Chamber News

Norfolk County Council have released their business ratepayers consultation for 2021/2022.  With a very challenging year for everyone last year, the budget for the coming financial year had to make allowances for the continuing response to the Covid-19 pandemic; dealing with Brexit and reducing carbon.

The Council have published a document that outlines the work undertaken in the last year, the investment they intend to make and how they intend to support economic growth in Norfolk for the coming year.

There is major uncertainty about government funding beyond 2021-22, including uncertainty linked with impact of COVID-19 and leaving the EU.  As well as significant uncertainty around impact of COVID-19 on council tax and business rates income 2021-22.  Therefore Norfolk County Council are proposing to increase council tax by 3.99% in 2021-22 (including 2% Adult Social Care precept), with a further 1% increase in Adult Social Care precept deferred to 2022-23.

A Capital Programme of £537.660m is proposed for 2021-25+ reflecting significant capital investment in major projects including:

• Great Yarmouth Third River Crossing.
• Long Stratton bypass.
• Programme to improve SEND school provision

The County Council have also provided a presentation to outline key spending decisions, which can be viewed here. 

They are very keen to hear from the Norfolk business community.  Please give your feedback via: [email protected] by 31 January 2021.

Following the Chancellor’s statement, changing the minimum placement criteria for small business from 03 February,  Norfolk Chambers have confirmed their commitment to continue providing exceptional support to local employers to help and guide them with their Kickstart Placements.

For each placement, the Gateway Providers, like Norfolk Chambers, receive £300 to support administrative costs, whilst employers should receive £1,500 per placement for help with setup costs and employability skills training.    Your Gateway choice will determine  what these arrangements actually look like. Some Gateways will agree with the employer to offer a level of training and thereby a slice of the £1,500.

Norfolk Chambers Gateway can confirm that the full funding is being passed across to employers for each placement and that we will continue to work with them to get their placements approved and started.

Commenting on the Norfolk Chambers Gateway, Nova Fairbank, Head of Policy said: “Norfolk Chamber developed a Kickstart Gateway due to the overwhelming and continuing demand from local businesses.  Our aim was to not only support local businesses to access the Kickstart Scheme, but to ensure the quality of the placements for our young people.

“Our Gateway will help employers to complete a detailed application form, designed to ensure that the employers have the highest chance of meeting the DWP Kickstart criteria. We have also chosen to offer total flexibility to the employer by passing on the full funding, however we do ask all employers to confirm how they intend to spend these funds to ensure that all placements receive a high level of quality support and upskilling.

“Kickstart is a brilliant way to ensure young people get a boost into the world of work, whilst employers have the opportunity to grow their businesses and hopefully create more new jobs, all to the benefit of the local economy.

“We are very aware of the challenges that have faced the DWP since the Kickstart initiative commenced in September 2020, and we commend the patience of local employers, who have been understanding of these considerable delays in getting the system to operate smoothly.  The local DWP team have been amazing and we work in close collaboration with them to drive the Norfolk placements through the system.  We are confident we will start to see live placements in Norfolk happening very soon.”

For more information on accessing the Kickstart Scheme and to download your application form,  click here.

If you would like to talk to someone about cresting a Kickstart place, please contact:

Charlotte Upcraft        01603 729702             [email protected]

Nova Fairbank             01602 729713             [email protected]

Rules of Origin (RoO) are putting a spanner in the works for UK exporters wishing to take advantage of the UK’s newly negotiated trade deals with the EU and all trade deals we had with the EU that have been rolled over. The new trade agreements only allow goods of UK origin to move tariff and quota free. Many UK exporters from a variety of sectors are finding that goods they thought they could export tariff and quota free do not meet the new origin rules putting their goods at a disadvantage compared to their EU competitors. The rules define which goods can be counted as originating in the UK and therefore benefit from the negotiated agreements.

So, why do we have RoO? RoO are written into all trade agreements to ensure that reduced tariffs and other non-trade barriers covered by the agreement are only available to goods originating in the countries that have signed the agreement. If we did not have RoO then companies could just import goods into a country that has a trade deal with the country they want to trade with then just export the goods from that country even though the country that originally sent the goods does not have a deal with that country. For example, a US company wants to export to the EU, but the US and the EU do not have a trade deal. Without RoO the US company could export the goods to the UK and then on to the EU taking advantage of the UK EU trade deal.

The rules vary for each commodity code though in general if 50% of the ex works price is considered as originating in the UK then the goods would be considered to be of UK origin. For goods wholly originating on the UK this is not an issue but with modern supply chains parts come from all over the world. When we were a member of the EU then parts from EU counties counted towards the origin of the goods and in some agreements they still can as long as they processed in some way in the UK. This is called cumulation and is included in some format in most trade agreements. The issue UK businesses are having at the moment is that cumulation can only apply if the goods are processed and there is a list of minimal processes which do not change the origin of the goods. For example if Norwegian salmon is imported into the UK and then repackaged for the consumer market, then repackaging is considered a minimal process which does not confer origin, so the goods remain of Norwegian origin. If the same Norwegian salmon is imported into the UK and is smoked and then repackaged for the consumer market, then the salmon can be considered of UK origin.

These rules will have the effect of curtailing the UK from being a distribution centre for EU goods. It may make UK manufacturers look for UK suppliers to replace their existing EU suppliers, but EU manufactures face the same issue so may well replace there UK suppliers. In short RoO are an added barrier to trade that many UK exporters have not needed to consider before. Not all goods can move tariff and quota free between our trading partners.  

Vantage Protect, who provide the Chamber of Commerce Commercial Legal Expenses policy, have rebranded to Rhino Protect. 

Chamber Legal Expenses Insurance is included for all members as part of standard membership and covers claims such as;

1. Employee Disputes 2. Health & Safety Prosecutions 3. Tax Protection 4. Criminial Prosecution Defence 5. Statutory Licence Protection 6. Jury Service Allowance 7. Property Disputes 8. Data Protection 9. Personal Injury 10. Motor Disputes 11. Wrongful Arrest Defernce.  The limit of indemnity for any one claim is £100,000* (Jury Service Allowance £100/day, £1,000/claim).

Further information about the Policy can be found in the documents below. 

Notice to Members Policy Summary Policy Wording

On 01 January 2021 a new immigration system came into play and EU, EEA and/or Swiss nationals will no longer be allowed to move to the UK and work without a visa.  Under the new system, all foreign nationals will be treated equally, excepting Irish citizens.

Our region has a wide range of businesses, who employ overseas workers and Norfolk Chambers would like to hear how the new UK immigration rules are impacting on your workforce and your recruitment plans for the future.

We working with partners, such as the Local Enterprise Partnerships and the local authorities, to help support the local business community to protect current and future jobs.  As a group, we need to understand the overall impact on the workforce of new immigration changes.

For example, the social care sector in our region currently employs approximately 9% EU workers – with many whose salary levels will not meet the new immigration threshold.  What work have they done with their current overseas employees to ensure the can remain in the UK?  What plans are being made and how are care homes planning to mitigate their future overseas staffing needs?   Similarly, those in the agriculture and food sectors, are they seeing a knock-on effect as a result of changes in accessing temporary workers?  Have all your EU national employees applied for and received Settled Status?

We need to hear from as weide a range as businesses as possible.  Not just the care, agriculture and food sectors.  Your feeback willhelp to ensure that the right support mechanisms are put in place locally and to ensure we can continue to lobby appropriately on your behalf when talking to the Government Ministers and the Cabinet Office about how effective their systems are in reality.

Below are a summary of the key new immigrations rules in relation to business:

EU citizens who were living in the UK on 31 December 2020

If you’re an EU, EEA or Swiss citizen and you were resident in the UK on or before 31 December 2020, you should not apply for a visa under the points-based immigration system. You and your family should instead apply to the EU Settlement Scheme. Applications are free and the deadline for applying is 30 June 2021.

Employing EU citizens in the UK from 01 January 2021

Information for employers on employing EU, EEA and Swiss citizens in the UK, covering right to work checks, the EU Settlement Scheme and the UK’s new immigration system.  Full details can be found here.

Skilled workers

The points-based system includes a route for skilled workers who have a job offer from an approved employer sponsor.  The job offered will need to be at a required skill level of RQF3 or above (equivalent to A level). The person will also need to be able to speak English and be paid the relevant salary threshold by the sponsor. This will either be the general salary threshold of £25,600 or the going rate for the job, whichever is higher.

If the role earns less than this – but no less than £20,480 – you may still be able to apply by ‘trading’ points on specific characteristics against your salary. For example, if you have a job offer in a shortage occupation or have a PhD relevant to the job.

Seasonal Workers (Temporary Workers)

A Seasonal Worker may only stay in the UK for 6 months in any 12-month period.  A person on the Seasonal Worker route is not eligible to bring their dependants to the UK and a Seasonal Worker is not a route to settlement.

There are some sectors in the UK, particularly those in agriculture and food processing that employ seasonal workers i.e. fruit picking etc.  The person must be over 18 years of age and the application cannot be made more than 3 months in advance of the proposed start date.  For full information click here.

To give your feedback, please contact [email protected]  or call 01603 729 713.

Commenting on GDP figures for November 2020 published today by the ONS, BCC Head of Economics Suren Thiru said:  

 “The latest figures highlight the continued damage being done to the UK economy by coronavirus. 

 “The decline in output in November was largely driven by the drag on activity from the second lockdown, with consumer-focused services firms, who are most exposed to lockdown restrictions, enduring a particularly difficult month.   

 “With any post-lockdown rally in output in December constrained by the tougher tiered restrictions, including the introduction of tier 4 measures, the UK economy is likely to have contracted in the final quarter of 2020.  

 “A third lockdown means that a double-dip recession in the first quarter of this year may be inevitable, particularly if the current post-Brexit disruption persists through the quarter. 

 “A clear and comprehensive plan is urgently needed to support the economy throughout this year. This should include closing the current gaps in government support and providing more significant grant funding to support cash strapped businesses. A fit-for-purpose Test, Trace and Isolate system remains critical to keeping the economy moving once the current lockdown ends.” 

Returning on Friday 5 February, 2pm-4.30pm, The Big Debate goes virtual this year bringing together local MPs and business leaders to influence change and give voice to Norfolk businesses. 

The online debate is spilt into four main topics Norfolk Chambers have identified as key to the business community this year. These are:

• People & Skills
• Rebuilding the Economy
• Climate Change & Going Green
• Beyond Brexit

This is your chance to put your questions directly to key decision makers, virtually network with other businesses in Norfolk and be part of Norfolk Chambers flagship policy event that lets the voice of the Norfolk business community be heard. 

The schedule of the day

Welcome

From Nova Fairbank, Head of Policy, Governance & Public Affairs for Norfolk Chambers of Commerce and Jonathan Denby, Head of Corporate Affairs for Greater Anglia.

Debate 1: People & Skills

Our first debate will focus on People & Skills, tackling the challenge of how we recruit and retain top talent in the county. Joining us will be Rebecca Headden, Co-Director for R13 Recruitment, James Howells, Director for Turning Factor, Karen Paterson, Deputy Group Property & Facilities Director for Aviva and Chloe Smith, MP for Norwich North.

Debate 2: Rebuilding the Economy

Join Stefan Gurney, Executive Director for Norwich BID, Clive Lewis, MP for Norwich South, David Parfrey Executive Chair for Norwich Research Park and James Wild, MP for North West, to discuss how businesses can bounce back after such a turbulent year. With Brexit and the Covid pandemic challenging businesses like never before, what are the opportunities for businesses to expand and grow in 2021, and what is needed to ensure businesses in Norfolk thrive?

Break

Time to grab yourself another cup of tea.

Debate 3: Climate Change & Going Green

Next on the agenda will be Climate Change & Going Green with the aim of looking at what support is needed and available for businesses to improve their carbon footprint. Answering your questions will be Richard Buckingham, Climate Change and Carbon Manager for Anglian Water, Duncan Baker, MP for North Norfolk and Dr Catrin Ellis Jones, Stakeholder Engagement Manager – Offshore Wind for Vattenfall.

Debate 4: Beyond Brexit

Our final debate of the day focusses on Brexit. Now that ‘Brexit is done’ what support is there for Norfolk businesses to drive growth overseas and what impact has Brexit had on local businesses already? This topic will be debated by Richard Pace, Managing Director for Norwich Airport, Tracey Renshaw, Managing Director for Import Export Support, Kevin Walsh, U.K. Sales Director for LV Shipping and Leszek Wysocki, International Trade Adviser for Department of International Trade.

How to submit your questions

You can post messages live at the event and you can also submit questions in advance of the event. If you would like to submit a question on any of the four topics in advance, you may do so here: click here to submit questions.

The Big Debate 2020 is sponsored by Greater Anglia and is open to members and non-members.

To book your tickets and to see further speakers announced, click here.

And don’t forget to get involved in the discussion on Twitter at #BigDebate21

A letter from BEIS Minister Scully has been issued to haulier firms on the new requirements for drivers to have a negative Covid test before travelling to ports.  The costs of test will be met by government and businesses are encouraged to go through their local authority for the necessary equipment.

Commenting on the Prime Minister’s announcement of a new, national lockdown in England, and following the implementation of a lockdown in Scotland, BCC Director General Adam Marshall said:     

“Businesses will understand why the Prime Minister has felt compelled to act on the spiralling threat to public health, but they will be baffled and disappointed by the fact that he did not announce additional support for affected businesses alongside these new restrictions.  

“The lockdowns announced in England and Scotland today are a body blow to our business communities, hard on the heels of lost trade during the festive season and uncertainty linked to the end of the Brexit transition period. Tens of thousands of firms are already in a precarious position, and now face a period of further hardship and difficulty.  

“Billions have already been spent helping good firms to survive this unprecedented crisis and to save jobs. These businesses must not be allowed to fail now, when the vaccine rollout provides light at the end of this long tunnel. The financial support for businesses needs to be stepped up in line with the devastating restrictions being placed on them. Otherwise, many of these firms may simply not be there to power our recovery when we emerge once again. 

“Enhanced support for businesses, a turbo-charged vaccine rollout, and delivery of existing promises on mass testing must be delivered to enable the UK to restart, rebuild and renew.” 

The British Chambers of Commerce’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – found that business conditions remained weak in the fourth quarter as the second lockdown squeezed activity.

The bellwether survey of 6,203 firms, including those from Norfolk, who employ nearly a million people across the UK, revealed that there was no fundamental improvement in the key indicators in Q4 and they remain well below pre-crisis levels. 95% of respondents were SMEs. 

Key Findings:

• Following the sharpest decline in the history of the QES in Q2 2020, all the key indicators in Q4 remained substantially worse than pre-pandemic levels
•  79% of hotels and catering firms reported a decrease in domestic sales in Q4, worsening from 66% in Q3
• Cash flow, a key indicator of business health, continued to deteriorate for 43% of firms overall. For hotels and catering firms, 77% report a decrease.
• Norfolk’s service sector domestic sales worsen in line with the national figures and are well below their historic average.  But domestic orders picked up slightly whilst remaining in negative territory (-18 up from -24)
• Norfolk’s manufacturing sector domestic sales and home orders continue to fall in line with the national picture.

Overall UK business conditions:

Overall, indicators remained weak in Q4, with only moderate improvement compared to Q3 and still well below the pre-Covid 19 trend.  

• Nearly half of firms (43%) reported decreases in domestic sales, broadly unchanged from 46% in Q3 
• 26% of firms reported an increase in domestic sales. 30% reported no change 
• 45% of firms reported a decrease in domestic orders, while 33% report no change, and 22% report an increase 
• 38% of firms reported decreases in export sales, down slightly from 45% in Q3 but still substantially worse than pre-pandemic levels, where only around 20% of firms reported a decrease 
• Nearly a quarter (22%) of firms reported increases in export sales, up from 16% in Q3 

Business to consumer (B2C) firms saw the largest falls in domestic sales in the quarter. Over three quarters (79%) of respondents in the hospitality and catering sectors reported decreases, compared to 66% in Q3 and is moving back toward Q2 levels (94%), underlining the impact that lockdowns and forced closures have had on demand.  

However, the survey revealed that sectors which have continued their operations through the pandemic, and/or shifted their operating models to remote working, also have a higher proportion of firms reporting decreased sales. For instance, 53% of transport and distribution firms, and 44% of marketing/media firms reported decreases in sales, well above pre-pandemic levels of 29% and 23% reporting decreases in Q1 2020, respectively. 

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

“These results indicate that economic activity was strikingly downbeat in the final quarter of 2020 as the re-introduction of tighter coronavirus restrictions weighed heavily on the key drivers of growth. 

“The services sector endured a particularly difficult quarter, with consumer-facing businesses most severely exposed to the renewed restrictions. Although manufacturing firms had a moderately better end to 2020, this is more likely to reflect a temporary boost from Brexit stockpiling rather than evidence of a recovery in the sector. The persistent weakness in investment intentions is a particular concern, as it limits the UK’s productivity and growth potential.  

“Though the vaccine rollout provides real optimism, a new national lockdown means that a significant double-dip recession in the first quarter of this year is looking increasingly likely.” 

Responding to the findings, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:     

“The results clearly demonstrate how Norfolk businesses are under pressure both from the impact of Covid-19 and Brexit.  2021 will be challenging year, as businesses come to terms with new import and export rules and systems, as well as the further uncertainty due to another lockdown. 

“Many manufacturers have stockpiled ahead of 01 January and the service sector are still not clear what the new UK/EU deal will mean for them.  We need the government to be clear about what the new deal means to all sectors, to provide clear guidance and support to ensure our businesses can come back strong in 2021.”

Responding to the findings, Director General of the British Chambers of Commerce, Dr Adam Marshall, said:     

“Our findings demonstrate that businesses across the UK face a difficult and uncertain year ahead in 2021. The announcement of another major lockdown across all four nations of the UK will compound the gloom for many.  

“As we start 2021, governments across the UK should be pulling out all the stops to ensure support for businesses is commensurate with the restrictions in place. Both the pandemic and government restrictions continue to hit firms hard, and many are grappling with a difficult period of adjustment to new trading conditions following the end of the Brexit transition period.  

“The current drip-feed approach to business support measures is too short term and leaves businesses unable to plan. Ministers must set out, now, what additional steps they will take to underpin business cash flow and help viable firms preserve livelihoods until a full reopening of the economy is possible. They should be boosting confidence by extending tax holidays and key support schemes that are due to expire over the coming weeks.  

“As we look to the future, our findings demonstrate that big investment incentives are also needed. Prosperity and success depend on businesses, both domestic and international, having the confidence to invest here in the UK for the long term. 

 “For business, the pandemic doesn’t end simply because vaccines are starting to be delivered. Brexit isn’t ‘done’, either. The sooner the Prime Minister and his colleagues set out a coherent economic plan and longer-term support to help businesses to restart, rebuild, and renew, the better.  

“2021 cannot be a year where Britain dithers while others do.”   

Key Norfolk findings in the Q4 2020 survey:

Norfolk Manufacturing Sector:

• The balance of firms reporting domestic sales decreased to 5 in Q4 from 27 in Q3, this is against an increase in national sales which increased to -9% in Q4, up from -15% in Q3.
• The balance of firms reported a decrease in export sales to -14 in Q4 down from -8 in Q3. This is against a national picture which saw firms reporting increased export sales increased to -8% from -26% in Q3 
• The balance of firms reporting cashflow decreased to -13 in Q4 from 20 in Q3 – this is significantly larger drop than the national figures which reporting a slight increase in Q4 -15 from -18.

Norfolk Services Sector:

• Norfolk firms reported a slight decrease in domestic sales to -4 in Q4 from -3 in Q3. Which reflected the national picture.
• Norfolk businesses outlook on export sales looked more positive with sales increasing to -21 in Q4 up from -32 in Q3. This was inline with th national trend which increased from -31 in A3 to -22 in Q4.
• The balance of firms reporting improved cashflow increased considerably to -6 in Q4 up from -24 in Q3.  A much healthier response than the national trend which showed list change -28 in q4 from -30 in Q3

As a percentage balance, the manufacturing sector is seeing a faster rate of improvement in domestic and export sales, though both sectors’ indicators remain in ‘negative territory’, meaning that more firms have reported a decrease in sales than an increase.  

Cash flow 

Cash flow, a key indicator of business health, continued to deteriorate for more than four-in-ten Norfolk firms. In Q4, 28% of firms reported an improvement in cash flow, 36% reported no change and 35% reported a deterioration.. 

In the services sector the balance of Norfolk firms reporting improved cashflow increased to -6% from -24% in Q3.

In the manufacturing sector, the balance of Norfolk firms reporting improved cashflow decreased to -13% from +20% in Q3. 

Investment and confidence 

Over a third of local firms (36%) continue to report decreased investment in plant, machinery and equipment, highlighting longer-term concerns for the economy as many businesses pause investment plans or revise them down. 

Just 41% expected no change in plant, machinery and equipment investment, down slightly from 47% in Q3. Just 23% of firms plan to invest, which increased from Q3 at just 8%

41% of firms said they expected their turnover to increase over the next 12 months, while a third (33%) still expected it to decrease. Just over a quarter (26%) expected that it would stay the same.  

In the services sector, the balance of firms looking to increase investment in training remains at -21% in Q4, up from 13% in Q3. The balance of firms confident that turnover will improve over the next year decreased considerably to +5% from  -13% in Q3. 

In the manufacturing sector, the balance of firms looking to increase investment in training increased to -8% in Q4 from -27% in Q3. The balance of firms confident that turnover will improve over the next year decreased to +21% in Q4 down from +33% in Q3. 

Ongoing uncertainty

Despite seeing some improvements in some indicators in the previous quarter, business conditions remain close to the historic lows in our data.

The survey fieldwork took place during the second lockdowns in England and Northern Ireland, and amid tougher restrictions in Scotland and Wales. Continued uncertainty around further lockdowns and restrictions, as well as the many unanswered questions on Brexit, have caused businesses considerable distress, with some saying they are worried about the long-term viability of their business.  

Smaller firms and independent retailers report the most pessimistic sentiment, many stating that changes in restrictions, and the introduction of the second lockdown exacerbated cash-flow problems and left them with redundant stock. A wholesaler reported: ‘We were recovering well from the lockdown until this last month, which has been catastrophic as we had bought for Christmas sales, which were then halted, but the invoices still needed paying.’ 

Some businesses not forced to close by the lockdown and restrictions are also feeling the effects of the cash-flow crisis further up the supply chain, with marketing budgets slashed or diverted to Covid-related activity. One creative agency commented: ‘2020 has been a dire year for any marketing, creative agency. Clients have taken back budgets to cover Covid and PPE signage, other new clients had to close doors and reduce marketing spend. Only a few see the need to promote or market their business to consumers and attract new sales.’ 

For any import or export of goods, you’ll need a commodity code to make your customs declaration when you bring goods in or send goods out of the UK or EU. This includes goods sent to you from abroad.

If you classify your goods correctly you’ll know what rate of duty and import VAT you should pay, and if:

• the duty is suspended
• you need a licence to move your goods
• your goods are covered by:
• the Common Agricultural Policy
• anti-dumping duties
• tariff quotas

To find out what commodity codes you need to use; what rates of duty and import VAT you may need to pay – click here for full details

Following the agreement between the United Kingdom and the European Union, the Government has published two documents to help businesses to prepare for the end of the transition period on 1 January 2021. 

The two documents detail the key actions businesses need to take and provides guidance and details of helplines available to businesses.  They also provide sector specific Brexit transition actions.

• Part A: detailing the key actions, guidance and helplines available
• Part B: detailing sector specific Brexit transition actions

Norfolk Chambers can also help support businesses through the transition period – please visit our Brexit Hub.