Chamber News

Millions of self-employed people whose livelihoods have been affected by coronavirus are now able to claim a second payment of up to £6,570 – as the government continues to help drive the UK’s recovery.

Those eligible for the Self-Employment Income Support Scheme (SEISS) can now claim a second grant covering 70% of their average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits and capped at £6,570 in total, with the money set to land in their bank accounts within six working days of making a claim.

Anyone whose self-employed business has been adversely affected by coronavirus since 14 July 2020 is eligible for the scheme.

Chancellor of the Exchequer Rishi Sunak said:

“Our self employment income support scheme has already helped millions of hard working people, whose get up and go drive is crucial to our economy.”

“It means that people’s livelihoods across the country will remain protected as we continue our economic recovery – helping them get back on their feet as we return to normal.”

The eligibility criteria remains the same as for the first grant, with people needing to have had trading profits of no more than £50,000, making up at least half of their total income.

The SEISS is part of a comprehensive package of support for self-employed people, including Bounce Back loans, income tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays and the various business support schemes the government has introduced to protect businesses during this time.  

The Chancellor has also set out the government’s Plan for Jobs to support, protect and create jobs up and down the country – including in the construction and housing sectors through funding to decarbonise public sector buildings and our Green Homes Grant.

Guidance on how the grant works can be found here.

Businesses will be able to make their claim for the second and final grant at any time until the scheme closes on 19 October 2020.

Results from the latest BCC Coronavirus Business  Tracker reveal that business conditions improved only moderately in the weeks since the UK economy suffered an historic contraction in Q2 2020, with firms still reporting high levels of reliance on government support schemes to help stem cashflow issues. 

• 38%of firms reported improved revenue from UK customers
• More than 1 in 3 of businesses say they have three months or less worth of cash in reserve 
• Chambers continues to call for significant interventions to protect businesses and job

The leading business organisation’s tracker survey, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 502 responses during the week from 3rd to 7th August and is the largest independent survey of its kind in the UK.   

The unprecedented decline in business conditions seen during the second quarter is now levelling off, but firms still face difficult trading conditions. 

Mixed picture on revenue

The number of firms reporting a rise in revenue from UK customers rose to 38 per cent, from 34 per cent in the previous tracker and is up significantly from the series low of 3 per cent recorded during the second quarter. However, despite this progress, the number of respondents reporting a rise in UK revenue is still not exceeding the number reporting a decrease (also 38 per cent).   

Business to consumer firms were more likely to report improvements in UK revenue compared to other sectors, although these gains are from a low base due to lockdown restrictions, later reopening, and pent-up consumer demand.  

A smaller proportion of firms (22 per cent) are reporting a rise in revenue from overseas customers than from UK customers (38 per cent) amid continued disruption to global commerce and trade flows.  

Cash concerns

While there was a slight improvement in the number of respondents reporting a decrease in their cash reserves (50 per cent compared to 55 per cent), it remains more than double the number reporting an increase (22 per cent). Despite the gradual reopening of the economy and more firms seeing a rise in revenue, 39% of businesses say they have three months or less worth of cash in reserve. 

Of those reporting an increase in their cash reserves, a significant number of businesses cited government support schemes as a driver of this, with the number of firms using the furlough scheme (34 per cent) and the various loan schemes (30 per cent) and grant schemes (16 per cent) still significant. 68 per cent of firms mentioned new business or customer demand as a factor.   

With government support schemes set to wind down in the coming weeks, and with the potential reintroduction of lockdowns – either localised or national – it remains unclear what further support, if any, firms will receive when schemes end.  

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

“While some firms are seeing improvements in trading conditions, we are still very much in the eye of the storm, with further turbulence ahead. 

“As the government’s emergency measures begin to wind down over the coming weeks, and with the prospect of further local lockdowns still very real, businesses across the UK are going to need further support to weather uncertainty over the coming months. 

“Slashing the jobs tax by taking steps to reduce the burden of employers’ National Insurance contributions, big new incentives for business investment, and targeted support to help businesses placed under local lockdowns all need to be put in place now. Ministers must not wait until the economic storm is once again at fever pitch before they act.” 

Norfolk Chambers of Commerce, Norfolk’s leading provider of international trade training are delighted to announce the launch of their new training programme.

Responding to the demand for training, the International Department has created a programme of virtual training courses accredited by the British Chambers of Commerce. The “core 10” courses can either be attended as standalone training or as a longer training course. For those who complete six or more training courses, they will achieve a nationally recognised Foundation Award in International Trade.

The training is ideal for those looking for further education or training for their team and those preparing for Brexit.

Due to the pandemic, the chambers have pivoted their courses to be delivered virtually. This comes with huge benefits, including no travel time to the training centre, and available to those based across the UK (not just Norfolk).

The courses range from half-day to full-day courses and have been designed to be engaging whilst providing all the practical knowledge you need for the chosen course topic. 

The courses are suitable for anyone involved in the export or import process such as; accounts, purchasing/buyers, freight forwarders, shipping, marketing, customer services, goods inward staff and many more.

A previous guest from the Understanding Exporting training said, “The course is very informative and I am walking away with a lot more knowledge. A great understanding of exporting.”

The training starts on 09 September and continues throughout 2020. New dates for 2021 will be released later on this year.

The following dates for 2020 have now been released;

• Wednesday 09 September 2020 – Understanding Exporting – BCC accredited
• Tuesday 15 September 2020 – Preference Rules of Origin – BCC accredited
• Thursday 17 September 2020 – Customs Procedures and Documentation – BCC accredited
• Tuesday 29 September 2020 – Export Documentation – BCC accredited
• Wednesday 07 October 2020 – Incoterms® 2020 – BCC accredited
• Wednesday 14 October 2020 – Import Procedures – BCC accredited
• Thursday 15 October 2020 – Customs Declaration Training
• Thursday 29 October 2020 – Letters of Credit/Methods of Payment – BCC accredited
• Tuesday 03 November 2020 – Inward and Outward Processing Relief – BCC accredited
• Wednesday 04 November 2020 – Agents and Distributors – BCC accredited
• Wednesday 11 November 2020 – Customs Declaration Training
• Wednesday 18 November 2020 – Trade Commodity Codes 
• Thursday 10 December 2020 – Customs Declaration Training

All courses are available to book here and training is open to both members and non-members.

Members of the Norfolk Chambers of Commerce receive a significant discount on training costs.

Commenting on GDP figures for Q2 2020 published today by the ONS, British Chambers of Commerce Head of Economics Suren Thiru said:

“The UK suffered an historic contraction in economic activity in the second quarter as the coronavirus closed large parts of the economy. The dominant services sector suffered particularly badly in the quarter, with consumer-focused firms hit hardest by the pandemic.

“While there was a pick-up in activity through the quarter from the historically weak April outturn, this is more likely to reflect the release of pent-up demand as the economy gradually opened, rather than an indication of a sustained revival.

“With restrictions steadily easing, the second quarter is likely to prove to be the low point for the UK economy. However, the prospect of a swift ‘V-shaped’ recovery remains remote as the recent gains in output may fade over the coming months as the economic damage caused by the pandemic increasingly weighs on activity, particularly as the government support measures wind down.

“Against this backdrop, bold action is needed to immediately inject confidence back into the UK economy. This should include supporting businesses to retain staff through a cut in employer national insurance contributions and targeted support to help businesses placed under local lockdowns.”

The UK Government is running a #ShopLocal week this week, as part of its #EnjoySummerSafely campaign. The week aims to celebrate the British high street – encouraging customers to come back to their safe local shops, supporting the local economy and local jobs.

A toolkit has been made available for busiensses to help with marketing the campaign. Access the toolkit here.

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

 “While the headline data continues to lag behind the reality on the ground, the decline in the number of employees on payrolls and hours worked is further evidence of the damage being done to the UK labour market by the Coronavirus pandemic.  

 “The furlough scheme has been successful in preserving millions of jobs. However, with firms continuing to face a perfect storm of increased costs, reduced demand, and diminished cash reserves, unemployment is likely to surge as the government support schemes wind down, unless action is taken. 

“A significant spike in job losses would be a major drag on any recovery, stifling consumer spending and reducing the productive capacity of the UK economy.   

“To help businesses recruit and retain staff, more needs to be done to reduce the overall cost of employment and prevent substantial redundancies. This could include significant expansion of the Employment Allowance and a cut in employer National Insurance Contributions.” 

A virtual business recovery festival will provide two days of free training, workshops, panel discussions and advice sessions to help Norfolk and Suffolk’s businesses restart after the Covid-19 lockdown.

RESTART, on 29 and 30 September, will be free for any business or organisation to join. With two live streams on each day, the festival programme is packed with opportunities to learn something new, share ideas, get practical support and hear from a wide range of speakers.

Organised by New Anglia Local Enterprise Partnership, with support from the team behind the Norfolk Enterprise Festival, the RESTART business recovery festival builds on the two-county Economic Recovery Restart Plan which was launched at the end of June.

Confirmed sessions include:

• Business grants and funding
• Life after furlough – what next for your employees?
• Top tips for marketing to new customers, including social media, video and copywriting
• Making your business greener – how to assess and lower your environmental impact
• Upskilling your workforce

Chris Starkie, Chief Executive of New Anglia Local Enterprise Partnership, said: “We’re committed to supporting local businesses to get back on their feet after some of the toughest months they will ever have faced.

“Bringing together local partners and businesses to create two days of inspiring, exciting and practical sessions  – hosted virtually and free for any business to watch – will help us to kickstart our recovery and give business owners the ideas, confidence and support they need to come back stronger.”

To sign up for a free place, simply visit https://newanglia.co.uk/restart-festival/ and complete the contact form to receive updates and links to the live streams.

The festival is sponsored by Norfolk County Council, the Federation of Small Businesses and Norwich Research Park.

The Department for Education and the Education and Skills Funding Agency has created a webinar briefing presentation deck for Chambers, explaining the new employer incentives for Apprenticeships, Traineeships and Kickstarter.

If you would like to host a local webinar briefing for your members, please contact Nichola Akers at the National Apprenticeship Service.

Responding to today’s announcements of £200m for a new Trader Support Service the BCC’s Director of Trade Facilitation Liam Smyth said:

“Whilst the funding announcement for the Trader Support Service is welcome, we need to remember that the GB/NI Border model impacts businesses on both sides of the Irish Sea. 

“Customs controls that are implemented through electronic means are still controls.  For businesses to remain compliant they will have to upskill staff, implement new processes and invest scarce resources to be ready for the end of the transition period which is less than five months away.

“Until we know the outcome of the UK/EU negotiations, many questions will remain unanswered for businesses in the United Kingdom, and in particular in Northern Ireland where both the EU and UK customs rules will be applied, depending on the final destination of the goods.”

Norfolk County Council Public Health team have released new coronavirus communications toolkits to help support local businesses with reopening and controlling the virus.

The latest information and advice helps businesses understand and use the NHS Test and Trace to play their part in controlling outbreaks of Coronavirus in Norfolk. View the full toolkit and information here.

Alongside the toolkit, there are a variety of new resources for businesses to use. Posters and social media graphics are available on a wide range of topics from hand washing and social distancing, to scam and community support advice. In particular, they have just published a kit of tourism resources to help support accommodation providers, such as hotels, holiday parks, holiday lets and campsites. You will find these here.

Results from the latest BCC Coronavirus Business Tracker reveal that businesses are still facing significant cashflow challenges with the schemes announced in the Summer Statement failing to provide support at the scale needed to protect jobs after the furlough scheme winds down: 

• More than half of firms report cashflow decrease since June 2020, more than a third of respondents with improved cashflow cite furlough scheme cash
• 43% of firms intend to use Furlough Bonus, but other Summer Statement support schemes have low take up
• BCC continues to call for bold interventions to protect businesses and jobs

The leading business organisation’s tracker survey, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 517 responses and is the largest independent survey of its kind in the UK. 

Business conditions

Firms reporting an increase in UK sales remained static at 34%, 42% reported a slight or significant decrease. Just over half (55%) reported a slight or significant decrease in their cashflow compared to last month. 

A minority, 21% of firms, said that their cashflow position had improved. Of these, 64% said new customer demand was the driver of this. 35% cited the government furlough scheme, and another 24% and 25% respectively said loan and grant schemes had helped improve their cashflow position, demonstrating that many firms are still relying on government support schemes. 

Summer Statement support

This week’s Tracker contains the first comprehensive survey of business sentiment on the Chancellor’s Summer Statement announcements of 8 July. 

43% of firms intend to access the Job Retention Bonus, which will award £1,000 to firms who retain furloughed staff until January. A further 40% will not use the scheme. Figures from the BCC’s latest Quarterly Recruitment Outlook found that almost a third of firms (29%) expect to decrease the size of their workforce in the next three months. 

Elsewhere both awareness and expected usage were low. 56% of businesses said they did not intend to use the Kickstart scheme, a further 31% said they had not heard of the scheme and 8% said they would like to use it but are ineligible. 62% of firms said they did not intend to use grants for employers who take on trainees and 65% of firms said they did not intend to access grants for those who hire apprentices. Our previous research has shown that just 12% of firms are planning to recruit staff this quarter.

20% of respondents said they would like to make use of the targeted VAT cut for certain businesses but that they were ineligible, indicating that some businesses think the scope of the scheme is too narrow. 

Reducing the cost of employment

BCC continues to call on government to reduce the overall cost burden on firms to protect business and preserve as many jobs as possible in the coming months. The leading business organisation has called for 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. The latter could save businesses around £500 per job.

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

“Business communities continue to face significant operational challenges, with a prolonged period of reduced sales and cashflow meaning many firms are showing signs of distress.

“Expected usage of schemes announced in the Summer Statement is relatively low, indicating they do not provide the right kind of support for many businesses at this critical time and a rethink is needed.

“With confidence and demand not returning at the scale firms need, the government must take radical steps to slash the tax burden around employment to help companies pay valued staff. A major boost to the Employment Allowance, and an increase in the threshold for employers’ National Insurance contributions are needed now if he wants to help viable companies save jobs as the furlough scheme comes to an end.” 

In a major investment to support one of Norfolk’s key industries, Council and business Leaders have agreed to fund a £2.225m Tourism Sector Support Package from the Norfolk Strategic Fund. The project, led by Norfolk County Council in partnership with all seven district councils and Visit East of England, is being put in place to help the tourism sector to recover from the impact of COVID-19.

The project aims to make Norfolk as safe as possible for both visitors to the county and local residents.  Funding will be allocated to each District Council and to Visit East of England and will be used to help create a quality visitor experience whilst maintaining key Public Health messages to ensure we continue to keep Covid-19 figures as low as possible. 

Cllr Graham Plant; Deputy Leader of Norfolk County Council said; “The visitor economy in Norfolk is worth £3.25bn a year and provides nearly 70,000 jobs in the county. With businesses forced to stop trading just before Easter – the start to the season – it has been amongst the hardest hit industries in Norfolk This package of funding will provide vitally-needed support to those businesses that Covid-19 may have had a devastating impact on. I hope this will help to restart the industry safely and our businesses will experience a safe and successful Summer.”

The package will support the ongoing work being undertaken at a regional and national level with VisitBritain and VisitEngland in seeking to become a Tourism Zone and to develop a sustainable, year-round visitor offer.  Immediate activity will include improving the presentation, cleanliness and hygiene of key locations and communication with visitors in advance and, for example through marshalling.  A small grants programme is being developed for businesses to support the costs of adapting to the ‘new normal’ and to make the changes needed to extend the season.

Intelligence from the sector reveals the deep impact of lockdown, with high levels of redundancies and business failure projected. This high impact fund is designed to support the Norfolk Recovery Plan and complement the Visitor Economy Recovery Plan developed by Visit East of England, local authorities and New Anglia Local Enterprise Partnership which was launched last week.

Pete Waters: Visit East of England: “This initiative is exactly what the industry needs as it seeks to get back on its feet. It is hugely important as businesses reopen that visitors and residents feel safe and are reassured. A second spike and lockdown would end Norfolk tourism in 2020 and exacerbate what is already a precarious position.”

Chris Starkie / Doug Field: New Anglia Local Enterprise Partnership: “This financial package for the hugely-important tourism sector in Norfolk is very welcome and complements the Tourism Recovery Plan which was developed with Visit East of England and all local authorities and published this week.”

Andrew Stokes: VisitEngland: “It is great to see this collaboration across the industry to developing a recovery plan for tourism, working together locally and nationally will ensure success and get tourism in the east of England on the road to recovery.”

Cllr Margaret Dewsbury: Norfolk County Council: “Working with Visit East of England, Visit Norfolk, local authorities and New Anglia LEP, and ensuring we follow Government guidelines and VisitBritain messaging, this demonstrates the level of joined-up thinking we are applying to helping tourism recover post-pandemic. The level of engagement and collaboration has never been greater, and we hope to see that continue in the future.”