Norfolk County Council Public Health team have released new coronavirus communications toolkits to help support local businesses with reopening and controlling the virus.
The latest information and advice helps businesses understand and use the NHS Test and Trace to play their part in controlling outbreaks of Coronavirus in Norfolk. View the full toolkit and information here.
Alongside the toolkit, there are a variety of new resources for businesses to use. Posters and social media graphics are available on a wide range of topics from hand washing and social distancing, to scam and community support advice. In particular, they have just published a kit of tourism resources to help support accommodation providers, such as hotels, holiday parks, holiday lets and campsites. You will find these here.
Results from the latest BCC Coronavirus Business Tracker reveal that businesses are still facing significant cashflow challenges with the schemes announced in the Summer Statement failing to provide support at the scale needed to protect jobs after the furlough scheme winds down:
More than half of firms report cashflow decrease since June 2020, more than a third of respondents with improved cashflow cite furlough scheme cash
43% of firms intend to use Furlough Bonus, but other Summer Statement support schemes have low take up
BCC continues to call for bold interventions to protect businesses and jobs
The leading business organisation’s tracker survey, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 517 responses and is the largest independent survey of its kind in the UK.
Business conditions
Firms reporting an increase in UK sales remained static at 34%, 42% reported a slight or significant decrease. Just over half (55%) reported a slight or significant decrease in their cashflow compared to last month.
A minority, 21% of firms, said that their cashflow position had improved. Of these, 64% said new customer demand was the driver of this. 35% cited the government furlough scheme, and another 24% and 25% respectively said loan and grant schemes had helped improve their cashflow position, demonstrating that many firms are still relying on government support schemes.
Summer Statement support
This week’s Tracker contains the first comprehensive survey of business sentiment on the Chancellor’s Summer Statement announcements of 8 July.
43% of firms intend to access the Job Retention Bonus, which will award £1,000 to firms who retain furloughed staff until January. A further 40% will not use the scheme. Figures from the BCC’s latest Quarterly Recruitment Outlook found that almost a third of firms (29%) expect to decrease the size of their workforce in the next three months.
Elsewhere both awareness and expected usage were low. 56% of businesses said they did not intend to use the Kickstart scheme, a further 31% said they had not heard of the scheme and 8% said they would like to use it but are ineligible. 62% of firms said they did not intend to use grants for employers who take on trainees and 65% of firms said they did not intend to access grants for those who hire apprentices. Our previous research has shown that just 12% of firms are planning to recruit staff this quarter.
20% of respondents said they would like to make use of the targeted VAT cut for certain businesses but that they were ineligible, indicating that some businesses think the scope of the scheme is too narrow.
Reducing the cost of employment
BCC continues to call on government to reduce the overall cost burden on firms to protect business and preserve as many jobs as possible in the coming months. The leading business organisation has called for an 18-month expansion of the Employment Allowance from £4,000 to £20,000 and an increase to the threshold for National Insurance contributions from £8,788 to £12,500. The latter could save businesses around £500 per job.
Commenting on the findings, BCC Co-Executive Director Claire Walker said:
“Business communities continue to face significant operational challenges, with a prolonged period of reduced sales and cashflow meaning many firms are showing signs of distress.
“Expected usage of schemes announced in the Summer Statement is relatively low, indicating they do not provide the right kind of support for many businesses at this critical time and a rethink is needed.
“With confidence and demand not returning at the scale firms need, the government must take radical steps to slash the tax burden around employment to help companies pay valued staff. A major boost to the Employment Allowance, and an increase in the threshold for employers’ National Insurance contributions are needed now if he wants to help viable companies save jobs as the furlough scheme comes to an end.”
A virtual business recovery festival will provide two days of free training, workshops, panel discussions and advice sessions to help Norfolk and Suffolk’s businesses restart after the Covid-19 lockdown.
RESTART, on 29 and 30 September, will be free for any business or organisation to join. With two live streams on each day, the festival programme is packed with opportunities to learn something new, share ideas, get practical support and hear from a wide range of speakers.
Organised by New Anglia Local Enterprise Partnership, with support from the team behind the Norfolk Enterprise Festival, the RESTART business recovery festival builds on the two-county Economic Recovery Restart Plan which was launched at the end of June.
Confirmed sessions include:
Business grants and funding
Life after furlough – what next for your employees?
Top tips for marketing to new customers, including social media, video and copywriting
Making your business greener – how to assess and lower your environmental impact
Upskilling your workforce
Chris Starkie, Chief Executive of New Anglia Local Enterprise Partnership, said: “We’re committed to supporting local businesses to get back on their feet after some of the toughest months they will ever have faced.
“Bringing together local partners and businesses to create two days of inspiring, exciting and practical sessions – hosted virtually and free for any business to watch – will help us to kickstart our recovery and give business owners the ideas, confidence and support they need to come back stronger.”
Park Farm Hotel was the venue for Norfolk Chamber’s ‘The Future of Aviation, Connecting Britain. Faster’ breakfast. Businesses heard from Piers Warburton from Gatwick Airport about their expansion plans for a second runway. Gatwick currently provides access to 193 worldwide destinations, handles 38 million passengers and is used by 70 airlines.
The plans for the second runway, will help accommodate the rapidly increasing growth in the Middle Eastern market and will help relieve some of the pressure on London Heathrow’s short and long haul capacity. Crucially Gatwick has said they would look at accommodating slots for aircraft from regional airports, such as Norwich International. Should Gatwick get the go ahead to build a second runway, it could be operational by 2025 and could help generate £90 billion of economic benefits and create 120,000 jobs.
Nova Fairbank from Norfolk Chamber said: “Expansion at Gatwick Airport will help provide more choice for Norfolk’s business and tourism travellers. However it is crucial that our regional airports, such as Norwich International are able to benefit from Gatwick’s expansion, with opportunities to acquire aircraft slots, which will help provide better connectivity in our region and boost economic growth.”
Commenting on the government’s response to the consultation on apprenticeship funding reform, Caroline Williams, CEO at the Norfolk Chambers of Commerce, said:
“We have long argued that businesses want a bigger say over how training funds are spent, but not all companies are ready to take full control over apprenticeship funding. Ministers have listened – and recognised that different companies have different needs when it comes to apprenticeships. It is now important for them to clarify how apprenticeship funding will work in future, with a focus on keeping the system simple. At the same time, they must work to give companies who are ready a greater say in how apprenticeships are designed, delivered and paid for.”
“It is important that the government provides clear direction to businesses on funding reform as soon as possible, so that firms have the security to invest in developing and training their workforce. We are concerned that this has already been an 11 month consultation, with an unclear outcome, and the general election could prolong uncertainty, potentially discouraging some firms from investing in apprenticeships.”
The UK Government is running a #ShopLocal week this week, as part of its #EnjoySummerSafely campaign. The week aims to celebrate the British high street – encouraging customers to come back to their safe local shops, supporting the local economy and local jobs.
A toolkit has been made available for busiensses to help with marketing the campaign. Access the toolkit here.
There was an average 3.1% fall in the JSA claimant count across Norfolk
The latest Quarterly Economic Survey results highlighted ‘an all time’ high’ in the number of manufacturers and service employers looking to recruit staff
In the three months to December 2014, UK employment rose by 103,000 and unemployment fell by 97,000 compared with the previous quarter.
The unemployment rate was 5.7%, compared with 6.0% in the previous three months.
The youth unemployment rate was 16.2%, unchanged from the previous three months but much lower than the 19.9% recorded a year earlier.
Commenting on the latest labour market figures, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce said:
“The latest figures highlight the flexibility and resilience of the UK labour market. The growth in employment and fall in unemployment are stronger than a month ago and point to improved momentum in the economy after a weaker patch last year. It would not therefore be surprising if the ONS updates its preliminary 0.5% GDP figure for the fourth quarter of last year.
“One area of concern is that youth unemployment remains unchanged after a long period of steady declines. While youth unemployment remains much lower than a year ago, it is consistently higher than the adult employment rate, so we need to look at ways to bring this down further.
“It is positive that earnings are now increasing much faster than prices, however, it is important to remember that wage increases can only be sustainable if they are matched by increases in productivity. We must match the positive developments with the right policies, in order to support business confidence and help drive the economy forward.”
Results from the latest BCC Coronavirus Business Tracker reveal that business conditions improved only moderately in the weeks since the UK economy suffered an historic contraction in Q2 2020, with firms still reporting high levels of reliance on government support schemes to help stem cashflow issues.
38%of firms reported improved revenue from UK customers
More than 1 in 3 of businesses say they have three months or less worth of cash in reserve
Chambers continues to call for significant interventions to protect businesses and job
The leading business organisation’s tracker survey, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 502 responses during the week from 3rd to 7th August and is the largest independent survey of its kind in the UK.
The unprecedented decline in business conditions seen during the second quarter is now levelling off, but firms still face difficult trading conditions.
Mixed picture on revenue
The number of firms reporting a rise in revenue from UK customers rose to 38 per cent, from 34 per cent in the previous tracker and is up significantly from the series low of 3 per cent recorded during the second quarter. However, despite this progress, the number of respondents reporting a rise in UK revenue is still not exceeding the number reporting a decrease (also 38 per cent).
Business to consumer firms were more likely to report improvements in UK revenue compared to other sectors, although these gains are from a low base due to lockdown restrictions, later reopening, and pent-up consumer demand.
A smaller proportion of firms (22 per cent) are reporting a rise in revenue from overseas customers than from UK customers (38 per cent) amid continued disruption to global commerce and trade flows.
Cash concerns
While there was a slight improvement in the number of respondents reporting a decrease in their cash reserves (50 per cent compared to 55 per cent), it remains more than double the number reporting an increase (22 per cent). Despite the gradual reopening of the economy and more firms seeing a rise in revenue, 39% of businesses say they have three months or less worth of cash in reserve.
Of those reporting an increase in their cash reserves, a significant number of businesses cited government support schemes as a driver of this, with the number of firms using the furlough scheme (34 per cent) and the various loan schemes (30 per cent) and grant schemes (16 per cent) still significant. 68 per cent of firms mentioned new business or customer demand as a factor.
With government support schemes set to wind down in the coming weeks, and with the potential reintroduction of lockdowns – either localised or national – it remains unclear what further support, if any, firms will receive when schemes end.
Commenting on the results, BCC Director General Adam Marshall said:
“While some firms are seeing improvements in trading conditions, we are still very much in the eye of the storm, with further turbulence ahead.
“As the government’s emergency measures begin to wind down over the coming weeks, and with the prospect of further local lockdowns still very real, businesses across the UK are going to need further support to weather uncertainty over the coming months.
“Slashing the jobs tax by taking steps to reduce the burden of employers’ National Insurance contributions, big new incentives for business investment, and targeted support to help businesses placed under local lockdowns all need to be put in place now. Ministers must not wait until the economic storm is once again at fever pitch before they act.”
The Chambers Quarterly Economic Survey (QES), the UK’s largest independent business survey, is open today (Monday 24 August 2020) for three weeks.
With the UK officially in a recession and the impact from the phasing out of the furlough scheme starting to be felt, it is therefore more important than ever that both the Chancellor and the Bank of England hear from businesses just like yours.
How has your business performed in the last quarter, what do you see as the challenges and opportunities going forwards? How confident are you about your financial position, your workforce and your future orderbook?
Without this vital local and regional knowledge they cannot make the right decisions and put relevant support mechanisms in place that will ultimately impact on you and your company.
The QES is anonymous, open to anyone and only takes a couple of minutes to complete online.
We need your input, if you only take one survey, then please make it the QES
Join us as we launch our brand-new international trade country focus programme, in September 2020.
This exciting new programme brings together industry figures, government representatives and BCC partners from across the world. It will provide businesses with all the insights, advice and answers they need to fully understand the implications of trading with major international markets that have been identified as priority trading partners for the UK.
Each month will consist of two parts:
Part 1 – Global Leader Insights: a strategic overview
This will be a strategic discussion about current/future trade relations with a senior government representative from the market being featured, moderated by Dr Adam Marshall, BCC Director General.
Part 2 – Global Panel Insights: a deeper dive
A more in-depth discussion with leading local experts to allow participants to:
Explore markets and key sector opportunities to help businesses grow internationally;
Access information, advice and answers to perceived barriers for exploring or growing in markets around the world.
Together these two parts will give businesses a thorough understanding of the implications and benefits of trading in major overseas markets.
The programme schedule is as follows:
September: USA month
October: Australia month
November: Japan / Northern Asia month (Japan, China, Hong Kong)
December: UAE month
Please see links below for the September, USA month, virtual events:
Millions of self-employed people whose livelihoods have been affected by coronavirus are now able to claim a second payment of up to £6,570 – as the government continues to help drive the UK’s recovery.
Those eligible for the Self-Employment Income Support Scheme (SEISS) can now claim a second grant covering 70% of their average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits and capped at £6,570 in total, with the money set to land in their bank accounts within six working days of making a claim.
Anyone whose self-employed business has been adversely affected by coronavirus since 14 July 2020 is eligible for the scheme.
Chancellor of the Exchequer Rishi Sunak said:
“Our self employment income support scheme has already helped millions of hard working people, whose get up and go drive is crucial to our economy.”
“It means that people’s livelihoods across the country will remain protected as we continue our economic recovery – helping them get back on their feet as we return to normal.”
The eligibility criteria remains the same as for the first grant, with people needing to have had trading profits of no more than £50,000, making up at least half of their total income.
The SEISS is part of a comprehensive package of support for self-employed people, including Bounce Back loans, income tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays and the various business support schemes the government has introduced to protect businesses during this time.
The Chancellor has also set out the government’s Plan for Jobs to support, protect and create jobs up and down the country – including in the construction and housing sectors through funding to decarbonise public sector buildings and our Green Homes Grant.
Guidance on how the grant works can be found here.
The UK Government has recently published a new Border Operating Model that will change the way in which goods are imported to and exported from the UK from 1st January 2021.
At present businesses have free movement of their goods into/out of Europe, however on 01 January 2021, you will need to produce international trade documentation for all your products both imported and exported to/from the EU. The upshot is that there will be a significant increase in costs for all businesses to process their goods into and out of the UK. The British Chambers Trade Facilitation Director recently wrote an article that highlighted that changes coming: https://www.norfolkchamber.co.uk/news/brexit/no-more-transition-uk-border
To ensure that your business is ready to meet the new import/export regulations on 01 January 2021, you need to have considered the following ten key areas:
Who is currently moving your freight and who do you currently use to process your customs declarations?
Who’s currently holding the liability for your declarations? (direct/indirect representation)
You may already be using a freight forwarder and they will be able to offer you advice and support, alternatively Norfolk Chambers have the expertise to handle your customs declarations and stand ready to help support you in navigating the coming changes, please do ask us for more information.
Do you have an international team? What is the level of expertise in that team?
When did you last review or check your commodity/tariff codes?
Norfolk Chambers are running several international trade training courses that will help you and your team to understand and prepare for 01 January 2021: https://www.norfolkchamber.co.uk/training.
We have also teamed up with the British Chambers to deliver a series of Global Webinars that will also provide insight and knowledge into future international trade. The first two are scheduled for September:
You will also need to ensure that you are fully aware of all your commodity/tariff codes relevant for all your products. Again, you may be using a freight forwarder and we would recommend that you discuss the above with them on an urgent basis. Alternatively, we would be very happy to help you.
What is the likely volume of your imports/exports from the EU?
Which ports/airports do you use?
Do you have your own deferment account with HMRC?
Are your imported goods liable for excise duty?
Do your import/export goods require licences, health certificates or dangerous goods notifications?
You will need to declare all goods that you import/export to the EU. You will also need to arrange clearance of those goods for each port/airport. You may have freight forwarders in each location that can do this for you, alternatively, Norfolk Chambers can clear your goods at any port/airport in the UK on your behalf. We also have the ability make arrangements for you to use our deferment account if that is required.
Norfolk Chambers have the international trade expertise to ensure that you and your business are fully prepared and we are here to help you to navigate through the new regulations to make your Brexit transition as smooth as possible.
To talk to our specialist team and to find out more please contact export@norfolkchambers.co.uk or call 01603 729706.