Commenting on GDP statistics for Q1 2020, published today (13 May) by the ONS (Office of National Statistics), British Chambers of Commerce, Head of Economics Suren Thiru said:
“The contraction in UK GDP in the first quarter underscores the negative impact that coronavirus had on the economy, even at its earliest stages. The quarterly decline was driven by a sharp drop in monthly GDP in March with activity in all sectors contracting as the UK went into lockdown.
“The speed and scale at which Coronavirus has hit the UK economy is unprecedented and means that the Q1 decline is likely to be followed by a further, more historically significant, contraction in economic activity in Q2.
“While a swift ‘V-shaped’ economic revival as restrictions are lifted may prove too optimistic, government support can play a vital role in avoiding a prolonged downturn. The extension of the furlough scheme was a crucial first step, but more needs to be done to ensure that the right support is in place to deliver a successful restart of the economy.”
Self-employed workers in the UK will be able to apply for grants of up to £7,500 from today, with payments due within six days, the Government has said.
It is the biggest direct financial support package for freelancers and the self-employed since lockdown started and claims for lost work can be dated back to March.
The Office for National Statistics estimate there are around five million people in the UK who
The Government has not said whether it will be extended in line with the furlough scheme protecting 80% of employees’ wages up to £2,500 a month.
The scheme opened at 8am today (Wednesday 13 May), and the process will be run by HMRC, which has been operating and overseeing loan schemes and the Government’s furlough payments.
Everyone eligible for the SEISS will be able to receive the Government grant by May 25, or within six days of a completed claim.
Commenting on the launch of a temporary government backed guarantee to support the provision of trade credit insurance for businesses, BCC Director General Adam Marshall said:
“The government has demonstrated once again that it is listening to the concerns of our business communities.
A project that would help complete a dual carriageway orbital route around Norwich and relieve traffic congestion on local roads has been approved by the Department for Transport (DfT) late last week to continue through the next stages of its development.
The Norwich Western Link is a new 3.8 mile dual carriageway road that would connect the western end of Broadland Northway (formerly the NDR) to the A47 trunk road. Norfolk County Council submitted a strategic outline business case for the project last year, which set out why a Norwich Western Link is needed and evidenced the strong support that exists for the link road to be created.
This business case has now been approved by central government, meaning the Norwich Western Link has been given conditional entry into DfT’s ‘Large Local Majors’ project funding programme. As well as providing more than £1 million of development funding for the project in the 2020/21 financial year, today’s announcement gives the council the green light to proceed to the next stage of the national process. This will see a further, more detailed business case submitted for consideration which, if approved, would unlock up to 85% of the total estimated £153 million cost of the project.
Cllr Martin Wilby, Cabinet Member for Highways and Infrastructure at Norfolk County Council, said:
“This announcement and funding commitment is really positive news from the Department of Transport. Investing in infrastructure improvements will be a vital part of supporting Norfolk’s economy to recover from the effects of the coronavirus pandemic, with the provision of good transport links critical to many of our major industries such as tourism, agriculture and manufacturing and engineering. So this news is particularly welcome right now.”
As part of the Norwich Western Link project, the council is committed to supporting people to walk, cycle and use public transport in the local area. Taking vehicles off small rural roads and in residential areas will help with this, but a range of complementary transport measures is also being developed with input from local parish councils, walking and cycling groups, bus companies and others.
The County Council is also currently finalising proposals to secure a multimillion-pound package of funding from DfT’s Transforming Cities Fund for Norwich. As a result, work would get underway later this year on a programme of works which aims to support people to access areas of employment and education via a range of transport options. Work is also underway to ensure Norfolk can make effective use of its yet-to-be-confirmed share of the £2 billion of funding announced by central government last weekend to install short-term measures to help people to travel on foot or by bike while social distancing restrictions remain in place.
Subject to securing funding and completing necessary statutory processes, the Norwich Western Link is scheduled to open to traffic in 2025. Together with the Highways England A47 dualling between North Tuddenham and Easton, due to get underway in early 2022, this would create a fully dual carriageway orbital route around Norwich.
Commenting on the DfT approval, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:
“Norfolk Chambers are really pleased that Norwich Western Link has received government backing. This is the final piece of the puzzle to ensure that Norfolk has infrastructure that will meet our growth ambitions. It will create stronger and more effective links to the Midlands and the North and will help Norfolk businesses to thrive and deliver greater economic growth and jobs.
“The Norwich Western Link will facilitate easier access to both Norwich airport and Great Yarmouth port. It will further help to improve journeys into and around the west of the city, support potential housing and jobs growth; provide the infrastructure to manage the additional traffic this will create, and improve quality of life for people living in the area.”
Confirmation has been received that British Chambers of Commerce in conjuction with DIT have negotiated with the Saudi customs authorities for electronically signed Certificates of Origin to be accepted with immediate effect.
These documents can now be applied for by the Express method within e-zCert.
If you wish to purchase blank Certificate of Origin forms so you can apply for these documents electronically please contact Julie Austin on julie.austin@norfolkchambers.co.uk
Join us next Tuesday 26th May and one of King’s Lynn’s most loved business leaders, Captain Fawcett, on our virtual online networking event 2 Hour Tuesday.
The marvelous Richard Finney will be speaking on Captain Fawcett’s journey during COVID-19, and all the things they have been getting up to.
Including, if you haven’t already seen, his latest Captain Fawcett and his Tales of Derring-do a short story delivered by the Captain himself on Youtube. You can find the first episode here.
Annual CPI inflation in August 2014 was 1.5%, down from 1.6% in July
The largest contributions to the fall in inflation came from motor fuels, food and non alcoholic drinks
These were partly offset by upward contributions from clothing, transport services and alcohol
Goods price inflation in August 2014 was 0.6%, while services inflation was 2.7%
Commenting on the CPI inflation figures for August 2014, published today by the ONS, Caroline Williams CEO Norfolk Chamber said:
“These figures highlight that inflationary pressures in the economy are easing and remain well below the 2% target. The drop in inflation alongside the recent stagnation in wage growth will relieve pressure on the Bank of England. While the UK recovery remains on track, this is clearly not the time to put the recovery at risk with premature interest rate rises.
“The main priority for the MPC must be to nurture business confidence by offering the stability of working in a low interest rate environment. To secure a lasting recovery the government should continue to provide further measures in key areas such as improving access to finance for growing firms, and supporting UK exporters.”
The UK government has provided guidance for businesses on working safely during Coronavirus. In consultation with industry, this guidance has been produced to help ensure workplaces are as safe as possible.
Results from the latest British Chambers of Commerce Coronavirus Business Impact Tracker reveal that the majority of firms surveyed are in a position to partially restart operations as lockdown restrictions are eased:
83% of respondents report that they know some or a lot of details about government guidance on working safely
37% of firms report they can implement the guidance and fully restart, and 45% report they can partially restart
85% of respondents have received payment from furlough scheme
The leading business organisation’s weekly tracker poll, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 609 responses.
The eighth tranche of polling was conducted from 13 – 15 May after the Job Retention Scheme was extended until the end of October.
Restarting operations
Encouragingly, the majority of respondents (83%) reported high levels of awareness of the government’s new workplace guidance as sectors of the economy begin to reopen gradually.
Just over a third (37%) of respondents said that they could fully restart operations by implementing the government guidance, while 45% said they could do so partially. However due to social distancing guidelines, it is likely that many firms will see a reduction in demand and will not be able to restart at full capacity.
10% of respondents did not agree that they would be ready to implement guidance and restart operations, mainly citing social distancing as difficult.
Businesses furloughing employees
Results from this week’s poll continue to show that majority of employers (around 70%) have furloughed a portion of their staff. Cash-poor firms, with less than three months’ cash in reserve, remain more likely to furlough portions of their workforce.
The number of respondents that have submitted a claim to HMRC and received payment is around 85% – a significant increase from last week (73%) and the week before (59%).
The furlough scheme continues to prevent firms having to make redundancies, with very few respondents making any. Employers have welcomed the extension of the furlough scheme in some form until the end of October, and it will be critical to introduce high levels of flexibility if it is to phase employees back into work.
Bounce Back Loans
This week’s survey reports encouraging take up of the government’s Bounce Back Loan Scheme, with over half (54%) of respondents who attempted to secure a loan reporting success, which is an increase compared to last week (26%).
Just over a third (38%) of respondents were awaiting a decision on a loan. This is a decreased from last week (58%).
Commenting on the results, BCC Director General Dr Adam Marshall said:
“While businesses have welcomed the publication of official guidance on how they can reopen premises and restart operations, some sectors still require greater clarity from the government on when and how they will be allowed to do so. This is particularly the case for hospitality and leisure companies, which will not reopen before July at the earliest.
“Companies at all levels of readiness to restart, of all sizes, and in every part of the UK will need sustained government support as they navigate the ‘new normal’ with reduced demand and restrictions still in place. Many support schemes will need to be adapted and updated, but must not be withdrawn prematurely.”
On the Coronavirus Job Retention Scheme:
“HMRC and the Treasury deserve enormous credit for the successful rolling out of the Job Retention Scheme, which is helping huge numbers of businesses to protect livelihoods.
“But the message from firms on the ground is clear: the furlough scheme must become more flexible if it is to help companies bring employees back to work successfully. Furlough has helped businesses to avoid millions of immediate redundancies – and now must be adapted to help firms keep as many of these jobs as possible as they restructure and reconfigure post-lockdown.”
On the Bounce Back Loan Scheme:
“Our results show that the Bounce Back Loan Scheme is continuing its encouraging start. Yet there are many firms out there who are not in a position to take on debt, so the government must consider further expansion of grant schemes to ensure that as many businesses as possible get access to the support they need.”
Employers will be able to make claims through the Coronavirus Statutory Sick Pay Rebate Scheme from 26 May.
A new online service will be launched on 26 May for small and medium-sized employers to recover Statutory Sick Pay (SSP) payments they have made to their employees, the government announced today (19 May 2020).
This scheme will allow small and medium-sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying coronavirus-related SSP.
Employers will be able to make their claims through a new online service from 26 May. This means they will receive repayments at the relevant rate of SSP that they have paid to current or former employees for eligible periods of sickness starting on or after 13 March 2020.
Tax agents will also be able to make claims on behalf of employers.
Organisations representing businesses across Norfolk and Suffolk are working together to help companies get ready to reopen as lockdown restrictions begin to ease.
Support to source PPE, advice for employers and employees and positive messages about our town centres are among challenges and solutions being shared by New Anglia Local Enterprise Partnership, the Federation of Small Businesses, Norfolk Chambers of Commerce, Suffolk Chamber of Commerce, Norwich BID, Ipswich Central, Discover King’s Lynn and the Great Yarmouth Town Centre Partnership.
The group has been gathering advice from firms which were open throughout lockdown to produce case studies to help those now making plans to reopen. The tips include staggered break times, restrictions on numbers of people using canteens and kitchens, as well as looking at ways to allow for contact-free handling of paperwork for deliveries and orders.
The group is also working together to look at demand for PPE, using a database of local and national suppliers which has been created by New Anglia LEP.
Nova Fairbank, Head of Policy for Norfolk Chambers said “Many businesses will be considering what they need to put in place to adhere to the government guidance. Having access to examples of what has worked well for other businesses is really helpful. We would also caution businesses to consider timescales – some products may take several days/weeks to deliver. Having easy access to information about PPE suppliers will help them get organised.”
Hayley Mace, New Anglia Local Enterprise Partnership’s Head of Communications and Engagement, said: “We know that many businesses are concerned about reopening. Whether they’re worried about getting the signage they’ll need or trying to work out how to ensure social distancing for staff and customers, it is a really challenging time and it’s important that business groups work together to try and come up with practical, helpful advice and consistent messages.”
The Future Fund – announced by the Chancellor of the Exchequer on 20th April – is open for applications since Wednesday 20th May 2020.
The Future Fund uses an online platform for applications, whichpublishes its set of standard terms and eligibility criteria for borrowers, investors and solicitors to view.
The new Future Fund will support innovative UK companies with good potential, that are essential in ensuring the UK retains its world leading position in science, innovation and technology. These companies typically rely on equity investment and are currently affected by Covid-19.
Until now these companies have been unable to access other government business support programmes because they are either pre-revenue or pre-profit. The financing supports companies facing a significantly extended length of time between funding rounds, due to the impact of the current economic situation.
Developed by government and delivered by the British Business Bank, the Future Fund will help these companies through the current period of economic disruption and recovery, so they are able to continue their growth trajectory and reach their full economic potential.
How it works:
Open for applications since Wednesday 20th May.
Scheme operates on a commercial basis to deliver an initial commitment of £250m of new government funding.
Financing will be unlocked by additional third-party investment on a match funded basis.
Applications submitted via an online platform based on a set of standard terms and eligibility criteria.
Eligibility criteria:
Companies must be UK-incorporated and if part of a corporate group, only the parent company is eligible.
Companies in receipt of the loans will be required to have previously raised at least £250k in equity investment from third party investors in the last five years.
Only eligible companies that can attract at least 50% of third-party investment will receive funding.
Companies cannot have any of their shares traded on a regulated market, multilateral trading facility or other listing venue.
The company must have been incorporated on or before 31st December 2019.
At least one of the following must be true for the company:
Half or more employees are UK based;
Half or more revenues are from UK sales.
For more information on the Future Fund eligibility criteria and applications process, download the factsheet or visit the Future Fund webpages here.