Chamber Blog

It’s often said that the best time to spot opportunities and wastage within a business is in your first few weeks in a new job. After that you tend to get settled in, know the people, adapt to the routines and so on.

I’ve recently taken on a new part time role as CEO of Wells Community Hospital in North Norfolk. It’s a role I’ve never done before as all of my previous jobs have been in the world of media. I can certainly vouch that the first two weeks have been the time to spot opportunities. As for wastage, that’s not usually a problem within a charitable trust. It’s certainly not an issue at Wells.

A key benefit I’ve had is that working outside my usual comfort zone has put me on a steep learning curve so I’m spending lots of time looking at the operation and talking to staff and volunteers. I’m asking people that simple but often difficult to answer question – Why? Why do we do this? Why do we do that? It usually gets people thinking and asking their own questions.

Anyway, back to the point about spotting opportunities in the first couple of weeks or so. I’ve worked out that it isn’t rocket science to keep it going – get other people to do it.

Three weeks after I started the new job, we had a new receptionist join. I asked her to make notes of all the things that she spotted in her first couple of weeks that she thought could help improve the business. She came up with about a dozen. One simple one, that I should have spotted, was that the web site wasn’t up to date. She also noticed that I had already put in place a new communication process to keep key stakeholders such as GPs, fundraisers and volunteers informed about what is happening at the hospital. She asked me that simple question. Why not sent it to the Town Council? Brilliant!

That’s now been done with a flurry of emails from local councillors saying thanks for keeping us informed.

I’ve now started quizzing new patients who sit in reception immediately outside my office. I have had suggestions for some magazines and publications, fresh flowers, better plastic cups for the drinks dispenser to name but a few.

I’m definitely going to keep it going and see how long it takes to come up with 100 ” improvements.” Watch this space.

Like businesses everywhere, colleges have to respond to the challenges of globalisation. Success will rest, however, as much on the strength of our local ties as on our global connectedness. We need to act as a bridge between the local and the global. And we need to continue doing one of the things that colleges do best – joining up new opportunities to individuals, employers and communities.

This is probably more true now in times of austerity and combating recession than it has been during the “good times”. Skills will make even more of a difference to companies within this fragile economic climate (it has been shown, for example, that organisations who do not train are 2 ½ times more likely to go bust than those that do train).

Increasing interconnectedness, through global trade, multinationals, technology, communications and culture, have brought about a gradual but seemingly inexorable convergence of experiences, aspirations and opportunities – see Thomas Friedman’s The World is Flat: a Brief History of the 21 Century. One outcome of this is that today’s graduates of the UK further and higher education system are in competition for jobs against increasing numbers of highly skilled graduates from across the globe. Seen in this light the idea of the local Further Education (FE) college, with a strong orientation towards local community and the local economy, might appear somewhat outdated.

Globalisation, however, is a two-sided coin. In the same movement through which globalisation brings the world much closer together, countervailing tendencies re-assert localness, identity and difference. The global advertising campaign by a multinational high street bank, portraying itself as “The world’s local bank”, captured this neatly: success in the modern world crucially depends upon understanding the nuances in national, regional, local and even micro markets. We all operate in settings that are simultaneously global and local.

A key difference we can make in this “flat world” is the talent pool of our local communities and it is here that colleges have a real and impactful role to play in ensuring that local (and regional) economic regeneration possibilities are turned into reality.

The diverse community served by City College Norwich is testimony to this coexistence of the global and the local. To the outside observer, Norwich, and the wider county of Norfolk, can feel a world away from London, never mind the global village! Nonetheless, our local economic base includes employers who are globally connected and world-leading in their accomplishments.

We have a major concentration of national and international financial services companies, such as Aviva; we have cutting-edge engineering at Lotus Cars; pioneering renewable energy technology at the Scroby Sands wind farm off the coast at Caister; and the University of East Anglia is world renowned for its climate change research. Critically, to ensure that these organisations stay in Norfolk, we need to provide them with people with world-class skills.

So, this is the key attribute that a local college can contribute to supporting UK plc – we need to work with our local, regional, national, and international employers to understand their human resource needs so that they can compete and thrive in this new global marketplace.

We have coined a phrase at City College Norwich, our notion of a “predictive curriculum”; this is all about attempting to assess what the skills needs of our economy will be in five years’ time so that we can train our local community and get them ready for that future.  We cannot do that projection of skills needs without the close cooperation of our business communities and, again, we have made that engagement a critical – and strategic – part of the College’s mission and endeavours.

Globalisation brings economic opportunities as well as challenges.  Major new markets are opening up in China, India and Brazil. It is predicted that the “global middle class” will swell to 1 billion people in the next 20 years. Technological changes will create new opportunities in knowledge-intensive areas such as research and development, specialist manufacturing and business services. Whole new industries will emerge as we move from a carbon-based to a low carbon economy. And the demand for increased personalisation of goods and services will continue apace.

So, is the locally based and accountable FE college any longer relevant in this new world of global opportunities?  Absolutely yes!  Developing world-class skills requires colleges to be globally aware and connected, through international partnerships and exchanges, curriculum development, and close links with internationally excellent sectors and employers.  But it is crucially also about innovation, specialisation and the ability of individuals and employers to identify and cultivate niche markets.

World-class talent does not grow out of a vacuum- it is the result of the progressive development of existing local strengths, productive local partnerships and having the basis of trust needed to experiment and innovate. Having a college that understands and supports this process is a critical success factor in making any local economy work.

Colleges have a long and proud tradition of opening up new opportunities to the individuals, employers and communities they serve. Now, more than ever, we need trusted local colleges to act as a bridge between local employers and communities and a globalised world of opportunity.  Let’s all make a difference to Friedman’s “flat earth” by creating a “peak” of talented difference – for Norfolk!

So now its official: Britain’s GDP didn’t shrink as much in the second quarter as the statisticians previously thought. What was a fall of 0.7% is now a fall of 0.5%, and I am now taking bets on whether the third revision – due next month – pushes that number still higher. In a country where employment remains buoyant, and where private sector surveys including the chamber network’s own Quarterly Economic Survey  suggest that businesses still have relatively strong order books and sales, it’s hard to reconcile the dire growth figures with what we see happening in the ‘real economy’. It’s also hard to over-estimate the impact of these releases on business confidence and investment intentions.

Yet even if the statistics are wrong, Britain is stagnant. We still have a mountain to climb to get back to healthy growth levels. As a still-dozy Westminster starts to stir after the summer holidays, and as the political party conference season approaches, the Chamber Network is preparing bold new proposals on how to support business growth. Over the coming weeks, we will set out ideas on ways to stimulate short-term activity and to support long-term growth, all while maintaining Britain’s hard-won market credibility and a clear deficit reduction plan.

What’s more, we will be supporting the British Chamber of Commerce who are intensifying their call for the creation of a British Business Bank, to lend to new and high-growth SMEs that can’t get funding from commercial sources. We’ll also be involved in the launching the results of BCC’s recent surveys on business-to-business payment, supply chains and energy, which Norfolk Chamber members have taken part in plus an update on the Government’s progress against the transport priorities identified by Chambers across the UK,  including Norfolk , at the time of the government’s election in 2010.

It is more important than ever that the Norfolk business voice is heard loud and clear so please do keep your comments coming! Our Chamber network BCC Quarterly Economic Survey, which takes 3 minutes to complete, has been recently emailed out to every Chamber member so please do complete it by 10th September, as it is used by the Bank of England and the Chancellor to make decisions about the economy.  

We congratulate all Norfolk GCSE students today who are reaping the rewards of their hard work . Nationally, the number of pupils achieving top grades has fallen for the first time since the exam was introduced in 1988 although many schools in Norfolk are bucking that trend. For example Cromer Academy, North Walsham High, Sheringham High and Stalham High,revealed Hewett School, Hellesdon High and Sewell Park College have all posted their best-ever results.

Young people have a lot to offer, and businesses are keen to employ them. Unfortunately, in recent years too many young people applying for work have lacked basic skills and required remedial training for inadequate literacy and numeracy. Employers must be assured that qualifications reliably reflect a given level of skill, and will welcome an end to artificial grade inflation and planned changes to increase rigour. We know that teachers and pupils are working hard to raise genuine skill levels, particularly in English and Maths, and this must remain a top priority. Employers will reject any measure of success that focuses exclusively on the most capable half of students, without supporting other young people in reaching high levels of literacy and numeracy.

Norfolk Chamber and its members are passionate about helping our schools and their young people to better understand what is needed from the world of work. The Schools which are members of the Chamber, including many of the new academies, will enable us to work even closer with them to assist them develop our employees of the future.

The increase in entries to science exams this summer is good news for business. Young people with strong qualifications in the sciences remain sought-after by employers, and they can expect to succeed in exciting and rewarding careers. Chamber research shows that a lack of language skills has been a barrier for Norfolk businesses looking to sell their products and services overseas. One swallow doesn’t make a summer, but we hope the slight rise in entries for modern languages this year is a signal that more students will study a language in future years.

If you are passionate about helping Norfolk’s young people understand the world of work, please do let us know.

Recent criticism aimed at the government’s lacklustre growth agenda, and a rather empty looking parliamentary calendar (after the proposed Lords reform was dropped), has apparently left ministers frenziedly drawing up plans for a bill to help stimulate the economy.

A heavily-leaked report of an Economic Regeneration Bill for the autumn surfaced in the media this week. Rumour has it the bill could entail a range of business friendly measures, from changes in employment law to a relaxation of planning laws. It has even been suggested that the bill could pave the way for a third runway at Heathrow, new nuclear power stations, and increased infrastructure projects.

If the rumours are true about a new Economic Regeneration Bill then pressure surrounding major barriers to growth, certainly on infrastructure, could be alleviated. Businesses up and down the country feel constrained by inadequate infrastructure, be it transport, energy or digital connectivity, as improvements are often at the mercy of the planning system. Any changes to the planning system in the Economic Regeneration Bill should be aimed at making it as straightforward as possible for projects of national strategic importance (such as capacity expansion at our airports and on our energy grid) to obtain permission, while safeguarding the rights of local communities.

Already, there are measures going through Parliament aimed at injecting some much needed growth into the economy. For example, the Enterprise and Regulatory Reform Bill, soon to go through the House of Lords once Parliament reconvenes.  This bill aims to strengthen the business environment and reduce regulatory burdens. The bill includes provisions to legislate for the establishment of the Green Investment Bank, make changes to the employment tribunal system, reduce inspection burdens on business, and to repeal legislation. Many of the proposals in this bill are welcome and should make a real difference to businesses on the ground. These measures will help to boost business confidence and reduce burdens on firms.

However, the Enterprise and Regulatory Reform Bill won’t solve some of the major barriers to growth faced by businesses such as access to finance, investment incentives, and problems around infrastructure.

Norfolk businesses work hard every day to create jobs, wealth and worth in this challenging economic climate. This parliamentary session must focus on growth and on increasing business confidence to grow, innovate and create employment. That is why we hope the rumours surrounding the Economic Regeneration Bill translate into substantive measures that will help business kick-start growth in the real economy.

In all of the years I have worked with Westminster, I have never seen such a frenzy of activity leading into Parliament’s summer recess. Ministers, quite rightly chastised by the Chamber network and others on the need for a growth strategy, have over the past few weeks unleashed a vast array of announcements designed explicitly to demonstrate that they’re “doing something”.

Over the past few of weeks, we’ve had announcements on business lending, aviation strategy, rail investment, infrastructure guarantees, and regulatory reform.  Look a little more closely, though, and you’ll find the solid-seeming building blocks are in fact a bit of a Potemkin village. Many announcements are, in fact, re-announcements. Still others are unlikely to ever make the leap from paper to the real economy.

However it is great to see our local MPs working together with the business community and helping to ensure that our voice is getting heard right in the heart of government. Sometime you have to look at the small print as to what is relevant to us in the new announcements, but Norfolk is definitely positioning itself more effectively and at last Ministers seem to know where Norfolk is on the map. The Norfolk Chamber and its members will continue to lobby to be heard.

Do you agree with my assessment of Norfolk’s economy?

As we settle in to a feast of Olympic achievement and spectacle it seems a good time to reflect on how Norfolk’s economy is doing and how the business community feel about things.

In a recent survey relating to the first few months of this year collated by the British Chambers of Commerce and including Norfolk Chamber members, the results showed that Norfolk businesses were growing, but the pace was sluggish and not what we would like to see to ensure a sustainable economic recovery. Although these results were not a great surprise, it was disappointing that our businesses are finding it so tough.

Domestic sales were fairly static but many of our manufacturing exporters did not show the increase in sales that have been seen elsewhere in the UK. Having said that, our energy exporters are showing strong outputs and the Chamber’s export documentation department has been very busy. Businesses trading internationally within the service industry are having a better time of it.

The turmoil in Europe around the Eurozone continues to affect business in Norfolk, with both the manufacturing and service sectors reporting heightened concerns regarding exchange rates and what may happen in the future.  Inflation was also an uncertain factor, with 37% of all Norfolk firms reporting this is a considerable concern to them. These concerns result in a dent in confidence which in turns reduces investment in training, plant and machinery.

However Norfolk businesses are not ready to be beaten and although their reported confidence is still lower than pre-recession level in 2007, there is still a real determined attitude within the business community that they will do whatever they need to do to be successful and grow their businesses and that means taking hold of every possible opportunity.

Do you agree with my assessment of Norfolk’s economy?

When the energy bill has finally completed its passage through Parliament it will introduce the biggest reforms of the UK energy market for over 20 years. If the reforms are to succeed the government must ensure they are fit for purpose from day one. The recent findings of the energy select committee should help ensure that they are.

The coalition came to power over two years ago promising to radically reform the way the UK energy market worked. The largest proportion of those reforms is to be contained in an energy bill that is expected to be published later this year. Sensibly, the government felt that reform of this scale deserved proper scrutiny before they introduced a bill. Therefore, last May they gave the public first sight of a draft bill and asked the Parliamentary Energy and Climate Change Select Committee to examine the proposals. Over the last few weeks the committee and being carrying out there inquiry and have this week published their views on the bill.

The committee, which is chaired by Conservative Tim Yeo MP, are highly regarded in the energy industry. This respect has been gained due to the quality of their previous investigations into issues such as the EU ETS and shale gas. There is an ongoing debate as to weather committees should have greater independence and have more of a say in the governance process. The overall performance of select committees have been mixed of late, but I think it is fair to say that the energy committee is one of the best performing and has strengthen the argument for granting committees more power. So when they were given time – albeit a relatively short period – to investigate the proposed reforms it was very much welcomed.

The Committee heard from over 30 witnesses, including the Secretary of State for energy and representatives from the big six energy companies. However, they did not get the opportunity to question a representative from the Treasury. The Treasury refusal to put someone forward to face the Committee has drawn the ire of many commentators and hasn’t exactly helped quench the view that the Treasury and DECC are not of one view on energy issues.

Overall the Committee delivered a fairly negative analysis of the draft bill. Worryingly, they feel that it could impose unnecessary costs on consumers and deter badly needed investment. Their main concern is the government’s refusal to guarantee the contracts that generators of electricity will sign to deliver new nuclear and renewable forms of energy.

Our main concern with the bill has been its complexity and vagueness in parts. Some of the committee recommendations would help address these concerns and we hope the report receives careful consideration by the government before they proceed with the introduction of a full bill.

Now that the Committee has delivered its verdict we should expect to see the full bill in the autumn, as has been promised on numerous occasions. Allowing Parliament time to scrutinise a draft bill was the correct decision, but it must not be used as an excuse to delay reform.

The rain is held responsible for the rise in the number of retailers falling into insolvency which rose to 426 in the 2nd quarter of 2012 up from 386 in the previous year according to PWC.

However insolvencies across the wider economy including other sectors such as construction and manufacturing were down 3% on the previous year.

Norwich continues to attract national names with the new Jamie Oliver restaurant opening today.There are already 30 Jamie Oliver Italian restaurants across the UK and also one in Sydney and Dubai. It is important that Norwich builds on our increasing positive reputation to attract further investment.

Norfolk still finds it challenging to attract enough skilled managers and having a dynamic city is increasingly important to attract them and their families.

I had a great day yesterday meeting up with fellow business leaders from many Chambers as the British Chambers of Commerce celebrated its Annual General Meeting, as well as the Parliamentary launch of Chamber’s  ‘Business is Good for Britain‘ campaign. It was really good to see the Chamber network out in force and influencing government actually inside Westminster.

The launch was attended by, amongst others, Communities Secretary Eric Pickles, Business Minister Mark Prisk both of whom I managed to engage in a short conversation to put forward Norfolk’s case for investment. Also there supporting us was Brandon Lewis MP, amongst a range of other MPs and peers, despite the fact that it clashed with a hastily-arranged debate on how to investigate the recent scandals that have rocked both business and public confidence in the banking sector.

We now have the backing of over 30 MPs for an Early Day Motion in support of the ‘Business is Good for Britain’ campaign, and that support is growing day by day, thanks to cross-party leadership by friendly MPs and efforts nationwide to get local politicians to sign on. I am hoping that all our local MPs will sign up soon to show that they believe that ‘Business is Good for Norfolk’ too!

As noted at both the Parliamentary event and at the BCC’s Summer Reception, critical decisions are needed over the coming months to create the sort of enterprise-friendly environment we need to enable business growth for years to come. The Chamber Network will continue to put forward bold and imaginative proposals on business finance, infrastructure, and ways to boost international trade. And as Sir John Peace, chairman of Standard Chartered, Burberry and Experian noted in his address to reception attendees, the Chamber Network will also focus together on youth employment and the development of tomorrow’s workforce.

You may have also noticed yesterday that I have finally got the ‘twitter bug’ so please do follow me to make it all worthwhile! @nccCaroline

Caroline Williams with John Longworth, Director General of the British Chamber of Commerce

Over the past year, at Norfolk Chamber we have been encouraged by the Government’s rhetoric on growth and frequent speeches about helping businesses expand. But ministers are in danger of breaking these promises. There is still a lack of measures out there to help companies emerge from recession. Repeated commitments to deregulation, more financial support, and help for firms looking to hire, have failed to translate into real change for businesses.

Getting the economy back on track should be the number one priority and ministers should be doing everything possible to squeeze every drop of potential growth from companies across the country including here in Norfolk. Over the past quarter, business surveys including those which include feedback from Norfolk companies within the British chamber of Commerce QES, have shown a more positive picture than many of the economic indicators suggest. Our members tell us they don’t identify with such pessimistic statistics and are cautiously optimistic. These are the people who are out in the real world, working hard every day to run their businesses and, in turn, drive the recovery. Whether this remains the case, though, relies on two things.

Firstly a government that is willing to meaningfully engage with business, become truly enterprise-friendly and set forward a bold plan for growth. Secondly, we need businesses that are willing to take advantage of opportunties in a period of uncertainty.

The first depends on the Government delivering on those measures it has repeated again and again: improving access to finance, creating robust infrastructure such as energy and transport networks, cutting red tape, and making it easier for firms to take on staff.

Reforms to planning rules promised in Westminster must make it out to the real world so businesses can expand their premises. We know that reducing the deficit is crucial to sustaining a recovery, but prioritising some of these measures will free up business to grow.

If the Government makes good on these promises and improves the environment in which companies operate, it can create confidence among our businesses and growth will follow. If it chooses not to listen, the economy will continue to bump along the bottom rather than return to growth.

In the meantime, businesses are busting a gut in an uncertain environment. And they will have to continue to do so. The economy has been on a roller-coaster ride over the past few years. But that hasn’t deterred many firms from finding new markets to export to, hiring a new member of staff, or taking a new product to market.

Businesses now have to accept uncertainty will remain for some time. By acknowledging that, the economy is likely to continue to fluctuate over the coming year and by understanding the implications of this, businesses can be confident and thrive regardless.

Instead of worrying about changeable economic conditions, as businesses we need to accept uncertainty as the new norm, and with this knowledge, be confident to invest, grow and create more jobs.

David Cameron and other EU leaders met on Wednesday and announced a number of ‘innovative ideas’ that can help generate growth in Europe. Looking at the official conclusions of the summit and unofficial press reports, it is a struggle to see what they were. The summit was to tackle Europe’s growth problem, which has been overshadowed by efforts to save the eurozone and restore some kind of financial stability. Unsurprisingly, talk turned to Greece: all agreed that it should remain in the eurozone, on its current terms, and that the Greek voters would see reason second time around and accept the need for growth defying cuts.

After discussing the issues surrounding Greece, talk turned to growth. They paid lip service to the Single Market, Europe’s only source of sustainable growth, as well as: the need to agree the EU patent; the need to develop a European digital and energy market; the need to conclude Free Trade Agreements with India and Japan; the need to give SMEs access to credit; the need to tackle youth unemployment; and to the need to deliver an EU budget biased towards growth.

Some means suggested are sensible if not new, such as increasing the European Investment Bank’s capital; or using unspent EU funds on infrastructure projects. Some are not sensible such as the Financial Transaction Tax which will do nothing to boost growth. It is unclear if the UK or France will back down on the location of the patent court so as to solve the current impasse. Will EU countries tell the Commission to stop a new EU contract law regime that is unlikely to make it easier to trade across borders? And will the rich countries agree to take less money out of the new EU budget and give it directly to businesses to design new products and services? At the moment, this seems unlikely even though all of these could make a real difference.

It is almost two months since the National Planning Policy Framework (NPPF) was published, with the aim of making the planning system less complex, more accessible and an enabler of economic growth. The NPPF came into force immediately for local authorities with no local plan in place. For those with one in place already, they were given 12 months to adjust their plans so they conform with the new framework. Key to the success of the NPPF will be its implementation, and we will be monitoring this over the coming months.

If you know of any businesses, or are one yourself, that have applied for planning permission since the publication of the NPPF that would be keen to share their experiences of the new system, do let us know.

We would also be interested to find out if the business perception of the planning system has changed. If you  have an opinion please let me know