Chamber News

2018 was a year of change for Norfolk Chamber and 2019 will certainly be no different! We are in preparation to launch a new and exciting events programme designed to get you making even more connections. Our events are here to support local businesses, and in the first few months of the New Year we have plenty to offer.   Norfolk Chamber runs successful networking breakfasts in Norwich, Great Yarmouth, West Norfolk and South Norfolk with guest speakers, networking activities and a delicious breakfast. If early mornings aren’t your thing, why not try one of our social evening events such as Super Bowl 2019 or Wine Tasting with Harper Wells.  Our annual high-profile policy event, The MPs Event, is now known as The Big Debate. Join us as we bring together Norfolk MPs, business leaders, County Council and the LEP to debate and discuss key issues affecting the region.  More interested in content than making connections? Why not join us for some valuable business training on social media, finances or marketing. Find out more.  We’re also launching new partnerships this new year, including Making Tax Digital with NatWest, Culture Shock with UEA and Fountain Partnership, Business Rates Consultation with Norfolk County Council and Our Region: Post Brexit with New Anglia LEP and Great Yarmouth Borough Council. The date for this year’s premier business to business exhibition is Thursday 17 October 2019. The B2B Exhibition will have it’s first year in its new home in 2019, so mark the date in your calendar and check back for more information!  Keep an eye on our events programme for new events coming this Spring; or sign up to our mailing to get updates straight to your inbox!  We look forward to welcoming you to an event soon.

There is only a short period of time left for you to have your say on the Norwich Western Link shortlisted options. 

Norfolk County Council have published four shortlisted road options for a Norwich Western Link. The options are designed to improve travel between the A47 and the western end of Broadland Northway and tackle transport problems in this area.

You can look through all the information available as part of the consultation and respond online.  You can also respond in person and talk to staff involved in the project at a series of consultation events.  The consultation will close at midnight on Friday 18 January 2019, so make sure you submit your response before this date.

Consultation events

Consultation events have been running since December.  Below are the remaining consultation events.  All consultation events will run from 2-8pm unless otherwise stated.

• Thursday 10 January at Diamond Jubilee Lodge, Hellesdon
• Friday 11 January at Great Witchingham Village Hall
• Monday 14 January at The Costessey Centre
• Tuesday 15 January at Dereham Memorial Hall
• Wednesday 16 January at Honingham Village Hall

For more information and to have your say online – click here.

The British Chambers of Commerce’s quarterly economic survey – the UK’s largest private sector survey of business sentiment and a leading indicator of UK GDP growth – finds that the UK and Norfolk economy ended 2018 stuck in a weak holding pattern, with stagnating levels of growth and business confidence as a result of heightened Brexit uncertainty and other economic pressures.

Key findings:

• Percentage of Norfolk manufacturing firms reporting an increase in domestic sales and orders fell drastically
• Percentage of Norfolk service companies reporting an increase in export orders and sales fell into minus figures
• Norfolk recruitment difficulties in manufacturing fell in comparison to the national average, but still remain at high levels
• Price pressures rise further for businesses, particularly manufacturers

The results of the survey of 6,000 firms, including those from Norfolk, – employing over one million people across the UK – underline the impact that the current levels of uncertainty are having on a stalling economy as growth in domestic sales and orders reduced, considerable recruitment difficulties are still being faced and price pressures persist.

In the services sector, a key driver of UK economic growth, the percentage of firms reporting an increase in domestic sales and orders weakened. Domestic activity among UK manufacturers fell drastically in the quarter.  

The findings highlight the continued labour shortages in Norfolk as nearly four-fifths (79%) of manufacturers that tried to recruit report difficulties in finding the right staff, whilst in the Norfolk services sector, 74% reported that they were struggling to recruit

The survey results indicate an increase in price pressures facing firms. The percentage of manufacturers expecting to raise prices is at its highest in a year (53%) and higher than the national result of 43%.  Cashflow continues to be a concern for both sectors, with the balance of firms reporting improved cash flow remaining weak.

As Westminster prepares to return from recess, the Chamber network is calling on all political parties to find a way forward and ensure that the UK does not face a messy and disorderly exit from the EU. Avoiding a chaotic Brexit would bolster business confidence and investment, and give businesses some much-need clarity on trading conditions in the near-term. 

Nova Fairbank, Head of Policy, Governance & Public Affairs for Norfolk Chamber of Comemrce said:

“The latest survey suggests that the Norfolk and the UK economic conditions were worryingly subdued in the final quarter of 2018, with a number of key indicators continuing to weaken under the weight of persistent Brexit uncertainty and rising cost pressures.

“Domestic activity in the dominant Norfolk services sector weakened for the second successive quarter, with consumer-facing firms particularly downbeat amid subdued household spending levels and tightening cashflow. Our manufacturing sector had an underwhelming three months, with significant cost pressures and moderating global demand weighing on activity in the sector.”

Suren Thiru, Head of Economics at the British Chambers of Commerce, said:

“The marked increase in cost pressures for businesses in the quarter suggests that inflation will be higher over the near term, with the continued weakness in sterling maintaining the upward trend on the cost of imported raw materials. However, with our results also showing that price pressures from wage settlements remain relatively muted, there continues to be sufficient scope to keep interest rates on hold in 2019, particularly given the significant economic and political turbulence.”   

Responding to the results, Dr Adam Marshall, Director General of the British Chambers of Commerce, said:

“The UK economy is in stasis. While it’s not contracting, it’s not growing robustly either. Throughout much of 2018, UK businesses were subjected to a barrage of political noise and drama, so it’s no surprise to see firms report muted domestic demand and investment. In this new year, the government must demonstrate that it is ready to act to turbo-charge business confidence.

“With little clarity on the trading conditions they’ll face in just two months’ time, companies are understandably holding back on spending and making big decisions about their futures. The government’s absolute priority now must be to provide clarity on conditions in the near term and avoid a messy and disorderly Brexit. Business communities won’t forgive politicians who allow this to happen, by default or otherwise.

“Brexit is hoovering up all of government’s attention and resources, but it’s far from the only cause of uncertainty. Given the magnitude of the recruitment difficulties faced by firms clear across the UK, business concerns about the government’s recent blueprint for future immigration rules must be taken seriously – and companies must be able to access skills at all levels without heavy costs or bureaucracy.”

Key findings in the Q4 2018 survey:

Norfolk Manufacturing sector:

• The balance of firms reporting increased domestic sales drastically fell thirty five points from +35 to 0 and those reporting improved domestic orders also fell from +30 to 0
• The balance of firms reporting improved export sales rose several points from +38 to +43, while the balance of those reporting improved export orders rose from +27 to +43
• The balance of firms expecting to raise prices in the next three months stands at +53, up from +40 in Q3
• The percentage of firms citing the cost of raw materials as the source of cost pressures continued its upwards trend from the last quarter, now at 94%, the highest since Q2 2013
• The percentage of firms attempting to recruit remained fairly static – moving upwards by only one point to 74%. Of those, 79% reported recruitment difficulties
• The balance of firms increasing investment in plant/machinery fell considerably in the quarter from +30 to +16, however investment in training rose from +30 and +42
• The balance of firms confident that turnover and profitability to increase in the next 12 months fell, from +44 to +32 for turnover and +55 to +11 for profitability

Norfolk Services sector:

• The balance of firms reporting increased domestic sales rose from +17 to +21.  Those reporting improved domestic orders also rose slightly from +12 to +15.
• The balance of firms reporting improved export sales fell drastically from the previous quarter of +14 to -5, while those reporting improved export orders also fell from +10 to -9
• The balance of firms expecting to increase prices in the next three months stands at +38, down slightly from +42 in Q3
• The percentage of firms looking to recruit dipped from +73 to +70.Of those, 76% had recruitment difficulties, down slightly from a high of 84% in the previous quarter
• Cashflow remains a concern, with a balance of just +8 reporting improved cashflow
• The balance of firms looking to increase investment fell from +25 to just +9 in plant and machinery, but remained static at +21 to +20 in training
• The balance of firms confident that turnover and profitability will improve over the next year rose slightly, from +34 to +39 for turnover and +16 to +24 in profitability

The UK’s five leading business groups, representing hundreds of thousands of businesses across the United Kingdom employing millions of people, today unite and call on politicians to prevent a disorderly ‘no-deal’ Brexit on 29th March.

“Businesses have been watching in horror as politicians have focused on factional disputes rather than practical steps that business needs to move forward. The lack of progress in Westminster means that the risk of a ‘no-deal’ Brexit is rising. Businesses of all sizes are reaching the point of no return, with many now putting in place contingency plans that are a significant drain of time and money. Firms are pausing or diverting investment that should be boosting productivity, innovation, jobs and pay into stockpiling goods or materials, diverting cross border trade and moving offices, factories and therefore jobs and tax revenues out of the UK.  While many companies are actively preparing for a ‘no deal’ scenario, there are also hundreds of thousands who have yet to start – and cannot be expected to be ready in such a short space of time.

“All this activity stems from the growing risk of leaving the EU on 29th March without a deal. With just 100 days to go, the suggestion that ‘no-deal’ can be ‘managed’ is not a credible proposition. Businesses would face massive new customs costs and tariffs. Disruption at ports could destroy carefully built supply chains. From broadcasters, to insurance brokers, to our financial services – the UK’s world-leading services sector will be needlessly disadvantaged, and many professional qualifications will be unrecognised across the EU. UK and EU nationals working abroad will be left in deep uncertainty about their future. As a result of the lack of progress, the Government is understandably now in a place where it must step up no-deal planning, but it is clear there is simply not enough time to prevent severe dislocation and disruption in just 100 days. 

“This is not where we should be.

“The responsibility to find a way forward now rests directly with 650 MPs in Parliament.  Nobody wants to prolong the uncertainty, but everyone must remember that businesses and communities need time to adapt to future changes. As the UK’s leading business groups, we are asking MPs from all parties to return to their constituencies over Christmas and talk to their local business communities. We hope that they will listen and remember that when they return to Parliament, the future course of our economy will be in their hands.”

Dr Adam Marshall, Director General, British Chambers of Commerce

Carolyn Fairbairn, Director General, Confederation of British Industry

Stephen Phipson CBE, Chief Executive, EEF, the manufacturers’ organisation

Mike Cherry OBE, National Chairman, Federation of Small Businesses

Stephen Martin, Director General, Institute of Directors

Commenting on the publication of the government’s Immigration White Paper, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“While these proposals are not quite as bad as we had originally feared, it’s no secret that companies across the UK are sceptical about whether the government’s approach will actually deliver on their practical, real-world concerns.

“From Cornwall to Inverness, from Northern Ireland to Norfolk, employers are hugely concerned that the complexity and cost associated with new immigration rules will impact their ability to invest and grow at a time when many areas are facing near-full employment.

“The government is giving with one hand, and taking away with the other. More flexibility on skill levels is positive, but this is offset by the wider application of immigration charges to both employers and applicants alike.

“The consultation ahead must result in a system that delivers on business needs in all regions and nations of the UK. Ministers have one last chance not just to listen, but to genuinely hear and act on the concerns that businesses have about their proposals. The arbitrary salary threshold must come down to reflect real-world conditions in different parts of the UK, and the government must ensure that the proposed temporary worker scheme actually functions both for companies and potential recruits.

“In the face of major change over the years ahead, the immigration system must not leave UK businesses with their hands tied – or the government will cause active damage to jobs, communities, investment and the economy.”

Uncertainty over the UK’s future relationship with the EU is one of many factors that has weakened the outlook for business investment, according to the latest forecast by British Chambers of Commerce (BCC).

The UK’s leading business group forecast a decline of -0.6% for business investment this year following weaker than expected data. This is a sharp decline from the 1.0% growth previously forecast. The BCC also expects business investment to grow by just 0.1% in 2019, down from 1.2% growth in its previous forecast.

These worrying figures coincide with the repeated delays on agreeing the Withdrawal Agreement and Political Declaration on the terms of the UK’s exit from the EU and future trading arrangements. With firms looking on with utter dismay at the ongoing saga in Westminster, many have hit pause on major investment plans, including plant, machinery and premises.

The BCC’s forecast assumes that the UK will reach an agreement in negotiations with the EU, and avoid a cliff edge in the short term. Longer-term prospects are still uncertain, but this forecast assumes that a trade deal is reached, at least at outline level. Other scenarios would lead to revisions in the next forecast.

The BCC has marginally upgraded its GDP growth forecast for 2018 to 1.2% (from 1.1%), due to a stronger than expected Q3 outturn as growth received a short-term boost from a number of temporary factors, including the World Cup and the warm weather. However, UK GDP growth is expected to slow to just 0.1% in the final quarter of 2018. The BCC’s forecast for 2019 GDP growth remains at 1.3% but has downgraded its 2020 GDP forecast to 1.5% (from 1.6%). Our latest forecast suggests that UK remains on track to record its second weakest decade of average annual GDP growth on record.

In addition to weaker business investment, the slide in the value of the pound together with weaker confidence levels is expected stifle the contribution of net trade and consumer spending to UK GDP growth. Inflation is now expected to be higher over the forecast period as the weakness in sterling pushes up the cost of imports.

If realised, the leading business organisation’s latest forecast shows an economy on pause. With just over 100 days to go until the UK leaves the EU, firms are still in the dark as to what trading conditions they face, and many businesses are holding back on investment and hiring. The BCC urges Westminster to come together to provide clarity on the UK’s future relationship with the EU, and crucially avoid a messy and disorderly Brexit that the country is simply not prepared for.

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“The subdued growth outlook for the UK economy reflects our view that the weakness in sterling is likely to persist for some time and together with Brexit uncertainty is likely to drag on key drivers of UK economic growth – notably business investment, consumer spending, and trade.

“The contribution of business investment to UK GDP growth is expected to be more downbeat than we previously projected as the increased uncertainty over Brexit weakens business confidence and stifles investment activity.

“Consumer spending is expected to be more limited as the weaker pound drives higher imported inflation over the near term, stifling real wage growth. A weakening currency is also expected to hinder, rather than help the UK’s net trade position by increasing imported input costs while a slowing global economy will limit export demand.

“The downside risks to the UK’s economic outlook remain uncomfortably high. A disorderly departure from the EU would likely deliver a significant negative shock to the UK economy, materially weakening the UK’s near-term growth and productive potential. On the upside, greater clarity and precision over the UK’s future relationship with the EU and with other key markets should help drive an upturn in economic conditions, including stronger investment intentions.”

Key findings in the forecast:

• UK GDP growth forecast for 2018 is marginally upgraded from 1.1% to 1.2%. UK GDP growth is expected to slow to 0.1% in Q4 2018 (down from 0.6% in the previous quarter). 2019 GDP forecast stays at 1.3%, while 2020 is slightly downgraded, from 1.6% to 1.5%
• Business investment is expected to contract in 2018 by 0.6% (down from 1.0% growth in previous forecast), before growing by just 0.1% in 2019, and 1.2% in 2020
• Household consumption is now forecast to grow at 1.5% in 2018, 1.2% in 2019 and 1.5% in 2020, compared to 1% in 2018, 1.3% in 2019, and 1.7% in 2020 in the previous forecast.
• Average earnings growth will outstrip inflation over the forecast period, but by less than in our previous forecast, with growth of 2.6%, 2.7%, and 2.9%, compared with CPI inflation of 2.5%, 2.4%, and 2.2%

• BCC forecasts export growth of 1.4% in 2018, 2.3% in 2019, and 2.2% in 2020, down 1.7%, 2.7% and 2.9% respectively in our previous forecast

• We anticipate interest rates rising to 1.25% by the end of the forecast period, with rate rises expected in Q4 2019 and Q4 2020

Commenting on the forecast, Dr Adam Marshall, BCC Director General, added:

“While Brexit isn’t the only factor affecting businesses and trade, it is hugely important – and the lack of certainty over the UK’s future relationship with the EU has led to many firms hitting the pause button on their growth plans.

“With just over 100 days to go until the UK leaves the EU and no clear road ahead, businesses are having to take action, delaying or pulling hiring and investment plans and, in some cases, moving operations elsewhere in order to maintain hard-won supply chains. A no-deal Brexit would cause significant harm to businesses and communities all across the UK. It is imperative that government and Parliament strain every sinew to avoid a cliff-edge in March.

“As we enter a new year, the government must also demonstrate that it is not paralysed by Brexit – and that it is ready to act to turbo-charge business confidence and investment.

“The Immigration White Paper will be a clear bellwether for whether the government is listening to business – and prepared to give firms clarity and precision on one of the practical, real-world questions they need answered in order to invest and grow.”

We will be closed from 4 pm on Friday 21 December 2018 and will open again Wednesday 2nd January 2019.

A Merry Christmas and Happy New Year to all our members and we’ll see you in 2019.

Thank you to all our members for making 2018 such a positive and exciting year for us! There have been so many great things going on this year, and so many businesses involved in making the Chamber experience enriched, interesting and fun of course. Below are a few of our chamber highlights;

Norfolk Show

Commenting on the confidence vote in the Prime Minister, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“With news that the Prime Minister remains in place, business communities will hope that these political games can finally be put to bed. Westminster must now focus all its energy on urgently giving businesses clarity on the future and avoiding a messy or disorderly Brexit.

“We are just over 100 days to go until the UK leaves the EU, and firms are still in the dark as to what trading conditions they will face. Neither the country nor businesses are prepared for a no deal Brexit, so parliamentarians on all sides must redouble efforts to ensure communities don’t face that scenario by default.

“Many businesses are holding back on investment and hiring, with some enacting contingency plans, for example by moving operations to continental Europe, to give themselves more certainty. It is time for Westminster to urgently come together to provide clarity on the UK’s future relationship with the EU so that firms have the answers they need. There is no time to waste.”

Commenting on the news that the Prime Minister will face a vote of no confidence, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“At one of the most pivotal moments for the UK economy in decades, it is unacceptable that Westminster politicians have chosen to focus on themselves, rather than on the needs of the country. 

“The utter dismay amongst businesses watching events in Westminster cannot be exaggerated. Our firms are worried, investors around the world are baffled and disappointed, and markets are showing serious strain as this political saga goes on and on. 

“History will not be kind to those who prioritise political advantage over people’s livelihoods. Businesses need politicians, regardless of party or views on Brexit, to understand that their high-stakes gambles have real-world consequences of the highest order.”

The University Technical College Norwich (UTCN) is holding a Year 13, CV and Interview Day on Wednesday 30 January 2019 to provide their students with the opportunity to receive actual business feedback to enable them to tweak their CVs and to have ‘real’ experience of an interview in a safe environment.

Sharn Crane, Employer Engagement Co-ordinator said:

“The feedback from last year’s event was incredible and made such a difference to student confidence in interviews and resultant job offers. Volunteers do not need to be experts – the information and interview sheets will be here, so no preparation required.”

All volunteer employers who attend will receive a short briefing before the sessions.  The CV Support Session will run from 10.15am – 12.30pm and the Mock Interviews from 12.45pm – 3pm.

If you are unable to help on 09 January, UTCN also have lots of additional opportunities for curriculum support, assemblies, sponsorship (e.g Dynamo Racing attached), and work experience – either 2 weeks in July or day release Wednesdays/Fridays.

If you are able to volunteer, please contact: [email protected] and quote UTCN Business Support in your email subject box.

Commenting on the labour market figures for December 2018, published today by the ONS, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“While the latest data confirms that the UK jobs market remains in good shape, the second successive rise in unemployment, coupled with a decline in the number of people who are not seeking work, is further evidence of the increasing tightness in the UK labour market. However, businesses report that the political and economic turbulence, together with significant difficulties finding the right staff, are diminishing recruitment intentions, which is likely to increasingly weigh on the UK labour market over the near term.

“With earnings growth increasing once again, the gap between pay and price growth is widening. However, any boost to consumer spending from stronger real wage growth is likely to be limited by weak confidence levels. The number of job vacancies remaining at a record high is further evidence of the worrying skills shortages plaguing UK businesses, which is constraining business growth.

“More must be done to support firms looking to recruit. Businesses are still waiting for the government’s long-delayed Immigration White Paper to shed light on how they will be able to plug local shortages in the future and find the skills they need to grow.”

Cllr. Sarah Bütikofer, Leader of North Norfolk District Council, is seeking feedback from businesses and members of the public regarding the Council’s services and activities.

Local business owners and residents are being encouraged to consider the one thing that they feel North Norfolk District Council could be doing that it is not currently delivering – these views can be emailed to [email protected]

Additionally, Cllr. Bütikofer will be starting the New Year by holding monthly surgeries at the Council’s offices in Cromer with the first session scheduled for Thursday 10 January 2019 from 12.30pm – 5pm.  Half-hour appointments can be arranged by contacting [email protected] or calling Lynda McElligott on 01263 516242.  Dates for future sessions will be advertised on the Council’s website at www.north-norfolk.gov.uk.

Commenting on the new initiatives, Cllr. Bütikofer said:

“I invite anyone to make contact the Council with ideas they might have or to visit me to talk through any issues or concerns they have.  This is an opportunity for people to express their views about things that matter to them and their local community and for the Council to understand what is important to the North Norfolk electorate.”