Chamber News

Join us next Tuesday 26th May and one of King’s Lynn’s most loved business leaders, Captain Fawcett, on our virtual online networking event 2 Hour Tuesday.

The marvelous Richard Finney will be speaking on Captain Fawcett’s journey during COVID-19, and all the things they have been getting up to.

Including, if you haven’t already seen, his latest Captain Fawcett and his Tales of Derring-do a short story delivered by the Captain himself on Youtube. You can find the first episode here.

The UK Global Tariff (UKGT) has been released today. UKGT will be the UK’s new most-favoured nation (MFN) tariff regime (replacing the EU’s Common External Tariff) on 1 January 2021, unless an exception applies. For example, the goods you’re importing:

• are from a developing country that pays less or no duty because it’s part of the Generalised Scheme of Preferences;
• are from a country that has a trade agreement with the UK; or
• have a relief or tariff suspension that’s operated by the UK.

Changes:

UKGT is broadly in line with EU tariff schedule, though it introduces a number of changes, including:

• removing tariffs on products which are used in UK production, not made in the UK or are a nuisance tariff of below 2%;
• rounding tariffs down (to the nearest 2% below 20%, 5% between 20-50%, and 10% for tariffs over 50%) and moving complex agricultural tariffs to a single percentage; and
• removing the EU’s Meursing table of tariffs to allow the scrapping of thousands of tariff variations on products.
• UKGT also removes tariffs on £30 billion worth of imports entering UK supply chains.

Continuity:

• tariffs on agricultural products such as lamb, beef, and poultry to be maintained;
• 10% tariff on cars to be maintained;
• tariffs for the vast majority of ceramic products to be maintained; and
• maintaining some tariffs which support imports from the world’s poorest countries who have preferential access to the UK market.

Coronavirus:

• Almost all pharmaceuticals and most medical devices (including ventilators) are tariff free in the UKGT.
• While some products used to fight Coronavirus maintain a tariff, the UK has introduced a temporary zero tariff rate on these products. This relief waives the tariff and VAT for PPE, medical devices, disinfectant and medical supplies from non-EU countries.

Key Takeaways:

• The UKGT is estimated to ensure that around 60% of trade will come into the UK tariff free on WTO terms or through existing preferential access from January 2021. Future trade agreements will increase this proportion.
• The UKGT will provide important leverage in future trade talks with EU, US, New Zealand, Japan and other key trading partners.
• The UKGT increases the importance of getting a trade deal with the EU to avoid an increase in business costs and a negative impact on the wider economy.

Commenting on the announcement of the UK Global Tariff, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“We look forward to hearing from the Norfolk business community to understand what the impact of this new tariff will have on their businesses and what challenges and opportunities those businesses are seeing going forwards.”

If you would like to comment on the new UKGT please contact [email protected]

Norfolk Chambers recently surveyed the local business community to understand what challenges they were facing and how they were coping with the lockdown and potential easing of these measures. 

A cross-section of the business community responded and the results highlighted that 34% of businesses had concerns about implementing social distancing in their workplaces and 32% of businesses cited concerns over future business demand.

The results represented firms employing over 1,433 people between them.  When asked where their staff currently where, as a result of Covid-19, they advised that 29% were still operating within the workplace; 25% were working from home; and a further 34% had furloughed their staff.  Just 1% had had to make staff redundant, whilst 11% had terminated zero hours or contracted personnel.

When asked about gearing up and re-opening their premises, 54% of respondents said this could be done within 1 to 5 days, and 23% within 1 to 2 weeks.  A further 18% said they would need 3 weeks or more to be ready to open.

Other results showed:

• 26% had received a Small Business Grant
• 47% had deferred the Tax and VAT payments
• 18% had requested a business rates holiday
• 1% had successfully applied for and received a Coronavirus Business Interruption Loan
• 33% had applied for a Bounce Back Loan
• 7% of businesses were concerned about future cashflow

Commenting on the results, Nova Fairbank, Head of Policy for Norfolk Chambers said:

“Norfolk businesses are clearly concerned about implementing the social distancing measures.  As the lockdown is eased, clear guidance and information on what each business must do to ensure their workplace is safe, must be available.

“Norfolk Chambers welcomed the government’s recent announcement that the furlough scheme would be extended until the end of October.  However, business concerns around future demand highlights that a phased approach and lots of flexibility with the furlough scheme will be needed.  Businesses are facing the challenge of balancing between bringing staff back and having sufficient business demand to generate the income to pay them.”

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.”