Chamber News

In a letter to the Prime Minister, British Chambers of Commerce Director General, Dr Adam Marshall, BCC President Baroness Ruby McGregor-Smith and Chamber CEOs from across the United Kingdom set five business tests that must be met to limit the impact of Coronavirus restrictions on businesses and jobs and take a long-term approach to tackling the pandemic.

The letter from the Accredited Chamber Network – which collectively represents 75,000 firms of all sizes and sectors across the UK employing nearly six million people​ – comes following a week of increasing, regionally tiered restrictions, with more severe ‘circuit breaker’ restrictions under consideration, as the country battles a second wave of the pandemic.

Dr Marshall, Baroness McGregor-Smith and the Chamber Chief Executives challenge the Prime Minister to meet five business tests for current and prospective Coronavirus restrictions:

1. Are the restrictions evidence-based and targeted effectively?
2. Are the restrictions clear and do businesses have time to prepare? 
3. Is support for businesses commensurate with the impact on them? 
4. Will the time that the restrictions are in place be used to significantly improve the Test, Trace and Isolate system? 
5. Is there a clear process for increasing and decreasing restrictions? 

The letter reads: “While the recent announcement of an enhanced Job Support Scheme will assist some firms, Chamber members tell us it will not be enough to stave off mass redundancies and business failures.” 

There is also a clear warning that improving the government’s ailing test and trace system is the only way to get a grip on the virus over the long term and prevent economic paralysis. The letter reads: “The need for additional restrictions cannot be blamed on a lack of care by hardworking people in businesses across the country. Instead it represents a failure of the Test and Trace system, which must be urgently improved and expanded.”

Chambers are clear about the consequences of not meeting the tests. The letter continues: “These tests must be met – to avoid serious damage to business and consumer confidence, and potentially catastrophic economic consequences. We must preserve our economy in the immediacy, while also laying the foundations of future growth. Failure to do so will undermine any broader efforts to ‘level up’ left-behind parts of the UK.”

The letter concludes: “The Coronavirus is not going away anytime soon. The government must waste no more time in setting out a clear strategy to keep the economy functioning, while protecting public health over the long term.”

On 31 October, the Government’s Furlough Scheme comes to an end.  On 9 October, the Chancellor of the Exchequer, Rishi Sunak announced further support for businesses.

The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The scheme will open on 1 November 2020 and run for 6 months.

The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.

The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped.

Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.

• Job Support Scheme will be expanded to support businesses across the UK required to close their premises due to coronavirus restrictions
• government will pay two thirds of employees’ salaries to protect jobs over the coming months
• cash grants for businesses required to close in local lockdowns also increased to up to £3,000 per month

Under the expansion, firms whose premises are legally required to shut for some period over winter as part of local or national restrictions will receive grants to pay the wages of staff who cannot work – protecting jobs and enabling businesses to reopen quickly once restrictions are lifted.

The government will support eligible businesses by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month.

Chancellor of the Exchequer, Rishi Sunak, said:

“Throughout the crisis the driving force of our economic policy has not changed.  I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.  The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”

Under the scheme, employers will not be required to contribute towards wages and only asked to cover NICS and pension contributions, a very small proportion of overall employment costs. It is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so face no employer contribution.

Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.

The scheme will begin on 1 November and will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December. Employees of firms that have been legally closed in the period before 1 November are eligible for the CJRS.

The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates effectively across all four nations.

In addition to the expansion of the JSS, the government is making the Local Restrictions Support Grant scheme more generous so that businesses in England can receive up to £3,000 per month, and are eligible for payment sooner, after only two weeks of closure rather than three.

This week, the prime minister, Boris Johnson has announced a new three-tier system of restrictions in England to try to stop the spread of coronavirus.

Every area will be classified as being on medium, high or very high alert – tiers one, two and three.

Level 1 – Medium Risk

Baseline, mimimum restictions applicable to all of England

Fewer than 100 cases per 100,000 of population.

Areas with the lowest rates of infection will be placed in Tier One. They will face the basic national rules currently in force.

The rule of six applies, which means that you may not meet in a group of more than six people, indoors or outdoors.

There are some exemptions to this rule, such as if you live in a household of more than six people or if you are in a support bubble, which allows a household with only one adult in it to join up with another household of any size.

When meeting people from other households (people you do not live with) you should stay two metres apart if possible, or one metre while taking extra precautions, such as wearing face coverings.

Face coverings must be worn in various places indoors such as in shops and on public transport. You should also wash your hands regularly for 20 seconds.

Also in Tier One, pubs, bars and restaurants all have to close at 22:00.

Level 2 – High Risk

Triggers when a rise in transmission cannot be contained through local responses

Cases above 100 per 100,000.

The rules for Tier One also apply in Tier Two.

In addition, you are not allowed to meet socially with people you do not live with indoors. That includes in private homes, pubs or restaurants.

People in support bubbles can go on meeting as before and informal childcare may also be provided.

You can still meet friends and family outdoors, but only in a group of up to six people.

Level 3 – Very High Risk

Triggered when Level 2 measures have not contained the virus, or where there has been a significant rise in transmission

Significantly higher transmission rates

Tier Three is where areas with the most rapidly rising transmission of coronavirus will be placed.

There are basic restrictions and there may be further measures agreed for particular areas – the government said it would work with local councils on the additional measures.

In Tier Three areas you are not allowed to meet socially with anybody who is not part of your household or your support bubble indoors or in certain outdoor locations.

You cannot meet in private gardens or pub gardens, but you are allowed to meet in parks, beaches, countryside or forests, as long as you are not in a group of more than six.

Pubs and bars will be closed unless they are serving substantial meals and only serving alcohol with meals.

The majority of areas in England are on the lowest level, Tier 1, however areas of Lancashire, West Yorkshire, South Yorkshire, the Midlands and the North East are currently in Tier 2, High Risk and at present just the Liverpool City region is facing Tier 3, Very High Risk.

We are excited to share with you that Apprenticeships Norfolk, in collaboration with UEA, have launch a new research survey looking specifically at the higher skills needs of businesses across Norfolk and the resulting demand for Higher & Degree Apprenticeships.

Apprenticeships are a great route for attracting high calibre recruits to your business and to upskill your existing workforce. With generous levels of Government subsidy (fully-funded in some instances), they can provide your organisation and employees with the essential training needed to aid your business plans and support your growth ambitions.

Please click here to complete the survey! We would also like to invite you to share the survey with your employer networks across Norfolk.

The electronic survey is quick to complete and shouldn’t take more than 10 minutes.

Below are some answers to the most frequently asked questions:

• The survey is open to any business with higher skills needs in Norfolk – the more responses the better as it will help to identify gaps in higher/degree apprenticeships in terms of supply/demand.
• Employers can be levy or non-levy size – doesn’t matter!
• Your organisation can complete the survey as well as forward/promote to other businesses or networks.
• You are able to include the blurb & link in your social media/publications to businesses eg: newsletters.
• The survey will be open for October – so plenty of time to get out far and wide.

Thank you for taking the time to complete/share this survey and helping to inform the future of Apprenticeships in Norfolk.

Commenting on Prime Minister Boris Johnson’s announcement of a new, tiered approach to local Coronavirus restrictions in England – and following the introduction last week of deeper restrictions in other nations of the UK, BCC Director General Adam Marshall said:

“Intensified restrictions will be a real blow to business and public confidence at a delicate time for the economy.  Firms have put hard work and precious cash into making their businesses Covid-secure, and must be allowed to operate unless there is overwhelming and clear evidence to the contrary.  Businesses cannot be subjected to a rollercoaster of stop-start restrictions with no end in sight.

“Speculation and rumour have badly eroded trust between Westminster, local government, and our businesses communities.  At a time when clarity and transparency are critical, local business leaders must be more deeply involved in decision-making, so that the real-world consequences for livelihoods and communities are understood.  The introduction of any new restrictions must go hand-in-hand with the appropriate level of financial support, both now and into the future.

“Above all, businesses need to see an exit strategy to prevent economic paralysis. Mass testing, faster processing and proportionate financial support for those forced to self-isolate are crucial to supporting businesses and communities in the months ahead.”

Also commenting on the Prime Minister’s announcement, Chris Sargisson, Chief Executive of Norfolk Chambers said:

“Whilst Norfolk currently remains in the lower tier, the Coronavirus infection rates in our region are rising.  It is therefore imperative that the Government ensures that the test and trace system is functioning effectively and efficiently.  Norfolk is not London, Manchester or Liverpool and there are many of our geographic areas and vulnerable sectors that will be adversely impacted by a tighter restrictions – despite the implementation of support measures from the Government.

“Norfolk Chambers wants to see the Government working on a strong and clear strategic response to the pandemic.  Businesses have had enough of short term, reactive measures.  The Government must deliver a clear plan for Covid-19 and roadmap for supporting the most impacted businesses – both through the immediate autumn and winter crisis and into recovery next year.”

Commenting on the government’s updated Border Operating Model, published yesterday, BCC Director of Trade Facilitation Liam Smyth said:

“Today’s announcement of a revised Border Operating Model provides some more of the detail that was missing from the version published less than 12 weeks ago. Duty deferment accounts and postponed VAT accounting will both help firms’ cashflow as we enter a period of huge change at our borders.

“However, as highlighted in our recent unanswered questions document, businesses still have many areas where they urgently need more certainty, such as how the border between Northern Ireland and Great Britain will operate, clear guidance on rules of origin, which will only be done by ramping up government engagement with business.

“With just over 80 days until the end of the transition period, the businesses that produce the £300bn of UK exports to the EU are desperate for news of a comprehensive free trade agreement that will provide jobs and future prosperity across the United Kingdom.”

The Kickstart Scheme is aimed at 16 to 24 year olds, on Universal Credit and registered with a work coach, who may find it more challenging to access the world of work.  The scheme provides 6 month placements, at 25 hours per week at minimum wage (dependant on age) – although the employer can offer more hours and cover the additional cost.  The total grant available from the scheme is £6,500, which pays for the wages and the on-costs such as NI etc.

In addition, there is a further £1,500 payable to the employers for them to provide wrap-around employability support – this can be either in-house or the employer can pay for the support to be delivered. Whichever way, you will need to be able to evidence what the support is and the impact/benefits to the employee.  Norfolk Chambers is currently talking to various training providers and others about a suite of support options to make it easier for the employers to provide the wrap-around employability support.

To qualify for a Kickstart placement – the business must be able to demonstrate that this role is additional.  The placement is for 6 months, at the end of that period, you can either take that person on, apply for an apprenticeship or replace them with another placement for a further 6 months.

As a Kickstart Scheme Gateway,  we can support local businesses to apply for Kickstart funding. The Norfolk Chambers will gather the information needed to submit an online application and if your application is approved, assist you with the process, provide guidance and pass on the relevant payments made by the DWP to you, the employer.

If your business wishes to take part in this scheme, you will need to advise how many placements and the type of placement.  To apply, please complete the below application form.

We will submit the cohort to the DWP and notify you of the submission day.  The DWP are quoting up to 30 days for a response on the cohort applications.

If your application is successful, a grant funding agreement will be issued and you must return the signed funding agreement and provide a detailed job description for the position.  Candidates via the DWP will then apply for the job placements and you can choose who to employ. Please note, you will only obtain funding if you appoint a young person that DWP have introduced.

For more information on what happens following the submission of the cohort to DWP – click here.

If you have any questions on the Kickstart Scheme, or need help completing the application form, please contact:

Charlotte Upcraft:  [email protected]

Nova Fairbank:      [email protected]

Or call: 01603 625977

The British Chambers of Commerce has published a critical update of its Brexit guidance dashboard containing 26 key questions that remain unanswered with just 98 days to go until the end of the Brexit transition period.

The leading business group published the document alongside new research which suggests business preparation for the coming changes is low due to the unprecedented challenges facing them.

• 26 unanswered questions reflect fundamental aspects of business operations, including UK/EU customs checks and rules of origin
• Just 38% of firms have done a Brexit risk assessment in 2020, compared to 57% in 2019
• BCC seeks clarity for businesses and an immediate resumption immediate resumption of weekly business preparedness summits with senior ministers

Unanswered questions

The BCC’s Brexit guidance dashboard compiles 35 questions most frequently raised by businesses, many of which apply in a deal or no deal scenario. The BCC gives just 9 a green status, indicating there is sufficient information available to plan. 19 are amber, indicating some information is available, and seven are red, indicating there is inadequate actionable information.

Many of the unanswered questions reflect fundamental aspects of how companies operate. Among other things:

• Firms do not know what rules of origin will apply after the transition period, preventing them and their customers from planning and potentially creating unprecedented new administration and costs;
• There is no clarity on how food and drink due to be sold in the EU and Northern Ireland is to be labelled;
• Very limited guidance on the movement of goods from Great Britain to Northern Ireland; and
• No information on the UK Shared Prosperity Fund, key to ‘levelling up’ the regions and nations – despite years of calls for clarity.

Low levels of business preparedness

The lack of information for firms is compounded by new BCC research released today, which found that just 38% of firms had completed a Brexit risk assessment this year, compared to 57% in 2019 and 35% in 2018.

The research also found that more than half (51%) of firms surveyed had not taken any of the eight steps recommended by the government to prepare for changes in the movement of goods between the UK and the EU. This includes fundamentals of operation for trading businesses such as checking on the need for customs declarations and assessing the possible impact of changes on existing customers and suppliers.

The lack of information with which to plan and potential deadline fatigue presents further challenges to firms up and down the UK that have faced reduced demand, ongoing government restrictions and sustained cashflow challenges due to the Coronavirus crisis.

Demanding action

The leading business group – which represents 75,000 firms of all sizes and sectors across the UK employing nearly six million people, and works with over 30,000 companies that trade internationally each year – has written to Cabinet Office Minister Michael Gove seeking action for businesses and urgent discussions to help firms prepare.

BCC Director General Adam Marshall said:

“With just 98 days to go, business communities face the triple threat of a resurgent Coronavirus, receding government support schemes, and a disorderly end to the transition period.

“Significant unanswered questions remain for businesses, and despite recent public information campaigns, base levels of preparedness are low. Many firms say they’ve heard talk of deadlines and cliff edges before, and others are still grappling with fundamental challenges as a result of the pandemic and have little cash or information with which to plan.

“While we recognise that some of the questions facing businesses are subject to ongoing negotiations between the government and the EU, other matters are within the UK’s own hands. The government must ramp up engagement with business urgently – to the levels seen prior to previous ‘no deal’ deadlines – to ensure that the real-world issues facing firms get tackled immediately.

“The ‘Check, Change, Go’ campaign gives the impression that Brexit-related changes are like getting an MOT – whereas the reality is that for many businesses, they’re more akin to planning a moon landing. Businesses need honest communication about the complexity of the changes they face – and stronger encouragement to act.”

The Board of the British Chambers of Commerce (BCC) has today announced that Director General Dr Adam Marshall will leave the organisation in the Spring of 2021. 

Marshall has been Director General of the leading business group for five years, and has been part of the leadership team of the BCC for almost 12 years. He leaves the organisation with an enhanced profile and impact, a stable financial position, strong governance and a record number of female leaders amongst both its non-executive and executive leadership.

Working closely with the Board, Marshall will remain at the helm over the coming months and will ensure a smooth and effective transition with his successor. He will leave the organisation with the respect and gratitude of the Board, staff, Chambers and members across the UK and worldwide. Marshall has not yet announced his future plans.

Outgoing BCC Director General Dr Adam Marshall said:

“Chamber business communities represent the best of British business. It has been an honour and a privilege to serve this civic-minded, passionate, and purposeful network for nearly twelve years. I feel the time is right to hand over to a great successor who will continue the fight for our business communities during the period of renewal ahead.”

BCC Chair Sarah Howard MBE said:

“I know I speak for so many Chamber members, both here in the UK and across the world, when I say that Adam will be missed. He took over at a time of great uncertainty but has led BCC confidently to its strongest position in years. Chambers have never been more relevant or more necessary than they are today and together with the BCC Board, I will be leading a search over the coming weeks to identify a suitable successor to build on the BCC’s achievements and lead the organisation into the future.”

BCC President Baroness Ruby McGregor-Smith CBE said:

“Adam’s commitment to UK businesses, communities and diversity is one of many reasons I was excited to become President of BCC this year. He has dedicated great energy and passion to the organisation, and leaves the BCC and the Chamber Network in a stronger position at this critical moment for our businesses and for our country.” 

Commenting on extended support to prevent business evictions until the end of 2020, announced by the government today, BCC Co-Executive Director Claire Walker said:

“Both tenants and landlords will welcome the government’s flexible and pragmatic approach which may protect firms from eviction who are struggling with their cashflow.

“Today’s announcement will provide much-needed breathing space and give businesses a chance to plan and successfully rebuild their operations.”

In a letter to the Prime Minister, BCC President Baroness Ruby McGregor-Smith has said businesses face “the most difficult trading conditions in post-war history” and set out a series of measures to help government take a “sharper approach” to restarting the UK economy.  

The letter from the leading business group follows their recent research which points to a sustained economic difficulties with almost a third of businesses expected to make redundancies in the next three months. BCC published a three-step approach to ‘Restart, Rebuild and Renew’ the UK economy in May.

The letter reads: “Prime Minister, a successful restart of the economy demands bolder and more ambitious action. We face a difficult winter ahead – even without a significant resurgence of the virus itself. If the Government wishes to avoid mass unemployment, significant levels of business failure, and long-term economic scarring in our communities, we urge you and your colleagues to act now.”

The letter sets out a series of proposals which could help offset the worst of the damage to businesses and livelihoods and begin a return to prosperity.

Comprehensive support through local restrictions

The letter notes that local restrictions are a “single largest blockage” to restarting operations, with BCC research suggesting more than half of businesses (52%) see it as a key barrier. Baroness McGregor-Smith calls for “support for businesses shuttered by local restrictions” – in the form of additional grant funding and wage support, not saddling firms with further debt.

Following local restrictions in Leicester, Aberdeen, Greater Manchester and Lancashire and cases rising across the UK, Baroness McGregor Smith added: “Government should take every step possible to avoid damaging local and catastrophic national lockdowns and instead place the highest possible premium on alternative measures that maintain the economy and keep businesses open, such as rapid improvements to test and trace systems.”

“Businesses are not ready to face the triple threat of further lockdowns, an end to government support schemes and the end of the Brexit transition period.”

She continued: “Government must develop a confidence plan for businesses where it is clear what type of measures are expected for each change in scenario. This will allow business to plan.”

Ambitious fiscal stimulus

The letter notes that “far more ambitious” fiscal stimulus will be needed to deliver a full restart of the UK economy. It reads: “The path to October and beyond appears very challenging, as the Job Retention Scheme, CBILS and BBILS schemes close, creating a perfect storm for otherwise viable businesses.”

Baroness McGregor-Smith sets out a comprehensive stimulus package, including a reduction in the overall cost burden on firms to protect businesses and preserve as many jobs as possible. An 18-month expansion of the Employment Allowance from £4,000 to £20,000 and an increase to the threshold for National Insurance contributions from £8,788 to £12,500 would help businesses with prolonged cashflow difficulties. The latter could save businesses around £500 per job.

Restoring business and consumer confidence

Baroness McGregor-Smith calls on the government to immediately improve its Test and Trace programme so that it is “quickly available to all who need it, results are returned quickly, and positive results tracked.” Only then would businesses and consumers have the confidence “that the disease can be properly managed without further crippling lockdowns.”

Commenting on the ONS labour market figures for September 2020, published today, BCC Head of Economics Suren Thiru said:

“Despite the slight rise in the unemployment rate, the furlough scheme continues to limit the pandemic’s full impact on headline job figures.

However, the decline in employees on payrolls and the rise in the claimant count in August as the furlough scheme began to taper is a clear warning that the full impact of Coronavirus on the UK labour market is yet to come.

“While there was a rise in the number of job vacancies, this is more likely to reflect a temporary bounce as the economy gradually opened, rather than a meaningful upturn in demand for labour. With many firms are still facing waves of cash flow problems, rising costs and an uncertain economic outlook, it is probable that unemployment will escalate sharply as government support winds down.

“To help avoid a damaging cliff edge for jobs more must be done help firms keep staff on through this deeply challenging period. This should include a significant cut in employer National Insurance Contributions and more substantial support for firms placed under local lockdowns.”