Chamber News

Commenting on the extension of the Coronavirus Large Business Interruption Loan Scheme, including extending the lending limit to £200m, BCC Head of Economics Suren Thiru said:

“It is good to see the government continue to listen to business concerns and make improvements to existing schemes.

“These important changes could make a real difference to larger firms in particular and alongside the other lending support schemes will help ensure that more businesses of all sizes get access to the finance they need to help weather this unprecedented economic storm.”

As we all move into the next phase of the UK’s response to Coronavirus, the Rail Delivery Group has issued important guidance.

Only those who cannot work from home should be travelling to work, and where people do so, they should aim to avoid public transport if possible.

The railway in England will be gradually increasing services from today (Monday 18 May) and running longer trains in some places to cope with increasing demand. To maintain social distancing wherever possible, there will still only be space for as few as a tenth of the usual number of passengers.

In our region, Greater Anglia have advised that they will be running a timetable, similar to that operated on a Saturday but with  some variations to reflect weekday working patterns – please check their website for full information.

The Rail Delivery Group is asking the public to keep the trains for those who really need them by only travelling when there is no alternative. They are also asking employers to help by considering staggered start and finish times, which will enable people to avoid peak hours, and by actively encouraging people to drive, walk or cycle if possible.

Commenting on the guidance, Jonathan Denby Head of Corporate Affairs for Greater Anglia said:

“It’s important to reiterate that only essential journeys should be made and that we are asking those customers that do need to travel to observe social distancing, wherever possible. We will be doing everything we can to help customers do so, with extra signage, floor markings and announcements where practical, but we are also seeking support from customers to adhere to the guidance.  In addition, we are asking customers to consider starting or finishing work earlier or later, so that not everyone is travelling at the same time, and to buy tickets online wherever practical (and if that’s not possible to please use contactless payment). The Government is also advising people to wear a face covering when using public transport.

“Our top priority is that customers and staff can travel safely while the coronavirus outbreak persists. We are continuing to pay particular attention to cleaning high contact areas on our trains and stations such as push buttons, door handles and grab rails. We have also been using some “fogging guns”, which are used for spraying and sanitising large areas.  They use cleaning chemicals which kill different types of viruses, and are a good way to clean areas which are difficult to reach, quickly and efficiently. The machines can be used to clean trains at any depot, station or train stabling point on the Greater Anglia network. They can also be used, if necessary, in waiting rooms, offices, mess rooms or in other railway buildings.  

As we have been doing throughout the lockdown period, we will be monitoring customer numbers and the operation of the revised timetable, to see if we need to make any adjustments.” 

The Chambers Quarterly Economic Survey (QES), the UK’s largest independent business survey, is open today (Monday 18 May) for three weeks.

Last week, the Chancellor, Rishi Sunak, announced that the UK was officially in recession and the Bank of England advised that it believes that this will be the sharpest recession on record. 

It is therefore more important than ever that both the Chancellor and the Bank of England hear from businesses just like yours.   How has your business performed in the last quarter, what do you see as the challenges and opportunities going forwards?  How confident are you about your financial position, your workforce and your future orderbook?

Without this vital local and regional knowledge they cannot make the right decisions and put relevant support mechanisms in place that will ultimately impact on you and your company.

The QES is anonymous, open to anyone and only takes a couple of minutes to complete online. 

We need your input, if you only take one survey, then please make it the QES

Take Part Now.

A project that would help complete a dual carriageway orbital route around Norwich and relieve traffic congestion on local roads has been approved by the Department for Transport (DfT) late last week to continue through the next stages of its development.

The Norwich Western Link is a new 3.8 mile dual carriageway road that would connect the western end of Broadland Northway (formerly the NDR) to the A47 trunk road. Norfolk County Council submitted a strategic outline business case for the project last year, which set out why a Norwich Western Link is needed and evidenced the strong support that exists for the link road to be created.

This business case has now been approved by central government, meaning the Norwich Western Link has been given conditional entry into DfT’s ‘Large Local Majors’ project funding programme. As well as providing more than £1 million of development funding for the project in the 2020/21 financial year, today’s announcement gives the council the green light to proceed to the next stage of the national process. This will see a further, more detailed business case submitted for consideration which, if approved, would unlock up to 85% of the total estimated £153 million cost of the project.

Cllr Martin Wilby, Cabinet Member for Highways and Infrastructure at Norfolk County Council, said:

“This announcement and funding commitment is really positive news from the Department of Transport. Investing in infrastructure improvements will be a vital part of supporting Norfolk’s economy to recover from the effects of the coronavirus pandemic, with the provision of good transport links critical to many of our major industries such as tourism, agriculture and manufacturing and engineering. So this news is particularly welcome right now.”  

As part of the Norwich Western Link project, the council is committed to supporting people to walk, cycle and use public transport in the local area. Taking vehicles off small rural roads and in residential areas will help with this, but a range of complementary transport measures is also being developed with input from local parish councils, walking and cycling groups, bus companies and others.

The County Council is also currently finalising proposals to secure a multimillion-pound package of funding from DfT’s Transforming Cities Fund for Norwich. As a result, work would get underway later this year on a programme of works which aims to support people to access areas of employment and education via a range of transport options. Work is also underway to ensure Norfolk can make effective use of its yet-to-be-confirmed share of the £2 billion of funding announced by central government last weekend to install short-term measures to help people to travel on foot or by bike while social distancing restrictions remain in place.

Subject to securing funding and completing necessary statutory processes, the Norwich Western Link is scheduled to open to traffic in 2025. Together with the Highways England A47 dualling between North Tuddenham and Easton, due to get underway in early 2022, this would create a fully dual carriageway orbital route around Norwich.

Commenting on the DfT approval, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“Norfolk Chambers are really pleased that Norwich Western Link has received government backing.  This is the final piece of the puzzle to ensure that Norfolk has infrastructure that will meet our growth ambitions.  It will create stronger and more effective links to the Midlands and the North and will help Norfolk businesses to thrive and deliver greater economic growth and jobs.

“The Norwich Western Link will facilitate easier access to both Norwich airport and Great Yarmouth port.  It will further help to improve journeys into and around the west of the city, support potential housing and jobs growth; provide the infrastructure to manage the additional traffic this will create, and improve quality of life for people living in the area.”

Confirmation has been received that British Chambers of Commerce in conjuction with DIT have negotiated with the Saudi customs authorities for electronically signed Certificates of Origin to be accepted with immediate effect.   

These documents can now be applied for by the Express method within e-zCert.

If you wish to purchase blank Certificate of Origin forms so you can apply for these documents electronically please contact Julie Austin on [email protected]

Commenting on the launch of a temporary government backed guarantee to support the provision of trade credit insurance for businesses, BCC Director General Adam Marshall said:

“The government has demonstrated once again that it is listening to the concerns of our business communities.

“The launch of a government-backed guarantee to support the provision of trade credit insurance will help ensure that this vital lifeline remains available to businesses during and after this crisis, helping to maintain supply chains and trade.”

Commenting on GDP statistics for Q1 2020, published today (13 May) by the ONS (Office of National Statistics), British Chambers of Commerce, Head of Economics Suren Thiru said:

“The contraction in UK GDP in the first quarter underscores the negative impact that coronavirus had on the economy, even at its earliest stages. The quarterly decline was driven by a sharp drop in monthly GDP in March with activity in all sectors contracting as the UK went into lockdown.

“The speed and scale at which Coronavirus has hit the UK economy is unprecedented and means that the Q1 decline is likely to be followed by a further, more historically significant, contraction in economic activity in Q2.

“While a swift ‘V-shaped’ economic revival as restrictions are lifted may prove too optimistic, government support can play a vital role in avoiding a prolonged downturn. The extension of the furlough scheme was a crucial first step, but more needs to be done to ensure that the right support is in place to deliver a successful restart of the economy.”

Self-employed workers in the UK will be able to apply for grants of up to £7,500 from today, with payments due within six days, the Government has said.

The Self-Employment Income Support Scheme (SEISS) grant is worth up to 80% of average trading profits for those stuck at home.

It is the biggest direct financial support package for freelancers and the self-employed since lockdown started and claims for lost work can be dated back to March.

The Office for National Statistics estimate there are around five million people in the UK who

The Government has not said whether it will be extended in line with the furlough scheme protecting 80% of employees’ wages up to £2,500 a month.

The scheme opened at 8am today (Wednesday 13 May), and the process will be run by HMRC, which has been operating and overseeing loan schemes and the Government’s furlough payments.

Everyone eligible for the SEISS will be able to receive the Government grant by May 25, or within six days of a completed claim.

Results from the latest BCC Coronavirus Business Impact Tracker reveal that firms are ready for a gradual reopening of the economy but will need continued, adaptable government support during a phased return to work.

•  Over 70% of respondents have furloughed a portion of their staff
• Nearly three quarters of these firms have submitted a claim to the furlough scheme and received payment
• The Job Retention Scheme has prevented redundancies for vast majority of respondents

The leading business organisation’s weekly tracker poll, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 601 responses. 

The seventh tranche of polling was conducted from 5 – 8 May, prior to the Prime Minister’s announcement on a roadmap to gradually ease lockdown restrictions and the launch of safe workplace guidance, and the Chancellor’s announcement on the extension of the Job Retention Scheme until the end of October. 

Readiness to restart

The vast majority of respondents continued to report high levels of readiness to restart operations as and when the government eases restrictions, with 89 per cent requiring three weeks or less to reopen. 

This week the survey revealed new information about whether businesses were prepared to implement measures to protect staff and continue operations during the ‘new normal’ as restrictions are eased. 

• 75% agreed they could implement social distancing measures 
• 70% agreed they could make provisions for remote working, with 20% saying this was not applicable to their business 
• 61% said they could stagger arrival times, with 29% saying this was not applicable to their business 

Businesses furloughing employees

Data from this week’s Tracker reveals that 71% of businesses surveyed have furloughed a portion of their staff, which remains consistent with previous weeks. 

The percentage of respondents that have submitted a claim to the government’s Job Retention Scheme and received payment remains high, at 73% this week, up from 59% last week. Only 7% of respondents submitted a claim more than six working days ago and are yet to receive payment. Our results indicate that very few businesses have not made any redundancies.  

The furlough scheme continues to provide crucial support to businesses and is helping them to avoid redundancies. 63% of firms agreed they could un-furlough staff as restrictions begin to ease, but 36% said they could not.

Fieldwork was conducted before the Chancellor announced the extension of the furlough scheme until the end of October.  

Bounce Back Loans Scheme

Over a third (36%) of respondents have either attempted to use the Bounce Back Loan scheme or have plans to access it. 

However, 62% of respondents said they had no intention of applying for a Bounce Back Loan. Reasons for not attempting to access the scheme varied between firms with more than three months in cash, and those with less than three months.  

Overall, 19% of firms stated they had concerns about repaying the loan. However, this figure rose to 28% among those with less than 3 months’ cash in reserve, and fell to 14% for those with more than 3 months’ cash in reserve. 

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

On business furloughing employees

“The Job Retention Scheme has been successful in its aim to protect livelihoods and its extension will come as a huge help and a huge relief for businesses across the UK. 

“The government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further, phased support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.” 

On the announcement of workplace guidance  

“Government guidance signals big changes for the way that many businesses operate, and some firms will now need time to plan and speak to their employees so that they can return to work safely. 

“Alongside this guidance, businesses urgently need clarity on the future of government support schemes, which must be adapted to help those firms who need to remain closed for an extended period or face reduced capacity or demand.” 

On Bounce Back Loans 

“The Bounce Back Loans scheme has made an encouraging start and will provide help for smaller businesses that are struggling to stay afloat.  

“However, as our research reveals, many smaller, cash-strapped firms are unwilling or unable to take on more debt. Government must therefore be ready to further expand existing grant schemes to ensure that as many businesses as possible get access to the support they need.” 

The Chancellor, Rishi Sunak has today announced the extension of the Coronavirus Jobs Retention Scheme until the end of October 2020.

The scheme has supported over 7.5 million furloughed workers across the UK.  Mr Sunak advised that up to the end of July the scheme remains unchanged.  And from August through to October he will look to add greater flexibility into the scheme, allowing furloughed workers to return part time.  Similarly he will look to share the cost burden between the government and the employers. He will announce more detail on the changes to the scheme later in May.

Commenting on the Chancellor’s announcement, Nova Fairbank, Head of Policy for Norfolk Chambers said:

“The extension of the Job Retention Scheme will come as a huge help and a big relief for businesses across our region.

“The Chancellor has clearly listened to what businesses have been saying, and the changes planned will help them bring their people back to work through the introduction of a part-time furlough scheme.  The Chambers network will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely and look forward to seeing the further details shortly.

“British Chambers research shows that the scheme has become a key part of wider government support for businesses, with more than 70% of firms surveyed across the UK furloughing a portion of their staff.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”

Yesterday, the UK government published their Coronavirus recovery strategy. This document describes the progress the UK has made to date in tackling the Coronavirus outbreak and sets out the government’s plans for the next phases of its response. The government has also updated its guidance for businesses on working safely during Coronavirus.

The UK Government timetable has published a three-step plan for lifting restrictions. If the Government sees a rise in the infection rate, they may seek to re-impose restrictions in some form.  A link to the full document can be found here.

Timescales

Step One – Wednesday 13 May

Step Two – No earlier than Monday 1 June

Step Three – No earlier than 4 July

Commenting on the publication of the UK Government’s COVID-19 recovery plan and associated workplace guidance, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“This is a significant step forward in terms of the information available for businesses, who will now need to digest the detail. The guidance signals big changes for the way that many businesses operate, and some firms will now need time to plan and speak to their employees so that they can return to work safely.

“Alongside this guidance, businesses urgently need clarity on the future of government support schemes, which must be adapted to help those firms who need to remain closed for an extended period or face reduced capacity or demand.”

Step One (Comes into effect on Wednesday 13 May2020):

1. Work

• For the foreseeable future, workers should continue to work from home rather than their normal physical workplace, wherever possible. 
• People who are able to work at home make it possible for people who have to attend workplaces in person to do so while minimising the risk of overcrowding on transport and in public places.
• All workers who cannot work from home should travel to work if their workplace is open. Sectors of the economy that are allowed to be open should be open, for example this includes food production, construction, manufacturing, logistics, distribution and scientific research in laboratories. Workplaces that the government is requiring to remain closed include:
  • restaurants and cafes, other than for takeaway
  • pubs, cinemas, theatres and nightclubs
  • clothing and electronics stores; hair, beauty and nail salons; and outdoor and indoor markets (not selling food)
  • libraries, community centres, and youth centres indoor and outdoor leisure facilities such as bowling alleys, gyms, arcades and soft play facilities
  • some communal places within parks, such as playgrounds and outdoor gyms places of worship (except for funerals)
  • hotels, hostels, bed and breakfasts, campsites, caravan parks, and boarding houses for commercial/leisure use, excluding use by those who live in them permanently, those who are unable to return home and critical workers where they need to for work
• Food retailers and food markets, hardware stores, garden centres (from Wednesday 13 May) and certain other retailers can remain open. Other businesses can remain open and their employees can travel to work, where they cannot work from home.
• The Government is amending its guidance to clarify that paid childcare, can take place subject to being able to meet the public health principles.
• Workplaces should follow the new “COVID-19 Secure” guidelines, as set out in the previous chapter, which will be published this week 

2. Face coverings

• Government is now advising that people should aim to wear a face-covering in enclosed spaces where social distancing is not always possible and they come into contact with others that they do not normally meet, for example on public transport or in some shops.
• Homemade cloth face-coverings can help reduce the risk of transmission in some circumstances. Face-coverings should not be used by children under the age of two, or those who may find it difficult to manage them correctly, for example primary age children unassisted, or those with respiratory conditions.

3. International travel

• All international arrivals will be required to supply their contact and accommodation information. They will also be strongly advised to download and use the NHS contact tracing app.
• All international arrivals not on a short list of exemptions to self-isolate in their accommodation for fourteen days on arrival into the UK.
• Small exemptions to these measures will be in place to provide for continued security of supply into the UK. All journeys within the Common Travel Area (between UK and Ireland) will also be exempt from these measures.
• These international travel measures will not come into force on 13 May but will be introduced as soon as possible. Further details, and guidance, will be set out shortly, and the measures and list of exemptions will be kept under regular review.

4. Business support

• As the UK adjusts the current restrictions, the Government will also need to wind down the economic support measures while people are eased back to work
• The Government will also need to ensure the UK’s supply chains are resilient, ensuring the UK has sufficient access to the essential medicines, PPE, testing equipment, vaccines and treatments it needs, even during times of global shortage.(Will come into effect no earlier than Monday 1 June 2020)

Step Two (Will come into effect no earlier than Monday 1 June 2020)

• A phased return for early years settings and schools. The Government expects children to be able to return to early years settings, and for Reception, Year 1 and Year 6 to be back in school in smaller sizes, from this point. Secondary schools and further education colleges should also prepare to begin some face to face contact with Year 10 and 12 pupils.
• Opening non-essential retail. Further guidance on the approach expected shortly on the approach taken to phasing, including which businesses will be covered in each phase and timeframes involved. All other sectors that are currently closed, including hospitality and personal care, are not able to re-open at this point because of the higher risk of transmission.
• Re-opening more local public transport in urban areas, subject to strict measures.

Step Three (Will come into effect no earlier than 4 Jul 2020)

• Open at least some of the remaining businesses and premises that have been required to close, including personal care (such as hairdressers and beauty salons), hospitality (such as food service providers, pubs and accommodation), public places (such as places of worship) and leisure facilities (like cinemas).These businesses must meet the COVID-19 Secure guidelines
• Some venues which are, by design, crowded and where it may prove difficult to enact distancing may still not be able to re-open safely at this point, or may be able to open safely only in part. Nevertheless the Government will wish to open as many businesses and public places as the data and information at the time allows.
• In order to facilitate the fastest possible re-opening of these types of higher-risk businesses and public places, the Government will carefully phase and pilot re-openings to test their ability to adopt the new COVID-19Secure guidelines.

Guidance for specific types of work. 

The government have produced eight guides to cover a range of different types of work. The guidance also includes links to other materials-such as risk assessments and a COVID secure declaration that you may wish to display in your workplace. You may need to use more than one of these guides as you think through what you need to do to keep people safe:

• Construction and other outdoor work: for people who work in or run outdoor working environments.
• Factories, plants and warehouses: for people who work in or run factories, plants and warehouses.
• Homes: for people working in, visiting or delivering to home environments as well as their employers.
• Labs and research facilities: for people who work in or run indoor labs and research facilities and similar environments.
• Offices and contact centres: for people who work in or run offices, contact centres and similar indoor environments.
• Restaurants offering takeaway or delivery: for people who work in or run restaurants offering takeaway or delivery services.
• Shops and branches: for people who work in or run shops, branches, stores or similar environments.
• Vehicles: for people who work in or from vehicles, including couriers, mobile workers, lorry drivers, on-site transit and work vehicles, field forces and similar

Commenting on the Prime Minister’s address on Sunday evening, in which he set out a conditional plan for the next phase of the response to Covid-19, Nova Fairbank, Head of Policy for Norfolk Chambers said:

“Norfolk businesses share the Prime Minister’s ambition to see more people return safely to work over the coming weeks.

“Companies will do everything they can to protect employees and customers, maintain social distancing and operate successfully as more sections of the economy are permitted to re-open.

“Our business community will need to see detailed plans for the phased easing of restrictions and supported by clear guidance. It is imperative that companies have detailed advice on what will need to change in the workplace, including clarity on the use of PPE.

“Firms will also need to know that government support schemes, which have helped save millions of jobs in recent weeks, will continue for as long as they are needed so that they can plan ahead with confidence.

“The timing of further easing of restrictions must be guided by the public health evidence, but businesses need their practical questions answered so they can plan to restart, rebuild and renew.”