You can now book your place at Norfolk Chamber’s MPs Event, which takes place in Norwich on Friday 2nd February 2018
Returning for its eighth year, this high profile policy event brings together members of the Norfolk business community and locals MPs to debate key issues affecting businesses in the region.
Last year’s event attracted over 150 businesses, keen to join the debate and help to shape regional policy and local developments. With plenty to talk about in 2018, next year’s event promises to be an afternoon of stimulating discussions. The line-up of MPs confirmed so far features:
Clive Lewis- MP for Norwich South
Keith Simpson – MP for Broadland
George Freeman – MP for Mid Norfolk
Sir Henry Bellingham – MP for North West Norfolk
Norman Lamb – MP for North Norfolk
Delegates can now book their place to put their questions to Norfolk MPs on the issues that matter to them and their business. You can join the debate and be part of the influential delegate list by booking your place at the event page here.
Exhibiting and sponsorship opportunities available
There are sponsorship and exhibiting opportunities available for organisations looking to raise their profile and promote their business to Norfolk Chamber members. Find out more here Any questions? Contact joe.fitzgerald@norfolkchamber.co.uk 01603 729 708
In 2016-2017, UK Export Finance (UKEF) increased the funding it provides to exporters by 60% compared to the previous year.
According to its latest annual report and accounts, the UK’s Export Credits Guarantee Department (which operates under the name UKEF) provided £3 billion in export finance.
UKEF supported more than £585 million of new UK export contracts through its trade finance and insurance products, taking the total amount provided since the products were introduced in 2011 to over £3.6 billion.
The total number of companies receiving direct support from UKEF in 2016-2017 was 221. Of those, 21% were classified as large firms and 79% as SMEs.
Almost two-thirds (61%) of those supported were manufacturing companies, with 11% being wholesale and retail. Construction firms accounted for 7% of those receiving UKEF support, as did businesses engaged in professional, scientific and technical activities.
The most popular UKEF products were bonds and export working capital support (65%) followed by insurance (27%).
Commenting on the figures, Greg Hands, Minister for International Trade, said that the Government is putting export finance at the heart of trade promotion and that UKEF’s results “show that the UK’s world-leading exporters are supported by a world-leading export credit agency as they look to succeed in a global marketplace”.
Looking ahead, UKEF has set out how it intends to increase support for exporters in its Business Plan for 2017-2020.
This identifies a number of measures aimed at helping more UK exporters and their suppliers benefit from UKEF support – including a recently-announced partnership with banks and plans to use the availability of UKEF financing to help create procurement opportunities for smaller companies in the UK supply chain.
UK Export Finance Annual Report and Accounts 2016-17 can be found here.
“The prospect of increasing capacity by re-opening some railway routes will be cheered by several of Norfolk’s business communities, in particular the supporters of the re-opening of the King’s Lynn to Hunstanton route. It will also help to crowd in local housing and economic developments in many areas and will go some way to reassure firms in this region that their economy is not being neglected.
“The new joint teams need to have regular dialogue with businesses to better understand the issues and opportunities at the local level, and businesses must be consulted on the competitions for new franchises.
“We look forward to working with government to ensure that Norfolk and the UK’s rail infrastructure is reliable and fit for purpose as we leave the European Union, giving Norfolk businesses the best domestic environment possible in which to thrive.”
Commenting on the news that the UK government and the European Commission have reached a deal to conclude the first phase of the Brexit negotiations, Chris Sargisson, Chief Executive of Norfolk Chamber said:
“Norfolk businesses will be breathing a sigh of relief that ‘sufficient progress’ has been achieved. After the noise and political brinksmanship of recent days, news of a breakthrough in the negotiations will be warmly welcomed by companies across the UK and Norfolk.
“Business will particularly cheer the mutual commitment to a transition period to support business confidence and trade, and will want the details confirmed swiftly in the new year when negotiators move on to the big questions around our future trade relationship with the EU.
“For business, a swift start to trade talks is crucial to upcoming investment and growth decisions. Companies all across the UK want absolute clarity on the long-term deal being sought, and want government to work closely with business experts to ensure that the details are right.
“Businesses want answers on what leaving the EU will mean for regulation, customs, hiring, standards, tariffs and taxes. The job of the UK government and the European Commission now is to provide those answers – and do everything in their power to ensure vibrant cross-border trade between the UK and EU countries can continue.”
On the question of citizens’ rights, and the status of EU employees in UK firms, Mr Sargisson added:
“The biggest priority for many firms since the EU referendum has been to get clarity and security for their European employees, whose contribution to business success across the UK is hugely valued. We are delighted that they, as well as UK citizens living and working in the EU, now have more clarity and can plan their future with greater confidence.”
Businesses are being invited to tell the Department for International Trade (DIT) what they think about the UK’s proposed post-Brexit trade remedy measures.
Trade remedies are currently an EU competence, with investigations, decisions and monitoring of initiatives such as anti-dumping duties performed by the European Commission.
As part of its preparations for Brexit, the DIT is preparing an independent UK trade remedy framework to be implemented by a new mechanism to investigate cases and propose measures.
It is proposed that a new body should be created to investigate trade remedy cases and make recommendations on the basis of clear economic criteria.
The DIT points out that the EU currently has over 100 measures in place on imported products originating from 25 different non-EU countries (with China the main culprit).
Where those products are important to UK industry, the Government is intending to maintain existing trade remedy measures in order to provide certainty to businesses and to ensure continuity.
In order to develop appropriate safeguards, the DIT wants to identify UK businesses that produce goods currently subject to EU anti-dumping or anti-subsidy measures, or to an associated ongoing investigation.
The consultation seeks views from those businesses on whether they support, are neutral to, or oppose the UK maintaining existing measures under its independent trade remedy framework.
Any existing measure that does not receive an application to be maintained, or does not meet the required criteria, will end once the UK regime begins to operate. Further information about the consultation can be found at www.gov.uk.
The deadline for responses is midday on Friday 30 March 2018. Responses received after this time will not be considered.
Commenting on the labour market statistics recently released by the Office for National Statistics, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:
“While the UK unemployment rate remains historically low, the second successive drop in UK employment suggests that labour market conditions are moderating a little. However, the drop in both UK unemployment and employment was at least partly due to the rise in people who are now classed as economically inactive.
“This picture was partially reflected locally, where the overall unemployment count rose slightly from 7,320 claimants to 7,495. This is mainly due to coastal areas such Great Yarmouth and North Norfolk, showing an increase in seasonal workers claiming jobseekers allowance.
“Norwich, Breckland and King’s Lynn& West Norfolk all saw a reduction in claimants, whilst Broadland’s claimant count remained static. Great Yarmouth saw the largest rise from 2,585 claimants to 2,785.
“The latest data also confirms that the overall labour market continues to face a number of key challenges. While it picked up slightly, pay growth continues to lag behind price growth, which is stifling consumer spending, a key driver of UK economic growth.
“Significantly, the rise in the number of vacancies is a further indication of the persisting skills shortage faced by business, which undermines the UK’s growth prospects.
“With UK economic conditions likely to become more sluggish over the near term, it is vital that more is done to support firms looking to recruit and grow their business, including tackling the high up-front taxes and costs of doing business in the UK.”
Optimism is rising among UK manufacturers, the latest quarterly Industrial Trends Survey from the CBI highlights.
The survey found over a quarter (27%) of firms claiming to be more optimistic about the general business situation than they were three months ago. With 12% of respondents saying they were less optimistic, the balance of +15% was the highest recorded by the survey since January 2015.
Based on responses from 461 manufacturers, the survey reveals that, during the three months to January, the volume of domestic orders rose at the fastest pace seen since July 2014.
It also found that export orders continued to grow, but at a lower rate than firms had anticipated.
Overall, demand is expected to grow strongly over the coming quarter, driven by both domestic and export orders, with production also expected to increase.
Commenting on the findings, CBI Chief Economist Rain Newton-Smith said: “UK manufacturers are firing on all cylinders right now with domestic orders up and optimism rising at the fastest pace in two years.”
She pointed out, however, that although the weaker pound is driving export optimism for the year ahead, it is also having a detrimental impact on costs for firms and will ultimately hit consumers.
Access to skilled labour was highlighted as a growing concern for businesses, with almost a quarter (24%) of respondents citing it as a factor likely to limit output in the coming months. That was the highest proportion recorded since July 1989.
Looking ahead, the next quarter is expected to see a rise in total new orders (+18%), with a balance of +14% of respondents expecting domestic orders to increase and +17% saying they think export orders will rise.
On Monday 24 April between 10.30am – 11.30am the Chamber network will be holding a webinar discussion on the impact of Brexit on business with Lord Bridges, Under Secretary of State at the Department for Exiting the European Union
Norfolk Chamber members will have the opportunity to submit questions to Lord Bridges, and watch the discussion live. The British Chambers of Commerce, Director General, Adam Marshall will host the event.
We will share details of how to log into this debate very shortly. In the meantime, if you have any questions that you would like to submit in advance, please email them to Jake Burns on Email: jake.burns@norfolkchamber.co.ukbefore close of play on Wednesday 19 April 2017.
The Department for International Trade (DIT) has revealed that recent talks between UK and Taiwanese officials have resulted in agreements to establish new trade dialogues on agriculture and energy.
With Taiwan planning to increase its renewable energy production from 4% to 20% of supply by 2025, largely via offshore wind farms, British companies could benefit from the opportunities presented by the expansion.
In agriculture, the new dialogue could boost the prospects of UK pork farmers, as Taiwan is the largest per capita pork consumer in Asia and Taiwan has confirmed that it wishes to lift its current ban on British pork as soon as possible.
“With its vibrant economy and thriving consumer base, Taiwan presents huge opportunities for British companies to strengthen our trade links,” International Trade Minister Greg Hands said.
British exports to Taiwan have grown by 21% in the last five years, he added, with service sector exports having increased by 60% over that time. In 2016, bilateral trade between the two countries was worth £5.35 billion.
During the talks, the two sides also signed an agreement which will make it easier for UK and Taiwanese businesses in biotechnology and pharmaceutical fields to protect their intellectual property.
In addition, ministers agreed to deepen links between the UK and Taiwan’s financial sectors, in particular by enabling the UK to offer its expertise in financing renewable energy projects and FinTech development in Taiwan.
After the meeting, Taiwan’s Vice Minister of Economic Affairs, Mei-Hua Wang, said: “As the UK leaves the EU, Taiwan looks forward both to strengthening bilateral trade flows and to expanding mutual co-operation.”
Taiwan has confidence in the British economy and considers the UK one of the priority destinations for Taiwanese investment in Europe, he added.
A recent UK Powerhouse Report, by law firm Irwin Mitchell and the Centre for Economics and Business Research, says Norwich’s gross value added (GVA) – the measure of the value of goods and services produced in an area – is predicted to grow by 1.62% over 2018.
Out of 45 settlements in the report, Norwich is ranked joint eighth, with Portsmouth. This continues a positive trend, where a similar report in October showed Norwich’s GVA at £2.8 billion and 136,800 people in employment – one of only a few cities predicted to grow its GVA by 2% year on year.
Cambridge led the table, with a predicted GVA growth of 2.19%, while Ipswich came in fourth, with a forecast growth of 1.75%.
Commenting on the report findings, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:
“Norwich’s strength is its dynamic and diverse business community – which enables it to weather the challenges of the current economic climate.
“With strong emerging sectors such as digital/ICT and innovations in food science and agri-tech, as well as the more traditional sectors such as professional services and insurance, our region clearly has the potential to increase economic growth and create more jobs.”
There has been much talk about austerity and the need for local authorities to make cost savings in their budgets, resulting in potential cuts to some services.
Later this month, Norfolk County Council will be consulting the local business community on the budget planning and prospects for 2018-2019 and the impact of those plans on the County’s delivery of key services as well as the impact on the economy.
Norfolk Chamber will be working in partnership with the Norfolk County Council to deliver the Business Ratepayers Consultation event – this is your opportunity to hear about the County Council’s plans and have your say.
Annual UK GDP growth revised up and the UK’s current account deficit narrows.
UK inflation rises above 3% as household spending outstrips income.
Japan records the longest stretch of unbroken GDP growth in over 20 years
The third official estimate of UK economic output (GDP) recorded growth of 0.4% in Q3 2017, unrevised from the previous estimate and up slightly from the growth of 0.3% recorded in Q2.
CPI inflation in the UK stood at 3.1% in November 2017, the highest rate since March 2012. The largest upward contribution to change in the rate came from air fares.
Japan, the world’s third-largest economy, grew by 0.6% in Q3 2017 (see Chart 10), double the previous estimate of 0.3%. Japan’s economy has now grown for seven straight quarters – the longest stretch of unbroken growth since 1994.
Taken together, the data suggest that the UK economic growth is set to remain underwhelming in 2018. With economic conditions likely to become more sluggish over the near term, it is vital that more is done to support firms looking to recruit and grow their business, including tackling the high up-front taxes and costs of doing business in the UK.