Commenting ahead of the Monetary Policy Committee (MPC) decision tomorrow (Thursday), David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“Given the difficult economic circumstances, both in the UK and across the world, many expect the MPC to announce a £50bn increase in Quantitative Easing (QE). The argument for more QE has been strengthened by the effect of the eurozone crisis on the UK financial system, with the resulting increase in higher funding costs for UK banks harming both businesses and consumers.
“While an increase in QE may have some benefits, the effect will be marginal. Increasing QE is not risk-free, and could be counter-productive. It may limit the decline in inflation in the long term, at a time when we need falling inflation to underpin real incomes and boost demand in the UK economy.
“There are other ways to tackle the challenges faced by the UK economy – for example if the government and Bank of England are able to implement the two recently announced lending and liquidity schemes quickly, and forcefully. To support lending to businesses, the MPC must agree to purchase private sector assets, and the government must initiate moves towards the creation of a business bank.”
New EU Regulation 389/2012 replaces current procedures on the movement of excise goods with an improved electronic one.
The new regulation In the EU, Regulation 2073/2004/EC on administrative co-operation in the field of excise duties has provided a common system whereby, in order to ensure the correct application of legislation on excise duties and to combat their evasion and ensuing distortions in the internal market, Member States assist each other and co-operate with the European Commission. It was decided in 2011 that a number of changes needed to be made to that regulation in view of experiences to date and of recent developments. Given the number of changes seen to be necessary, it was decided that the 2004 Regulation should be entirely replaced rather than amended.
Accordingly, on 8 May 2012, the Council published Regulation 389/2012/EU. This contains new rules that remove the need for manual collection of operation statistics on the movement of excise goods, replacing the current procedures with an improved electronic one.
Computerising the information exchange between Member States on the excise of products (such as alcohol, tobacco and energy products) should make it easier and faster to collect excise duties that are due and improve Member States’ controls on the revenue.
What stays the same Exchange of information in excise matters is generally necessary in order to establish a true picture of the excise affairs of certain persons, but Member States are not at liberty to engage in “fishing expeditions” nor to request information that is unlikely to be relevant to the excise affairs of a given person or ascertainable group of persons.
For the purposes of a proper co-ordination of information flow, the provisions of Regulation 2073/2004/EU are maintained as regards a single point of contact in each Member State. Since more direct contacts between the authorities and officials of the Member States might be necessary for reasons of efficiency, the provisions on delegation and the designation of competent officials are also to be kept.
For the effective monitoring of excise procedures in cross-border movement, it has also been decided to continue to provide for the possibility of simultaneous controls by Member States and for the presence of officials of one State in the territory of another, within the framework of administrative co-operation.
The exchange of information with non-EU countries has proven beneficial for the correct application of legislation on excise duties and this too should be maintained, within the EU’s laws on data protection.
What changes The new regulation, which applied from 1 July 2012, enables Member States to better co-ordinate the use of the computerised Excise Movement and Control System (EMCS), which was introduced in 2010. The EMCS monitors the movement of excise goods for which duties still have to be paid. Automated procedures replace manual procedures wherever this information is electronically available within the EMCS. This, for example, includes information on road controls or interruptions in the movement of goods. Member States will not be entitled to refuse the provision of information solely on the basis of national rules on banking secrecy.
Feedback is an appropriate means to ensure continual improvement of the quality of the information exchanged and Regulation 389/2012/EU consequently provides a framework for the Member States to report back on how the system is working.
Member States must waive all claims for the reimbursement of expenses incurred in applying this regulation, with the exception of claims in respect of fees paid to experts. Traders should be able to speedily operate the verifications necessary for movements of excise goods. They will therefore be provided with the possibility of having the validity of excise numbers confirmed electronically through a central register operated by the Commission and fed by the information contained in national databases.
Seaweed bacteria may prevent tooth decay Scientists claim the use of microbes found on seaweed to see more effective results in the fight against tooth decay rather than any of the branded toothpastes.
NHS charging and rationing ‘may be needed’ More rationing of care and charging for services in the NHS need to be considered as it faces at least a decade of austerity, experts say.
After a delicious buffet lunch at Yours Business Networks, Paul Leggett gave an insightful and honest account of the importance of investing in people. As Director of HR & Administration for Cooper Roller Bearings he understands that people are key to any business. Paul discussed the many ways that businesses can invest in people, including less direct ways such as through supporting community projects and charities.
He discussed how some employees only feel valued when they perceive that the investment is directly benefitting them, so it is important to share success with employees through newsletters, appraisals and rewards. He finished by mentioning the importance of apprenticeships and explained how Cooper Roller Bearings have an excellent apprenticeship scheme themselves.
Delegates also had the chance to hear from two ‘Sixty Second Spotlight’ speakers Paul Kunes, MTL and Gérard Spencer, Europeducation. As well as hearing from Carl Woodwards, the event sponsors Lloyds TSB. The event was hosted by Heather Garrod, President, West Norfolk Chamber Council who is passionate about West Norfolk Businesses and agreed with Paul that investment in people is vital.
Which imports have recently been subject to reinforced border checks?
On 5 June 2012, the EU updated its list of imports of plant origin subject to reinforced border checks from 1 July 2012.
Controls performed at EU borders have recently been very successful and, consequently, the EU decided to adjust the intensity of controls for some products, while adding others to the list of imports of plant origin that are subject to an increased level of official controls at national level.
As a result of the improved level of compliance with EU requirements for pesticide residues, the control frequency for listed vegetables from the Dominican Republic is to be reduced from 50% to 20%. In light of the high level of non-compliance reported by Member States in 2011 in relation to Indian okra, the frequency of controls is to be increased from 10% to 50%.
Concerning new listings, due to the possible presence of aflatoxins, nutmeg and mace from Indonesia are to be added to the list of imports which are subject to reinforced border checks.
The second in the current series of Chill Time, the Norfolk Chambers after hours networking event, got underway last night with a full house at Vodka Revolution with great business being done.
Ben Farrin, Managing Director of the Student Pocket Guide Ltd, shared his story with delegates, how he founded his company in his bedroom in 2005 and how that company turned into a multi-award winning business.
Attendees then took full advantage of the brand new mojito mixer, a networking icebreaker activity that got everyone talking and making new connections. The newly acquainted groups then took to the bar and learnt how to make a cocktail like pros.
A selections of photo’s have been uploaded to the Chamber’s Facebook and Google+ page, be sure to have a look to see fun and successful business networking in action.
Despite a further rise in exporting activity among both service sector and manufacturing firms, economic growth remains too weak, according to the latest Quarterly Economic Survey from the British Chambers of Commerce (BCC).
The survey for the second quarter (Q2) of 2012 shows that businesses are growing, but that balances across most measures have yet to return to pre-recession levels.
Comprising responses from 7805 businesses, the Q2 survey shows that there has been a surprisingly good improvement in exporting activity, suggesting that businesses are looking to overseas trade as a source of growth.
John Longworth, BCC’s Director General, urged the Government to take a bold and imaginative approach to boosting growth. He recommended measures such as the creation of a state-backed business bank and investment in infrastructure as critical to get the economy growing.
In detail, balances measuring exporting activity for the last three months among manufacturers rose seven points to +31%, and among service sector firms rose eight points to +24%.
The balance of both manufacturing and service sector firms reporting increases in forward-looking export orders increased.
Among manufacturers, the balance was up four points to +24%, and in the service sector up seven points to +19%, a level last seen in Q1 2007.
“While domestic growth continues to bump along the bottom, the silver lining is an increase in firms looking for export opportunities and, in many cases, with countries outside Europe,” Mr Longworth said. “Economic growth should be the Government’s main priority. As the eurozone crisis rumbles on, businesses are feeling the effects, and so growth is still weak.”
The Ministry of Defence have issued new guidance for exports of military goods under the US-UK Defence Trade Co-operation Treaty.
This guidance specifically concerns completion of a new offline version of the MOD F680 when applying under Treaty auspices only.
If you intend to export certain specified military goods under the auspices of the US-UK Defence Trade Co-operation Treaty and have ‘approved community’ status (which is granted by the Ministry of Defence DE&S Infrastructure Security team) then you may be able to register for the Open General Export Licence (Exports under the US-UK Defence Trade Co-operation Treaty). This OGEL is issued by the Export Control Organisation (ECO).
Commenting on the speech made by Ed Miliband on banking, Caroline Williams CEO Norfolk Chamber, said:
“Too often businesses face Hobson’s Choice in getting the finance they need. There are limited choices for businesses looking for credit vital to grow, invest, and take on staff. What’s more, switching between banks can be an administrative nightmare for many companies.
“We need a more competitive banking environment that enables businesses and consumers to access the best products and services. The commercial banking industry has to change, and both government and regulators must create an environment that ensures firms get a fair deal from lenders.
“Creating new banks is one way of driving up competition and choice, but on its own, it will not solve the funding gap faced by firms. The creation of a dedicated business bank would ensure that new and growing companies can access the finance they need to develop new products and services, export to new markets, and take on more staff.”
Smaller Internet-focused businesses looking for funding could benefit from a new initiative backed by the European Investment Fund and the UK Government.
Targeting small and medium-sized enterprises (SMEs) with high growth potential, the “Notion Capital 2” fund stands at £62.9 million (€78.2 million), making it the largest of 11 Enterprise Capital Funds so far established by the UK Government. Welcoming the new initiative, the UK’s Business and Enterprise Minister, Mark Prisk, said: “It is absolutely vital that ambitious small firms can access the finance they need to expand and grow, and this new Enterprise Capital Fund will provide at least £40 million of funding to viable UK high-tech businesses.”
Notion Capital The Fund is managed by Notion Capital – a venture capital company with a track record of backing UK and European companies providing software-as-a-service (SaaS) and cloud computing services. According to Notion Capital Partner Jos White, the new Notion Capital 2 fund aims to back companies that Notion believes “can make it big”, while co-founder Stephen Chandler said that the company’s strategy is to only invest in cloud computing and SaaS, with the aim of identifying and supporting European companies that can become global leaders. The Notion Capital 2 fund is also expected to target investment at other types of Internet-based service companies and at businesses which use the Internet to provide their services.
The involvement of the UK Government and the European Investment Fund (EIF) is said to reflect their conviction that the strategy adopted by Notion “can help Europe take its fair share of the Cloud Computing economy”.
European Investment Fund The aim of the EIF is to support SMEs in Europe by helping them access finance. To that end, the EIF designs and develops venture capital and guarantees instruments specifically aimed at SMEs, with an emphasis on those involved in high-tech developments and in their early stages as companies.
The EIF has investments in more than 300 funds, making it the biggest player in European venture capital. At the end of 2011, it had nearly 160 operations, with guarantees amounting to some €14.7 billion (£11.8 billion). The €20 million (£16 million) committed by the EIF to Notion Capital 2 is provided under the EU’s Competitiveness and Innovation Framework Programme, which seeks to improve access to finance for the start-up and growth of SMEs and to promote investment in innovation.
Enterprise Capital Funds Enterprise Capital Funds (ECFs) are commercial funds investing in small, high-growth businesses seeking up to £2 million of equity finance. They are intended to “address a market weakness in the provision of equity finance to SMEs by using government funding alongside private sector investment to establish funds that operate within the ‘equity gap'”. That gap is due to a scarcity of equity capital in the £0.5-£2 million (€0.62-€2.5 million) bracket – the sort of amounts which some businesses struggle to raise.
The ECF initiative is managed by the fund management company Capital for Enterprise, which is owned by the Department for Business, Innovation and Skills. In a ground-breaking move, the EIF has collaborated with Capital for Enterprise to structure Notion Capital 2 as an ECF. According to the Chief Executive Officer of Capital for Enterprise, Rory Earley, this latest initiative demonstrates the strength of the ECF programme – which has had a total of £200 million committed to it by the Government until 2014/15.
Further information Press releases and other materials can be found via the websites of:
Commenting on reports that the government’s consultation on aviation capacity will be delayed, Caroline Williams, CEO Norfolk Chamber of Commerce, said:
“The government has spent years working on a strategy for UK aviation, so reports that there will be yet more delays beggar belief. Businesses are tired of indecision and equivocation on aviation. Ministers can’t tell businesses to look for new opportunities in emerging markets like Brazil and China, and then fail to provide the basic infrastructure needed to get there.
The consequences of inaction are stark. If the government does not act swiftly to increase capacity in the South East, strengthen our regional airports, and support the development of more connections to emerging markets, the UK will lose both investment and jobs. Our research shows that business leaders in high growth or emerging economies see direct air links as vital to maintaining the UK’s prospects in global markets. Nine out of ten (92%) of these business leaders say direct flights influence their inward investment decisions; while eight in ten (80%) say they would trade more with the UK if flight connections were improved to their home markets.
Trade with fast-growing markets requires Britain to have a strong, resilient hub airport. New runways, at Heathrow and elsewhere, will be required to safeguard the UK’s status as a global aviation hub in both the short and long term.
Continued delays only put the UK further at a competitive disadvantage. Aviation strategy must be at the heart of a credible plan for growth, not a political football.”