, said;

“Chambers Businesses have been pointing out the daily difficulties firms, large and small, have had with the new trading terms for EU exports since they started on 1 January.  

“Many have found themselves wrestling with issues around VAT, export health certificates, and origin certification for the first time. 

“The Chambers Network and ChamberCustoms were ready on day one for this challenge and have continued to share their practical experience and knowledge of how to best facilitate trade and market access for our members. 

“Every day we are working to make this happen in a way no-one else does. Our expertise allows us to offer advice, training, brokerage and documentation services for trade with both the EU and wider international market. 

“We are keen to work in partnership with Government to enhance this capacity to lift export-led growth for companies the length and breadth of the United Kingdom, using our Global Business Network to extend their reach. 

“We look forward to working with the Europe Export Support Service and hope it will prove complementary to the unrivalled support the Chamber Network provides to exporting UK companies.  

“Unfortunately, many firms have given up exporting to EU customers since January, while others have found the new barriers to trade in goods and services a massive financial and logistical burden.  

“The essential test for this new service will be to turn that around and do it quickly, by adding value to the work of Chambers and not to further confuse UK companies. Rebuilding the economy after the pandemic requires turbo-charged export-led growth – especially with our largest trading partner – the EU.”

The Government has announced thousands of new temporary working visas to tackle lorry driver shortages, that led to a drop in the availability of fuel over the weekend, but business is warning that the measures do not go far enough.

As part of the scheme, 5,000 qualified overseas HGV drivers will be able to come to work in the UK through the Temporary Workers route in order to prevent a shortfall in staff from causing disruptions to fuel or food supply chains in the run-up to Christmas.  On top of this, another 5,500 Temporary Worker visas will be made available for poultry workers, with the new route available between the start of October and 24 December.

British Chambers President, Baroness Ruby McGregor-Smith CBE said:

“Government has made clear its priority is to transition from a reliance on EU workers to a focus on the domestic workforce, and businesses have been ready to participate in this, but it is a long-term project. 

“A managed transition, with a plan agreed between government and business, should have been in place from the outset. Instead, the supply of EU labour was turned off with no clear roadmap as to how this transition would be managed without disruption to services and supply chains.

“Now some action has been taken, but additional testing will take time and the low number of visas offered is insufficient. Even if these short-term opportunities attract the maximum amount of people allowed under the scheme, it will not be enough to address the scale of the problem that has now developed in our supply chains. This announcement is the equivalent of throwing a thimble of water on a bonfire.

“Government should be prepared to significantly expand the number of visas issued within this scheme and convene a summit that brings business and government together to find both immediate and longer-term solutions to the many challenges facing firms throughout the UK. 

“Without further action, we now face the very real prospect of serious damage to our economic recovery, stifled growth as well as another less than happy Christmas for many businesses and their customers across the country.”

Nova Fairbank, Chief Operating Officer for Norfolk Chambers said:

“Chambers of Commerce have been warning Government about critical labour shortages for months now – not just in the food and haulage industries but in hospitality, construction, the care sector and elsewhere in the economy. Whilst businesses will welcome that government is finally taking action, this scheme does not go far enough. 

“British Chambers data has shown that 76% of hospitality businesses, and 82% of construction firms have faced recruitment difficulties in recent months. At the same time, we found 3 out of 4 exporters reporting no growth in sales in Q2.  

“Norfolk businesses are facing the most difficult environment for a generation. On top of labour shortages – border delays, increased debt and the rising cost of materials, shipping and energy are all putting huge pressure on firms struggling to recover from the pandemic. All of these issues are hitting smaller firms the hardest.

“Attempts to address the deficit of HGV drivers and poultry workers is a step forward, but these industries are only the tip of the iceberg when it comes to the huge impact of the current labour shortages. Without a comprehensive plan to tackle this issue across the board we are facing a winter of lost opportunities for our businesses, hampering the UK’s economic recovery.”

Commenting on the current panic buying of fuel that is being seen across the country, Ms Fairbank said:

“Everyone has a responsibility to be sensible about their fuel needs – it is those who have panic bought their fuel over the last days that have now caused a bigger issue.  If you do not need to fill up – then don’t.  Hopefully the measures now being put in place will help alleviate some of the issues, but the UK does not have a fuel shortage – just a fuel delivery issue which can be resolved if people are sensible about their fuel needs.”

Digital connectivity, digital funding and innovations in LoRaWan connections across Norfolk are all part of Norfolk County Council’s strategy to make Norfolk the best-connected rural county in the UK.

How can better digital connectivity help your business? This is the question that Norfolk County Council plans to answer with an all-encompassing digital strategy for Norfolk that can help businesses save money, lessen their impact on the environment, achieve business growth and future proof their business.

The digital strategy is in three parts: Making sure that the whole of Norfolk (including rural areas) has digital connectivity with superfast broadband and 5G; the launch of the Go Digital project that helps provide SMEs with funding for digital transformation to increase productivity, recover from the pandemic and grow their business, plus access digital training for their employees; and finally by developing the Norfolk and Suffolk Innovation Network, the largest free-to-use public sector Long Range Wide Area Network (LoRaWAN) in the UK, which delivers dual county connectivity to support Internet of Things (IoT) sensors. The network is an innovation network designed so business, public sector, schools and the general public can all experiment with the technology.

Norfolk businesses are now being asked What could your business do? when it comes to having better digital connectivity and an innovation network of digital sensors that can make almost anything possible.

Businesses who are already seeing what IoT sensors can do for their business include Unitec, Ben Burgess and Gressenhall. The technology network has helped Uniotec kickstart innovation in Norfolk and has helped with their business growth. IoT sensors have also helped Ben Burgess support their Norfolk clients in making cost savings and smart decisions, by helping them monitor crops and livestock. LoRaWAN has also enabled Gressenhall use GPS technology to conduct visitor analysis to improve visitor experience.

Cllr Tom FitzPatrick, Norfolk County Council’s Cabinet Member for Innovation, Transformations & Performance, said: “It is important that our Strategy is not just for the County Council, so we want to make sure that everyone in Norfolk whether residents, businesses or visitors, is able to be given the opportunity to take full advantage of the opportunities and benefits offered by digital technology.

“Digital technology, accessed through fast data or mobile phones is not just something which is nice to have, but is now vital in keeping our essentially rural county at the forefront in terms of both the wider economy, learning and day to day activities.

“Good digital connection is vital and this Strategy, developed by Norfolk County Council is a step towards making Norfolk prosperous and inclusive. This Strategy will help tackle Digital exclusion in Norfolk.

“Our Innovation Network has gone from nothing to the largest in the UK in less than three years and offers existing businesses, entrepreneurs, the care and educational sectors the opportunity to harness a free to use network, which is growing globally.”

The official launch of Norfolk County Council’s digital strategy will take place on 22 September on the Norfolk Chambers of Commerce and Norfolk County Council’s Norfolk Knowledge Hub platform. The Norfolk Knowledge Hub is the place for businesses to find resources on how to implement everything from digital, marketing and brand awareness, through to leadership, finance and environmental strategies.

Cllr Graham Plant, Norfolk County Council’s Deputy Leader and Cabinet Member for Economic Growth said: “Norfolk businesses have an invaluable opportunity to use our new Norfolk Knowledge Hub. Curated by the Norfolk Chambers of Commerce, this platform offers a wealth of free information and advice with a wide range of support programmes and learning resources in a secure, virtual environment.

“It’s a great way to exchange and share knowledge and experiences, new ideas and to create new connections. As we recover from the pandemic, this will complement traditional but currently unavailable physical support.  I urge businesses to visit and take advantage of this innovative platform.”

Norfolk businesses who are interested in finding out more about how digital connectivity can benefit their business, including trialing LoRaWAN technology for their business can find more information at: www.norfolk.gov.uk/digital

The official launch of Norfolk County Council’s digital strategy and website will take place on Wednesday 22 September, 2021 online on the Norfolk Chambers of Commerce and Norfolk County Council’s Norfolk Knowledge Hub platform at https://norfolkknowledgehub.co.uk

Businesses can also get involved right now on social media @NorfolkChambers #ArtOfThePossible

The DWP’s Kickstart Scheme is aimed at getting 16 to 24 year olds into the world of work and is due to close at the end of December 2021. 

With the support of Gateways across Norfolk, the scheme has been extremely well supported by the Norfolk business community with nearly 1,400 placements being created by local employers across the county.  However, it does take time to recruit young people into these roles, and as a result, it is expected that the DWP will take the decision to close for new applications for Kickstart placements as at the end of September 2021. 

We are anticipating that employers already approved in the Kickstart process, will have until the end of October 2021 to submit their vacancy templates and recruitment for the roles can continue up until 31 December 2021.

If your business is considering taking on a Kickstart placement, there is still a small window of time to get your application in.  But you will need to submit your completed new Kickstart application to the Gateway by no later than 5pm on Tuesday 28 September 2021 to allow for submission on 30 September by the Gateway.

If you have any questions about the Kickstart Scheme, please contact your Kickstart Gateway.

Contact Details:         

Charlotte Upcraft         [email protected]              01603 729 205