Chamber News

Norwich City Council have released their latest economic barometer. The report highlighted:

Locally

• The East of England saw the fastest growth in business activity of any UK region in December and its pace of jobs growth was second only to the Yorkshire and Humber region
• Consumer spending rose by 5.5% in November – driven by spending on petrol and in supermarkets according to Barclaycard.  Travel expenditure rose by 6% and restaurants saw growth of 15.5%
• A Howes Percival survey showed that 55% of businesses leaders are not confident of a positive Brexit impact on their businesses.  Firms in the agriculture, automotive and professional service were more encouraged, whilst those in technology, manufacturing and media were less so
• Residential property prices are picking up say the RICS.  With 21% more surveyors reporting a rise in new buyer enquiries

Nationally

• UK Manufacturing sector ended 2016 on a positive note, with rates of growth for production and new orders reaching a 2 year high
• Retail sales in December dropped 1.9% from the previous month.  With sales across all main retail sectors declining.  However ONs figures showed that in comparison to the same time the previous year overall sales were up 4.3%
• The fall in Sterling since Brexit has started to feed into the economy.  Rising air fares, food and petrol prices all help to push up inflation
• Lenders reported an increasing number of borrowers facing difficulties in repaying loans and overdrafts at the end of the year
• Retail sales volumes rose by 0.9% – much stronger than expected

For full details of the latest economic barometer click here.

In the last quarter of 2016, the overall findings from the Q4 2016 suggested that growth in Norfolk would continue in 2017, albeit at a more modest pace.  However, the survey found that firms in both sectors, particularly in manufacturing, are facing pressure to raise prices, principally as a result of the cost of raw materials and other overheads. 

So, at the start of 2017, is the Norfolk economy continuing to grow?  Today (Monday 20 February 2017) is the first day of the fieldwork period for the Q1 Quarterly Economic Survey (QES).   It is more important than ever that as many Norfolk businesses as possible complete the survey.

The QES is the largest independent business survey in the UK and is used by both the Bank of England and the Chancellor of the Exchequer to plan the future of the UK economy.  It is also closely watched by the International Monetary Fund.

You can have your say by completing the QES online NOW, which takes less than 3 minutes.  The completion deadline for this survey is midnight on Monday 13 March 2017.

Some key Norfolk findings in the Q4 2016 survey:

• Overall, the figures for both sectors indicate continued expansion, but at a lower level for the services sector than before the EU referendum
• There was a considerable rise in the balance of firms in both sectors expecting the prices of their goods and services to increase over the next three months. This pressure is predominately as a result of an increase in raw material prices following the post-referendum devaluation of Sterling
• In the manufacturing sector, the balance of firms reporting improved export sales remained broadly steady.
• Domestically, the balance for services firms rebounded slightly, after falling considerably in the last quarter. Domestic sales were up from +10% to +24% and orders rose from +0% to +20%.  
• Having dipped in the last quarter, the manufacturing sector are reporting higher balances of firms investing in plant and machinery, with an increasing balance from +13% in Q3 to +27% this quarter.
• More firms in both sectors are reporting confidence that their turnover will increase. The balance of manufacturers rose from +39% to +63%, while services increased from +28% to +35%. While confidence in profitability also rose from +13% to +52%, it rose from +6% to +20% in the services sector. 

Two million pounds is set to be spent over the next two years to make the route between Great Yarmouth’s train station and Market Place more attractive and safer to use by pedestrians and cyclists. Norfolk County Council is currently asking for people’s views on the proposals, which include making improvements to the station’s forecourt, a landscaped ‘garden walk’ between the bridge and North Quay and creating a wide, continuous cycle and pedestrian path from the station to the Market Place via The Conge.  Other elements being proposed include a new cycle and footpath linking Acle New Road with Vauxhall Bridge, changes to crossing points and junctions to make them safer for cyclists and pedestrians, and better lighting and signage.  The improvements part of a wider intention to transform the Great Yarmouth area over the coming years to make it easier for people to get to and around and make it a more attractive place to live, work and visit. This will help attract future investment and economic development to the area, creating skilled jobs, business opportunities and giving local people a better quality of life. People are being encouraged to view the detailed proposals and respond to the consultation online via www.norfolk.citizenspace.com before the consultation closes at midnight on Monday, 13 March. In addition, the County Council is holding four drop-in sessions in the town over the next fortnight to give people the opportunity to examine the plans in person and speak to members of the project team. These will be held at:

• The train station on Friday, 17 February from 8am to 6pm.
• Market Gates shopping centre on Wednesday, 22 February from 10am to 3pm.
• Asda on Acle New Rd on Wednesday, 1 March from 10am to 4pm.
• Market Gates shopping centre on Friday, 3 March from 10am to 3pm.

Once the public consultation has closed at midnight on Monday, 13 March the responses will be considered and more detailed planning work will be done, with construction work due to get underway in late autumn this year. Norfolk County Council has been awarded the £2 million by the New Anglia Local Enterprise Partnership to design and carry out the proposed improvement works, which are being considered as part of Great Yarmouth Borough Council’s draft Masterplan to strengthen the town centre.  

Neil Orford, President of Great Yarmouth Chamber Council said: “Great Yarmouth Chamber Council welcomes this much needed investment to our town.  Improvements to key transport links are vital for both the business community and the tourism sector.   First impressions count, and easy access from the train stations and the links to the town centre will make a significant difference.  In addition, improved transport systems will help support economic growth for the growing offshore and renewables sector, as well as the Enterprise Zone.”

Martin Wilby, Chairman of the Environment, Development and Transport Committee at Norfolk County Council, said: “I believe these improvements will make a big difference to Great Yarmouth, both in practical terms and in giving people confidence in the town’s future. 

“The train station is the first place many visitors to Yarmouth see. Creating a better first impression to those coming into the town by rail and improving access into the heart of the town will significantly improve people’s experience, from tourists and businesspeople to residents. When considered alongside all the other work that’s underway or in the pipeline, there is a real collective commitment to transforming the town and the momentum to get things done.” Chris Starkie, Managing Director of New Anglia LEP, said: “Improving the efficiency and effectiveness of transport in Great Yarmouth will benefit those who live in, work in and visit the town.  Better transport connectivity is important for businesses. Great Yarmouth, with its offshore heritage and growing energy sector, is at the centre of our all-energy coastline and it is crucial that the town’s transport system can support economic growth.”  Cllr Graham Plant, the leader of Great Yarmouth Borough Council, said: “The railway station is a busy gateway to the town and as such helps to form those all-important first impressions of the borough. “It is clear that the setting of the railway station area and its links to the town centre need improving. Creating a new sense of arrival at the railway station is one of the key projects of the draft Town Centre Masterplan, which aims to make the central area more attractive for residents, visitors and investors. “The borough council is pleased that the investment is available and looks forward to considering in more depth Norfolk County Council’s specific proposals and hearing the views of residents, businesses and visitors.”   As well as the proposed improvements to the route between the train station and Market Place, work is due to get underway this year to reduce congestion in the town. Central government has also pledged to improve junctions on the A47 and A12 by 2020, to make the roads safer to use and help prevent bottlenecks.

On Friday 10 February, Norfolk Chamber guests from across the region joined us at Dukes Head Hotel, Kings Lynn for an informative and relaxed networking morning with College of West Anglia.

Delegates arrived bright and early to get started on making new business connections. The event host, Heather Garrod, President of West Norfolk Chamber Council, welcomed guests and introduced our featured charity The Big C. This was followed by an ice breaker to get guests feeling relaxed and to encourage discussion, guest played ‘First or Worst jobs’ in which guest had to guess which first job belonged to which guest at the table. There were some amusing and surprising results!

Following on from this delegates tucked into a delicious breakfast provided by Dukes Head Hotel, continuing to network on their tables. Once finished we proceeded to mix our delegates up with our Safari Move, changing their tables around to enable them to make even more contacts in the room.

Mark Reavell, Executive Director for Partnerships at the College of West Anglia and the senior manager responsible for overseeing all Employer Engagement took the stage next, and gave guests an in-depth overview of what the challenge form the government is and how to achieve it. The question and answer session revealed more about what the College can offer going forwards, and when the best time for SME’s was to get started on hiring an apprentice.   

The event drew to a close with all delegates continuing their discussions and making those last minute contacts. Guests commented that they were confident with their apprenticeship needs going forward with the support of College of West Anglia and that the networking over the breakfast event was invaluable.

Even more homes and businesses in Norfolk will be able to access a high-speed broadband connection and all the benefits this brings, as an extension to Norfolk County Council’s and BT’s Better Broadband for Norfolk (BBfN) programme is now underway.

More than £11 million of new funding is being invested in the latest tranche of BBfN’s rollout of superfast broadband in the county, and as a result the availability of high-speed broadband is set to be extended to more than 95 per cent of Norfolk’s premises by spring 2020.

Five of Norfolk’s district councils – Breckland, Broadland, King’s Lynn and West Norfolk, North Norfolk and South Norfolk – have committed over £3m which has been match funded by central government, and this money will be spent to improve broadband coverage and speeds specifically in these five districts. The rest of the funding is made up of the gainshare ‘success dividend’ from BT from the first contract which has been made available following a higher than expected take-up of broadband services in some areas. In addition, around £10m of underspend from the first contract will be re-invested into this phase of the broadband roll-out.

This will bring the total investment in the BBfN programme to £68m since it launched at the end of 2012. Since then, hundreds of roadside broadband cabinets and thousands of miles of fibre-optic cables have been installed in the county. This means that 87 per cent of households and businesses in Norfolk can get a superfast broadband service (24 Megabits per second and above), more than double the number who could get these speeds four years ago before the BBfN programme got underway (42%).

The BBfN programme is part of Norfolk County Council’s drive to make Norfolk an even more attractive place to live, work and do business. Widespread availability of high-speed broadband is vital in helping the county’s rural businesses to thrive and attracting employers to the area, as well as increasing children’s and adults’ learning opportunities, reducing social isolation and enabling people to work from home and shop and bank online.

Caroline Williams, Chief Executive of Norfolk Chamber said: “The confirmation of further investment in Broadband for Norfolk is welcomed.  However there is still more work to be done to reach those businesses that still don’t have access to superfast broadband and also to make it easier for  businesses in connected areas to take advantage of the improved broadband speeds.  Norfolk Chamber will work in partnership with BBfN and the broadband providers to encourage greater engagement with the business community to ensure there is improved clarity and understanding on how to access improved speeds.”

Cliff Jordan, Leader of Norfolk County Council, said: “In just a few years we’ve made a huge difference to tens of thousands of people living and working in the county. Bringing high-speed broadband to 95 per cent of homes and businesses will be a great achievement but we won’t be satisfied until everyone in Norfolk can access a good broadband service. So we will continue to push for more investment and make the money we already have go as far as possible.”

Tim Whitley, BT’s regional director for the East of England, said: “The new funding from the district councils, when added to the gainshare success dividend of £5.2m based on good take-up of the service already deployed, will enable the Better Broadband for Norfolk programme to reach even more homes and businesses with high-speed broadband. BT’s network now reaches more than 370,000 homes and businesses across the county when you combine it with our commercial rollout. We’re aware there’s more to do, and the roll-out continues into 2020.”

Minister of State for Digital and Culture Matt Hancock said: “In just four years, our rollout of superfast broadband has doubled the number of premises in Norfolk who can get superfast speeds. But we know that more needs to be done. This is why the Government together with five of Norfolk’s district councils and BT are now investing another £11 million in taking superfast broadband to thousands more local homes and businesses.”

Over the past quarter, the UK’s small and medium-sized manufacturers saw new orders grow at the fastest pace in two years, according to the latest SME Trends Survey produced by the CBI.

Based on responses from 422 manufacturers, the Survey reveals healthy growth in total new orders over the last quarter, underpinned by a strengthening in domestic demand.

Companies said they expect new orders to continue to grow solidly again over the next quarter, with the outlook for both domestic and export demand described by the employers’ group as “upbeat”.

CBI Principal Economist Alpesh Paleja said: “Activity among SME manufacturers is ticking along nicely, with new orders growth reaching a two-year high. The pick-up was largely shouldered by domestic demand with exports yet to see any material boost from the weakness in sterling.”

He went on to warn, however, that the lower pound is clearly stoking cost pressures, which in turn is pushing up factory gate prices and this is likely to mean that consumer prices will also rise.

The survey results show that output continued to grow modestly over the past quarter, but that firms anticipate an acceleration over the short-term.

More than a quarter (29%) of manufacturers surveyed said they were more optimistic, while 14% said they were less optimistic, giving a rounded balance of +16%.

Nearly a third (32%) of respondents reported that their domestic orders were up, while 20% said they were down, giving a balance of +12%. Almost a quarter (23%) said that export orders had risen over the past three months, with 19% saying they had fallen.

In terms of export prices, a balance of +44% anticipate them rising over the coming quarter – the highest level recorded since the survey started in October 1988.

We are delighted to announce the launch of our completely redesigned website.

The new website has been designed to provide the ultimate user-friendly experience with improved navigation and functionality throughout; whether you’re looking to upload your own content, browse through our huge collection of events or find out more about how we can help your business.

With the user experience firmly in mind, our new website has been designed to be more mobile-friendly, load much faster and easier to navigate.

New features:

New Workbench

We have now introduced the ‘workbench’. This is where Chamber members can manage and upload their content more efficiently. You can see which stage your content is at; ‘draft’, ‘needs review’ or ‘published’.

If you are logged in, visit your Workbench

Edit your Directory Listing

We have enabled the ability for Chamber members to update their online directory listings.

Content Filters

We have now implemented filters onto our Events, Training, News and Blogs to make things easier to find.

Why should you upload?

The Norfolk Chamber website can be used by our members as a free PR platform to promote their activities. The type of content you can promote includes case studies, a new product or service, any events you are running, Blogs and training courses.

Some of the benefits in doing this include:

• Average of over 10,000 visitors per month
• Raise your business profile in Norfolk
• Highlight yourself as an expert within your sector

Use our Website User Guide to help you upload content.

Further exposure

We always aim to promote our members content in a variety of ways to maximise the amount of exposure.

Member News and Blogs are always pushed out on our Twitter feed to a following of over 7,600, and put forward for inclusion in our bi-monthly magazine, Norfolk Voice, which has an estimated readership of 10,000 business people.

Member Events and Training Courses are included in our own monthly Events Newsletter to a database of over 9,000 business contacts.

Parliament’s debate on triggering Article 50 and formally initiating the Brexit process is taking place against a backdrop of UK companies arguing that the EU will, and must, remain an important trading partner.

These views have been underlined by the latest International Trade Survey published by the British Chambers of Commerce (BCC).

Based on nearly 1500 responses, the survey found that UK companies remain committed to strong trading relationships with European customers and suppliers despite the UK’s vote to leave the EU.

Three-quarters (76%) of respondents currently sell goods and services into the EU market, with a similar proportion (73%) saying that they source goods and services from Europe.

Despite the UK withdrawing from EU membership, more than a third (36%) of survey respondents reported that they intend to put more resources into exporting to the European market over the next five years.

The survey also found that 18% of businesses are planning to allocate more resources to sourcing products and services from the Union’s Member States.

In terms of the UK’s future trading arrangements with the EU, respondents identified the three main priorities for Brexit negotiations as: tariffs; non-tariff barriers; and product standards, certification and compliance.

Commenting on the findings, Dr Adam Marshall described the results as an important reminder of the fact that it is businesses that trade, not governments. Businesses want the best possible terms of trade following the Brexit negotiations, whatever the ultimate model adopted, he added.

“Although the likely outcome of the Brexit negotiations remains unclear, businesses still see Europe as a primary market for both selling and sourcing inputs – even after the UK leaves the EU,” Dr Marshall concluded.

Monthly headlines:

• UK economy grew by 0.6% in Q4 2016 with services dominating GDP growth
• Falling value of sterling feeding through into higher inflation and squeezing real earnings
• GDP growth in the world’s two largest economies – USA and China – slowed in 2016

Although the UK economy enjoyed a strong end to 2016, higher inflation and uncertainty over the impact of Brexit are likely to mean that conditions will become more challenging in the coming months. It is vital the upcoming Spring Budget is used to tackle the escalating burden of upfront business costs.

UK economy enjoys strong end to 2016…

The first official estimate of economic growth (GDP) revealed that the UK economy grew by 0.6% in Q4 2016, unchanged from the previous two quarters. This mirrored the latest BCC Quarterly Economic Survey (QES) which revealed that output from both the manufacturing and services sectors expanded in Q4 (see chart 1). The UK economy grew by 2.0% in 2016 as a whole, slightly slower than the 2.2% recorded in 2015, but still broadly in line with historic trends. Overall, the latest GDP data confirms that the UK economy enjoyed a strong end to 2016.

…driven by the services sector…

Output rose in three of the four main industrial groupings. Service sector output grew by 0.8% in Q4 (see Chart 2) and accounted for almost all of the growth recorded in the quarter. While overall industrial production was flat in the quarter, manufacturing output rose by 0.7%. Construction sector output increase by 0.1% and agricultural production rose by 0.4% in Q4. Taken together the Q4 GDP data confirms remains that the UK growth remains unbalanced with an over reliance on services and consumer spending to drive growth.

 …but while unemployment is still falling…

In the three months to November 2016, the number of people who are unemployed dropped by 52,000, compared with the previous three-month period. In contrast, the number of people in employment declined by 9,000 over the same period, the second successive quarterly fall (see Chart 3). However, UK employment remains close to record levels. While labour market conditions could soften over the next year as economic growth slows, the high degree of flexibility in the jobs market will help limit the extent of any increase in unemployment.

…sterling weakens further…

On a trade-weighted basis (weighted average of currencies as measured by trade flows) the value of sterling rose by 0.5% in January, but is 12% lower than its pre-EU referendum level. The latest BCC QES revealed that firms are increasingly reporting the    exchange rate as a concern to their business. 56% of manufacturers felt that the exchange rate was more of a concern to their business, up from 48% in Q3 (see Chart 4). In the service sector, 31% of businesses reported that the exchange rate was a concern.  While a weak pound can make UK exports more price competitive, it can also raise the cost of imports.

…pushing up inflation…

UK CPI inflation stood at 1.6% in December 2016, the highest rate since July 2014 and up from the 1.2% rise in November. The main contributors to the increase in the rate were rises in air fares and the price of food. UK CPI inflation has increased markedly over the past year, from just 0.2% in December 2015 (see Chart 5). Significantly with factory gate prices rising by 2.7% in annual terms in December 2016, the sixth successive period of annual growth, further price rises are likely. Overall, we expect inflation to surpass the Bank of England’s 2% target in the coming months, reaching around 2.5% by the end of the year.

…and could squeeze real earnings…

In the three months to November 2016, annual earnings growth, including bonuses, rose by 0.2 percentage points to 2.8%. With consumer price inflation currently at 1.6%, pay growth outstripped inflation for the 27th successive month. However, rising inflation has meant that the gap between wage and price growth has narrowed to 1.2 percentage points, from a peak of 3.1 percentage points in Q3 2015 (see Chart 6). If this continues as we expect, real earnings could be squeezed, stifling consumer spending which is a key driver of UK economic growth.

…as UK’s trade position deteriorates…

The UK’s trade deficit was £4.2 billion in November 2016 (see Chart 7), a widening of £2.6 billion from October 2016. While exports increased by £0.7 billion, this was more than offset by a £3.3 billion rise in imports, the highest on record. Imports of machinery and transport equipment, which rose by £1.4 billion, were the largest contributors to the increase in imports. There remains little evidence that the fall in the value of the pound is boosting the UK’s net trade position. As a consequence, rebalancing the UK economy remains a major challenge.

…US growth slows sharply…

The US economy, the world’s biggest, grew at an annualised rate of 1.9% in Q4 2016, a marked slowdown from the 3.5% growth recorded in the previous quarter. Consumer spending was the main driver of growth rising by 2.5%. Business and residential investment also contribute to growth in Q4. In contrast, exports were a drag on GDP growth having dropped by 4.3% in Q4. The US economy grew by 1.6% in 2016 as a whole, the slowest growth rate since 2011. US growth was also lower than the outturn for the UK, the first time since 2014 

…and Chinese GDP growth weakens.

China’s economy, the world’s second-largest, grew by 6.7% in 2016. While this was the lowest rate of growth since 1990 (see Chart 9), it was in line with Beijing’s growth target of between 6.5% and 7%. Growth was boosted by strong consumer spending and fiscal stimulus measures. There remain concerns that Chinese GDP growth could be weaker that its official data is showing. China’s economy also remains overly reliant on debt-fuelled investment to drive growth. The size of its economy means that a slowdown in China is a major risk to the outlook for the global economy.

View the full review here

What should we make of the prospects for the UK economy just over a month into what promises to be another eventful year?

On the face of it there’s much to be positive about.

Growth has proved surprisingly resilient since last year’s EU referendum and the Bank of England’s latest forecast points to a stronger outlook for 2017 than we had predicted last November.

That more positive picture is the product of several factors, including a boost from the Chancellor’s Autumn Statement and a brighter outlook for the global economy.

It’s also been helped by the low cost of borrowing for households and businesses, plus the benefits to trade from the big drop in sterling we saw in the second half of 2016.

And so far households have not cut back their spending even though the cost of living is beginning to rise.

Perhaps it’s no surprise that, when I visit businesses around The South East and East Anglia to talk to them about how they’re doing at the moment, many are quite positive.

Construction companies report some improvement in areas such as house building, road infrastructure, student accommodation, the care sector, leisure parks and shopping centres.

In the services sector locally many companies have shrugged off the post-referendum gloom and are reporting strengthening levels of activity.

Retailers reported a decent Christmas, especially those with an on-line presence.

Overall, however, it is a mixed picture. For example, there’s some uncertainty about the post-Brexit landscape, particularly for those companies that rely heavily on international trade, and some investment plans have been affected, which could drag on growth over the coming years.

It is clear that the UK’s new relationship with the EU – and the reforms that it brings about – will determine the country’s long-term prosperity.

In the nearer term, the Brexit vote will have a big impact on how much we pay for goods and services as last year’s drop in the value of sterling pushes up import prices.

We’ve already seen prices rise, and they will continue to do so – the Bank expects Consumer Price Index (CPI) inflation to peak at 2.8% in early 2018. 

This will inevitably eat into people’s incomes, squeezing households’ spending power.

This is part of the reason why the level of GDP is still expected to be 1.5% lower in two years’ time than the Bank had projected last May.

So the Bank’s Monetary Policy Committee faces a difficult balancing act – how to keep inflation under control without risking higher unemployment.

Announcing their latest decision last week – to keep interest rates at their historic low level of 0.25% – the committee judged it was appropriate to allow inflation to remain high for a period to support growth and jobs. But they also noted that above-target inflation can only be tolerated for so long.

So they will watch the economy closely – in particular patterns in wage growth and household spending – over the coming months.

For example, if spending slows more abruptly than expected as prices rise and wages fail to keep pace, more supportive measures might be needed such as a further cut in interest rates.

But if pay growth picks up more rapidly – which might lead to further inflationary pressures in the economy – then it may be necessary to move policy in the other direction.

Last August, the Bank announced a series of policy measures to support the economy during a period of heightened uncertainty, including a cut in interest rates.

It appears that stimulus has played a part in keeping the economy ticking in recent months and some of that uncertainty has been mitigated.

This is unquestionably good news. But the Brexit journey is only just beginning, and there’ll no doubt be more twists along the way.

Assisted by the eyes and ears of the Bank’s Agents in and around the UK, the Bank’s policymakers will react as required to help steer the economy through as smooth a course as possible.

Many schools across Norfolk have already benefited from free Careers Events organised by Norfolk Chamber that inspire, enthuse and motivate students to consider employment options available to them and think about their future career progression.

Successful careers events that involved workshops, speed networking and exhibitions have been held with Sprowston Community High School, Flegg High School and Attleborough Academy Norfolk.

We are looking for more state schools who want to take advantage of free careers events organised on their behalf  for the next academic year (September 2016-July 2017).

We can tailor the event for each school and are flexible on duration, format and can provide marketing material to assist with promotion and we will liaise directly with a range of businesses to attend.

Participating schools would need to have a minimum of 250 students in Year 8 and above attend over the duration of the event.

If this sounds like something your school would like to be involved with, please contact:

Philippa Bindley, Events Manager Email: philippa.bindley@norfolkchamber.co.uk Telephone:01603 729703

Ahead of the Chancellor’s Spring Budget on March 8, the British Chambers of Commerce (BCC) is urging the government to take action on delivering real reform to the business rates system.

The business group is calling on the Chancellor to use his last Spring Budget to support long-term business investment by taking action to deliver real reform to the business rates system. As it stands, the system creates a number of perverse incentives for business location, property improvement, and plant and machinery investment.

BCC seeks four key measures on business rates from the Spring Budget:

Abandon the fiscal neutrality principle in business rates reform – an unacceptable barrier to fundamental reform of the business rates system that is unique to that tax Bring forward the switch from RPI to CPI, currently planned for April 2020, to April 2017 Removal of all plant and machinery from the valuation of property for business rates purposes Drop proposals to restrict the ability of the Valuation Tribunal for England to order changes to business rates liabilities

Dr Adam Marshall, Director General of the BCC, said:

“The current rates system is broken, and despite attempts by successive governments to introduce marginal reforms, the fundamental unfairness of business rates remains.

“We’re calling for steps to be introduced which would help alleviate some of the excessive pressure put on businesses by rates. The policy of fiscal neutrality means there are winners and losers across the country from reforms, but limits the government’s scope to bring about fundamental change to the system. Excluding plant and machinery from valuations would remove a perverse incentive for investment, and businesses should be allowed to appeal valuations through a simpler and fairer process.

“Businesses from across the Chamber network of all sizes, sectors and locations, lament the burden of this high up-front cost, which they are forced to pay before making even a penny of profit.”

See the submission letter here