Chamber News

Commenting on the announcement of the fund, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said:  

“This is a welcome first step in dealing with some of the major issues that small businesses trading with the EU are facing.  With their finances already under a significant squeeze firms, particularly those which export, are inevitably encountering difficulties in adapting to the complexities of the new arrangements. 

“It is now crucial that the grants provide sufficient funds to make a real difference and the government should stand ready to increase their size if needed.  We will continue working closely with government to make sure this scheme is delivered as quickly and smoothly as possible for firms still adapting to the new EU trading arrangements and the impact of the pandemic. 

“The Norfolk Chamber will also continue to offer as much direct support as we can to SMEs especially through ChamberCustoms and our other International Trade Services.

HM Treasury and the British Business Bank have released further details of the Pay As You Grow Scheme.

It is confirmed that the scheme will enable businesses who have started repaying their Bounce Back Loans to:

• Request an extension to their loan term to 10 years from 6 years, at the same fixed interest rate of 2.5%.
• Reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan.
• Take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.

Borrowers can use these options individually or in combination with each other and remain responsible for repaying their Bounce Back Loan and fully liable for the debt.

Borrowers should be aware that they will pay more interest overall if they use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.

Am I eligible?

PAYG is available to all businesses who have taken out a Bounce Back loan subject to the restrictions outlined above.

What do I need to do to access it?

Businesses first began to receive BBLS loans in May 2020 and the first repayments will become due from May 2021 onwards. Lenders will start to communicate PAYG options to Bounce Back Loan Scheme borrowers three months before repayments commence.

Who do I need to speak to?

Lenders will inform their customers about PAYG directly, so borrowers should wait until they are contacted by their lender before enquiring about the scheme. Lenders will advise customers about how their repayment options may change according to their choices under the scheme.

Results from the first major business survey for 2021 by the British Chambers of Commerce and the UK Chamber Network on Brexit found that half (49%) of  exporters  are  facing  difficulties  in adapting to the changes in the trade of goods following the ratification of the UK-EU Trade and Cooperation Agreement (TCA) on 1 January 2021.  

The survey

Fieldwork for the survey, which received 1,000 responses, mainly from SMEs, was carried out between 18 and 31 January 2021. Nearly half (47%) of respondents  exported goods or services.   

 The survey sought to understand the extent to which businesses found it easy or difficult to adapt to changes in trading goods and/or services and moving people in the month since the ratification of the TCA. Businesses reported the highest proportion of difficulties in adapting to changes in trading goods. 

The survey found that: 

• overall, around a third of respondents (30%) reported  difficulties  adapting to changes to moving or trading goods in the first month of the year, while 10% said they had found adapting to the changes easy. 45% said trade in goods was not applicable to their business, and 16% said it was too early to say; 
• however, the percentage facing difficulties in adapting to changes in trading goods rose for exporters, where half (49%) reported issues, as well as manufacturers, where the percentage facing difficulties was more than half (51%);  
• overall, 14% of firms said that they faced difficulties in adapting to changes in the trade of services. 10% said they had found adapting to the changes easy. The percentage facing difficulties rose for exporters, where 21% reported issues. 

When asked about the specific difficulties businesses were facing, commonly cited concerns included increased administration, costs, delays, and confusion about what rules to follow. 

Need for Action 

The BCC will continue to support UK businesses through its trade documentation services and Chamber Customs, a customs advisory, training and brokerage service delivered through Chambers of Commerce across the UK, and by working closely with the government. 

The leading business group is calling on the UK Government, and where necessary with EU partners, to:  

• work with us and the Chamber network to identify the most significant blockages for business and immediately publish plans for resolving those problems;  
• create tax credits allowing firms to offset their spending on adaptation to the new UK-EU requirements against their tax bill, helping businesses navigate new burdens and requirements better;  
• push back the imposition of additional SPS checks (from April) and full customs checks (from July) on imports into the UK. Sanitary and Phytosanitary (‘SPS’) checks are scientific tests on animal and plant goods; and   
• look at key areas of the new relationship and work with EU partners on easements to minimise unhelpful burdens, including on  aspects of  Rules of Origin and VAT. 

Commenting on the results, BCC Director General  Adam Marshall  said: 

“Trading businesses – and the UK’s chances at a strong economic recovery – are being hit hard by changes at the border.  

“The late agreement of a UK-EU trade deal left businesses in the dark on the detail right until the last minute, so it’s unsurprising to see that so many businesses are now experiencing practical difficulties on the ground as the new arrangements go live.  

“For some firms these concerns are existential, and go well beyond mere ‘teething problems’. It should not be the case that companies simply have to give up on selling their goods and services into the EU. Ministers must do everything they can to fix the problems that are within the UK’s own control, and increase their outreach to EU counterparts to solve the knotty issues that are stifling trade in both directions. 

“This situation could get worse if the UK sticks to its guns and introduces additional SPS checks in April and full customs checks on imports in July. These timescales need to change – and the support available for businesses who are battling to adapt to new trading conditions significantly increased.”  

Commenting on what this means for businesses on the ground, BCC Director of Trade Facilitation and ChamberCustoms Liam Smyth said: 

“Underneath the overall figures, firms’ concerns fit broadly into three areas.  

“First, difficulties arising from the challenges adjusting to the new arrangements, such as the sheer volume of paperwork and significant new costs of adjusting to those.  

“Second, issues about how new rules have been implemented, such as new customs arrangements.  

“Third, core provisions of the TCA which are currently of significant concern to businesses, such as on Rules of Origin and VAT.  

“Taken together, and on top of decreased revenue and cash flow as a result of the pandemic, this is a difficult moment for exporters. Some tell us they will respond to the challenges by switching away from international trade or by moving their operations overseas.  

“The Government needs to respond to this risk by giving firms tax credits to help with their ongoing adjustment and leaving no stone unturned in educating businesses and removing every barrier they can.” 

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

Locally

• The East of England economy is on track for a positive, albeit slow recovery, over coming years led by activity in the health and education sectors, according to a regional economic forecast from EY. It identifies the East as one of five of the nine English regions which will be larger in 2023 than it was in 2019 although its growth will be fractional at 0.08 per cent pa.
• Just over half of East of England SMEs (53 per cent) say that becoming more environmentally sustainable is important and a similar share have worked on green measures during COVID. a quarter of firms have used using cash reserves and government grants (15 per cent) to fund green improvements.
• Business confidence in the East of England rose 20 points in December – albeit to minus one per cent – which was its highest point since the beginning of the pandemic in March.
• The growth of online retailing will mean more development of warehousing and logistics space and business parks in Norfolk and nationally.
• The East of England has seen the highest rise of any region in employer demand for fintech skills, up 30 per cent over 2017 – 2019.
• KPMG’s Future of Towns and Cities Post COVID-19 report predicts that Norwich is set to lose more than 4,000 jobs post-pandemic as 18.5 per cent of people continue to work from home rather than working from an office.
• During the month of November, average house prices fell by 0.20% in Norwich and by 0.235 in the region; prices across England grew by1.23%. The average house price in Norwich currently stands at £208,663 against £302,624 for the East of England and £266,742 for England.
• The 2020 impact of the Covid-19 pandemic has been one of steep growth in claimant count unemployment. The increase has been strongest in the Norwich city council area.

Nationally

• December data highlighted a marginal expansion of UK private sector output, driven by another solid increase in manufacturing production.
• In contrast, overall levels of service sector activity stagnated at the end of 2020, largely due to ongoing coronavirus disease 2019 (COVID-19) restrictions on hospitality, leisure and travel businesses.
• The latest survey also indicated severe pressure on manufacturing supply chains, which was overwhelmingly linked to freight delays following congestion at UK ports.
• UK construction companies recorded a sustained rebound in business activity during December, according to the latest PMI data compiled by IHS Markit.
• Finance leaders expect levels of home-working to rise five-fold by 2025 compared to pre-pandemic levels and are forecasting higher levels of taxation and regulation in the longer term,

Our annual flagship policy event brought together local MPs and business leaders to help influence change and give voice to Norfolk businesses on topics including People & Skills, Rebuilding the Economy, Climate Change & Going Green and Beyond Brexit. Here are some of the highlights…

Despite being virtual this year, The Big Debate 2021 sponsored by Greater Anglia generated a lively debate between local MPs and local business leaders.

Over 100 attended the online event on Zoom, which was hosted by high-profile journalist and Times Radio presenter Carole Walker.

Debate 1: People & Skills

The first panel debate – People & Skills – saw Rebecca Headden Co-Director at R13 Recruitment, James Howells Director for Turning Factor and Karen Paterson Deputy Group Property & Facilities Director for Aviva UK take questions. The debate began with a focus on how to make working from home productive and protect the wellbeing of employees.

James Howells from Turning Factor said: “As employers we need to measure outcomes of tasks NOT how long employees are spending online each day. You need to make sure your employees are scheduling in ‘white space’ in their day. It’s not great for productivity if we think that people are not working when they are not contactable all of the time.”

Scheduling time for virtual coffee breaks and social activities is a good way to check-in with employees to see if they are doing okay.

Rebecca Headden from R13 Recruitment said: “Virtual coffee breaks and buddy systems can help ensure your staff are doing okay and know where they can get help.”  

Karen Paterson from Aviva explained that with most of their employees currently working from home, wellbeing is at the heart of everything they do: “The main thing is to look after people’s wellbeing. Everyone has different needs so the main thing we have been doing is setting up different virtual staff events for people to get involved with.”

The debate then centred on what opportunities are there for young people to get into work. Are we as businesses doing enough to support the next generation?  

Schemes like KickStart, apprenticeships, online learning and encouraging young people to consider careers in construction and building were discussed.

Karen Paterson from Aviva UK talked about the positivity around apprenticeships with the company offering 24 places in Norwich this year: “In Norfolk we are working with the New Anglia LEP to ensure that young people from all backgrounds have opportunities in the world of work.”

On the subject for how we retain talent in Norfolk, James Howells from Turning Factor said: “It is all about development. Young people want a path, they want to know what they can do next. Employers need to give young people a career path, as they want more than just a job.”

Debate 2: Rebuilding the Economy

Joining the debate panel was Stefan Gurney Executive Director for Norwich BID, David Parfrey Chief Executive for Norwich Research Park, James Wild MP for North West Norfolk and Clive Lewis MP for Norwich South.

The main topics for discussion were what impact has COVID-19 had on businesses and what support mechanisms are in place (or should be in place) to help businesses recover and regrow?

James Wild MP was optimistic that once lockdown controls are lifted the economy will bounce back. He said: “We have a year of recovery ahead of us. Business want to know a timeline of when lockdown will be lifted and once this is in place it is about getting people’s confidence back to go out.”

Clive Lewis MP took this further: “We need a long-term plan for an integrated recovery, which includes the right level of support for our city centres. People in Norwich need to have confidence in our city. That means feeling that the city is safe, having money in their pockets, and making the heart of the city a place where people want to be.”

Stefan Gurney from Norwich BID agreed adding: “We need to take this opportunity to look at business rate reform and city centre redevelopment that focusses on bricks and mortar retail.”

David Parfrey from Norwich Research Park said that it was “not about bouncing back” to where we were pre-pandemic, but “bouncing forward”, building on what we have and not being afraid to celebrate how great Norfolk is: “There is a belief in London that the world stops at Cambridge – we need to dispel that myth by being more outspoken about how Norfolk does great business and how it plays an integral part in the economy.”

Debate 3: Climate Change & Going Green

The third debate saw a panel made up of Jonathan Denby Head of Corporate Affairs for Greater Anglia, Richard Buckingham Climate Change and Carbon Manager for Anglian Water, Dr Catrin Ellis Jones Stakeholder Engagement Manager – Offshore Wind for Vattenfall, and Duncan Baker MP for North Norfolk discuss how businesses can improve their carbon footprint and become more environmentally sustainable?

Greater Anglia, sponsors of The Big Debate 2021 has made great strides in ensuring its future is Green. Jonathan Denby from Greater Anglia said: “We’re committed to a more sustainable future. We have recently published our first environment and energy report, which details our plans for greener travel in the region. We have recently introduced new trains that are greener and cleaner for the environment.

“Business should have a real commitment to reducing their carbon footprint. What can you do with recycling and energy saving? Build green issues into your decision making.”

Dr Catrin Ellis Jones from Vattenfall agreed: “We represent the sector that is having a big impact on lowering carbon emissions. It is our business strategy not just our sustainable strategy to lower carbon footprint.”

Anglian Water have also made good progress with reducing their carbon emissions. Richard Buckingham from Anglian Water said: “We have committed to net zero carbon emissions by 2030 and we have a target of using 44% renewables by 2025.”

For businesses to make change, Jonathan Denby from Greater Anglia argued that there needs to be incentives to implement certain things: “Having an overarching strategy to climate change will work. We have targets we need to meet and there are incentives to implement certain things – all this helps businesses go green.”

Incentives for making change in building eco-friendly homes should also be in place for retrofitting old houses, as Dr Catrin Ellis Jones from Vattenfall explained: “Retrofitting new housing to be greener is a challenge, but we are going in the right direction with heat and solar systems. Now we need incentives for retrofitting old houses too.”

In response, Duncan Baker MP for North Norfolk said: “We have the green homes grant as an incentive to retrofitting old houses, but we also need to look at what materials we build houses from – bricks, steel and cement are not environmentally friendly options.”

When it comes to what businesses can do right now to become more respectful of the environment, the panel was in agreement that even small steps now can have a big impact later on.

Duncan Baker MP for North Norfolk said: “It’s all about steady, small, incremental steps. So for example, if you are looking at investing in a new vehicle go electric, switch to a greener energy supplier…start small.”

Supply chains were another key area to look at if you want to make your business greener. Jonathan Denby from Greater Anglia said: “Wherever we can we get our supplies locally or if we cannot from the UK.”

Dr Catrin Ellis Jones from Vattenfall agreed: “We are working on our supply chains now and where we can work with local companies and organisations in offshore wind.”

Debate 4: Beyond Brexit

For the final discussion in The Big Debate 2021 we were joined by a panel including Kevin Walsh UK Sales Director for LV Shipping, Tracy Renshaw Managing Director for Import Export Support, Richard Pace Managing Director for Norwich Airport and Leszek Wysocki International Trade Advisor for Department of International Trade. The debate aimed to discuss what support do businesses need to drive growth overseas and what impact has Brexit had on businesses already.

Tracey Renshaw from Import Export Support said: “The key knowledge every business needs if they want to trade with the EU is know your supply chain. We need to consider where our goods have been made. This is a good opportunity for Norfolk businesses to become to best in the world at this.”

Kevin Walsh from LV Shipping agreed: “The one thing I would say to businesses is to understand the rules of the game when trading with the EU. Organisations like Norfolk Chambers can help here.”

Leszek Wysocki from Department of International Trade agreed that there is support available for businesses: “One of the issues businesses faced was the late finalisation of the agreement, but we are doing everything we possibly can to help considering the huge numbers that need support.”

Tracey Renshaw from Import Export Support said that there is also help for businesses looking to export to the EU: “There are a lot of local companies thinking ‘how do I export’ and it is not too late to look into this. HMRC are working hard to facilitate enterprise in the UK, businesses just need to ask to get that support and we are here to help.”

About Norfolk businesses looking to export to the EU, Kevin Walsh from LV Shipping added: “There is a demand for products from Norfolk, in particular the renewables industry in Great Yarmouth, which is world-leading. It is these products that we need to shout about to get Norfolk on the map.”

Bringing the debate round to how Brexit has affected businesses, Richard Pace from Norwich Airport stressed the importance they have in connecting Norfolk to the rest of the world: “We play a key part in getting businesses connected to Europe and other parts of the world. What we need now is a roadmap from Government on how we can bring back travel safely, and in the short term the support to secure jobs so that we are here for the longer term to help Norfolk connect to Europe and beyond.”

Norfolk Chambers can help your business export to the EU. Just contact our International Trade Team for advice on 01603 729706 or visit www.norfolkchamber.co.uk/international

Save the Date

The Big Debate 2022 takes place on Friday 4th February 2022. You can pre-register your interest here.

On Wednesday 3rd Feb, 116 people took an hour out of their day to attend our “Maximise Your Membership” event. The event saw the Customer Experience Team (Lizzy, Haze, Andrea, Kirsty) and the Norfolk Chambers Chief Executive Chris Sargisson and Chief Operating Officer Nova Fairbank, giving a “whistle stop” tour of some of the top things to get involved with, with the Chambers.

The event aimed to cover the core inclusions of membership, and how organisations could really maximise these! From attending the myriad of virtual training events (on topics such as finance, marketing and wellbeing) to understanding more about the International Trade Team, and how they can support your business.

We carried out several polls during the event include one which asked, “When do you think you would like to return to face to face events”, 30% of all attendees said they wished to return as soon as possible. Information very helpful to us.

Feedback to the Chief Executive, “I just wanted to say that the event I was invited to this morning was excellent. Not only was it well organised, interactive with a great attendance…but your team did a fantastic job of presenting a Chamber as it should be…welcoming, enthusiastic, fun and here to help. It was one of the best such events I have attended and your team did you proud!”

Key highlights included The Norfolk Knowledge Hub, Norfolk’s Voice, Our Virtual Event Programme, 4 Things You Need To Do Right Now, Campaigning, Lobbying & Infrastructure, International Trade as well as Virtual Networking, Exclusive Discounts (with AXA Health, Westfield Health & The AA) & The Digital Chamber. Well done to our 2 prize winners from the event, your Gnaw Chocolate goodies will be in the post shortly!

Steve Charles from Quest also gave a great recap of the free business services “Chamber Four Services” that are included with membership. From the 24/7 Helplines to the document library covering everything from Legal, HR, Tax and Health & Safety.

A recording of the event can be

If you have any questions or are interested in joining, feel free to contact the team on 01603 625977 or email us at [email protected]

With over 125 years in business, Norfolk Chambers of Commerce places emphasis on supporting more Norfolk businesses by embracing digital communities.  

As Norfolk’s largest business membership network, Norfolk Chambers of Commerce is aiming to give local businesses even more opportunities to connect, engage and collaborate.

With a mission of Connecting, Supporting and Giving Voice to Every Business in Norfolk, the non-profit organisation is turning up the volume on how and where businesses can get advice and support.

Norfolk Chambers has already launched two new exciting digital platforms – Norfolk’s Voice – a members only e-zine, and the first stage of Norfolk Knowledge Hub, a knowledge and skills sharing platform that is free to use for all.

The move to become a Digital Chamber has been a long time in the planning. Last year Norfolk Chambers introduced Vice Chairman of the Social Media Council at the DMA and director of award-winning digital marketing and social media experts SocialB, Lynsey Sweales, as its President. With over 16 years’ experience in digital marketing working with clients such as Google and Aston Martin, Lynsey brings in a wealth of experience to help encourage companies to embrace digital innovation and grow their business online.

There has also been a change to Norfolk Chambers’ senior management team. Nova Fairbank who was previously Head of Policy, Governance & Public Affairs has been promoted to Chief Operating Officer, and Paul Vincent, previously Financial Controller has been promoted to Chief Financial Officer.

Chris Sargisson, Chief Executive of Norfolk Chambers said: “This investment in change is part of the development and growth of the Norfolk Chambers of Commerce. As a Chamber we provide networking opportunities, share knowledge, offer business advice and support, signpost to business opportunities and inspire innovative thinking to enable companies to do better business. These new digital platforms and new roles within the Chambers will enable us to remain relevant and help support many more Norfolk businesses in their quest to get ready to grow.”

Find out more about becoming a member of Norfolk Chambers of Commerce www.norfolkchamber.co.uk

CTConsults have been engaged to help understand more about how Thetford as a place works.  CT Consultants believe that when you find the essence of a place, you can positively redefine and shape people’s experience and enjoyment of it, in ways that are inspiring and transformative for visitors, local residents and businesses alike.  They help  unlock the potential in every place – to create places and experiences that are rich in culture and meaningful to our lives.

CT Consultants want to gather a wide range of businesses opinions and would like you to take a few minutes to take part in a survey about Thetford and what it means to you.

They are interested in hearing what you think and feel, whether you know it well or hardly at all.  There are no right or wrong answers and every opinion counts.

The information will be used to help Thetford develop and establish itself as a place to live, work, do business, study, and visit.

Please follow the link below to take the survey and have your say:

Let’s talk about Thetford

Commenting on the latest statistics from HMRC on usage of the government’s Job Retention Scheme up until 31 December 2020, BCC Co-Executive Director Hannah Essex said:

“With the furlough scheme providing a lifeline to millions of employees across the economy, further action will be needed in order to avoid a damaging cliff edge for jobs and livelihoods after the scheme ends in just a couple of months. 

“The government must learn lessons from last October, where the delay in extending the scheme at a time of tightening restrictions helped drive redundancies to a record high.

“Therefore, ministers should commit immediately to keeping the furlough scheme in place until a full opening of the economy is possible and at least until the end of July 2021. Only with certainty on the future of government support can businesses communities plan ahead and look to restart, rebuild and renew.”

Norfolk Chambers of Commerce and Norfolk County Council have launched Norfolk Knowledge Hub, a new free-to-view online business support and learning space to support local businesses recover and thrive.

At a time when we are all still getting used to life in a virtual world, many businesses have created digital recovery programs so that businesses can still get the support they need through training, webinars, networking, caching and mentoring. However, as a business how do you find time to search for the information that you need when there is so much new content being launched online?

A collaboration between Norfolk Chambers of Commerce and Norfolk County Council has found the answer – The Norfolk Knowledge Hub.

The Norfolk Knowledge Hub is a knowledge and skills sharing platform for businesses. Businesses can share their knowledge on the Hub through videos, podcasts and articles, and can also access information to learn from other businesses. Content is continually being uploaded to the site so that the Hub is constantly evolving and growing. The Norfolk Knowledge Hub is a free-to-view on desktop and as a free downloadable phone App.

The Hub launches with two channels: Business Brilliance: A place to meet business experts who can help you get to where you want to be, from strategists for planning to creatives for marketing, and Business Broadcast: A place to be inspired, learn from other business leaders, and share your story on how you have developed, pivoted, faced challenges, and strengthened your business.

A Digital Academy channel is set to launch next month and will be the place where businesses and their employees can learn new skills, educate themselves on areas of business they need a little extra support with, and share their knowledge to help educate others.

Chris Sargisson, CEO of Norfolk Chambers of Commerce said: “The aim is for the Norfolk Knowledge Hub to be a digital knowledge aggregator, so that businesses can simply access one website or app and easily find trusted information in one place. It’s a business learning tool that has two functions: the first is to act as a business support and learning environment where essential, but often unknown, knowledge and contacts can be found to help businesses through, say the impact of Covid and Brexit (for example), and the second is to enable businesses who are creating digital content to share this on the Hub so that more people have access to it.”

As a digital knowledge aggregator, Norfolk Knowledge Hub is open for businesses and the public sector to share their content with the wider business community. The Hub is home to videos, podcasts and articles that share knowledge in how a business has achieved something, or in sharing skills and strategies.

Cllr Graham Plant, Norfolk County Council cabinet member for Growing the Economy, said: “This one-stop-shop means employees and business owners can quickly access relevant information in easy bitesize chunks. The Norfolk Knowledge Hub will be a useful helping hand particularly at a time when we’re all having to deal with the ongoing effects of the pandemic and new regulations and ways of working. I’m very pleased we’ve been able to secure a grant of £113,000 from the Norfolk Strategic Fund to develop this forward-looking scheme and we have big ambitions it will grow and expand over time as we all work together to help strengthen Norfolk’s economy.”

The Norfolk Knowledge Hub can be found at www.norfolkknowledgehub.co.uk or on the App store. You can also join in the conversation on social media using #KnowledgeHour               

For businesses who would like to submit content for inclusion please email [email protected]

As Coronavirus continues to impact the day-to-day operations of businesses across the UK, the Norfolk Chambers of Commerce stand ready to support you. We have created a range of resources to help address your concerns which can be found on our website.

Since March 2020, thousands of businesses across the UK have contributed to the Coronavirus Business Impacts Tracker. Your views have gone directly to the highest levels of Government and have formed one of the most important datasets shaping the economic response throughout the crisis.

In this 5 minute survey, please feel free to give your views on business conditions, Coronavirus business support schemes, and possible changes flowing from the introduction of the EU-UK trade agreement on 1 January. A link to the survey is below: COVID-19 and Brexit Survey

Your views have never been more important for both your own business and all others within the business community.

Results from the British Chambers of Commerce Quarterly Recruitment Outlook (QRO), in partnership with Totaljobs, found that while there was a modest improvement in the overall number of businesses attempting to recruit in Q4, sectoral disparities remain.

Fieldwork for the survey was carried out between 2 and 26 November 2020, during the second lockdown. It found that:   

  41% of firms attempted to recruit in Q4, up slightly from 37% in Q3, but this remains below pre-pandemic levels (55% in Q1 2020). 

• Firms in the public and voluntary and construction sectors were most likely to recruit, while hotels and catering firms were the least likely to recruit.
• Overall, a quarter of firms saw a decrease in the size of their workforce over the last three months.
• Looking ahead to the next quarter, 19% of firms expect an increase in the size of their workforce, 68% expect it to remain the same (up from 62% in Q3), and 14% expect a decrease.

  The largest independent survey of recruitment intentions in the UK serves as a barometer of the UK labour market. It received 5,900 responses, 95% of which were from SMEs employing fewer than 250 people.   

  The survey follows the BCC’s latest Quarterly Economic Survey, which found that business conditions remained weak in the fourth quarter, as the second lockdown squeezed activity.    

  Number of firms recruiting remains steady   

  The number of firms attempting to recruit in Q4 rose slightly to 41% from 37% in Q3, despite the introduction of a four-week second national lockdown from 5 November.   

  Significant sectoral differences in the types of firms attempting to recruit have emerged since the start of the Covid-19 pandemic, and remained in Q4 2020:   

• Over half (56%) of firms in the construction sector attempted to recruit in the quarter, up from 48% in Q3 
• 53% of firms in the transport and distribution sector attempted to recruit, up from 44% in Q3 
• Two-thirds (67%) of businesses in the public and voluntary sector attempted to recruit in the quarter, up from 57% in Q3  

While these sectors have increased recruitment in recent months, overall levels remain down compared to before the pandemic; in Q4 2019, 67% of construction, 62% of transport and distribution, and 75% of public and voluntary sectors attempted to recruit. 

Firms in the hotel and catering sector were once again amongst the least likely to recruit – only 22% attempted to, down from 30% in Q3 – reflecting the impact of forced closures under the national lockdown and tiered restrictions on their revenue and cash flow.   

However, the impact of the pandemic is also being felt by businesses that haven’t been required to shut their doors. 

Businesses in the marketing and media sector, for example, were the second least likely to recruit (33%). With 44% of these firms reporting decreases in sales in the quarter, QRO data demonstrates the economic impact of continued restrictions in the supply chain or in reduced budgets. 

Less than half of firms in the retail and wholesale sector attempted to recruit (40%), up slightly compared to Q3 (37%).   

Looking ahead

The percentage of firms that anticipated the size of their workforce to increase in Q1 2021 (19%) was virtually unchanged from the previous quarter (18%). A higher number of firms (68%) expected no change to the size of their workforce in Q1 2021 compared to 62% in the previous quarter. 

However, 14% of firms expect the size of their workforce to decrease in the next quarter, slightly fewer compared to the previous quarter (19%).  

Construction firms (24%) and manufacturing firms (22%) were the most likely to expect the size of their workforce to increase in the next quarter, highlighting higher levels of optimism felt by those sectors able to continue operating despite Covid-19 restrictions.  

Hotel and catering firms (35%) and, perhaps more surprisingly, transport and distribution firms (25%), were the most likely to expect the size of their workforce to decrease in the next quarter.  

Recruitment trends

Looking at Totaljobs application and vacancy data, in Q4 2020, logistics, followed by IT, administration, sales and customer service roles were receiving the most applications on the site. Comparing October and November 2020 with Q3, there was a 26% rise in job vacancies, before a seasonal decline over the Christmas period. The highest volume of vacancies was seen in logistics, IT and skilled trades. Candidate activity continues to outstrip vacancies and rose by 11% in October and November compared to Q3. 

Looking back further to Q4 2019 compared to Q4 2020, logistics and social care have seen the strongest recovery in terms of their recruitment, with demand for roles in these sectors only dropping very slightly year on year, as calls for more staff increased over the course of the pandemic. 

As we approach the end of January, Totaljobs data shows skilled trades, social care and engineering join IT and logistics as the sectors posting the highest volume of roles. The market continues to be employer-led, with applications outstripping vacancies. In the first weeks of January, Totaljobs saw over 2.6 million applications compared to 102,000 vacancies on site.   

Commenting on the results, BCC Co-Executive Director Claire Walker said:

“Our data shows the extremely difficult circumstances facing many businesses across the UK.  

“With many sectors facing major difficulties in retaining and recruiting staff, the Chancellor must immediately provide assurances that support will last for the whole of 2021 to enable firms to plan ahead. That starts with extending the Job Retention Scheme until a full reopening of the economy is possible. 

“Proposed reforms to Further Education, putting the skills needs of businesses at its heart, are welcome and will enable more people to train and retrain for jobs of the future. 

“The vaccine rollout provides genuine light at the end of the tunnel – but it is essential that government provides the support that ensures that businesses survive the current crisis and are ready and able to power economic recovery, creating new jobs, when the time comes.”   

Totaljobs CEO Jon Wilson said:  

“The vaccine rollout has given businesses and people hope, but there is still a way to go. Many sectors remain in a challenging position and have put hiring on pause, while others are able to accelerate their hiring to meet demand. 

“Throughout the difficulties of the pandemic, a real positive has been the increasing determination from jobseekers to take their careers into their own hands, focusing on their personal development by proactively upskilling. Totaljobs research found that 30% of workers acquired a new skill or qualification last year. 

“While the government’s Lifetime Skills Guarantee, set to launch this April, looks promising in its aim to drive adult education and training, changes must be made to the scheme to improve eligibility. Through this, more businesses, no matter their sector, can see the benefits of this scheme, alongside jobseekers and workers across the UK.”