The Presidency presented in public to the Council its work programme and priorities for agriculture and fisheries.
As regards agriculture, there was be a public debate on the state of play on the common agricultural policy (CAP) reform package after a political agreement was reached with the other EU institutions on the proposals for the direct payments regulation, the single common market organisation (CMO) regulation, the rural development regulation and the horizontal regulation.
Concerning fisheries issues, ministers reached an agreement for a full general approach on a proposal for the European maritime and fisheries fund (EMFF) within the framework of the common fisheries policy (CFP) reform package. This agreement on budgetary issues achieves the work initiated by the Council in October last year when a partial general approach was reached covering technical aspects. This will enable the Council to start negotiations on the EMFF with the European Parliament during the autumn. The Council also confirmed the political agreement on the two other proposed regulations for CFP reform: the basic provisions regulation and the market regulation.
The Commission then briefed the Council about a consultation on fishing opportunities for 2014, outlining the state of the stocks, providing a limited overview of the economic performance of the EU fleet, and committing to management using long-term plans and to management in accordance with scientific advice.
The European Parliament is in recess from this week. Business resumes on 26 August with a week of external parliamentary and committee activities. The EP press room will be closed from Monday 22 July until Friday 23 August inclusive.
GDP growth in Q2 2013: +0.6% on the quarter, +1.4% on the year
Services growth is +0.6% on the quarter, +2.1% on the year
Manufacturing growth is +0.4% on the quarter, -0.9% on the year
Construction output is +0.9% on the quarter, -1.0% on the year
Commenting on the GDP figures for Q2 2013, published today by the ONS, John Longworth, Director General of the British Chambers of Commerce (BCC) said:
“The modest, positive growth seen in the second quarter of the year shows that things are looking up. The gradual progress made by the UK economy – particularly in the services sector where exports continue to surge – is pleasing to see. Confidence among businesses is high when looking ahead to profitability and turnover, and many have intentions to take on staff later this year. Our surveys are forward looking, compared with the ONS statistics which are retrospective, so our growth predictions could end up being even more optimistic when looking at the remainder of 2013.
“Firms are feeling upbeat and are capable of expanding. More and more are adopting a ‘have a go’ attitude when it comes to exporting, which is really encouraging as this will go a long way to driving growth further still. But strong, sustained growth requires efforts from the government too, as businesses need an enterprise-friendly environment for the economic to go from good to great. New and existing exporters need more support to help them diversify into fast-growing markets, and access to finance for dynamic, growing businesses must be made more available. We must be careful not to choke off the growing optimism and confidence that is coming through, but instead be more proactive in nurturing the modest recovery that is starting to gather pace.”
David Kern, Chief Economist at the BCC, added:
“The increase in GDP was as expected, and suggests that the UK economy is likely to experience moderate growth over the next two or three years. While it is pleasing that the economy continues to grow, there is no room for any complacency, as the level of output is still 3.3% below its peak early in 2008. The services sector remains the main driver, but both manufacturing and construction are still showing year on year declines. The figures will underpin business confidence and reinforce the positive messages conveyed by our surveys. However the recovery is not yet secure and the government must make every effort to ensure that the economy can cope with unexpected setbacks. Despite signs that the eurozone may be returning to growth later this year, the international situation is still uncertain. Overall however, the figures provide a welcome, positive message.”
A 10-week public consultation for the Borough Council of King’s Lynn & West Norfolk on the draft Detailed Policies and Sites Plan began this week.
When finalised, the ‘Detailed Polices and Sites Plan’ will, in conjunction with the Core Strategy, help to govern planning decisions in West Norfolk for the next 13 years. The Core Strategy, adopted by the council in 2011, details the scale of future development and the broad locations for residential and business development. The ‘Detailed Polices and Sites Plan’ (the subject of the consultation) will identify the specific sites for that development.
The Core Strategy concluded that sites need to be allocated for 6,000 new homes to be built in the borough by 2026 and determined that the majority of growth should be accommodated by the towns, the areas immediately surrounding King’s Lynn, and larger rural hubs, which have the facilities and capacity to accommodate some expansion.
The draft plan also proposes new development boundaries in larger villages and sites which could, between them, accommodate the 875 homes that were identified in the Core Strategy for the borough’s larger villages. The number of houses allocated to each of the 54 larger villages varies from zero to 60, with the average being 16.
As well as detailing the size and precise sites for future residential and business developments, the draft ‘Detailed Policies and Sites Plan’ includes policies that would help to guide planning applications and decisions in the future. These policies cover matters such as affordable housing, development boundaries and the protection of strategic road networks.
To find out more information, on the plans and how to add your comments click here.
Draft Electricity Market Reform Delivery Plan published for consultation The government has published a consultation on the level of financial support for renewable energy. The draft EMR Delivery Plan provides details on the support mechanism and draft strike prices for renewables investors, and aims to help incentivise up to £110bn of investment in new electricity infrastructure by 2020. The draft strike prices for renewable energy will apply to onshore and offshore wind, tidal, wave, biomass conversion and solar projects. The consultation closes on 25 September. A final version of the delivery plan will be published in December.
DECC report shows UK energy imports at ‘record levels’ last year A report by the Department for Energy shows that the UK remained a net importer of energy in 2012, with a dependency level of 43% – an increase of 6.9% from 2011 levels. This was accompanied by a fall in primary energy production of 10.7% in 2012 compared to a year earlier, despite consumption rising by 1.7%. The Digest of UK Energy Statistics report shows that renewable energy accounted for 11.3% of total electricity generation in the country in 2012 – up from 9.4% in 2011.
Heavy industry exemptions from ‘green’ policies The government has introduced proposals to allow heavy industry to avoid the costs of long-term, fixed price contracts for green electricity. These proposals are designed to ensure that the UK’s energy intensive industries are not made uncompetitive or forced to move production overseas as a result of rising energy prices. The Department for Business, Innovation and Skills, together with the Department for Energy and Climate Change has opened a consultation about the proposal which will run until 30 August 2013.
Smaller businesses and the energy market This month saw further progress towards creating a fairer energy market for smaller businesses. After pressure from the BCC and other trade associations, the main energy companies are starting to tackle the issue of auto-rollover; the process whereby business are automatically tied into costly long-term deals if they fail to cancel their contract within a set time. British Gas became the first energy supplier to commit to stop selling rollover contracts to business customers. If followed E.ON call for all energy companies to put an end to the practice.
Support for shale gas The UK’s fledgling shale gas industry received a boost this month when the Treasury announced that they plan to introduce a tax regime that will see shale gas producers pay 30 per cent tax on their profits, compared to the 62 per cent that the oil and gas industry has traditionally paid. The Treasury also reiterated plans to force shale gas companies to give local communities at least £100,000 per well in the hope of persuading them to allow fracking to proceed near their homes.
Oil and gas commission established An expert commission will be set up to examine how an independent Scotland could maximise the returns from North Sea oil and gas, the Scottish government has announced. A new paper has set out the SNP administration’s plans for the industry if it secures independence. The commission will be chaired by Melfort Campbell, who co-chairs Scottish Enterprise’s Oil and Gas Industry Advisory Group.
Upcoming developments
Government announcement on gas storage
Energy Bill to complete its Parliamentary stages and become an Act of Parliament
Offshore wind industrial strategy
Draft nuclear strike price to be published
Oil & gas review interim conclusions will be published in the autumn
A final version of the EMR delivery plan will be published in December.
The Bank of England Agents’ summary for August highlighted that construction output has strengthened, as activity in the housing market has picked up. Investment intentions point to only modest growth in capital spending and domestic growth in manufacturing output is unchanged. Employment intentions point to a slight increase in staffing levels over the coming months. To read the report in full click here.
UK deficit on trade in goods and services was £1.5bn in June compared with a deficit of £2.6bn in May
There was a deficit of £8.1bn on goods, partly offset by a surplus of £6.5bn in services: both the goods and the service trade balances improved between May and June
There was a significant improvement in Britain’s performance on trade in goods with countries outside the European Union
Commenting on the trade figures for June published today by the ONS, Tracey Howard, International Trade Director at Norfolk Chamber, said: “The large fall in Britain’s trade deficit is yet more positive news for the economy, with longer-term comparisons signaling an improvement in the UK’s trading performance. Britain’s exporters are now starting to focus more on trade with countries outside the EU.
This is particularly encouraging as these countries are growing at a faster rate and will be the ones that provide the greatest opportunities for Norfolk exporters. Local exporters can find out more about these countries by attending the Chamber’s ‘Better Exporting’ event series. The focus will be on India, Brazil, Qatar, Russia, South Africa and Vietnam.
The series will provide information on these fast growing countries, including details on the stability of the market and the business opportunities available there. The important cultural aspects that you need to be aware of when speaking to and visiting prospective clients, will also be covered. Tips and advice on what to look out for will also be shared by a local company, who is already trading in that particular country.
Commenting further on the June ONS trade figures, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: “Despite these improvements, our trade deficit is still too large and we aren’t making enough progress in rebalancing our economy towards net exports. Our recent surveys reveal huge untapped potential among British exporters, especially in the service sector, and unleashing this potential will help to secure a sustainable recovery. The government must seize this momentum and do more to help British exporters penetrate new markets and compete on a level playing field in key areas such as trade finance, insurance and promotion.”
The first ‘Better Exporting’ event will be held on Tuesday 15 October at Dunston Hall from 3.45pm – 6.45pm and series is sponsored by UKTI and Dunston Hall Hotel. Full details of the events can be found on the Norfolk Chamber website: www.norfolkchamber.co.uk.
Retail sales volumes for July 2013: up 1.1% on the month; up 3.0% on the year
There was strong growth in supermarket sales, boosted by the sunny weather
The share of internet sales within total sales continues to increase
Commenting on the retail sales figures for July 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“We are now seeing a clear upward trend in retail sales, and these figures suggest that the pace of GDP growth in the third quarter will continue at a modest pace. Some commentators have suggested that strong retail sales, while other areas of the economy remain weak, will lead to an unbalanced economic structure. We don’t share these concerns, as although we would like to see more growth coming from investment and net trade, it is better to rely initially on domestic demand than to have no growth at all. And while net exports are not as strong as we would like, there is an improvement – a point that many commentators ignore. To maintain business confidence we should focus on the positive features of our economy. In addition, increasing the flow of credit to growing businesses and keeping inflation low will help to gradually rebalance the economy.”
Read updates issued by the Export Control Organisation including details about imposition of arms embargoes, Open General Export Licence amendments or announcements about Control List changes.
Notice to Exporters 2013/21 The Secretary of State for Business, Innovation and Skills has decided to grant an Open General Export Licence (OGEL) in support of the Joint Strike Fighter project (JSF, also known as F-35 or Lightning II). The Export Control Organisation is finalising the draft of this OGEL. We expect to publish it by the middle of October.
Norwich City Council is currently holding a consultation on their draft Economic strategy for the Norwich urban area, which looks towards the next five years (2013-18).
Essentially, the strategy will provide strategic guidance and sets out how Norwich City Council, working with the business community and with our local partners, will focus activity and resources to stimulate economic activity and jobs growth.
This consultation period runs until Tuesday 3 September 2013, so you only have 1 week left to submit your views. To have your say and to view the full draft Economic strategy 2013-18 click here.
Broadland District Council is now consulting on its ‘preferred options’ in terms of sites for future development across the district. The consultation will help the Council to produce a Site Allocations Development Plan Document (DPD) which will identify or ‘allocate’ areas of land for specific types of development, such as housing, employment, community facilities etc. It will also include the definition of development boundaries or settlement limits for those places where some further ‘infill’ development may take place. To find out more and to submit your views online, click here. The consultation period will close on 2 September 2013.
At a recent meeting of the Norfolk Chamber’s Planning & Development Group, a discussion was held with Norfolk’s local authorities and New Anglia LEP, on how to better promote Norfolk to developers and inward investors from both within the UK and overseas. Recent improvements to infrastructure such as the A11 and the real signs of recovery in the economy, make now the ideal time to undertake a coordinated marketing campaign to really promote and push the benefits of the region.
Existing initiatives such as the East of England Energy Zone; Norwich Research Park; to name but a few are starting to gather momentum. There is also the exciting prospect of a City Deal for Norwich. Norfolk is also leading the way on a low carbon economy, being an energy exporter as well as being a key player in the future delivery of offshore renewables. Norfolk and Norwich also has some fantastic cultural offerings, such as the Norfolk & Norwich Festival, the historic city centre and the Norfolk Broads. Norwich has a strong retail centre, not only providing for the needs of the city, but also providing an attractive shopping destination for visitors from further afield.
Unlike Manchester and Birmingham, who have successfully marketed themselves and their outlying locales on the national and international stages, Norfolk does do not have just one central focal point – we need to be a lot more visible as a county. The region needs to have a strong Brand that everybody of all ages can get behind and believe. Each of the local authorities currently has a very restricted budget for economic development and it is therefore essential that the region gets the best value for money out of these resources. Norfolk has a lot to offer and we need to have a united, credible message to do this.
The group went on to discuss what that Brand should be. Does Norfolk have a large enough offering on its own or should the Brand be across both Norfolk and Suffolk, thereby widening the opportunities? If this approach was used, then ‘New Anglia’ could be the Brand – however it was felt that this would need a very clear marketing message to ensure the Brand was recognisable.
The group also acknowledged the need to ensure that existing Norfolk based businesses were fully supported by a robust customer care programme. The existing business community is just as important to the economic growth of Norfolk, as attracting new inward investment.
An opportunity for Norfolk to put itself on the map, would be to attend a large international trade fair/exhibition i.e. MIPIM, which is an annual property exhibition that is held every year in Cannes and attracts worldwide interest from developers and investors. All of the main cities in the UK have stands such as London, Manchester, Birmingham, Leeds, Derby, Bristol and the North East to promote themselves. Over the years these have changed from individual city stands to being more coordinated approaches from regions, often promoted by the LEP supported by local businesses.
The whole of the Eastern Region is currently not visible in this arena, meaning that either international investors are either not aware of the opportunities in the region, or potentially worse, they invest in another region in the UK. Costs for an individual company or organisation to take a stand at one of these events can often be high, so a joint stand approach between Norfolk, Suffolk and even potentially Cambridge could be a more viable option. A logical facilitator for this could be the New Anglia LEP, who has the cross-county reach and may have access to possible funding for such a project.
Jonathan Cage, chair of the Planning & Development Group said “Norfolk needs to be ready to take advantage of any and all opportunities. A unified approach across the county would help put Norfolk on the map and give potential investors confidence to bring their business to Norfolk, targeting an event such as MIPIM would give the region something to go for and would pull together public and private sector expertise and resources to really put the County on the global map.”
Norfolk County Council has launched a Budget Simulator to assist them to tackle the three-year funding gap of £182m and try to balance the 2014/15 budget whilst still protecting key services.
Any Norfolk resident can take up the challenge using the council’s online Budget Simulator that has been launched ahead of the Council’s formal budget consultation that will begin later in September. The Simulator is intended to give people an understanding of the challenges facing the County Council.
The Simulator’s starting point is that if Norfolk County Council continues to spend the same amount on services as it does now, there would be a £73m shortfall (8.8%) next year (2014/15)*, part of a £182m funding gap over the next three years. This is because of cuts in Government funding, increased costs and higher service demand.
The Simulator presents six service area themes: Adult Social Care, Environment, Transport & Development, Cultural Services, Organisational Services, Children’s Services and Norfolk Fire & Rescue Service. Within these themes are a number of services where the budget can be cut, kept the same, or increased – but the overall spend has to be reduced by 8.8%. Once the budget has been balanced, the Simulator provides a glimpse of possible service consequences that could flow from the decisions that have been taken.
Steve Morphew, Cabinet Member for Finance, Corporate and Personnel, said: “The tough decisions are impossible to avoid with funding cuts on this scale. We have to get our house in order to make sure we are getting the best for the people of our county and spending the reduced amounts wisely, but there is no escaping the fact that the prospects for the next three years are grim.
“We can’t hope to please all of the people all of the time. The only way we can hope to reflect the needs and priorities for our communities is to engage in an informed debate with as many people as possible – not just those whose voices are always heard and sometimes drown out those who can’t shout as loud.
“We hope the Simulator will be an easier way to get an understanding of what gets spent and how spending different proportions on different priorities affects the overall budget. It is intended to help individuals and organisations get ready for the consultation that starts later this month.
“The council budget can be sprawling, detailed and complex. Instead of using that as an excuse we are trying to find ways of helping people understand and get involved in deciding spending priorities. We are launching this under the banner ‘Norfolk – Putting People First’ so our first job is to make sure people can be heard.”
Click here to go to the Budget Simulator Challenge