Chamber News

Sponsored by Birketts LLP Supported by Norfolk Chambers of Commerce We were delighted to be asked to attend and support the launch event for this year’s Sleep Out run by charity The Benjamin Foundation.  The Benjamin Foundation was set up in 1994 by Richard and Vanessa Draper following the loss of their son Benjamin in a motorcycle accident at the age of 17.  With a range of services focusing on housing and homelessness, life and work skills, emotional wellbeing, youth, community, and family support The Benjamin Foundation offers vital services to young people in our region. Nova our CEO was asked to speak on behalf of the Norfolk Chambers of Commerce highlighting the support that we are offering with the launch of their yearly sleep out campaign.  Nova highlighted the importance of helping young people in our region to grow, and supporting the next generation of business leaders, entrepreneurs, and professionals.  She went on to outline our Co.next programme which has been designed to empower young people under the age of 35 with a programme of events specifically designed for them. We also heard from Ray Cook who is the Service Manager at Linden House, which is a safe home supporting young people aged 16-18. Ray explained the services he and his team offer and the audience were invited to ask him questions about the safe home and what it provides.  It was extremely heartwarming to hear the success stories that Ray told about young people in their care, specifically about a young lady who had some severe challenges but had turned her life around and was now studying at University. The event not only highlighted the work that The Benjamin Foundation do for our young people but also went on to explain how we could all take part in this year’s Seep Out. There are 2 venues for the Sleep Out this year, The Cloisters in Norwich on Friday 6^th October 2023 and Ipswich Town Football Club in Suffolk on Friday 13^th October 2023. A big thanks to all the amazing speakers: Matt Garrod – Director of Operations, Housing and Homelessness Stephanie Purcell – Events and Engagement Manager Joshua Antcliff – Fundraising Officer Nova Fairbank – CEO (Norfolk Chambers of Commerce) Ray Cook – Accommodation Service Manager Details on how to book your Sleep Out place can be found via the following links Norfolk Sleep Out Friday 6th October 2023 The Cloisters, Norwich Cathedral https://www.eventbrite.co.uk/e/norfolk-sleep-out-2023-tickets-611169653887   Suffolk Sleep Out Friday 13th October 2023 Ipswich Town Football Club https://www.eventbrite.co.uk/e/suffolk-sleep-out-2023-tickets-615746754117

Reacting to news of the Atlantic Declaration, William Bain, Head of Trade Policy at the BCC, said: 

“This is an important milestone in developing ever closer trade, investment and economic relations between the UK and the US. Other than the EU, the United States is the biggest export market for our firms, and the commitments the Declaration provides will open up new opportunities. 

“It sets out clear principles to boost key business sectors on both sides of the Atlantic. On technology, energy co-operation, supply chains, investment and removing trade barriers it outlines a clear pathway for more bilateral trade and investment.   

“We also welcome the clear commitment to negotiate a strong deal on access to the US market for critical minerals like cobalt, graphite, lithium, nickel and manganese that have been extracted or processed in the UK. This will apply to US supply chains in sectors eligible for tax credits under the Inflation Reduction Act, like electric vehicle production.  

“President Biden reflected on the interdependence of our supply chains in his comments this evening – and rightly so.  

“A UK-US Data Bridge when negotiated will reduce red tape on cross border data flows for business which are the lifeblood of growing our £279bn per year bilateral trading relationship.   

“We hope business will be strongly involved in the work of each of the five pillars – including the workplan and Strategic Technologies Investor Council on AI, quantum technologies and other emerging technology and supply chain issues, like advanced semiconductors.  

“The BCC will support both Governments in making even further progress in key areas like cross-border digital trade and supply chains on steel and aluminium.” 

Reacting to the latest ONS inflation figures, David Bharier, Head of Research at the BCC, said: “Today’s CPI rate of 8.7% shows that inflation is remaining elevated for longer than expected. After 18 months of price shocks, the impact of sustained inflation remains the top issue for the vast majority of firms we speak to. What started as a commodity price shock has now created a wage-price spiral. “However, much more positively, the producer input price (PPI) rate has slowed significantly once again to 0.5%. With our research showing that gradually fewer firms expect their own prices to rise, energy and commodity costs may fall away as drivers of consumer inflation. “With the interest rate currently at 4.5% and expected to rise further to tackle inflation, widespread skills shortages, and trade frictions on the rise, the cost of doing business is the highest in years. Action by the Government to help with the squeeze on the labour supply, reform of business rates and support on exports would go some way to helping them face the future with more confidence.”

The Norfolk Project Team will re-schedule the following information sessions:

• 3rd July – Dereham
• 04th July – Aylsham
• 06th July – Happisburgh
• 07th July – Cawston
• 10th July – Reepham
• 11th July – North Walsham

Please look out for updates in the autumn, as to when we will hold the information sessions. The event at Necton Community Hall is going ahead as previously scheduled for updates on works relating to the onshore substation as detailed below: Friday 21st July 09:00 – 20:00 Necton Community Hall, 13 Tuns Road, PE37 8EH Vattenfall is sorry for the short notice of this change. The decision to re-schedule has been taken following a recent update to the programme for the onshore cable works. By hosting the information days later, they will be able to provide more details of the onshore cable installation construction programme, including locations and phasing of works. This is what residents and local stakeholders have indicated to them will best meet your interests and needs for more information. The enabling works being carried out by Vattenfall and National Grid at the onshore substation location will be starting in early July, as planned. The information drop-in at Necton on 21st July will therefore be going ahead. This meeting represents an update to those who missed an event held in 18th April and in the interim, please find the information presented at Necton on the Vattenfall in Norfolk webpage. As previously advised our new project-focused community website is now live www.nowzone.co.uk and will be kept updated. We are keeping active across the region again this summer at community events, providing awareness of our Community Benefit Fund and the Skills & Careers Opportunities relating to the project. You’ll also find members of the project team at the following events: First Light Festival Royal Norfolk Show The Aylsham Show

Reacting to Shadow Foreign Secretary David Lammy’s speech at today’s Trade Unlocked event, BCC Head of Trade Policy, William Bain, said: 

“If we are to build a stronger, more digital and sustainable trading future then it is crucial we look at all the possible ways we can do that.  

“This includes exploring new thinking on trade in services, regulatory reform, issues of alignment or divergence with the EU, and reducing business costs on exporting. 

“The BCC supports greater usage of our diplomatic capacity overseas, working in tandem with the Chambers Network internationally, to link businesses here with new customers or clients in exciting and emerging markets across the world.  

“If we are to reach the Government’s £1trillion export target as soon as possible we need to make trade more digital and scale up the sectors where overseas demand is growing. This should include financial, professional, travel and educational services, advanced manufactured goods, life sciences and pharmaceuticals.  

“The BCC’s analysis of the Brexit deal two years on also provides a strong foundation for achievable improvements on EU trade.  

“We need to look again at how we operate rules of origin, VAT arrangements, professional qualifications, regulatory co-operation and labour mobility. 

“This is in the interests of businesses in both the UK and the EU. The Trade and Business Commission has produced recommendations which amplify our findings. We look forward to future engagement in Westminster, Brussels and among EU member states to develop our common trading and economic ties.” 

Business says a partnership with Government is vital to meet the UK’s commitment to be Net Zero by 2050. The proposal is a centrepiece of a new report from business leaders which recommends how we successfully transition to a Net Zero economy. Among its other recommendations are: Government must ensure the UK doesn’t fall behind on Net Zero, and promote the advantages of a low carbon UK economy. Reaching Net Zero means action beyond energy production – including upgrading our transport systems, homes, businesses, and land use. All major Government spending and policy decisions should be stress tested to check they help deliver the UK’s Net Zero aim. There must and can be a step change in the way we move people and goods, how we heat our buildings and what we produce and consume. Action is needed now, if UK business is to remain competitive in a global race for investment. To truly unlock the UK’s potential, business and government should focus on a five Is framework – Integrity, Investment, Implementation, Innovation and Influence. The report, by the Advisory Business Group, has been sent to the Government’s independent statutory Climate Change Committee (CCC) for consideration. The group was formed last November by the CCC to provide solutions from the business community to keep the UK’s Net Zero commitment on track. It has been chaired by Shevaun Haviland, Director General of the British Chambers of Commerce. The CCC will now consider the report before making its final recommendations to Government. Commenting on the proposals, Ms Haviland, said: “Net Zero is simply about commercial competitiveness and positioning companies to seize the global benefits that the low-carbon transition will bring. “But if the UK is to stand even a chance of hitting the Net Zero target by 2050 then businesses and government must work together to achieve it. “With the right framework in place, UK firms can lead on creating and manufacturing the technology to allow us all to live greener lives. Which is vital for supporting the consumer behaviour required to reach Net Zero. “Everyone understands the imperative, but research also shows that many firms, especially smaller ones, do not fully understand how to capture those benefits. “There is a real danger that these businesses will get left behind unless politicians and business leaders come together to galvanise action. The UK is poised to be a global leader in Net Zero competitiveness and inward investment, but that opportunity may slip from our fingers. “With so many business sectors making up our economy, the pathway to net zero will not be the same in each one – farmers, builders, creatives and accountants will all need to take different routes. “What is essential now is building Net Zero into all aspects of Government policy and spending, to demonstrate the commitment. Giving that clarity and certainty will drive business confidence to invest. “We need to know how businesses will be supported to switch from industrial scale heating systems; plans for electric vehicle charging networks; how our freight systems will be decarbonised, and our energy sources diversified and stabilised. “Once we have the full picture it will then become much easier for firms to make their plans with confidence and work out how they can finance them.” Responding, after receiving the report, Climate Change Committee Chief Executive, Chris Stark, said: “I’m grateful to our Advisory Group on Business for this report, which offers important ideas to realise the potential of business to support the UK’s journey to Net Zero. “Our own analysis emphasises the integral role that the private sector must play in the transition. It is businesses that will develop and deploy low carbon technologies, their capital investment is the majority needed for Net Zero, their offering to consumers will drive the change in Net Zero lifestyles. “The Advisory Group’s recommendations and insights will now feed into a new report we are preparing on the potential for business action on climate change later this year.” The report to the CCC can be found here. The full membership of the Advisory Business Group includes:

• Deborah Allen – Group Director Climate and Environment, BAE Systems
• Miranda Barker – CEO, East Lancashire Chamber of Commerce and Chair of RedCAT
• Bukky Bird – Group Sustainability Director, Barratt Developments
• Sarah Bradbury – Group Quality Director, Tesco
• Ged Ennis – Director, Low Carbon Energy
• David Finlay – Owner, Ethical Diary
• Simon Gadd – Group Climate Change Director, L&G
• Paul Gordon – Managing Director, Relationship Management, Business & Commercial Banking, Lloyds Banking Group
• Neville Hargreaves – Vice President Waste to Fuels and Business Development Director, Velocys
• James Stephens – Vice President Corporate Affairs, DHL
• Alex Sutton – Senior Ethics and Sustainability Manager, John Lewis Partnership
• Solitaire Townsend – Chief Solutionist, Futerra

Reacting to the latest GDP data from the ONS, David Bharier, Head of Research at the BCC, said: “Today’s GDP figure of 0.1% growth for the three months to April further indicates the UK economy is trapped on a low-growth trajectory. Our own forecast expects 0.3% growth for the whole of 2023 as our research continues to show that most SMEs are still holding back on their investment plans. “Our forecast also expects a 4.7% decline in exports this year. Further upcoming changes on trade with the EU, such as new reporting requirements and import charges, will also add more pressure to exporters, many of whom have seen diminished activity due to mounting trade barriers. “Following three years of economic shocks, a stronger investment environment could be created by easing the tightness in the labour market, tackling stubbornly high inflation, and significantly improving our trading relationships.” More detail on the ONS data can be found here.

Reacting to the latest Trade data from the ONS, William Bain, Head of Trade Policy, at the BCC, said: “The recovery in UK goods exports to the rest of the world in April after a disappointing first quarter of 2023 is welcome, but needs to be sustained. “However, trade with the EU remains weak, even before the additional cost pressures on imports due to the introduction of new customs arrangements in the Target Border Operating Model later this year. “The Government’s Export Strategy needs to maximise growth in services exports across a range of business activity this year, but so far in 2023, they have been broadly flat.” Detailed Analysis Trade data for April 2023 showed a welcome rise in exports but goods exports to the EU remained weak declining by 0.5%. Services trade was broadly static. Goods imports values fell by 0.4% in April after removing inflationary effects. Goods exports values rose by 3.4%, this was due to an increase to the rest of the world as they fell to the EU.  EU picture The 0.5% decrease in April was due to falls in miscellaneous manufactured goods offset by rise in fuel exports to Germany and the Netherlands. Goods imports also declined by 3.6% (largely down to lower chemicals imports – medicines and pharmaceutical products from Belgium, and organic chemicals from the Republic of Ireland).  The Rest of the World Non-EU goods exports rose by 7.3% in April (led by increases in car exports to China and mechanical machinery to New Zealand; chemicals and miscellaneous manufactured goods) and goods imports rose by 1.3% (led by machinery and transport equipment – aircraft from the US; manufactured materials and fuel imports).  Overall performance On volumes (excluding inflation), total goods imports fell by 0.4% in April, with imports from the EU falling by 2.6%, and imports from the rest of the world rising by 2.6%. Total goods export volumes rose by 3.5% in April with non-EU goods exports up by 6.9% in April, while goods exports to the EU remained static.   Services exports rose by 0.6% and imports by 1% in April. Services exports still remain 0.3% below pre-pandemic levels in early 2020.   The UK trade deficit narrowed to £12.3bn in April – trade in services surplus rose by £1.9bn to £40.3bn.  More detail on the ONS trade data can be found here.

Reacting to the latest ONS labour market figures, Jane Gratton, Head of People Policy at the British Chambers of Commerce, said: “While it is positive to see unemployment remaining low, the labour market continues to be incredibly tight, bringing it with it additional problems and costs for employers. “Staff shortages continue to damage productivity, with many firms struggling to fulfil their order books and turning away new business. Fierce competition for skills, wage demands and candidates’ expectations leave many businesses with job vacancies they can’t fill. Together with broader inflationary pressures, it’s a perilous environment for business. “The Government must support more people back into work and create the right conditions for employers to invest in staff training and development.  Where firms cannot recruit and train from their local or national labour market, a flexible, efficient and affordable immigration system is crucial.”

The British Chambers of Commerce (BCC) upgrades its 2023 GDP forecast to 0.3%, but economic activity will remain weak throughout the year, according to the organisation’s latest Quarterly Economic Forecast.  

UK Economic Outlook    

The UK economy remains on course to avoid a technical recession. A growth rate of 0.3% is expected for the whole of 2023, rising slightly to 0.6% in 2024, and 1.0% in 2025. 

BCC’s programme of business surveys show that inflation remains the top concern for UK firms. The forecast for the CPI rate remains unchanged from the previous forecast at 5.0% in Q4 2023. 

Slight upwards revision to GDP 

In the short term, the BCC is expecting quarterly GDP to remain flat throughout 2023, with three quarters of 0.1% growth and one quarter of no growth – leading to overall growth of 0.3% for the year. This is in line with the Bank of England’s forecast, but more optimistic than the OBR’s. The BCC expects the economy to grow by 0.6% in 2024.  

The slight upwards revision from the BCC’s previous Q1 forecast of -0.3% to 0.3% is due to higher levels of household spending and recent increases in overall business investment. Evidence from recent BCC business surveys also showed a rebounding of business confidence at the start of 2023.  

However, despite greater political stability, stubbornly high inflation rates and labour market shortages continue to weigh on growth. Export activity fell back at the end of 2022 as global supply chain crises and trade barriers with the EU disproportionately impacted smaller exporters. Exports are likely to decline by 4.7% across 2023, a downwards revision from the previous forecast.  

The latest Quarterly Economic Survey shows a significant uptick in business confidence from 2022 levels. This is likely to result in increased investment, with the BCC now predicting business investment to grow by 1.3% in 2023, an upwards revision from the previously predicted level of 0.2%.   

Inflation forecast remains unchanged 

Inflation remains among the top concern for UK businesses, and the forecast for the CPI rate remains unchanged from the previous forecast of 5.0% in Q4 2023. It is expected to continue to slow, and drop below the Bank of England’s target, to 1.5% in Q4 2024.  

Average earnings are expected to grow by 4.5% in 2023 and will lag behind inflation until 2024 when they will increase by 2.6%.  

While energy and commodity prices begin to ease, core inflation remains stubborn. The Bank of England interest rate is expected to peak at 4.75% in the second half of 2023, higher than the previous forecast of 4.25%. It is expected to fall to 4% in 2024, and 3.75% in 2025. 

Modest revisions to investment and household spending, with Government spending contracting  

Overall investment is expected to increase by 0.7% in 2023, up from the previous forecast of -1.5%. Household consumption has also been revised upwards, from -0.4% to 0.2% for 2023. However, Government spending is expected to contract significantly by 4.1%, down from the previous prediction of 1.8% growth.  

The picture for 2024 is more uncertain, with investment predicted to contract by 0.4% in the year. General Government spending is also expected to contract again, this time by 1.9% across the year.  

Slight growth in unemployment rate 

The labour market is expected to remain tight as a record number of organisations report recruitment difficulties in the BCC’s business surveys, particularly in the hospitality, retail, and manufacturing sectors. However, some modest growth in the unemployment rate is expected, rising to 4.1% in 2023 and 4.4% in 2024 as the number of vacancies begins to fall. 

Commenting on the forecast, Vicky Pryce, Senior Member of the BCC Economic Advisory Council, said: 

“Today’s forecast from the BCC shows that we are on course to only narrowly avoid a recession. With anaemic growth rates predicted into the future, there is a real danger of slipping back into recession territory at any point.  

“The risk of recession creates greater uncertainty for firms, with the level of business investment likely to remain low despite Government support. These figures will give businesses little comfort, with some of the forecasts making for very concerning reading about the future state of our economy against a still challenging international environment.” 

David Bharier, Head of Research at the British Chambers of Commerce, said:   

“UK growth expectations have been upgraded slightly following the easing of political turbulence of 2022 and a rebounding of business confidence at the start of the year.  

“However, a high degree of uncertainty hangs over the UK economy. Most SMEs continue to report the toughest trading conditions in years, with stubbornly high inflation, record tightness in the labour market, and the creation of trade barriers with the EU. This amounts to very low levels of growth with our research showing that most firms are still not increasing their investment. 

“The current trajectory of anaemic growth is unlikely to change unless there are significant changes to the external environment, particularly in the ability of firms to recruit and export. Enabling firms to have greater access to the skilled people they need, reducing trade barriers, and creating a stable policy and tax environment will be essential to tapping into investment.”  

The British Chambers of Commerce (BCC) has announced a new Business Council, comprised of prominent UK business leaders, to design and drive the future of the British economy.   

The founding partners will be uniquely placed to shape the BCC’s policy and influencing, with the Council forming part of the organisation’s new national offer to businesses.  

Heathrow, Drax, IHG Hotels & Resorts and BP have joined the Council as the first founding partners. 

BCC Director General Shevaun Haviland and BCC President Baroness Martha Lane Fox will join a wider group of business leaders at a roundtable meeting in central London this afternoon (Monday 5^th June) to discuss the Council and the BCC’s new national offer.  

Shevaun Haviland, Director General, BCC, said:  

“Over the past few months, working closely with the Chamber Network, we have been talking to the nation’s largest corporates and it has become clear to us that they are looking for a different kind of representation.

“These businesses want to be part of a framework that’s rooted in their local communities, but with the ability to shape the national and international debate. 

“In response we have developed a new offer, the Business Council. I’m delighted to have Heathrow, Drax, IHG and BP join us as the first founding partners and look forward to speaking with potential members this afternoon at our roundtable event.  

“The Council is a long-term project and will bring together leaders from across UK industry to consider the key policy issues faced by British businesses, and work on Future of the Economy initiative, convened by our President, Baroness Martha Lane Fox. This initiative will focus on five challenges: Digital Revolution, People and Work, Net Zero, Global Britain and the High Street. 

“These challenges will form the backdrop to the next general election, which we know will come before the end of next year, and which everyone in Westminster is already gearing up for. The voice of business needs to be heard loud and clear, and now is the right time for us to speak up.”  

John Holland-Kaye, CEO, Heathrow, said: 

  “Over the last 10 years we have established a strong relationship with the British Chambers of Commerce and are delighted to be taking our partnership to the next level by joining their new Business Council as a proud founding member. 

  “As the UK’s only hub airport and largest port by value, we play a key role in facilitating trade and tourism, boosting UK exports, and connecting nations and regions to the rest of the world.  

“We want to continue growth in these areas and the Council will give us the opportunity to join fellow business leaders in identifying trends and challenges facing business and industry, ultimately shaping the BCC’s policy work and putting the right processes in place to drive change, alongside our longstanding partners.” 

Ross McKenzie, Interim Group Director of Corporate Affairs, Drax, said:    “We are proud of our long-standing and successful relationship with the British Chambers of Commerce. Joining their newly formed Business Council as a founding member is the next step in our journey with the organisation.    “We look forward to working with the BCC and other leading businesses through the Council to help tackle some of the key challenges facing the UK. This includes ensuring that the country has the right policies in place to deliver its Net Zero commitments.” 

Yasmin Diamond, Executive Vice President, Global Corporate Affairs, IHG Hotels & Resorts, said:  

“We are delighted to be working with the BCC as a founding member of the Business Council, which provides a new way to participate in the national policy debate and to discuss future challenges and opportunities for the UK economy. 

“The BCC’s Global Business Network will also enable us to connect with more than 75 markets around the world – an invaluable asset to our global organisation.” 

Louise Kingham, Head of Country UK & SVP Europe, BP, said: 

“BP is an active and long-standing member of both local and international chambers affiliated to the BCC. The UK needs to retain its international competitiveness and it is essential that the voice of business is heard.  We are therefore delighted to become a founding partner of the BCC’s new Business Council.”   

Business Climate Leaders (BCL) are working to help Norfolk businesses on their Net-Zero journeys, but we need to hear from you to do so. What are the biggest challenges facing your business and how can we help? BCL is about sharing knowledge and connecting businesses that can help each other achieve their Net-Zero goals, and by working together we can lobby for change on a greater scale. If you can spare a few minutes to give us your thoughts in this short survey we would really appreciate it – what you need is what we do, and by finding out exactly what you need we can make it easier to do what you need for our planet. Complete the survey here