Annual CPI inflation in March 2015 was 0.0%, unchanged from February
Goods price inflation in March 2015 was -2.1%, while services inflation was 2.4%
Commenting on the CPI inflation figures for March 2015 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce said:
“Continued low inflation is good news for the economy, particularly at a time when wage increases are modest and businesses are facing challenges. Contrary to expectations inflation has remained unchanged, however there is still is distinct possibility of deflation in coming months.
“If deflation is to emerge it should be short-term because of the strength of the UK’s largest sector, the service sector, where inflation remains above 2%.
“The main cause of low inflation in the economy is the fall in energy and food prices, which will help to ease cost pressures for consumers and businesses, and will support economic growth.
“To sustain business confidence we need a firm commitment from the MPC to keep interest rates on hold until at least early 2016.”
Commenting on the Conservative Party manifesto and the policies proposed, Dr Adam Marshall, Executive Director of the British Chambers of Commerce said:
“Companies across the UK will welcome Conservative policy proposals on fiscal discipline, low taxation, infrastructure projects, and support for enterprise and regional growth.
“A majority of the businesses we survey continue to support the Prime Minister’s ambition to re-cast Britain’s relationship with the EU, and to hold a referendum on the result.
“Raiding pensions savings, even to pay for a business priority like expanded access to childcare, will dismay entrepreneurs, for whom long-term rewards are often more important than short-term pay. Political intervention in regulated markets, such as rail fares, could have negative impacts on investment, as could proposals for new employment regulations around corporate volunteering.
“The housing crunch is a brake on business growth and employment in many parts of the UK. Yet the problem isn’t whether we’re selling enough houses, but whether we are building enough of them.”
Since the last update, more than 40,000 homes and businesses can now receive high speed broadband services as a result of the BBfN programme. Around half of those services have been made available since the start of the year and the programme’s going well.
In the latest ‘batch’ to be announced, parts of Deopham, Filby, Haddiscoe, Herringby, Little Ellingham, Mautby, Morley St Botolph, Rockland All Saints, St Olaves, Stokesby, Thrigby and Wicklewood can now get better broadband. Many more areas will be added to the growing list of towns and villages in which services are available over the next few months. Keep up to date with the latest on: www.betterbroadbandnorfolk.co.uk.
To find out which areas will get better broadband next and to find out more information read the attached update document.
Norfolk County Council’s annual road surface dressing programme for 2015 starts today (Wednesday, 15 April) with gangs working in the Bradwell, Langham and east coastal areas.
Surface dressing is one of the best ways of extending the life of roads while contributing to safety by improving skid resistance and preventing potholes. The process involves laying a thin layer of bitumen and chippings on to the road, stopping water penetration and reducing the number of potholes caused by frost. This year’s planned programme is worth £9.2M.
This work takes place every year while the weather is warmer, with the holiday areas and main roads treated first. Where possible, work is planned away from busy roads during peak periods, but because it is fast-moving and may be suspended during bad weather, it is hard to give motorists early warning of where the crews will be working. The aim is to complete busier routes by the end of July.
People living along routes to be surface dressed will receive notification a day or two before the crews arrive. They will be asked not to park on the road on the day of the surfacing, or the following day when loose chippings will be swept up. They will have the chance to say what they think afterwards via the County Council’s website, or on a response card which will be delivered to a proportion of residents.
The County Council apologises for any inconvenience caused to local people and to motorists, who are asked to drive with care and consideration when work is taking place, and for a few days afterwards while the new surface settles. A 20mph speed limit is imposed during work and on freshly-laid surface dressing for safety reasons. The work will be carried out by Norfolk County Council’s Community & Environmental Services Dept and their contractors.
Norfolk County Council is reminding motorists that the A47 will be closed in both directions at Postwick this weekend, as work to create a new bridge across the A47 continues.
Closures will begin at 8pm on Friday evening and the road will reopen no later than 6am on Monday April 27th.
When completed, the Postwick Hub scheme will increase the capacity of the A47 Postwick junction and provide access to new business and housing developments in the area.
Last weekend’s work finished ahead of schedule and the road was reopened early, but it is expected that this weekend’s work will require a full closure.
Traffic that cannot avoid this section of the A47 will be diverted as follows:
Eastbound (towards Great Yarmouth) A47 traffic heading east will be diverted on to the new access roads that will serve the expanded Broadland Business Park and new Broadland Gate business areas. This route includes five roundabouts before traffic rejoins the A47. Temporary traffic lights may be used to assist traffic flow.
Westbound (towards Dereham and King’s Lynn) A47 traffic heading west will have a shorter diversion, but this will pass through works on the new Oaks Lane roundabout and the major junction at the southern end of the existing and new (under construction) bridges over the A47.
During the weekend closures it will not be possible to cross the A47 southbound on the existing bridge to reach Church Road. Traffic wanting to head westbound out of the city will have to go via the A47 Cucumber Lane roundabout, using the main eastbound diversion.
Motorists are also being warned that the diversion route could also be delayedas new bridge beams are transported along the route in order to reach the A47. The County Council has done a large amount of work to keep residents and motorist aware of the Postwick project and warning signs about the closures are placed as far away as Newmarket bypass and King’s Lynn, to give motorists a chance to change their route.
This is the second of three weekend closures (Friday May 8 to Monday May 11 remains), with a fourth weekend (Friday May 15 to Monday May 18) in reserve in case of delays. There will be no closure on the early May bank holiday weekend.
Postwick Park & Ride will be closed on all weekend A47 closures at Postwick. The nearest alternative is Harford park and ride, at the A47 junction with the A140 Ipswich Road. Tim Ellis, Resident Engineer, Norfolk County Council, said: “We made a good start on the bridge construction last weekend and it was pleasing to be able to get the work done ahead of schedule and reopen the road early. This weekend we are lifting the northern bridge beams into place and due to the complexity involved we envisage that we will require the full Friday night to Monday morning closure. We are very grateful for the ongoing patience of motorists and residents. We’ve promoted the closures in advance, and tried to minimise the impact of the work as much as possible.”
For further information about the works and diversion routes visit www.norfolk.gov.uk
John Longworth, Director General of the British Chambers of Commerce,has today (Tuesday 21 April) sent an open letter to the leaders of the main parties calling on them to focus on long-term growth and strategic vision over tactical headline-chasing. The full text of the letter is below.
“In December, I wrote to you – and theother UK party leaders – with a call from business to act responsibly during the election campaign, and put the UK’s long-term success over political tactics and point-scoring.
All the major parties responded with a clear commitment to act in the interests of the economy and growth. With only a couple of weeks left in this campaign, it is impossible to remain silent in the face of mounting evidence to the contrary.
While there are some encouraging statements and positive ideas in manifestos, on the campaign trail it seems strategic vision and evidence-led policy announcements have been left on the bus. In their place we’ve had tactical headline-chasing and lazy assumptions; a reliance on populist statements, not economic common sense; and niche policy announcements, rather than a focus on the fundamentals. For example, issues like how the UK earns its way in the world go unaddressed.
Worryingly, the parties are also taking it in turns to propose new interventions in markets. These measures simply serve to side-step regulators and experts, rather than strengthening their hand.
Parties are competing to make ever more strident pledges to freeze taxes and ring-fence spending for the life of the next Parliament, without being able to see very far down the economic road ahead. No well-run business would tie its hands in this way.
And, dishearteningly, we also have policy proposals that, if enacted, would undermine entrepreneurship, aspiration and business growth. We have heard ideas to raid pension savings, create new levies on companies, and limit the tax relief available for genuine wealth creators and small investors, to name but a few.
Constraining those willing to take the risks needed to grow businesses demonstrates a lack of leadership. It is counter-productive and deeply troubling.
In the final few weeks of the campaign, I urge you to bring the focus back to long-term growth. Businesspeople want to see a clear and unapologetic vision for the UK’s future success in an ever more competitive and dangerous world. Our shared prosperity depends on it.
Norfolk Chamber’s regular working lunch with the Bank of England was held at the Chamber offices today. Tim Pike, the Agent for the Bank of England in the South East was looking to hear from Norfolk businesses on: whether they were investing and recruiting for their organisations; feeling pressure over wage increases; and what their confidence levels were going forward.
Many members highlighted that they were fairly optimistic and had reasonable levels of confidence, however they were still slightly cautious over the possible outcome of the General Election. Those working in the construction sector highlighted that they were very busy, however they were experiencing shortages of bricks and other construction materials, as well as skilled labour. It was noted that large construction projects in the Cambridge area may eventually have an impact on the construction market in Norfolk, as more skilled workers migrated towards possible higher earning potential in Cambridge.
Several businesses expressed concern regarding the oil and gas sector and noted that many organisations both locally and nationally were consolidating their positions in response to the lower oil prices. It was also highlighted that those companies dealing with Russia were seeing a number of contracts being cancelled due to the escalating situation in that region.
The service sector members outlined that they were seeing growth in disposable income spending, such as travel and leisure items. Car sales were also increasing, as outlined in the recent Norwich Economic Barometer report, which showed that more cars were registered in March 2015 than in any other month in the previous 16 years.
Those in the IT sector reported that their levels of optimism had been rising over the last couple of quarters, as more Norfolk businesses were investing in much needed IT equipment. Recruiting skilled staff remained an issue and the salary levels of high quality staff had seen significant increases to ensure they remained in post.
A further 80 additional areas are now able to receive superfast broadband, which takes the number of homes and businesses able to buy better broadband to 141,077 across Norfolk.
It has also been announced that some of the areas due to be able to access better broadband by September 2015 include: Attleborough, Diss, Fakenham, Holt, Long Stratton and Poringland.
Remember, once the new superfast broadband services golive, your existing broadband packages will NOT automatically upgrade, you will need to contact your provider to see how you could benefit from the new speeds.
Full information on the latest update can be found on the attached update sheet.
Commentating on the Conservative’s small business manifesto, John Longworth, Director General of the British Chambers of Commerce, said:
“A focus on promoting our small businesses is welcome, as is much of the thinking within the Conservative’s small business manifesto. The commitment to improve access to finance, investing in our rail, road and broadband infrastructure and a major review of business rates are all priorities for businesses around the country and it is good to see them being addressed.
“Alongside these encouraging ideas, there is wiggle room which we would like to see closed. For example, what does it mean to ‘respond’ to the airports commission? We need more than a response; we need action to expand our airport capacity. The proposals for a permanent increase in the Annual Investment Allowance and cuts to red tape set the right mood music, but we need to see the details to understand how they will be translated into action which helps our SMEs.
“The one element we would like to see more of, is support for established businesses looking to scale up. It is great to help start-ups, but they are not the only businesses in need of support.”
Businesses who make the leap into international markets are reaping the rewards, according to an international trade survey being published today (Tuesday) by the British Chambers of Commerce (BCC).
The results show that the majority of current exporters (59%) recorded sales growth in 2014, despite stagnation in the Eurozone and the appreciation of sterling. Furthermore, a third of exporters (34%) had to expand their production capacity last year to cope with demand from international markets, compared to only 3% that reduced capacity.
Despite the rewards on offer to all firms, it’s the long-established international players that are getting most of the benefits. Of the exporters that responded to the survey, the majority (61%) have been trading internationally for more than 10 years, compared to only 6% who have been exporting for up to two years.
Firms considering exporting suggested that greater access to overseas distributors and partners, and increased funding and support, would encourage them to seek out international markets.
BCC Director General, John Longworth said “we must redouble our efforts to grow a pipeline of new exporting companies that the UK economy so desperately needs”.
Key findings from the survey:
More businesses need to join the ‘export game’
The majority of the exporters (61%) surveyed have been trading internationally for more than 10 years, while new exporters (0-2 years) account for only 6% of the sample.
89% of businesses have ambitions to grow domestically, however fewer than half of firms (44%) have ambitions to grow internationally.
Exporters stand to reap the rewards as they tackle additional markets
The majority of exporting firms (59%) reported an increase in sales in the past 12 months, compared to 18% who said sales have fallen.
A third of exporters (34%) had to expand their production capacity last year to cope with demand from international markets.
Firms face challenges when trying to export
The most influential factor when considering exporting is the ease of finding customers, agents and distributors, according to the majority of firms (77%).
Increased funding (26%) and access to overseas agents and distributors (20%) are identified as key factors that would encourage non-exporting businesses to export for the first time.
Almost six out of ten (59%) non-exporters say they do not have the right product or service for export.
Commenting on the findings, John Longworth, Director General of the British Chambers of Commerce said:
“Firms willing to explore international markets reap the rewards on offer. It is encouraging to see some businesses exporting for the first time. But we need to redouble our efforts to grow the pipeline of new exporting companies and help more of our existing exporters to break into new markets. Together this will drive up our export performance and rebalance the UK economy.
“A long-term partnership between government and business can bring about a revolution in exports, encouraging more businesses to export for the first time and those already exporting to go further. We must make it easier for companies to consider trading internationally. By making exporting a bigger part of our business culture, we can build our collective appetite to trade. Increasing funding and improving market access for potential exporters will go a long way towards removing the perceived barriers for non-exporters, many of whom could be selling their wares overseas.
“As the election debate rages, Britain’s political parties have failed to set out how they will address the export challenge – and achieve the ambitious growth targets that the Prime Minister set out for 2020. Businesspeople want to work with the next government to implement ambitious plans that help Britain recapture its reputation as a premier trading nation. Only then will we eliminate the UK’s stubborn trade deficit – and unlock future economic growth.”
The BCC’s Business Manifesto: A Business Plan for Britain has proposed a number of measures to assist first-time exporters, and to help existing exporters target new international markets:
Continue to develop a world-class, global business-to-business network of British Chambers and business groups- linking British firms with customers and opportunities for growth in the fastest-growing overseas markets.
Continue work to bring UK Export Finance up to par with the world’s best export finance agencies – ensuring UK businesses can access finance needed to seal deals in markets around the world.
Reform the UK’s passport and visa system – to allow overseas British business people and their foreign counterparts to conduct trade activity with ease, boosting Britain’s export performance.
Make foreign language learning compulsory from age seven to 16 – supporting more young people to ‘think global’, and acquire the knowledge and skills that are highly valued by Britain’s exporters.
The A47 at Postwick will be closed again this coming weekend (Friday 8 May to Monday 11 May) for the final stage in lifting bridge beams into place. Diversions will be as on previous weekend closures.*
Both carriageways of the A47 will close at 8pm tomorrow, Friday 8 May, opening no later than 6am on Monday 11 May. A series of overnight closures (details below) will follow, but these will be less disruptive.
This weekend, theA47 will re-open sooner than 6am on Mondayif possible, but the amount of work required is more than on the two weekend closures in April.
Postwick Park & Ride will again be closed. The nearest alternative is Harford Park & Ride.
As on previous weekends, the diversions will be via the junction slip-roads and the new business park access roads. There may be delays on the diversion routes when beams are being moved into position for lifting into place.
If it is not possible to complete the work by 6am on Monday, work will be halted in time to allow the A47 to reopen on schedule, and will resume the following weekend (15 May to 18 May) under another A47closure. If this is necessary it will be well publicised next week.
If all goes well and the beam lifts are complete this coming weekend (8-11 May), there will be no weekend closure on the 15-18 May.
However, there will still be the need for a series of Monday to Thursday overnight closures, starting on Monday night (11 May) and continuing for around four weeks (no closure on Bank Holiday Monday, 25 May). These closures will be from 8pm, with the road reopening as soon as possible, but no later than 6am the following morning.
Vehicles will use the same diversions as at the weekend, but this is unlikely to cause significant delays because of the low levels of overnighttraffic.
Later this month there willbe a change to thetraffic management arrangements on the westbound’off’ slip road, where traffic from the Great Yarmouth direction leaves the A47 for Thorpe St Andrew, Broadland Business Park, Postwick Park & Ride and the north and east of Norwich (including Norwich International Airport). The change will be at the site of the Oaks Lane roundabout to allow the north side of the roundabout to be constructed.
*Click here for diversion plans or go to norfolk.gov.uk/Postwickfor further background, including links to A47 closure information.
Norfolk County Council has just released their latest update on Norfolk’s infrastructure. The update highlights the A47 corridor and the proposed plans for the improvements announced in the Autumn Statement; the latest on the NDR, progress on the Postwick Hub; and the Better Bus Area.
The report also gives information on the Cycle City Ambition Project, further improvements on the rail networkand the Better Broadband for Norfolk project.