Chamber News

Commenting on the ONS labour market statistics for February 2021, published today, BCC Head of Economics Suren Thiru said:   

 “While the furlough scheme is limiting job losses, the rise in unemployment and decline in employment levels are further evidence that coronavirus continues to weaken the UK labour market. 

 “With firms facing a renewed cash crisis amid the current lockdown and the prospect of several more months of diminished demand and revenue before many can fully reopen, substantial job losses maybe inevitable if the support schemes wind down as planned. 

 “Although the government’s roadmap provides a way forward, the lack of clarity over the future path of fiscal support has left a damaging cliff edge for jobs and livelihoods. 

 “It is vital that the government support schemes, including furlough and business rates relief, are extended through the summer and wherever possible throughout 2021 to help protect jobs and power the recovery.” 

Commenting on the Prime Minister’s roadmap, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said:

“It is helpful that many businesses across Norfolk can now see a path to restart and recovery. Absolute clarity and honesty will be needed every step of the way over the weeks ahead, so that businesses have a fighting chance to rebuild. The stop-start dynamic of the past year, which has so damaged businesses and communities, must come to an end.    

“Even with the Prime Minister’s new roadmap, the future of thousands of firms and millions of jobs still hangs by a thread.  

“Many hard-hit businesses simply don’t have the cash reserves needed to hold out several more months before they are allowed to reopen.  

“Businesses will hold the Prime Minister to his pledge to support firms for the duration of the pandemic, as this gruelling marathon nears its end. Businesses have haemorrhaged billions of pounds over the past year and need action now. 

“All the key support schemes for business should be extended – through the summer and wherever possible throughout 2021 – to ensure that as many viable firms as possible can make it to the finish line and recover.” 

On vaccination and testing

“It is also critical that alongside the pace of the vaccination programme, workplace testing is expanded to businesses of all sizes and continued for as long as is necessary – to help keep our companies and communities open over the months ahead.”  

On international travel

“The safe restart of international travel is critical to UK trade, to hundreds of thousands of UK jobs, and to the prospects for a Global Britain. Companies want hard answers and a coordinated international approach agreed as soon as possible.”  

On businesses facing the longest possible restrictions

“The long wait continues for some businesses of critical importance to our local economies, including events. The task forces convened to look at how to reopen these sectors must deliver results quickly.”  

The Prime Minister announced a ‘roadmap’ for easing Covid restrictions in England.  After the first stage in March, further lifting of the rules will happen if certain conditions are met – such as the vaccine rollout going to plan.  The aim is for all restrictions to be lifted, which will happen by 21 June at the earliest.

 08 March 2021

• All schools and colleges will reopen
• University students can return for practical courses. There will be a review by the end of the Easter holidays for all other students
• Face coverings are recommended in class for secondary school students and also for parents and staff in primary schools
• Wraparound childcare can also return for vulnerable pupils and where it is needed for parents or carers to go to work, support groups or to seek medical care
• Two people from different households can meet outside for recreation, which can include “a coffee on a bench”
• One nominated person can visit care homes, but will need PPE, a lateral flow test and to “keep physical contact to a minimum”
• Weddings attended by up to six people can take place in any circumstances

29 March

• People will be allowed to meet outside, either with one other household or within the “rule of six”, including in private gardens
• The stay at home rule will end but people should stay local as much as possible
• Outdoor sport facilities will reopen, including golf courses and tennis and basketball courts
• Formally organised outdoor sports can also restart
• Parents and children groups can return but are capped at 15 and must be outdoors. Indoor groups can take place for vulnerable children and where parents need the groups to go to work

No earlier than 12 April:

• All shops allowed to open
• Restaurants and pub gardens will be allowed to serve customers sitting outdoors, including alcohol
• Gyms and spas can reopen for individuals and households
• Hairdressers, beauty salons and other “close contact services” can reopen
• UK domestic holidays away from home permitted, with self-contained accommodation able to reopen for use by members of the same household
• Children allowed to attend indoor play activities, with up to 15 parents or guardians allowed to join them
• Zoos, theme parks and drive-in cinemas can reopen
• Libraries and community centres can reopen
• Weddings attended by up to 15 people can take place

No earlier than 17 May:

• People can meet in groups of up to 30 outdoors
• Six people or two households can meet indoors
• Pubs, restaurants and other hospitality venues can seat customers indoors
• Up to 30 people can meet to celebrate weddings or other life events, like christenings
• Remaining outdoor entertainment, such as outdoor theatres and cinemas can open
• Indoor entertainment such as museums, theatres, cinemas and children’s play areas can open

Performances and large events will be subject to limits though. For indoor events they can be at half capacity or 1,000 people, and outdoors they can be at half capacity or 4,000 people – whichever is lower. For large venues (at least 40,000 capacity) up to 10,000 will be allowed to attend

• Hotels, hostels and B&Bs can reopen to household groups
• International leisure travel will resume no earlier than 17 May
• Adult indoor group sports and exercise classes can start up again

No earlier than 21 June:

• All legal limits on social contact will be removed
• No legal limits on the number of people who can attend weddings, funerals and other life events. From April, the government will run pilots for events such as large weddings, festivals and work conferences. This will help to determine how measures such as enhanced testing might allow large groups to attend without social distancing
• Nightclubs will be allowed to reopen

The Greater South East Energy Hub installer Dynamic Purchasing System (DPS) for Energy Efficiency Measures is now live.

This is an opportunity for PAS2030:2019 and MCS accredited trades to access £69 million energy efficiency measures to be delivered by local authorities across the Greater South East region in 2021. The Dynamic Purchasing System will be running until March 2026 and will be available for all local authorities and social housing providers in the Greater South East region to use to procure contractors for energy efficiency measures.

A Dynamic Purchasing System (DPS) is public sector procurement tool for buying works, services and goods. The Greater South East Energy Hub Trades DPS is a two-stage process, the first stage is setup, all suppliers who meet the selection criteria are admitted to the DPS. Suppliers can join each month when the opportunity opens. Individual contracts for works are awarded in the second stage. In this second stage the authority invites all suppliers on the DPS (or the relevant category within the DPS) to bid for the specific contract. This is suitable for small to medium sized companies.

The Greater South East Energy Hub are holding a free supply chain event on the 23 March 2021 in association with the Built Environment Network to explain how it works, what the jargon means, pitfalls to avoid and how to get on board. Don’t worry if you are not ready to join the DPS this month as the portal for new suppliers will open every month.  

Register for the event here:  

Not accredited to PAS2030 or MCS? – Free or subsidised training is now available for tradespeople or businesses who install energy efficiency measures or low carbon heating and want to carry out work under the Green Homes Grant schemes:

Apply for free or subsidised training under the Green Homes Grant skills training competition scheme – GOV.UK (www.gov.uk)

Commenting on the decision by the European Commission to grant the UK data adequacy, BCC Co-Executive Director Hannah Essex said: 

 “With the free flow of data critical to their operations, businesses will be greatly relieved at the granting of data adequacy which removes a costly cliff edge at a time when many are already struggling due to the pandemic and post-Brexit trading conditions. 

  “However, it should not distract from the need to address the many practical difficulties that are currently stifling trade between us. More needs to be done to fix these problems otherwise many firms may simply give up on doing business with the EU. 

 “This should include pushing back the dates for introducing additional scientific checks on animal and plant goods from April and full customs checks on imports from July, and increasing the support available for businesses who need time to adapt to the new trading conditions.” 

Results from the latest BCC survey on the impact of Coronavirus on businesses show they have been pushed to the brink by the effect of multiple lockdowns.

Among the sobering findings from the survey of more than 1,100 businesses, including those from Norfolk are:

• Three in every five firms (61%) have seen their revenue from UK customers fall in the last three months
• Almost a third (31%) of business-to-consumer (B2C) firms say they will run out of cash in the next three months
• A quarter of survey respondents (25%) say they will make staff redundant if financial support stops in March and April.

The leading business group has called on the UK government to set out a clear roadmap for reopening, advancing vaccination and workplace testing plans, and extending key financial support measures for businesses throughout 2021.

Business conditions worsen

Compared to October 2020, 61% of firms reported decreased revenue from UK customers. Only 19% of firms reported increased revenue and 20% reported no change. B2C service firms are significantly more likely to report decreased revenue (74%) from UK customers, as are firms with less than 10 employees (65%).

When asked approximately how long firms could continue until they ran out of cash, almost one-quarter (23%) said less than three months. This figure rises to almost one-third (31%) of B2C service firms. Just over one quarter (28%) of firms overall and only one-fifth (20%) of B2C firms have cash for more than 12 months.

The results paint a bleak picture of a business landscape which has been severely squeezed by repeated lockdowns and massive changes in trading conditions. The survey results also suggest that without the huge amount of government support given to companies to date, that business failures and job losses could have been much worse.

Crucially, more support is needed until firms can fully reopen, with just over a quarter (28%) of businesses indicating they have enough cash to last more than a year. On average, B2C firms are currently operating at only 42 per cent of full capacity, while all firms were averaging 57% capacity against a pre-pandemic level of 75 to 80 per cent. Almost half (48%) of companies reported they still have staff on furlough.

Rating the support from government

When asked to rate the effectiveness of the various government schemes to support their business throughout the crisis, the Coronavirus Job Retention Scheme (CJRS), allowing firms to furlough staff, had by far the highest effectiveness rating. More than two-thirds (68%) using this scheme say that it has been very effective, with a further 28% rating it as somewhat effective. Only 4% said it was not effective.

Other schemes with high effectiveness ratings included Government loan schemes (such as CBILS and BBLS) where 46% rated them ‘very effective’ and 44% rated them ‘somewhat effective’, and the local authority business grant scheme, where 45% rated it ‘very effective’ and 40% rated it ‘somewhat effective’. Business rates relief (49%), VAT deferrals (34%), VAT cuts for certain sectors of the economy (26%) were also rated as very effective.

What firms may do if support expires in March and April

When asked what their business might do if the government support schemes end according to published timetable in March and April, 25% of firms overall said they would ‘make staff redundant’, 25% would ‘reduce staff hours’ and 19% would ‘cancel or reduce investment or recruitment plans’. Only 21% of B2C firms said the expiry of support ‘would have no impact on their business’, compared with 39% of B2B firms and 37% of manufacturers.

Responding to the survey results, BCC Director General Dr Adam Marshall said:

“The last year has taken a heavy toll on businesses across the UK. With cash flow still the top concern, it is vital that the UK government keeps financial support going until firms can reopen and rebuild. Pulling the plug now would be a huge mistake, and would be akin to writing off the billions already spent helping firms to survive.

“Firms are desperate to start trading again so they can boost revenue and start thinking about the future. To do so they need to see a clear, evidence-based plan for reopening, and they need time to get back on their feet without unnecessary additional taxes, and the security of knowing that Government will once again support them should we see additional restrictions imposed at any point.

“In the meantime, support must remain in place for firms that need it until a full reopening of the economy is possible. With cashflow being a major challenge for many businesses, we can expect to see further redundancies or business failures should Government support end prematurely.

“Alongside a clear roadmap for reopening, business confidence will also come from a commitment to further accelerate the vaccination programme and a wider workplace testing strategy that’s accessible to businesses of all sizes.”

Commenting on the delay to HM Treasury’s Fundamental Review of Business Rates until autumn, BCC Head of Economics Suren Thiru said:

“Delivering fundamental change to this longstanding drag anchor on business has become only more pressing in light of Covid-19.

“Delay in reforming a broken system will hamper any recovery by exacerbating business cash flow concerns as part of the fixed cost base that firms can do little to push downward.

“The delay in the review underscores the need to urgently extend business rates relief for retail, hospitality and leisure and provide rates relief to all firms whose ability to generate revenues are severely impaired by the pandemic.”

The Kickstart Scheme has been underway since September 2020 and has now seen 120,000 16-24-year olds find employment.

The Kickstart Scheme, which is fully Government funded, is aimed at 16-24-year olds who are on universal credit and who may find it more challenging to access the world of work, which has been hit hard by the pandemic. 

The scheme offers six-month work placements of which the Government will pay 100 per cent of the young persons’ age-relevant National Minimum Wage, National Insurance and pension contributions for 25 hours a week, which the employer can top up if they chose to in both salary and hours. In addition, the Government will also pay the employer £1500 for each young person they take on, to support any training or associated costs like uniforms that they might incur when setting up the scheme.

Recently it was granted that companies with less than 30 vacancies can now apply directly via DWP without using a Gateway, however, the Norfolk Chambers of Commerce is a recommended Gateway and without cost to you, will help you with your application and liaise with the DWP in ensuring your application is successful. We can also assist with any training needs you require from recommending and putting you in touch with training providers, as well as saving you time in the application process while making the whole process as smooth as possible.

For more information and to be part of this amazing youth employment programme, please get in touch via [email protected]

How is your business doing? How has Covid-19 and/or Brexit affected your business? How confident are you about your financial position, your workforce and your future orderbook? What support do you need to face the challenges ahead?

The Chambers Quarterly Economic Survey (QES), the UK’s largest independent business survey, is open and we would like to hear from you so that we can help give voice to Norfolk businesses. 

This survey is a significant piece of economic data, used by many organisations and the country’s decision makers to help shape economic policies for the UK, so right now it is more important than ever that both the Chancellor and the Bank of England hear from businesses just like yours. Without this vital local and regional knowledge they cannot make the right decisions and put relevant support mechanisms in place that will ultimately impact on you and your company.

The QES is anonymous, open to anyone and only takes a couple of minutes to complete online.

We need your input, if you only take one survey, then please make it the QES. Deadline is Monday 8th March, 2021.

Take Part Now

An online portal has been launched to make it even easier for business to get involved and find out more about offering rapid testing in the workplace.

Business that are open during lockdown can now sign up to rapid testing programmes that identify cases of Covid-19 in employees who are not showing symptoms, to help stop the spread of Covid-19, and ensure vital public and economic services can continue.  

Businesses can register to order coronavirus rapid lateral flow tests for employees if:

• Your business is registered in England
• You employ 50 people or more
• Your employees cannot work from home

Testing is key to breaking the chains of transmission. Around one in three people who have coronavirus have no symptoms and may be unknowingly spreading the virus. This expansion of testing will find more positive cases, keeping workers who cannot work from home unknowingly passing on the virus and protecting vital public services.  Click here to register.

Commenting on the latest GDP figures published today by the ONS, BCC Head of Economics, Suren Thiru, said:   

“The UK economy recorded stronger than expected growth in the final quarter of 2020 as the squeeze on output from the November lockdown was more than offset by a temporary boost from the release of pent-up demand from the subsequent easing in restrictions, increased activity from the coronavirus testing schemes and Brexit stockpiling.  

“Despite avoiding a double-dip recession, with output still well below pre-pandemic levels amid confirmation that 2020 was a historically bleak year for the UK economy, there is little to cheer in the latest data.   

“Modest growth at the end of 2020 is set to be followed by a substantial fall in output in the first quarter of this year as the current lockdown, the unwinding of Brexit inventories and disruption to UK-EU trade flows combine to suffocate activity. 

“While the vaccine rollout offers optimism, with the scarring caused by the pandemic likely to crystallise as government support winds down and the prospect of persistent post-Brexit disruption, any recovery may be slower than the Bank of England currently predicts.  

“The current drip-feed approach to support measures means firms cannot plan for more than a few weeks ahead. It is critical that the government swiftly implements a package of measures that support businesses and the economy for the whole of 2021, including removing the cliff-edges for business rate reliefs, VAT deferrals and furlough.” 

This year sees the update of Norfolk’s Rural Strategy, and Norfolk County Council want to hear your views about their vision for rural Norfolk in the coming years.  Please click here to find out more about the strategy and to give your feedback in the survey.

The Norfolk Rural Strategy was first produced in 2013, on behalf of an extensive public-private partnership, with a steering group supported by Norfolk County Council.  It is refreshed every 3 years and we are asking for your ideas to address the challenges and opportunities Rural Norfolk faces today.

The principles underpinning the Strategy are to: 

• Be ambitious for Rural Norfolk so it delivers quality of life for all age groups 

• Make the case for Rural Norfolk to decision makers at every level – from district to national 
• Ensure businesses, communities and partners have access to the data and evidence to make the case for investment in Rural Norfolk 
• Learn from other areas and build on successful models of rural development elsewhere. 

Your feedback is valuable, so please do take part in the short survey about the Norfolk Rural Strategy for 2021-2024.  

Have Your Say Now

The deadline to take part in the survey is 5pm on Friday 19 March 2021.  

If you would like to submit additional documentation to support your response (such as a report or case study which could help make the case for investment) please email it to [email protected]

If you have any queries about the survey, or need it in a different format, such as a paper copy, please email [email protected], call 0344 800 8020 or Text Relay on 18001 0344 800 8020 (textphone) and we will do our best to help.