Q1 UK GDP growth revised up – driven by less pessimistic construction output figures
Latest economic data suggests a pick up in UK economic growth in Q2
Eurozone economy showing signs of improvement, but Greece is on the brink
The UK economy green by 0.4% in Q1 2015, revised up from the previous estimate of 0.3%. The upward revisions were driven by the better performance from the construction sector.
Real earnings are still growing in the 3 months to April2015, the number of people in work rose by 114,000 compared to the previous 3 months. Total pay rose by 2.7% in annual terms for the same period – the fastest rate of growth since 2011.
The Eurozone is improving but Greece remains on the brink. With the possibility of Greece becoming the first country to exist the Eurozone becoming more likely, the decline on its economy has been dramatic.
Overall the economic data provides further evidence that the UK economy will grow. However risks remain, although the risk of contagion to the UK from the Greece debt crisis remains relatively low.
“Today’s decision by the Bank of England’s Monetory Policy Committee to keep interest rates and quantitative easing on hold was correct and unsurprising” said Caroline Williams CEO Norfolk Chamber “The OBR’s growth forecast for the next two years, announced yesterday, is on the low side. While we think that they have underestimated the growth potential for the economy, we recognise that the UK is still facing many headwinds. The fast moving situation in Greece is creating uncertainty for businesses, particularly those exporting across the EU.
“Although inflation will slowly edge up over the next 18 months, it will remain well below the Bank of England’s 2% target until well into 2016. In addition, following the Chancellor’s summer budget, businesses will need a period of stability through which to plan and invest. Against this background the MPC can afford to keep official interest rates at their current low level for the foreseeable future. Businesses would also benefit from a more open communication from the MPC over its plans for interest rates over the mid to long term.”
As the largest party, the Conservative Party has the opportunity to form the next Government. The Conservative Party must demonstrate how it will support British business and help us to deliver wider prosperity. Support for investment, infrastructure, apprenticeships and exports would promote business confidence and growth, whereas more regulation, tax increases, and uncertainty over the nation’s finances would hit jobs, wages and prosperity.
In particular, we need to see the new Government continue to invest in Norfolk and to ensure that investment decisions that have been put on hold are made as soon as possible. Norfolk Chamber has been working with its local MPs on key issues affecting Norfolk for the period of the last Government and will continue to press the case for the Norfolk business community in the months ahead.
Norfolk Chamber has developed a ‘Business Plan for Norfolk’to help deliver sustainable long-term growth that benefits local people and the Norfolk business community. The 4 key campaign areas are: Development of the A11/A47 growth corridors; developing the talent of our young people; grow Norfolk’s global trade and improving digital connectivity
We are looking for the newly elected government to ensure that the following happens as soon as possible:
Infrastructure (Growth Corridors)
Deliver the commitment to improve the junctions along the A47 – outlined in the Autumn Statement
Release Development Consent and the funding for the NDR – a strongly supported shovel ready infrastructure improvement – potential to bring £1bn economic benefits to Norfolk.
Young People
Support Chambers to bridge the gap between the world of education and work, which will help local businesses to access the talent and skills they need and boosts career prospects for our young people.
Export / Grow Global Trade
Support local companies seeking to enter new overseas markets. Companies that export grow faster and are typically more innovative and adept at developing new products and services.
Focus funding to help small and medium businesses to export and/or trade internationally.
Improve Digital Connectivity
Ensure continued invest in fast broadband and improve mobile coverage across Norfolk
Greater Gabbard wind farm’s first wind farms, located 23km off Sizewell, began to supply the national grid in January 2011. The joint venture between Scottish and Southern Energy (SSE) and RWE Innogy constructed started in 2008 and has since created a hundred permanent jobs at its £1.5m operations and maintenance base in Lowestoft.
The 504 megawatt (MW) site is roughly two and a half hours by boat from shore and needs to be serviced by helicopters.
Stephen Rose, head of offshore wind generation for the Greater Gabbard array advises that lesson have been learned and that changes had to be made to how the turbines were maintained:
“We’ve had to be open minded think flexibly, be prepared to modify plans and vary our approach to service and operation at regular intervals.
“We learned that the weather and marine environment can vary dramatically across a vast 147 sq km site and having a control room that operated for only 12 hours a day limited our ability to respond to turbine resents and therefore plan effectively for the next working day in the event of any interventions being necessary
“These challenges led us to extend our control room hours and change some of our seagoing vessels in order to have the relevant capabilities to safely access the offshore turbines in rougher weather conditions”
As warranty agreements with manufacturer Siemens draw to a close, Greater Gabbard’s owners will soon have to choose between servicing the turbines itself, entering a contract with a third part or remaining with the status quo.
Mr Rose advised that the pioneering success of Greater Gabbard had prepared his team for its next offshore project off the North coast of Scotland.
The Future
RWE Innogy continues to review the viability of a new business case for Galloper wind farm, an extension to the Greater Gabbard project, which was shelved last October when the firm said it was unable to meet finance deadlines after joint owner SSE pulled out.
The project which had been expected to be completed by 2017, is now moving into a detailed design work phase, involving its supply chain partners and potential equity finance partners. The aim is to enable onshore construction to begin before the end of the year.
Road users are advised that the A47 near Hockering in Norfolk will be closed for two nights from tonight (Thursday 9 July) for essential surface repairs.
Work will take place between 9pm and 5am to carry out urgent carriageway repairs in both directions near the Church Lane/Sandy Lane junction between Hockering and Honingham.
During the work the A47 will be closed in both directions and a diversion will be clearly signposted via the A11, A134 and A1065. Access to local properties will be maintained at all times.
Motorists affected by this work are advised to plan ahead and allow extra time for travel.
Norfolk Chamber has recently recruited additional members to its Board of Directors. Seven new Board members have been appointed, which takes the Board to a total of 16 members.
“We were pleased to receive such a large number of applicants for the Board. All of an extremely high calibre, with great all round business skills and experience. This made it very difficult to select a shortlist of candidates for interview and made the decision even tougher for the interview panel to make their final selections.”
“Our new Board members will help give Norfolk Chamber stronger representation geographically, by size of company and by sector and will allow us to truly be the voice of our membership. I am looking forward to working with them all to support and promote issues affecting the business community in Norfolk.”
Simon Watson Partner – Corporate Services, Lovewell Blake
The Norfolk Chamber Board is made up of Chamber members from across the County to ensure that members’ interests are represented at local, county and regional levels.
Following yesterday’s budget, in which the Chancellor outlined many areas that will impact on Norfolk businesses from Corporation Tax reductions to lower National Insurance contributions; changes to the Annual Investment Allowance, to a new National Living Wage; pension reforms; and commitments to childcare. Attached is a summary table which shows all the key announcements.
Chamber highlights its concerns over delays to A47 improvements to Highways England
Jonathan Cage, the Vice President of Norfolk Chamber and Managing Director of Create Consulting Engineers, represented the Norfolk Chamber at the recent meeting of the A47 Alliance. The meeting included a presentation from the Highways England team of AMEY/AECOM, on the feasibility work that has been undertaken to date and the anticipated timeframes for delivery of the improvements to the A47.
Highways England are responsible for the delivery of the improvements to the A47 and they outlined that the three main schemes, which are centred around Norwich, including Burlingham, North Tuddenham and Thickthorn, were all effectively programmed to start work in 2020, with an approximate cost of £300m.
Commenting on the Highways England presentation, Jonathan Cage said:
“Highways England advised that they had assessed each of the schemes to determine whether a Development Consent Order would be required. They acknowledged that a lot of work had been previously undertaken on Burlingham, and that a scheme had been close to being started in the past.”
“However they stated that they needed to review the details and determine whether or not the route was still the ‘preferred route’. It was also essential that a full detailed evidence base was available to back up any future scheme submissions, to ensure that they would stand up to detailed scrutiny at future Inquiry.”
“Highways England believed that this exercise would be completed by October 2015, at which stage they would be able to advise which, if any of the schemes, could be brought forward earlier for implementation. The same criteria would also apply to the Vauxhall roundabout and Gapton Hall roundabout improvements in Great Yarmouth.”
On the length of delay in commencing the improvement works along the A47, Jonathan said:
“I raised the Chamber’s concerns about the delays, especially with respect to Burlingham, and asked why did Highways England need to review the proposals again?” He noted that “it was very unlikely that the traffic flows had changed and the only major thing that had changed since 2006 was that more people had lost their lives.”
With regard to possible severe disruptions whilst the improvement works were being undertaken, Jonathan said:
“I also raised a concern about the potential for all three Norwich schemes to be progressed at the same time, which would effectively result in access to Norwich from all directions being severely disrupted for about 18 months – something that would not be acceptable to the business community. I was informed that it was unlikely that all three would be progressed simultaneously, which would then potentially lead to a further delay on one of the schemes.”
Roger Foulger, the Chair of the A47 Alliance, also highlighted to Highways England, the occasions that both the local MPs and the Norfolk Chamber had written to express their concern at possible delays. Jonathan Cage said: “It was clear that both the MPs and the Chamber correspondence had had an impact on Highways England – however the Norfolk business community, together with the A47 Alliance needs to continue to lobby hard for the improvements to the A47 to be delivered as soon as possible.”
Following the successful recruitment of an Events Co-ordinator Norfolk Chamber, due to expansion of the team,currently have an exciting opportunity for a 2nd experiencedprofessional to deliver high quality business events in a fast-paced environment.
You will be part of a busy team delivering over 70 events annually across Norfolk, ranging from large scale conferences and exhibitions, to business breakfasts and training. We regularly feature high profile speakers, including George Osborne, Vince Cable and CEOs of leading international businesses. You will be involved in strategic thinking to take our calendar to the next level.
With a proven track record, and three or more years relevant experience, you will be hardworking, innovative and have an understanding of how to market events using with the use of social media and technology.”
The salary will be £16,000 – £20,000 depending on experience.
Other benefits include 26 days holiday per annum, healthcare plan and contributory pension after successful completion of probation.
Drivers have been warned to expect overnight closures of the A47 at Postwick, at the eastern end of Norwich Southern Bypass, over the next two weeksstarting on Monday 13 July.
The closures, which are to allow furtherbridge work to be carried out, as part of thePostwick junctionimprovement,will be from 8pm to 6am at the latest.There will be shortdiversions via the slip roads and new link roads.
Sunday saw the Norfolk Chamber teaming up with Steeles Law toplay in the Norwich Rebels Touch Summer League 2015.
The 10 men and women from Steeles Law team was bolstered by Jason Williams from the Norfolk Chamber as they braved the wet conditions at Eaton Park for their first match, and despite some slipping and sliding on the wet grass (mostly from Jason) a lot of potential was shown for future games.
Overall a great time was had by all and we look forward to more of the same for next Sunday’s match against Norwich Rebels 2.
Chamber gold patron Aviva has announced that they will create 400 jobs in Norwich as it moves to restructure the business following its takeover of Friends Life.
This move will trigger the closure of motor claims offices in Manchester and Stretford and whilst some of its staff from these area may relocate it is expected that the majority of jobs will be filled from Norfolk.
Andrew Morrish, Aviva’s claims operations director, advises that they are looking for a wide range of people with customer service experience from working parents, recent graduates, apprentices and older workers. Each new member of staff will be put through a training programme so direct experience is not needed.
Mr Morrish said “We want to create varied careers for people. We need to recruit motor claims staff, but they might move into the life division, or the tech business. There is a great career with Aviva in Norwich. It is unusual to have a company like Aviva that has a range of different divisions in one place”
Caroline Williams CEO Norfolk Chamber said “This is great news for Norfolk. The fact that Aviva sees Norwich as a ‘centre of excellence’ for their business will help to confirm Norwich as the important business centre that it is and increases its visibility. Aviva will be offering many different career opportunities for our young people as well as to those with different abilities”
Chloe Smith MP for Norwich North said “A major national employer is recognising that we can have excellence in Norwich. A move of this size brings other opportunities with it”
Mr Morris said Aviva wanted to reinforce its commitment to Norwich by engaging more with the local business community. “Getting support from business leaders and being more tuned into what is happening around Norfolk is good for us.”