Chamber News

The further easing of coronavirus restrictions in England – due to come in this weekend – has been postponed for at least two weeks, amid concerns over an increase in coronavirus cases.

Casinos and bowling alleys will remain shut, with Boris Johnson saying it was time to “squeeze the brake pedal”.   Face coverings will be mandatory in more indoor settings, such as cinemas and people attending places of worship will also be among those required to wear face coverings, in a change that will be applied from next weekend.

The government’s rethink came in following new restrictions for some people in parts of northern England following a spike in virus cases.

The prime minister said progress against coronavirus continues, with the daily and weekly number of deaths falling, but warned that some European countries are “struggling” to control it – the UK must be ready to react.

Mr Johnson said planned reopenings for 1 August would be delayed for at least a fortnight.  That means venues such as casinos, bowling alleys, and skating rinks must remain closed until 15 August.

Indoor performances will also not resume, pilots of larger gatherings in sports venues and conference centres will not take place, and wedding receptions of up to 30 people will not be permitted.

Separately, face coverings will be compulsory in more indoor settings where people are likely to come into contact with people they do not know, such as museums and places of worship, from next weekend. They are already required in shops and indoor transport hubs.

The prime minister said the rules for face coverings would become enforceable in law from 8 August.

Commenting on the Prime Minister’s announcement that the government will introduce new local restrictions and postpone the planned re-opening for some business from August 1st , Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“Whilst tackling the public health emergency must be the priority, these announcements – made at short notice – will be a hammer blow to the Norfolk business and consumer confidence at a time when many firms were just starting to get back on their feet.

“The local business community needs as much clarity as possible from government if they are to plan ahead and rebuild their operations in the coming months. Ministers must also consider extending support to all firms, many of whom will be forced to close for an even more prolonged period, as well as targeted measures to help businesses placed under localised lockdowns.”

By Liam Smyth, ChamberCustoms

@chambercustoms www.chambercustoms.co.uk

The UK left the European Union on 31st January 2020, and the transition period comes to an end in December this year. It is vital that businesses take action now to get ready for a new border operating environment from 1st January 2021.

Until the new border operating model was published on 12th July, we could only speculate on how goods would be controlled at our borders once we left the EU.  It’s now clear – and the new model brings this into stark reality – that businesses need to prepare for a significantly higher level of customs declarations and associated administration.  It candidly states “customs declarations are complicated”.

Declaration volumes will grow from 55 million now, to almost 300 million next year.  The cost to business is estimated at around £7bn per annum, and the customs intermediary market lacks the necessary capacity to deal with the increase.

The detail

New border procedures for importing and exporting goods to and from the EU will be in place. Traders importing ‘standard goods’ – covering everything from clothes to electronics – will need to prepare for new customs paperwork.  You will need to keep specific records of imported goods and you can opt to take up to six months to submit a full customs declarations for goods arriving from the EU.  

Taxes will need to be paid on all imports, but payments can be deferred for up to six months until July. This will help trader cash flow until the end of 2021, but only if you or your agent have the correct approvals in place to use simplified procedures.  Full customs requirements will apply to controlled goods from 1st January 2021 whether they arrive from the EU or elsewhere.

Businesses will be able to account for VAT on goods imports using Postponed VAT Accounting from the start of the new year.  This means that once the staged introduction period ends, payment of VAT due on imported goods can be delayed until the next VAT return. 

What does this mean for business?

Despite the much needed clarity on customs procedures, and a welcome delay through staged introduction of full customs controls, big challenges remain for most businesses.  Declarations volumes will increase, costs will rise, traders need to skill up to deal with new procedures and time is incredibly short.

Companies trading across the globe will need to make a choice.  Should they take advantage of the staged introduction of measures for EU imports and gain a cashflow advantage through delayed duty and VAT payments?  Or, stick with the systems and processes they already know, and use the newly introduced postponed VAT accounting and guarantee free deferment accounts to delay border taxes by up to six months?    Whatever you decide, businesses that export and import goods have change coming and it’s inevitable. 

The wise amongst you will wake up to change and plan your level of readiness.  There is much to do and qualified and compliance led customs experts are becoming a rare commodity.

As a business you need to decide how you are going to handle your imports and exports.  Many businesses already use a freight forwarder to clear their goods across borders and we would recommend that you talk to your freight forwarder as soon as possible to see what you need to do for January 2021.

Alternatively, our expert team at Chamber Customs, our international trade training programmes and our overseas connections make Chamber Customs an ideal customs partner.  As your business gets ready for the end of the transition period, our customs agents are ready to help you clear your goods at the border.  Give us a call to arrange a chat, Norfolk Chambers and the Chamber network is here to support you and to help you to trade with confidence.

For more information, please contact our International Trade Manager, Julie Austin on 01603 729 706 or email: [email protected]

Norfolk County Council have released their latest economic report for January 2020 to June 2020. The report highlighted: Employment levels in Norfolk has increased by 2.1% from the same time last year, with Norfolk performing better than the national level (77.5% against 75.8%). The business birth rate for Norfolk has decreased steadily from 10.9% to 9.9% in the 5 year period between 2014 and 2018. Norfolk County Councl have successfully secured funding for a 2-year pilot project designed to increase applications to innovation funding streams. The IGFP project will work with existing business advice partners to address longstanding, low application rates from Norfolk and Suffolk based organisations to Innovate UK and other national innovation funds. The Business Secretary (Alok Sharma) published his long awaited decision on the Norfolk Vanguard Offshore Wind Farm on 1 July 2020, issuing a development consent order (DCO) for the offshore project and the onshore grid connection works/infrastructure. A new team is now in place to support apprenticeships across Norfolk. Sophie Allport and Simon Kenny (Apprenticeships Officers) joined in December 2019 with Katy Dorman (Strategy Manager) joining in February 2020. For full details of the latest economic intelligence report click here.

“Abrupt changes to quarantine measures will be yet another hammer blow for the fragile travel and tourism industries, both here in the UK and overseas.

“Firms will now have to manage the effects of this unexpected change as returning staff have to quarantine upon their return to the UK. Support measures should be extended to help firms and their employees manage the additional uncertainty generated by this and other government decisions.

“Businesses will be asking why Spain was on the safe list on Friday, only to be taken off it on Saturday. Changes to quarantine rules must be communicated clearly by Government with as much notice as possible. Continued improvement of the test and trace programme, alongside co-ordinated checks at departure and arrival airports, could alleviate the need for many of these restrictions.”

We are running a series of FREE virtual events with the help and expertise of our members, do you have the knowledge you would like to impart and think would be useful for businesses during this period.

The virtual events will be 30 – 90 minutes long and will focus on key topics or subjects relevant to businesses of different sectors. These can focus on a particular software, how to work remotely, how to motivate your team or the rise of e-commerce for particular markets for example. 

If you’re interested in delivering a virtual event with Norfolk Chambers of Commerce, please complete the online form to register your interest. We will be in touch to discuss your virtual event and arrange a date and time for this to take place.

For any questions please contact Kalene Herrington, Events Coordinator on [email protected] or telephone 01603 729712.

Norfolk County Council has today (Monday 27 July) launched a public consultation which asks for people’s views on how it could best support people to walk, cycle and use public transport in the area to the west of Norwich.

The consultation is part of the council’s Norwich Western Link project, which would see a new 3.8 mile dual carriageway road created between the western end of Broadland Northway and the A47. Together with the planned dualling of the A47 between North Tuddenham and Easton, the new road would create a fully dualled orbital route around Norwich, reducing the need for traffic to enter the city and alleviating local transport issues to the west of Norwich.

One of the Norwich Western Link’s objectives is to encourage and support walking, cycling and public transport use. While the traffic relief the new road will provide on the existing road network will help with this, the council wants to add to these benefits by bringing in additional measures. These could include new facilities and connections specifically for walkers, cyclists and horse riders, and giving cyclists greater priority on roads that link communities to key employment, educational and leisure locations.

The consultation will also gauge interest in a potential new ‘Western Arc’ bus service that could link the western suburbs of Norwich to places including Longwater Retail Park, the Norfolk and Norwich University Hospital and the University of East Anglia without the need to travel into central Norwich to change buses.

Another important element of the consultation is the council’s proposals for the four local roads that are crossed by the planned route of the Norwich Western Link as well as additional Public Rights of Way in the vicinity of the new road. [For more information on the proposals for the local roads, please see notes to editors]

Councillor Martin Wilby, Cabinet Member for Highways and Infrastructure at Norfolk County Council, said: “The Norwich Western Link will significantly change travel to the west of Norwich and we’ve been looking at the opportunities this creates to help people get where they want to go on foot, by bike or on the bus. This is an important part of what we’re setting out to achieve with the project and it has the potential to have a really positive impact on health and quality of life, as well as making it easier for people to get to schools, colleges, health facilities and places of employment.

“Local parish councils, walking and cycling groups, bus companies and others have fed into our work to come up with some proposals that we think could be effective at giving people more travel options. We now want to see what everyone else thinks, including those who currently use these routes or would want to in the future.”

The Local Access Consultation will run for eight weeks until Sunday 20 September. People can view information on the proposals and respond to the consultation online via the Norfolk County Council website at www.norfolk.gov.uk/nwl. People can also request a consultation brochure and paper questionnaire are posted to them by ringing 0344 800 8020 or emailing [email protected]. The completed questionnaire can then be returned to a freepost address.

In accordance with COVID-19 guidance, no local consultation events will be held, however people will still be able to discuss the consultation proposals with staff involved in the project via phone or internet calls during the consultation period. People can use the email and telephone contact details above to book an appointment to speak with members of the project team, with daytime and evening slots available.

Information gathered from this consultation will help inform design decisions and proposals for the project. A further public consultation on other elements of the project is due to be held next year ahead of the planning application being submitted. Subject to securing funding and completing necessary statutory processes, the Norwich Western Link is scheduled to start construction in 2023 and be open to traffic in 2025.

For more information on the Norwich Western Link, visit www.norfolk.gov.uk/nwl.

From today (24 July 2020) in England, you must by law wear a face covering in shops, supermarkets, indoor shopping centres, banks, building societies and post offices.

The UK Government have released full guidance on face coverings, including; where you must wear them, where you do not have to wear them, how to wear them, buying and selling face coverings, making your own face coverings, and maintaining and disposing of face coverings.

Full guidance can be found here.

The full list of settings in which face coverings must be worn is as follows:

• public transport
• indoor transport hubs (airports, rail and tram stations and terminals, maritime ports and terminals, bus and coach stations and terminals)
• shops and supermarkets (places which are open to the public and that wholly or mainly offer goods or services for retail sale or hire)
• indoor shopping centres
• banks, building societies, and post offices (including credit unions, short-term loan providers, savings clubs and money service businesses)

Results from the latest BCC Coronavirus Business Impact Tracker in partnership with job site Indeed reveal that businesses are operating at half of their pre-Covid 19 capacity on average, despite lockdown measures easing.

More than half cited reduced demand and possible future lockdowns as major obstacles to restarting day-to-day operations.

• On average, businesses are operating at half of their pre-Covid 19 capacity
• Customer demand (54%) and possible future local lockdowns (52%) are the two top obstacles to maintaining day-to-day operations
• BCC and Indeed call for swift Government action to reduce the cost of employment to protect businesses and preserve 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 750 responses and is the largest independent survey of its kind in the UK. 

The latest tranche of polling was conducted from 6 – 10 July in partnership with global job site Indeed, prior to the Prime Minister’s announcement on 17 July, setting out the next steps in the Coronavirus response for England.

A slow restart

On average, businesses said they were at 53% of their full pre-Covid 19 capacity. Customer demand (54%) and possible future local lockdowns (52%) were cited as the top two obstacles to maintaining day-to-day operations. 30% said other business costs, such as rent or salaries, were a major obstacle.

The steep decline in business conditions seen at the start of the pandemic is levelling off, but firms still face extremely challenging conditions:

• Almost half (46%) reported a slight or significant decrease in revenue from UK customers compared to June.
• 44% reported a slight or significant decrease in revenue from overseas customers, with 34% reporting no change.
• 56% of firms reported a slight or significant decrease in cashflow.

Concerningly, 43% of businesses reported an increase in late payments from customers when compared with the last six months of 2019.

Flexible furlough and redundancies

Flexible furlough, which allows businesses to bring employees back part time, began on 1 July. 31% indicated they have furloughed staff on a part-time basis, while 56% of firms surveyed said they still have staff furloughed full time.

13% of respondents said they had made redundancies since the beginning of the crisis, with 33% saying they intended to over the next three months. Redundancies were more likely in Business to Consumer businesses, which are experiencing the worst effects of a prolonged period of closure and reduced demand.

Changing business practices

Prior to the Prime Minister’s speech on 17 July encouraging more people to return to offices where they can, 62% of respondents expected some or all of their staff to be working remotely for the next 12 months. This increases to 71% for B2B, and falls to 53% for B2C firms.

Data from Indeed indicates that searches for remote work in the UK have more than doubled since the outbreak of Covid-19. When it comes to job postings explicitly mentioning remote working, the rate has increased from 3% before Covid-19 to 5% now.

Reducing the cost of employment

BCC and Indeed have called on government to act swiftly to reduce the overall cost of employment to protect business and preserve as many jobs as possible in the coming months. The two organisations have called for an 18-month expansion of the Annual Investment Allowance from £4,000 to £20,000 and an increase the threshold for employer National Insurance Contributions from £8,788 to £12,500, which could save businesses around £500 per job.

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

“Our findings demonstrate that the UK’s economic restart is still very much in first gear.

“Businesses are grappling with reduced customer demand, an on-going cash crunch, and the potential for further lockdowns during an uncertain autumn and winter ahead.

“The Prime Minister’s encouragement to return to workplaces and further updates to business guidance will not be enough on their own.

“The time has come for the government to take radical steps to slash the tax burden around employment to help companies pay valued staff, rather than the Revenue. A major boost to the Employment Allowance, and an increase in the threshold for employers’ National Insurance contributions, should both be in the Chancellor’s sights if he wants to help viable companies save jobs as the furlough scheme comes to an end.”

Jack Kennedy, economist at the global job site Indeed, said:

“The slowdown in consumer activity mirrors hiring activity in the UK. Today, there are 60% fewer job postings than there were before the outbreak of Covid-19 and so far there are few signs of a V-shaped recovery in vacancies.

“The furlough scheme has been an important lifeline to millions of people but the fear is there will be a sudden rise in unemployment after that umbilical cord has been severed. With one third of companies planning redundancies over the next three months, we will likely see a scramble for available roles as the labour market becomes heavily supplied with people looking for work.

“For jobseekers looking to bounce back into the workforce, many have turned to searching for remote work in a bid to secure jobs. However, not all jobs can be performed at home and a growing proportion of people are broadening their search by looking for roles farther afield than their local area.”

Commenting on the Prime Minister’s speech today (17 July), setting out the next steps in England’s Coronavirus response, Nova Fairbank, Head of Policy for Norfolk Chambers said:

On new guidance for returning to the workplace:

“Companies, in discussion with their employees, will decide how and when to return to offices safely. But to take those decisions, businesses need crystal-clear official guidance.

“Firms across Norfolk will be weighing up how they want to work in future. Many have seen benefits to productivity and work-life balance over recent months, and will want to keep elements of their new normal.  For many employees, returning to the workplace is contingent on schools reopening, the availability of wraparound care and the capacity of public transport.

Also commenting on Boris Johnson’s speech, Adam Marshall, Director General of the British Chambers of Commerce said:

“Businesses should be able to offset the investments they make to ensure their premises are Covid-secure against their tax bill, which would help many to return to workplaces over the coming months.”

On the conditional timetable for reopening the economy:

“Businesses that have so far been unable to open will be pleased to finally have a timetable for reopening so they can plan ahead.  Government must consider what further support they can offer to firms that will need to remain closed into the autumn, beyond the end-date for government support schemes and many businesses’ cash reserves.”

On regional powers for local lockdowns:

“While tackling the public health emergency must be the priority, further local lockdowns will be a hammer blow to business communities trying to get back on their feet.

“Local lockdowns must be made more targeted, with clear statistical triggers and an exit strategy to help businesses plan ahead. More financial support must be available to the hardest hit firms forced to close for an additional period.”

On a new testing target of 500,000 per day:

“Business will welcome an increased target for testing as we move into a new phase of managing the pandemic.

“Only a truly comprehensive test and trace system that works across the UK will boost business, staff and consumer confidence, which is the key to securing our economic recovery.” 

Results from the BCC’s Quarterly Recruitment Outlook, in partnership with Totaljobs, reveal the impact Coronavirus has had on the jobs market, with the two organisations calling for further action from government to protect businesses and jobs.

• 29% of businesses expect to decrease the size of their workforce in the next three months
• 28% decreased size of workforce in Q2 but 66% kept their workforce constant, reinforcing the success of the Job Retention Scheme
• The two organisations call for a cut in employer National Insurance Contributions to protect businesses and jobs.

The leading business organisation’s landmark survey, which serves as a barometer of the UK labour market, received 7,400 responses and is the largest of its kind in the UK.

Fieldwork was done prior to the Chancellor’s Summer Statement which announced the Job Retention Bonus, Kickstart Scheme and an Apprenticeship Recovery programme, among other things.

Redundancies expected

29% of businesses expect to decrease the size of their workforce in the next three months before the government’s Job Retention Scheme ends, the highest on record. 59% will keep headcount the same and just 12% will look to increase the size of their workforce.

The news comes as businesses across the UK economy announced significant redundancies. The survey found that over the next three months:

• 18% of micro firms (with fewer than 10 employees) expect their workforce to decrease.
• 41% of small and medium firms (with 10 to 249 employees) expect their workforce to decrease.
• 41% of large firms (with over 250 employees) expect their workforce to decrease.

The survey reinforced data from the BCC’s Quarterly Economic Survey of the challenging environment business communities across the UK are facing, with record falls in key indicators of business activity, including domestic and export sales, cashflow and investment.

Recruitment

The percentage of businesses attempting to recruit in the previous quarter fell to 25%, the lowest level on record. Of the firms that attempted to recruit, 65% faced recruitment difficulties, particularly for skilled manual/technical or managerial roles.

Success of the Job Retention Scheme

While 28% of respondents decreased their workforce in Q2, two in three firms kept staffing levels constant. This reflects data on the success of the Job Retention Scheme, with the BCC’s Business Impacts Tracker indicating that around 70% of businesses had furloughed a portion of their staff.

Beginnings of recovery?

As lockdown lifts, Totaljobs have seen a 30% month-on-month increase in the number of jobs being advertised on their website for June, with the largest volume posted in IT (20k), logistics (12k) and social care (9k).

There were also month on month increases in sectors benefiting from lockdown easing like retail (+51%), travel (+47%) and hospitality (+23%). Skilled trades also started to see growth compared with previous weeks, with jobs advertised increasing by 57%.

Unsurprisingly, applications per vacancy were up across all sectors, reflecting continued rises in candidate activity on the Totaljobs site.

Further action needed

The two organisations have called on the government for further action to limit the damage to the UK labour market, including reducing the overall cost of employment, through a temporary cut in employer National Insurance Contributions and support to upskill and reskill employees as businesses adapt to change.

BCC Co-Executive Director Hannah Essex said:

“Our research demonstrates the Chancellor’s focus on protecting, supporting and creating jobs is exactly what’s needed to drive the UK’s economic recovery in the coming months.

“Many businesses are suffering from an historic cash crunch and reduced demand, meaning firms will still face tough decisions despite welcome interventions made in the Summer Statement.

“The government should consider additional support for employers before the Autumn Budget to reduce the overall cost of employment and prevent substantial redundancies. Measures could include a temporary cut in employer National Insurance Contributions and support to upskill and reskill employees as businesses adapt to change.”

Totaljobs CEO Jon Wilson said:

“The latest figures from the Quarterly Recruitment Outlook make stark reading, especially when compared to what we had grown accustomed to in previous years. It is clear that business confidence is low, with many being forced to make difficult decisions when it comes to their workforce.

However, the Chancellor’s summer statement outlined a number of measures that will not only support jobs but help create new roles in the economy and give confidence to businesses trying to plan for the future. The interim cuts in stamp duty and VAT should give the hard-hit housing and hospitality sectors a much-needed boost.

It’s clear that moving forward, adaptability remains paramount for businesses and people, with upskilling, reskilling and utilising transferable skills all key factors during this recovery period. To protect jobs and further ease the burden facing businesses, we join the British Chambers of Commerce in their call for a cut in employer National Insurance. We also urge the Chancellor to continue to consider the needs of the sectors and demographics most impacted by Covid-19, to protect people’s livelihoods and help the jobs market and wider economy pick up.”

The UK Internal Market White Paper sets out policy options to protect the flow of goods and services across the UK borders between England, Scotland, Northern Ireland and Wales after the end of transition period.

Commenting on the government’s launch of the white paper and associated consultation, BCC Director General Adam Marshall said:

“Businesses in all four nations of the UK will want to examine the detail of these proposals.

“No business should have to face additional costs when trading between the four nations of the UK, now or into the future. The UK government and the devolved administrations must work together to create a clear framework that gives businesses in every nation of the UK the same opportunities to trade and compete following the end of the transition period.

“A fragmented system would create additional costs, bureaucracy and supply chain challenges that could disrupt operations for firms across the UK.

“As these proposals progress, business communities will want practical considerations – not politics – at the heart of the debate.”

Commenting on the government’s new proposed processes for moving goods from the UK to the EU from January 1st 2021, published today, BCC Director General Dr Adam Marshall said:

“With full border controls in place at all ports from January 1st next year, regardless of any deal that is agreed with the EU, and an estimated 200 million more declarations needed to be made by traders annually, firms that import and export to the EU should take action now and prioritise the appointment of customs intermediaries to advise on the next steps.

“It is pleasing to see the government listening to the Chamber network and reintroducing Postponed VAT Accounting, as well as allowing the deferment of duty and VAT on EU imports for at least 6 months from January 2020. And many businesses will appreciate the introduction of bond-free duty deferment accounts, which will provide much needed help to cashflow for businesses and reduce import costs.

“While businesses will welcome more detail on processes for trading goods overseas, some questions still remain unanswered, including on trade across the Northern Ireland border and the operation of the Goods Vehicle Management System. We will continue to look at the detail and how it affects businesses over the coming weeks.”