Chamber News

Responding to the latest ONS Trade figures published this morning, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:

“The first quarter of 2024 shows the challenges UK goods exporters face, with a further drop in sales to both EU and non-EU markets, despite a brighter global economic picture.

“Services remain the good news story on UK export performance, with travel and other transport provisions, providing the impetus for a decent 1.1% increase across the quarter.

“But we need further action from policymakers to reverse recent declines in trade in goods. This means a focus on digital trade and more efficient customs processes to cut costs.

“Other steps include removing some of the trade frictions with Europe, completing free trade agreements already underway, and working with business to get more value for exporters out of our existing deals.

“The ONS analysis of the lack of an impact from Red Sea disruption is interesting. It would appear, the effects upon shipping markets and supply chains have been effectively absorbed.

“But if re-routing via the Straits of Hormuz and the Cape of Good Hope becomes the new normal there still remain questions for the long-term effects, including upon consumer prices, on sea freight from Asia to Europe.”

The UK Trade Picture In Detail Goods Imports

Overall goods imports volumes were down by 2.8% (£1.1bn) from February to March. Imports from the EU fell by 5.3% (£1.2bn). This was caused by lower transport and machinery imports (ships from Italy, aircraft from France). Non-EU imports volumes fell by 0.6% (£0.1bn) driven by lower fuel imports from the US and Kuwait, although car imports from China and aircraft imports from the US both rose.

Goods Exports

Export values to the EU fell by 3.5% (£1.6bn) during Q1 2024 after removing inflation – the main declines being in machinery and transport equipment (cars to Turkey and mechanical machinery to Germany), and material manufactures exports. Non-EU goods exports fell by a lower amount – 1.6% (£0.7bn) over the same period, driven by lower fuels (crude oil to China) and chemicals exports (medicines and pharmaceutical products exported to the US).

An overall fall of 0.3% (£0.1bn) was reported for UK goods exports volumes in March, with a 0.9% (£0.1bn) rise in sales to the EU being offset by a 1.4% (£0.2bn) fall in exports to the rest of the world.

Services

In Q1, UK services exports values, adjusted for inflation, increased by 1.1% (£1.3bn) led by increases in travel and transport, offset by declines in construction and other business services exports. Services import values by contrast fell by 0.4% over Q1 2024 – mainly due to falls in insurance, pensions and intellectual property services.

In the month of March, the volume of UK services exports increased by 0.7% (£0.2bn) – the same in percentage terms on values of services exported. Imports of services increased by 0.3% (£0.1bn) on the chained volumes measure, exactly the same as on the value of traded services measure.

Reacting to the Bank of England’s latest interest rate decision, David Bharier, Head of Research at the British Chambers of Commerce, said:

“Today’s decision to hold the interest rate at 5.25% was widely expected. Businesses will be hopeful that tentative signals from the Bank translate into a rate cut later this year.

“However, for many SMEs borrowing costs remain very high – and today’s hold means another month of hesitation on investment and growth.

“Our research shows that business concern about interest rates is easing, in part due to the period of stability since last August. Our latest survey showed 35% of firms worried about the cost of borrowing, down from 39% at the end of last year. But these remain high levels of concern, compared to pre-pandemic.

“Tomorrow’s GDP figures could bring some welcome news, but economic conditions remain tough. Alongside high interest rates, firms are grappling with rising costs, skills shortages and further trade friction with the EU.

“Business confidence has been gently ticking up as they see a way out of the inflation and interest rate double whammy, but policymakers need to support this with a clear plan for growth and stability.”

Responding to the latest labour market data published by ONS this morning, Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce said:

“Employers across the UK will welcome further signs that the labour market is cooling, but more must be done to ensure they can access the skills they need.

“Today’s data chimes with the picture we’re hearing from businesses. Our latest survey showed recruitment conditions eased in Q1 with fewer firms facing difficulties hiring.

“But significant challenges and pressures remain. Competition for skills, increased wage costs and high interest rates continue to ramp up pressure on businesses and act as a drag on investment and growth.

“More needs to be done to stabilise costs and bring people back into the workforce. While flexible and inclusive workplaces can help employers attract and retain skilled people, businesses will need support to increase their investment in workplace training if we are to tackle ongoing skills shortages.

“We need to see action from politicians to break down the barriers to work for everyone. The number of people outside the workforce because of health issues remains a particular concern.

“Getting the strong economic growth we all want to see will only be possible when the skills and workplace challenges are resolved.”

More detail on the latest ONS labour market data can be found here

Credit: Sarah Rigby from Norwich Theatre Last Thursday, Co.next and Norwich Theatre partnered up to bring young professionals a Masterclass on Public Speaking at the Norwich Playhouse. The masterclass taught participants how to connect with their voice, gain confidence for public speaking, present their work effectively, overcoming fear, body language, vocal range, and breathing techniques. The masterclass was lead by Joseph Arkley, a professional screen and stage Actor. Recent TV credits include The Capture and Wreck (both for the BBC). Throughout the course of his career he has given Keynote speeches and facilitated workshops for Arts organisations and businesses both domestically and abroad. Caroline Ellis,  Account Manager and Co.next Lead at  Norfolk Chamber of Commerce, said: “I had the pleasure of spending the morning on stage at Norwich Playhouse with 18 other professionals stepping outside our comfort zones and learning new techniques to help us with public speaking. Thank you Lauren Farley for making this event happen and supporting Co.next – Norfolk Chambers of Commerce and allowing us to use this iconic venue. Well done to everyone who attended, it was so lovely to see everyone have the opportunity to speak on stage – you guys smashed it!” Credit: Sarah Rigby from Norwich Theatre Lauren Farley, Business Development Manager at  Norwich Theatre, said: “This event was an absolute pleasure to bring together; firstly as a member of the Co.next Board it’s an absolute privilege to be able to be a part of such an amazing programme that provides young professionals with the opportunity to develop and learn new skills which can only help but broaden their professional knowledge and understanding. Being able to combine that with my role as Business Development Manager at the theatre, has not only allowed for a broadening of our relationship with Norfolk Chambers, but has also allowed our audiences to crossover, which for me is such a positive outcome of these events. The day truly was an absolute success, and to see people taking advantage of our great spaces at the Playhouse was really encouraging. I look forward to working more closely with the Co.next programme on many events in the future.”   Join us at our next Co.next Masterclass – Mastering your website with Yawn Marketing on 22nd May. For more tickets & info click here

Open for applications from 6th May 2024

The King’s Awards for Enterprise is the most prestigious award for UK businesses and can bring substantial benefits to winners, including increased staff morale, boosts to turnover and international trade, promotes greater recognition and excellent marketing opportunities.

The award recognises and rewards outstanding achievement in the following fields:

International Trade – Recognising companies that have demonstrated growth in overseas earnings;

Innovation – Recognising companies that have demonstrated commercial success through innovative products or services;

Sustainable Development – Recognising companies that have integrated environmental, social, economic and management aspects of sustainable development into their business;

Promoting opportunity through social mobility – Awarded for social mobility programmes that help people from disadvantaged backgrounds into successful working lives

You can visit the government website to see if your business is eligible here.

Support is also available from Norfolk Lieutenancy. Please feel free to email us [email protected] to express an interest in the Award.

These awards are made annually by HM The King and are only given for the highest levels of excellence demonstrated in each category. They are judged to a demanding level and winners are invited to a Royal reception, are presented with the award by the Lord-Lieutenant of Norfolk and are able to fly the King’s Award flag at their head office and use the emblem on marketing materials.

The Lord-Lieutenant encourages Norfolk businesses to enter The King’s Awards for Enterprise.

Previous corporate winners in Norfolk have come from a diverse selection of business sectors and have included large and small businesses. Recipients of the individual award have been from varied social and professional backgrounds.

Norfolk Chambers of Commerce, the Federation of Small Business and the A47 Alliance are calling on business leaders across the region to support the case for A47 dualling. Dualling the A47 is vital for our local economy and communities. 95% of local businesses state that it would reduce inefficiencies and travel delays, 90% say it would help them attract more customers, and 88% highlight that it would allow them to invest with confidence. The A47 is part of National Highways’ network but, to date, has missed out on significant investment to bring it up to standard. Commenting on the campaign, Nova Fairbank, Chief Executive of Norfolk Chambers said: “It’s vital that we can demonstrate the support of the Norfolk business community, from a sole trader through to our large corporates.  This impacts not only businesses, but residents and visitors alike. This is we are calling on businesses across the region to lend your voice to our campaign to keep it on the Government’s agenda and to ensure our region receives the infrastructure investment it deserves.” The A47 Alliance’s ambition is full A47 dualling from Lowestoft to Peterborough. In the short-term, the priority schemes are:

• Acle Straight dualling (Norfolk)
• Tilney to East Winch dualling (Norfolk)
• Peterborough to Wisbech dualling (Cambridgeshire) 

How you can support the campaign? To help support our campaign, we are asking if you could provide a short written testimonial in support of A47 dualling which can be used on the A47 Alliance’s social media platforms and website, and as part of campaign material that we share with decision makers.  We have provided an editable template for ease – click here to view. We know that videos can also play an important role in strengthening our case for support.  If you were able to record a 30 second video of what A47 dualling means to your business or organisation, and why it would be a good thing for Government to commit to, we would be incredibly grateful. It would really help bring our campaign to life and make it even more powerful. When recording your video, please:

• Include your name, role and business/organisation name
• Highlight what your business/organisation does
• Describe what A47 dualling means to your business/organisation
• Finish your video by calling on Government to commit to A47 dualling now
• Ensure you’re recording your video in a quiet place so that you can be heard clearly
• Send your video using We Transfer https://wetransfer.com/ by email to: [email protected].

By providing the A47 Alliance with a testimonial, you agree for your business/organisation name and the testimonials to be used for the A47 Alliance campaign. If, at any time, you would like the A47 Alliance to stop using your testimonial, please email: [email protected]. Please send your testimonial and/or video by 26 April 2024. The sooner we come together to make as much noise as possible about the benefits of dualling the A47, the better.

BCC Quarterly Economic Survey: Firms Treading Water on Investment 

• No overall improvement in business conditions in Q1 2024 as measured by investment, sales and cashflow.
• Levels of UK business confidence remain unchanged, with 56% of businesses expecting an increase in turnover in the next twelve months, but the percentage drops noticeably for Norfolk firms.
• Almost half of Norfolk firms are expecting the price of their goods or services to rise.
• Interest rates continue to decline as a concern for businesses, but inflation, competition and tax still a worry for Norfolk firms.
• Hospitality sector continues to struggle disproportionately, with 39% of these firms reporting a decrease in their cash flow, compared with 28% of respondents overall.

The BCC’s Quarterly Economic Survey – the UK’s largest and longest-running independent business survey – shows most firms reporting no improvement in investment levels, sales or cashflow in the first quarter of 2024.  After a slight rise in Q4, levels of business confidence in Norfolk have dropped slightly. Only 54% of firms in the county expect an increase in turnover over the next year, compared with 65% last quarter. With inflation likely to remain volatile over the coming months – the data also reveals that more firms expect hikes in their own prices, with staffing costs being the main pressure.     The survey conducted between 12 February and 12 March, of nearly 5,000 firms across the UK including Norfolk – 95% of whom are SMEs – also reveals business performance across different sectors varies considerably.   No improvement in overall business conditions  The percentage of respondents reporting increased domestic sales stayed roughly the same at 39% (up from 37% last quarter). Meanwhile 21% reported a decrease (compared to 16% last quarter) and 47% said sales had remained constant. But nationwide there were significant sectoral differences. 44% of professional service firms said they had seen a boost in sales, whereas only 27% of logistic companies and 29% of retailers saw an increase.   Business confidence remains unchanged Across Norfolk 54% firms expect to see their turnover increase over the next 12 months – a notable decrease on 65% Q4 2023. Only 15% of respondents are expecting to see their financial situation worsen in the year ahead, 20% expect things to remain the same. Profitability confidence has dropped, with 51% of companies saying they expect profits to increase in the next year. That compares to 65% in Q4. 25% of respondents believe their profits will fall.   Most firms still not increasing investment Economic headwinds continue to impact heavily on business investment. The majority of Norfolk firms say they haven’t increased the amount of new plant, machinery and equipment they’ve bought or rented. Only 23% reported an increase in investment (a minor rise on 20% in Q4), while 56% said levels had remained the same, 21% reported a decrease. This is in line with the national picture, but Norfolk’s over-exposure to sectoral disparities in hospitality & tourism remains a concern. At the national level these sectoral disparities in investment show in 28% of hospitality sector firms saying they have decreased investment, while 30% of manufacturing businesses have increased investment.   Many firms expect their prices to rise Although inflation has slowed significantly in recent months, many Norfolk businesses are expecting the price of their goods or services to rise. 43% of respondents are predicting an increase (though this is a drop from 55% in Q4), 52% think prices will stay the same, and just 5% are anticipating a decrease. Labour costs are cited as the main cost pressure across all Norfolk businesses. However, this pressure has eased from 89% in Q4 to 75%. It is worth noting that our in our county’s manufacturing sector, this pressure is felt much more strongly with 97% citing staffing costs.   Interest rates continue to decline as a concern While inflation remains firms’ biggest concern, it is slowly coming down along with concern about interest rates and we are seeing a ‘rebalancing’ of business worries. This quarter, firms citing their top concerns as interest rates, business rates, competition and corporate taxation all fall within a 30%-40% window. These figures remain high compared with the pre-Covid trend.   Jack Weaver, Chief Operating Officer at Norfolk Chambers of Commerce said: “The latest results from the QES provide further evidence that the UK economy is trapped in a low-to-no growth state. “Although Norfolk business confidence remains mostly stable at the start of the year, there have been noticeable drops in certainty about turnover and profitability with most SMEs still not reporting any tangible improvement to business conditions. “The lack of investment among most SMEs is a real concern. Feedback at our monthly Engagement Groups show that recent policy announcements from government have had no real impact on investment plans. Meanwhile inflation, skills shortages, and an almost endless list of new trade barriers with the EU, coupled with a lack of clear direction on infrastructure and technology investment at the government level, have led to paralysis for many businesses. “As we head towards a general election and locally look forward to a devolution deal for Norfolk, businesses will need to see a clear long-term plan for investment and innovation from politicians of all stripes at the local and national level.”   Shevaun Haviland, Director General of the British Chambers of Commerce said: “Our results are a timely reminder of the challenges businesses are facing across the UK. “We desperately need to see SMEs investing again. Government moves on rate relief, planning reform and full expensing are welcome – but they haven’t yet shifted the dial. “The recent rise in the national living wage is good news for millions of employees. But it comes at a time when labour costs pressures for business are already very high. Firms need room to breathe as they strive to pay staff fairly. “In this election year it’s vital that politicians remain laser focused on helping businesses invest, develop and grow. We encourage all parties to study our findings and understand the reality for SMEs in communities up and down the country”.  

Infrastructure in Egypt is up and coming, offering different opportunities across the different sectors including hospitality, ports and airports, power and energy, industrial and manufacturing, water treatment plants, metro and rail, road and bridges, petrochemicals and fertilizers, healthcare, facility management and digital transformation.

The EBCC is organising 2 webinars followed by a mission to Egypt in June that incorporates a 2-day visit to the Big5 Construct event. These will be held in collaboration with DBT and the Commercial Office of the Egyptian Embassy in the UK and are aimed to support both private sector projects as well as the governmental and public sector mega projects.

Webinar 1 of 2: Infrastructure in Egypt – An overview This webinar is scheduled on Monday 8th of April 2024 at 10 am – 11 am UK time. The programme includes:

• An economic update highlighting Egypt’s current monetary and fiscal policy
• An overview and outlook of the infrastructure, construction and water industries in Egypt
• A presentation from one of the Key players in the industry showcasing upcoming opportunities in Egypt and the MEA region
• An overview from DBT and EBCC on the support offered to UK companies

Register Here Webinar 2 of 2: Infrastructure Opportunities in Egypt and beyond This webinar is scheduled on Wednesday 15th of May 2024 at 10 am – 11 am UK time. The programme includes:

• An overview and outlook of the infrastructure, construction and water industries in Egypt
• A presentation from one of the Key players in the industry showcasing upcoming opportunities in Egypt and the MEA region
• Information on the Big 5 Construct and EIWE events (visiting, exhibiting, speaking opportunities)
• An overview from UKEF highlighting ways to mitigate financial barriers
• An overview from DBT and EBCC on the support offered to UK companies

Register Here

The British Chambers of Commerce has launched its Global Britain Challenge report to boost exports and channel overseas investment into the UK. Among the 28 recommendations are: The creation of a ‘Team UK’ to champion an updated ‘Brand Britain’ and show the world the best of what we can offer. A change in mindset, so the UK takes a more vigorous approach to fighting for its future success. Finally stepping out of Brexit’s long shadow, so politicians take bold decisions to make it work better and grab the opportunities it offers. An injection of more investment into the UK by targeting the big, and growing economies, with the money and understanding to make the most of what we can do. A greater emphasis on services exports in the UK’s trade deals. The ‘Global Britain’ report will be published at an event hosted by Heathrow Airport, on Wednesday 27 March, at the Compass Centre, in Nelson Road, Hounslow. It is the fourth of five policy documents from the BCC’s new Business Council, as part of the ‘Future of Economy’ project. The report draws on expertise from businesses of all sizes, academia, Chambers and think-tanks. Its proposals have two aims; to raise the flow of foreign direct investment (FDI) into the United Kingdom and to increase the amount of goods and services we export. It recognises that the UK is starting from a position of great strength – it is currently the sixth largest economy in the world, the fifth largest exporter, and has the third largest stock of inward investment assets. The country has an embarrassment of riches – its universities, legal system, culture, creativity and can-do spirit are the envy of the world. But none of this can be taken for granted. The UK is the only G7 country yet to regain its pre-pandemic level of trade intensity. To keep its seat at the top table Government, business, higher education, and cultural and societal institutions must work together. Only then can Britain’s place in the world, and the world’s place in Britain be guaranteed. Martha Lane Fox, President of the British Chambers of Commerce and Chair of the Business Council, said: “Trade and inward investment are two vital pillars that hold up the UK economy. But despite new free trade agreements and a raft of other deals, the intensity of our exports and imports is lagging behind our main rivals. “This is about much more than Brexit, it’s about the UK’s attractiveness as an investment location and our reputation as a trading nation in the world. “But Brexit casts a long shadow. There is sometimes a reluctance among politicians to either recognise problems or suggest solutions, because of how they may be viewed either side of the Brexit divide. “This must stop. Our politicians must be bolder in their decision making. They must set out a strategy on how we mange EU regulation and where, it makes sense, we diverge, so British business can benefit. “The UK has so much going for it, and we need to make the most of the huge opportunities that presents.  Rather than deciding strategy based on parochial political concerns, let’s decide on what’s best for the long-term future of the UK. “That means taking stronger positions and negotiating better deals with the EU and the rest of the world, to champion our world leading services sector. “We must also do more to improve the flows of investment into the UK, by going after the big fish – the nations with the biggest and deepest pockets. “And it is crucial that we sell the UK’s unique offering and its many advantages to the world as loudly as can.” Lord Mandelson, Chairman of Global Counsel, former British First Secretary of State and EU trade commissioner, said: “I do not believe that future UK trade policy can any longer rely on the negotiation of free trade agreements. Recent experience shows that these agreements have become too shallow and optical with insufficient gains for the effort expended. “I, therefore, think the next government will need to look at additional means of commercial diplomacy to create global opportunities for UK advanced services and manufacturing capabilities.” Michael Hayman, Chair of the Global Britain Challenge Group, said: “This report calls for the creation of a new ‘Team UK’ to champion and revitalise ‘Brand Britain’ by showcasing to the world the best of what the UK can offer inward investors. “There is a world of choice for business and the UK is faced with competition from the entrepreneurial zeal of economies globally. That’s why we need to urgently focus on accelerating our position as a leading nation for foreign direct investment with a new and coordinated focus on presenting the country’s capacity for innovation. “Trade has continued to change and develop, and we are more than capable of changing with it. The gear shift required is from an incumbent, to one of a challenger. The UK is a great country for business but too often, investors told us, we are seen as unpredictable and uncertain. They want to know where they stand and where things are going. “The opportunity is to provide that clarity and certainty with a message to the world that the UK is very much in business and for business.” Ross Baker, Chief Commercial Officer, Heathrow said: “We must champion British exports and foreign direct investment into the UK to enable a thriving, competitive and resilient economy long into the future. As the UK’s hub, with exports worth over £100 billion moving through the airport a year, Heathrow is primed and ready to support the Global Britain Challenge recommendations. “Simple, common-sense regulation that promotes exporting will help the UK retain its competitive edge and be seen as the country of choice to do business with.”

Access Diagnostic Tests UK Ltd, a leading force in rapid diagnostic testing kits, proudly announces the launch of its latest platform – www.drug-testing-kit.co.uk

This groundbreaking website sets out to redefine the drug testing experience, providing individuals and businesses with a seamless, reliable, and discreet solution to find the drug tests they require.

Discover a New Standard in Drug Testing:

1. Extensive Product Range: Navigate through an array of top-tier drug testing kits tailored to diverse testing needs, ensuring a comprehensive selection for various substances.

2. Educational Hub: Empower yourself with valuable insights through informative content and resources, guiding users on product usage, drug information, and detection windows.

3. Discreet and Confidential: Prioritising user privacy, www.drug-testing-kit.co.uk guarantees discreet packaging and secure online transactions for a confidential testing experience.

4. Responsive Customer Support: Backed by a dedicated customer support team, the website promises prompt assistance for any inquiries or concerns about products and procedures.

5. Compliance and Accuracy: All available drug testing kits comply with industry standards, assuring users of accurate and trustworthy results.

Dr Mike Garside, CEO of Access Diagnostic Tests UK Ltd, expressed excitement about the launch, stating, “www.drug-testing-kit.co.uk

 reflects our commitment to delivering accessible, reliable, and discreet drug testing solutions. Whether for personal or professional use, our website caters to the diverse needs of our customers.”

Explore the Future of Drug Testing:

Access Diagnostic Tests UK Ltd invites individuals, businesses, and organisations to explore the innovative solutions offered by www.drug-testing-kit.co.uk

Elevate your drug testing experience with cutting-edge technology and unwavering reliability.

For media inquiries or more information, please contact:

Dr Kate Garside Marketing Director [email protected]

Local government and housing groups are calling for extra support to address significant homelessness and housing pressures in the East of England.

The East of England All Party Parliamentary Group (APPG), the East of England Local Government Association (EELGA) and Eastlight Community Homes have published a paper outlining the short-term pressures facing the region’s housing sector.

Launched at the East of England APPG’s meeting in Westminster on 18 March, attendees, including the Minister for Housing Lee Rowley MP, heard the group’s concerns of the region.

Among these concerns is the impact the housing crisis, triggered in part by the undersupply of homes, is having on residents, councils and society overall. It notes the significant reduction in available social housing, combined with the increase in population and demand, has led to increased homelessness and individuals moved to insecure accommodation.

The paper also warns of the financial cost, with the East of England’s spending on temporary accommodation quadrupling from £15.4m in 2011 to £64.4m in 2023.

Cllr Jacqui Taylor, the chair of EELGA’s Improving Outcomes for People and Communities Panel, said: “The lack of suitable and genuinely affordable housing in the East of England is causing considerable harm.

“Families are living in overcrowded temporary accommodation outside their communities, sometimes in hotels or bed-and-breakfast style accommodation.

“This situation can be more acute for those with disabilities, with a lack of adapted accommodation available, and for those who are already in vulnerable situations.

“We urge the Government to act now before the situation gets even worse.”

Focussed tightly on the immediate issues being felt across the region, the report makes three recommendations.

It asks Government to reset the temporary accommodation subsidy rate paid to local authorities, which has been frozen at 90% of 2011 levels for 13 full years, and increase it in line with 90% of 2024 Local Housing Allowance rates. This would allow local authorities to claim back more costs and provide a vital fiscal lifeline to help them manage the rise in temporary accommodation costs.

The report requests housing authorities be allowed to levy a 2% council tax precept earmarked for housing, in the same way that upper-tier authorities can levy a precept for adult social care. Finally, it asks that the Government reform its fiscal rules to incentivise long-term investment in social housing.

By meeting these recommendations, the groups say it will help provide better support for homeless households, financial stability to local authorities, and prevent future accommodation pressures in the region.

You can view the paper herehttps://www.eelga.gov.uk/app/uploads/2024/03/new-Amended-EELGA-Housing-Leaflet-2.pdf.

Responding to the latest inflation figures from the ONS, David Bharier, Head of Research at the British Chambers of Commerce, said: “Today’s easing of the CPI rate to 3.4% will give businesses and consumers some sense of relief. At 4.5%, core inflation has also slowed, and the producer price index for input costs remains negative at –2.7%. “These positive trends were to be expected as many of the key drivers have begun to fall away. “However, we are now two years into this inflation shock and prices have simply stabilised at a much higher level. Uncertainty for businesses remains high. Further rises in the minimum wage are likely to impact pay differentials, and the ongoing crisis in Gaza, alongside shipping disruption in the Red Sea, is a source of great instability. “It is also a concern that the owner occupiers’ housing (OOH) component of CPIH has risen by 6.0%, indicating the adverse impact of higher interest rates. This measure is likely to be exacerbated by further council tax rises. “The fundamental issues for SMEs still remain – skills shortages, a lack of infrastructure investment, and trade barriers, particularly with the EU, which all feed into GDP growth expectations of less than 1% for the coming years.” More information on the ONS data can be found here.

For more information, visit:  www.britishchambers.org.uk