UK trade deficit in good and services was £1.5bn in July, compared with a deficit of £4.3bn in June
Commenting on the trade figures for July 2012, published today by the ONS, Tracey Howard international Trade Director Norfolk Chamber of Commerce, said:
“The large decline in the July trade deficit more than reversed the setbacks recorded in June. Underlying export volumes rose in the last three months, while import volumes fell. We know that Norfolk exporters are facing major challenges due to problems in the eurozone and the global economy as a whole, so progress towards rebalancing will be slow and painful.
“However, the latest trade figures show encouraging progress, and reinforce our hope that the UK economy will return to positive growth in the third quarter of 2012. UK exports to non-EU countries were slightly higher than exports to the EU in the last three months, which shows a shift in the traditional pattern where exports to the EU are usually much stronger.
“These developments show that British including those from Norfolk exporters are making the right decisions and moving to faster-growing areas outside the EU. We have always stressed that exporting companies have huge untapped potential to expand, but need the right support to help them compete and break into new markets. We have developed a Global Market Place series of six seminars to assist Norfolk businesses to get into new markets and hear from industry experts. Firmer action from government in key areas such as trade finance, promotion and insurance would be a good start, but this needs to be part of a general shift in priorities towards more policies to boost growth.”
Jointly hosted by British Expertise and the British and Colombian Chamber of Commerce (B&CCC), a meeting to be held in London in October will explain why these organisations believe that the time is right to see Colombia as a market.
Those attending will hear the results of B&CCC’s newly completed research into the project opportunities created by the Colombian Government’s commitment to develop the country’s infrastructure, and will be provided with a copy of the report.
Carlos Sanchez, a lawyer with the firm of Duran & Osorio, will summarise the legal context of doing business in the fourth largest country in South America and will examine Colombian public-private partnership contracts and briefly describe how to take part in public procurement processes.
The meeting will be held at the London offices of British Expertise (10 Grosvenor Gardens) on 1 October at 3.30pm.
British Expertise is organising a UK infrastructure mission to visit Bogota and Cartagena from 19-23 November, to coincide with the Colombian Infrastructure Chamber Congress, the country’s largest infrastructure congress.
The October meeting will provide the background to the potential benefit of participating in the mission and will explain how, over the next eight years, Colombia will invest US$55 billion in its infrastructure, covering airports, ports, railways, hospitals, schools and roads.
Further details of the meeting, which is free to attend, can be found here.
The Middle East Association, in partnership with the Saudi Committee for International Trade, warmly invites you to attend this year’s 9th Opportunity Arabia Seminar on Monday 1st October at One Great George Street, London SW1.
Opportunity Arabia 9 aims to introduce British companies to a thriving and growing market place and to raise their awareness of the limitless business opportunities that Saudi Arabia has to offer.
David Lloyd, Senior Consultant at the Middle East Association will be coming to speak at our “Spotlight on Saudi Arabia” event taking place on 5 March 2013.
World trade is predicted to grow by 75% in the next 15 years, with merchandise trade volumes set to climb to US$48 trillion by 2025, up from US$27.2 trillion today.
That at least is the view of the International Chamber of Commerce (ICC), which is concerned that new financial solutions will be needed to enable corporates to maintain a resilient supply chain.
Accordingly, the ICC Banking Commission is organising its first-ever ICC Supply Chain Financing Conference, to be held in Paris on 4 and 5 October 2012.
Innovations in working capital solutions are more vital in today’s economic climate than they have ever been before, the ICC said, with companies and suppliers under conflicting pressures to improve payment terms, reduce prices and improve cash flow.
“From today’s emerging markets, new international powerhouses will arise to further drive world trade growth,” said Andre Casterman, Conference Co-Chair, Head of Banking and Trade Solutions, SWIFT and Co-Chair of the ICC Bank Payment Obligation (BPO) Project.
To support such growth in a volatile economic climate, he explained, new supply chain finance rules are being established. BPO rules, for example, offer a new instrument that combines the benefits of the letter of credit with those of open account trade.
The conference will combine educational sessions on different supply chain finance techniques while drawing on case studies and examples of best practice. Topics will be divided between invoice-based and purchase order-based supply chain finance techniques.
Chancellor George Osborne and Business Secretary Vince Cable have both announced that their Departments are considering the creation of a new bank to improve the flow of credit to small and medium-sized firms.
This comes as good news to the British Chambers of Commerce (BCC) which has long championed the idea and has now set out a detailed case for the establishment of a state-backed British Business Bank.
This argues that the Bank should be a clear “first port of call” for all viable companies seeking growth finance but should complement, not cannibalise, existing banks and other lenders, with commercial lenders having a “first right of refusal” on all applications received by the Business Bank.
The BCC suggests that its plan would particularly help dynamic and fast-growing companies, many of whom report difficulty accessing finance. It would also address “discouraged demand” among some existing bank customers.
The Chambers’ paper also notes that the Bank could help companies seeking mezzanine, export or supply-chain finance support, which it sees as being key to rebalancing the economy in the years to come.
Director of Policy and External Affairs, Dr Adam Marshall, said: “Our new report addresses many of the obstacles to the creation of a business bank, and shows that a new institution is both realistic and achievable. Ministers have a golden opportunity to pass enabling legislation for a business bank this autumn, and to dedicate their attention to ensuring that it is operational before the end of this Parliament.”
The UK’s aviation policy is under wide-ranging scrutiny at the moment, with attention variously on the desirability, or otherwise, of extending Heathrow and the possibility of creating a “Boris island” airport in the Thames.
The Director General of the British Chambers of Commerce (BCC), John Longworth, has widened the argument by suggesting that Stansted Airport can play an important role in boosting international trade and connectivity in support of British business.
On a recent visit to the UK’s fourth busiest airport, he met Stansted’s Managing Director, Nick Barton, to discuss a range of issues affecting aviation and business competitiveness, including aviation policy, infrastructure investment, export opportunities and access to finance.
He described Stansted as a superb airport with world-class infrastructure and noted that it has a burgeoning air freight market with significant spare capacity to take more flights, which would help to boost international trade.
“The UK desperately needs a coherent and comprehensive aviation policy for the short-, medium- and long-term,” Mr Longworth said. “Stansted clearly has a role to play.”
Mr Barton said that the airport had the permissions and facilities in place to serve 35 million passengers a year on its single runway and he was sure that it could help to build the international trade links that are vital for British business and prosperity.
The British Chambers of Commerce are carrying out a snap poll on “Access to Finance” this week.
The Snap poll is carried out over 3 days and starting from today, closing at midnight on Thursday.
The BCC have commented as follows:
“Considering the continuing economic challenges faced by UK businesses, we would like to quickly capture your views on how access to finance is shaping the current business environment.
Conducting this very short snap poll of Chamber members will enable us to represent the needs of business as effectively as possible at a time when major changes to the business finance system are being considered both here in the UK and globally.”
Commenting on the proposals announced by Vince Cable on the proposed employment law changes, Caroline Williams CEO Norfolk Chamber said:
“Norfolk employers will be encouraged that the government is taking steps to reduce the burden of the employment system and create a more flexible labour market. Dismissal is always a last resort, but is at times necessary to protect a business and other members of staff. The fear of malicious tribunal claims and an unnecessarily antagonistic dismissal process has a chilling effect on employment. We would urge the government to move swiftly from consultation to implementation on settlement agreements and lower tribunal awards, as these proposals will boost confidence when businesses on the ground can see them in action.
On settlement agreements:
“In those unfortunate circumstances when businesses have to end the employment relationship, settlement agreements provide a speedy and consensual way to avoid disputes. Companies need to be confident that they can offer an employee a settlement to end the relationship without fear of future claims. We support moves by the government to make the process of offering a settlement easier to navigate without paying for specialist advice.”
On limiting tribunal awards:
“The current maximum award for unfair dismissal vastly exceeds the reality of most cases, but prevents many employers from seeking justice, and puts many more off hiring all together. The upper limit should be reduced and this would significantly increase employers’ confidence to challenge unmeritorious claims and recruit more staff.”
On tribunal reforms:
“These measures form part of a broader government agenda to reform the tribunal system and ensure it becomes less of a barrier to employment and economic prosperity. Although employers have welcomed efforts to deter vexatious claims by introducing fees for claimants, that policy will be undermined if the system of remissions means that just a quarter have to pay the full fee. The government must get a grip and ensure that all those who can afford the fee are made to pay.”
On additional changes needed to boost employment and confidence:
“These measures will boost employers’ confidence and lead them to create additional jobs, but will be undermined by upcoming government proposals on extending the right to request flexible working and shared parental leave. Extending the right to request to all workers will make it more difficult for employers to accommodate requests from those with caring duties. Similarly while we support the objective of helping mothers who want to return to work to do so, we are yet to see proposals on flexible parental leave that are workable.”
Norfolk Chamber and other key stakeholders will be attending the Norfolk Rail Prospectus Workshop, organised by Graham Plant, Cabinet Member for Planning and Transportation and Chloe Smith Norwich North MP, in conjunction with Norfolk County Council on 4th October.
The Prospectus will build on the tremendously successful region-wide prospectus that Local Enterprise Partnerships – backed by local authorities, the rail industry, the Chambers and MPs – delivered to Westminster earlier in the summer.
We are already seeing the results of this. The recent government announcement about rail spending and overarching objectives for the next five years included positive announcements about improving the rail network at Ely, for example, which is vitally important for a number of services including Norwich to Cambridge and King’s Lynn to Cambridge.
Now that the rail industry is developing its detailed spending programmes, and government is renewing the franchises covering the county, we have to follow this up with our detailed requirements.
There will be an opportunity for the business community to reconfirm what is needed on the railways for Norfolk. There is strong backing for ‘Norwich in Ninety’ and half hourly services to King’s Lynn. The workshop will aim to find out what is important elsewhere, and in more detail, to make sure that the railways can meet the needs of Norfolk: to build our economic strengths and capitalise on what the county has to offer.
The Prospectus is for the long term, and the stakeholders seek to maintain a unified, passionate and focused campaign which best positions us at the right time.
The Bank of England Agents’ summary for September highlighted that spending on consumer goods and services continued to grow at a gradual pace, however promotions and sales remained essential to support demand, with households still focused on finding value for money.
Export growth continued to slow, reflecting the weakening conditions throughout the Euro area and manufacturing growth continued to slow. However turnover in the service sector was now rising a t a gradual pace. To read the full report click here.
Commenting on yesterday’s announcement on the independent scrutiny of regulations affecting challenger businesses by Business and Enterprise Minister Michael Fallon, Caroline Williams, CEO Norfolk Chamber of Commerce said:
“Ensuring that innovative, growing businesses are not hampered by burdensome red tape is a step in the right direction. Independent scrutiny of outdated regulations is vital if we are to help ground-breaking companies in Norfolk thrive. The Norfolk Chamber supports the call for the role of the independent Regulatory Policy Committee to be strengthened, to ensure regulations that hamper business growth are fully analysed.
“These changes must, however, form part of a wider deregulation package that reduces the burden of red tape for all companies. Only significant deregulation, both domestically and in Europe, will give businesses the confidence to grow, innovate and create employment in the long-term.”
The vouchers worth £5,000 would be offered to businesses, and allow them to access advice to help them grow. Advice would focus on issues such as exporting, HR, access to finance, marketing, and help with the planning system. The scheme would generate activity in the domestic business services market, boosting business investment and the productivity and growth potential of small and medium-sized businesses.
Growth Vouchers would offer significant benefits not only to participating companies, but to a wide array of UK-based suppliers, particularly in the business services sector. Businesses applying for the scheme would need a demonstrable business growth plan. Vouchers could only be spent on gaining advice, rather than to boost working capital, and would have a time-limit on their use. The £100m cost of the scheme could be found from other business support programmes, for example future rounds of the Regional Growth Fund.
Advice could be focused on the following areas:
1) Legal, HR, accounting advice: As businesses expand, accounting and HR systems become more complex, and small businesses in particular can struggle to make sense of employment law and tax systems. Advice would help businesses understand these complex functions, allowing them to be more efficient, and focus on growth. 2) Access to finance advice: Smaller, younger, and high-growth businesses often have more difficulty accessing finance than more established firms, and some are unaware of the options available outside traditional debt finance. Advice could also address the problem of discouraged demand, and may result in more businesses obtaining finance to boost investment plans. 3) Marketing advice and training: Helping businesses with marketing their products and services here and importantly in overseas markets could lead to more sales, and growth opportunities for many firms. 4) Planning support: The complexity of the planning system means many businesses need to hire in external consultants at a high cost. The costs will often put firms off expansion, so offering companies free advice would help motivate businesses to grow and expand their premises. 5) Staff training: Workforce skills consistently rank among the top three concerns among Chamber members across the country. As businesses expand and develop their goods and services, increased staff training is often needed to help firms grow. 6) Export advice: Urgent action is needed to support the UK’s potential and current exporters to help rebalance the UK economy towards exports. Many businesses do not have the advice or skills they need to break into new markets. Export training and access to market intelligence and trade shows and missions, could help many businesses take the first step to exporting, and open new markets for current exporters.
Announcing the proposal, John Longworth, Director General of the British Chambers of Commerce, said:
“Businesses across the country are looking to the government to give the economy the boost it needs. A Growth Voucher scheme, targeted at those businesses with clear plans to expand, could help to increase productivity, business investment and growth. Government-led schemes have previously focused on pushing out what Whitehall thinks is the answer to businesses’ problems, rather than what businesses themselves say they need. This proposed scheme is based on evidence from our members, who tell us that help with the planning system, advice on access to finance and exporting, training staff, and marketing, HR and accounting support, would help them grow. ‘It’s time for the government to make sure support gets to the front line quickly, and prompts more companies to invest and take risk. Boosting business growth and investment through a voucher scheme would stimulate swift business investment, which in turn can lead to growth in the months and years ahead.”