Chamber News

This week, some of the Chambers team, members and non-members visited Solinatra for a tour of their Research and Development Centre and a chance to network. The event began at Solinatra at 10am with tea and coffee and a welcome from CCO, Simon Girdlestone and Communications Officer, Georgie Oatley, followed by a factory tour of their Research and Development Centre based in Horsham St Faith. We discovered how Solinatra is producing a truly sustainable alternative to single-use plastic products and packaging. The passion and knowledge of Simon and his team were insightful and engaging. They showed us first-hand the processes behind Solinatra and how their product has all the benefits and none of the drawbacks of plastics. Consumers have been demanding sustainable alternatives to plastic. Socially conscious organisations are crying out for a product that will meet that demand. Governments, under pressure from campaigners, are introducing regulations that place limitations on single-use plastics and make them a less viable option. Solinatra is in the vanguard of companies that are leading the transition to the use of sustainable plastic alternatives. Solinatra is an industry-leading product, and they are going to use it to change the world for the better. Solinatra | Their Vision To revolutionise the world with truly sustainable alternatives to single-use plastic. To pioneer the creation of and use of truly biodegradable, advanced biomaterials. Caroline Ellis, Account Manager at Norfolk Chambers said “it was truly fascinating to hear all about how Solinatra and team are trying to make impactable changes for the future. They have just launched the development of the first naturally biodegradable plastic for thermoforming applications, in a project co-funded by the UK’s innovation agency, Innovate UK. The fact that this is on our doorstep here in Norfolk is incredible”. A big thanks to the Solinatra team for the event.

Responding to the latest Bank of England interest rate decision, Nova Fairbank, Chief Executive at the Norfolk Chambers of Commerce said:

“Today’s decision to increase the interest rate indicates the Bank are still pursuing strong action following yesterday’s surprise rise in inflation. Record high inflation remains the top issue of concern for Norfolk SMEs, and it has been wiping out their ability to invest and grow for almost two years now. 

“However, an interest rate rise alone is a blunt instrument that doesn’t address some of the fundamental causes of inflation such as failure in the energy market and global supply chain shocks.  

“The cost-of-living crisis and the cost of doing business crisis are two sides of the same coin and SMEs, like consumers, are getting hit from both rising prices and rising borrowing costs. The only way out of this vicious cycle is through taking action to boost economic growth, through investment in infrastructure, skills, and global trade.” 

Reacting to the publication of the 2023 Integrated Review, William Bain, Head of Trade Policy at the BCC, said: “The renewed commitments to tackling climate change, sustainable development, and economic empowerment of women are all welcome in the Review. “On Europe, the Refresh takes account of the impact of the War in Ukraine, for both the economy and supply chain security. UK businesses stand ready to assist in the reconstruction of Ukraine with investment, and offers of technical and business expertise. “It also heartening to see improvements in the UK’s Brexit deal with the EU being identified as a priority. The prospect of improved relations with the EU could help to maximise potential of the Trade and Co-operation Agreement for the UK. “On Indo-Pacific relations, the Review points to trade as one of the key focuses. With the UK in the final stages of CPTPP accession, there is hope among UK firms that this could deliver new export and investment opportunities. “But we know without supply chain security this will be more difficult – the UK urgently needs to secure reliable sources of semi-conductors, related raw materials and other components for manufacturing. “For that reason, we look forward to engaging with Government on the forthcoming UK Supply Chains and Import Strategy, and the Critical Minerals Resilience Task and Finish group. “On science, Artificial Intelligence and technology, the ambition of the Review is sound, and needs to be supported by the right growth and export finance strategies for the UK to make the most of its strengths in these areas. “The four pillars of the Review include building resilience and shaping the international environment. We believe that pro-growth trade and investment policies will be critical to achieving this, while also generating prosperity across the UK.”

Norfolk Chamber members Chantry Place have been working towards improving the sustainability of the centre. Although built with it in mind, they have been working hard to have sustainability at the heart of their operational practices, culture and values. Their goals include:

• Actively monitoring and reducing waste
• Considering sustainability in everything we do
• Engaging our 1,244 employees with our values
• Supporting local businesses, charities and our local community
• Being inclusive
• Supporting our team with mental and physical wellbeing
• Always reviewing, learning and understanding how we can do better
• Promoting environmental travel
• Energy monitoring programme

Read the full article on their website.

Giving her full reaction to today’s spring budget, Shevaun Haviland, Director General of the British Chambers of Commerce, said: 

“The Chancellor has acted to address the unfilled jobs blighting our economy. It is especially good to see the help on childcare and for over 50s workers.  

“The plans for full capital expensing are also a step in a right direction to offset the rise in corporation tax. But as the OBR highlight a high level of uncertainty, the jury is out on how much it will help compared to the Super Deduction scheme. 

“The most recent BCC survey on investment found that only a fifth of firms were increasing investment and a similar number were reducing it. This budget looks unlikely to change that dynamic. 

“This is especially true for almost half of businesses who told us they will struggle to pay their energy bills from April. 

“They cannot invest when they are fighting to survive. Beyond the £63m of additional support targeted for leisure centres, there is little that will provide comfort to these firms.  

“The Government also failed to reform business rates which we have repeatedly called for. If the UK’s innovative growth industries are to remain competitive on the world stage, then Government must shift the dial further on investment, both within the UK and from overseas.” 

Alex Veitch, Director of Policy at the BCC, said: 

Skills shortages 

“It is encouraging to see the Migration Advisory Committee’s recommendations on adding five new construction jobs to the Shortage Occupation List have been accepted. More frequent reviews of the system are also good news, but the lack of skilled labour is having a corrosive effect on our economy. This shift to a new system cannot come fast enough and other sectors facing huge recruitment pressures, such as hospitality, must be given help.” 

Business Rates 

“We are disappointed to see that the Government failed to undertake further reform of the business rates system, which places a significant burden on firms.  

“We need to see a move to annual revaluations, and a more ambitious approach that incentivises rather than disincentivises growth and green investment in the long term.” 

Energy Support 

“Once again Government has failed to understand that the energy crisis for businesses and households are two sides of the same coin. Extending the Energy Bills Relief Scheme for households is hugely welcomed, but with reduced support for businesses planned form April, and no sign of further support, many will be reliving the anxiety they were facing a few months back. 

“We included seven energy recommendations in our budget submission, but not one of these has been acted upon today.” 

Trade 

William Bain, Head of Trade Policy at the BCC, said:  

“Trade was not mentioned once by the Chancellor, yet again he has neglected the significance of exports – which are a big driver of economic growth. While the later announcement on easing some customs procedures is welcome, it doesn’t address the fundamental challenges facing our exporters. 

“The OBR forecasts predict a drop of 6.6% in export volumes in 2023 followed by a further drop of 0.3% in 2024. This would mean two years of lost growth for UK goods and services exports.  

“The UK Government must urgently look to improve our trading conditions with the EU and move heaven and earth to increase take up of preferences in new and existing trade agreements, which many small businesses remain largely unaware of.”  

Businesses and suppliers in Norfolk and the East of England could be part of the programme to restore and renew the historic Palace of Westminster. A group of 15 leading businesses and representatives from across the region attended a supplier event at King’s Lynn Town Hall last week (09 March) to meet the team delivering Parliament’s Restoration and Renewal Programme and discuss how the complex work can support jobs and opportunities across the region. There are already dozens of companies involved in the restoration effort. Small to medium sized businesses across the country are already benefitting from the work. Last year, seven contracts worth £4m for Palace of Westminster building investigations were awarded to suppliers nationwide with five out of seven contract winners being classed as a small or medium enterprise (SME). Leading local experts in everything from heritage to finance, construction and further education attended the event to share their skills and experience, and to hear from the team at the Houses of Parliament Restoration and Renewal Programme about the approach to getting local businesses involved in the major project to restore the Palace of Westminster. Andy Haynes, Commercial Director at the Houses of Parliament Restoration and Renewal Delivery Authority, said: “We’re travelling around the country to make sure that small businesses across the nation are aware of future opportunities from the works to restore and renew the Houses of Parliament. “I was absolutely delighted to be in King’s Lynn, meeting  a number of small and medium-sized Norfolk businesses and organisations as well as seeing the historic town’s tremendous heritage and the way its buildings have been carefully restored and renovated over the years.” Nova Fairbank, Chief Executive of Norfolk Chambers of Commerce said: “It was great to see so many local businesses engaged and understanding the opportunity that such a nationally significant project can bring. We enjoyed showcasing the fabulous heritage in West Norfolk and how quality restoration has made a difference in the beautiful town of King’s Lynn. We’re delighted to be supporting this project with the event and we’re looking forward to seeing Norfolk businesses help to bridge the skills gap and restore some of our iconic historic buildings”. Both Houses of Parliament are committed to preserving the Palace for future generations. The Palace is enormous and complex – the size of 16 football pitches, with the whole building sharing the same water, electric, sewage and gas system. Many of these services are 50+ years old and have reached the end of their lifespan. Hundreds of miles of pipes and cables need replacing. The scale of the challenge means more extensive restoration and renewal is needed as part of the overall plan for the Parliamentary buildings. Currently there are dozens of major projects underway to repair and restore key parliamentary buildings by parliamentary teams with which the Restoration and Renewal programme will work closely to learn from and build the lessons into the overall restoration plans for the Palace. In July 2022 Members of both Houses agreed there needs to be a more aligned and integrated approach to future restoration, prioritising safety critical work before the formal go-ahead and options for the overall restoration are confirmed. In November 2022, news of the possible discovery of the medieval Thames River wall underneath the Houses of Parliament was revealed by the extensive programme of building investigations by restoration teams last year. Specialists spent 4850 hours examining 160 rooms and drilling boreholes up to 70 metres deep to assess ground conditions around the Palace of Westminster. The surveys are helping restoration teams develop the most detailed ever record of the Palace of Westminster to inform decisions about essential restoration work. These surveys will inform a set of options, being developed by the Restoration and Renewal Delivery Authority, for how significant elements of the restoration work will be delivered and the level of ambition for restoration work. This will include variations on the time and extent to which Members and staff are asked to move out of the Palace to allow complex construction work to take place. The volume and future scope of the main restoration works are not yet certain until approval is given by Members of both Houses to costed proposals, in advance of this Members will be asked to vote on a strategic case by the end of 2023.  

According to projections, by 2030, 20% or less of the population will be grossly underqualified for their positions. Consequently, many people may find themselves working less productively, feeling less satisfied with their jobs, not gaining access to the right training, or even losing their jobs entirely. The skills gap is widening at different paces within each industry and caused by various factors that impact them, such as a lack of investments from the government or employers, Brexit & pandemic situations or by fear of digital automations that “kill” off sustainable positions in the workplace. Some of major highlights for skills challenges are:

• Career growth and staff supply are limited,
• Pay difference within sectors,
• Lack of engagement with colleges/uni,
• Apprenticeship programmes not appealing,
• Rural areas hard to retain and recruit,
• Not enough local trainings in rural areas leading to talents to relocate,
• Qualifications aren’t always the key to success,
• Work experience is meaningful and needs more buy in from employers,
• Lots of groups around doing the “same thing” creating confusion amongst training & skills.

In this article, we are looking at the main sectors facing skills gap challenges and how these could be answered for a more stable future to the young talents entering the workforce. Manufacturing & Engineering According to a survey mentioned by themanufacturing.com in April 2022, the main reasons why manufacturing industries are experiencing skills shortages are insufficient involvement of manufacturing in technical education; lack of opportunities in modern manufacturing and engineering; and a poor interest in manufacturing and engineering. It also shows that the majority of young people are less interested in the manufacturing industry as part of their career path or growth. There are concerns about automation where robots are the sustainable solution for many companies, replacing staff as technology progresses. Which makes young workers wonder about the long-term commitment to this line of work. In the engineering industry, young workers may struggle to find the right training. This is because of technological advancements becoming more and more regulated within businesses (e.g. ISO 9000). Manufacturing and engineering industries are not dying industries but only struggling in finding the right skills. What could be beneficial to businesses, is having the right training provided as well as learning from employees that already have the right skillsets. Finance & Business According to FinTechFutures.com, the main reported soft skill gaps in the finance industry are digital and technology skills. In the world of automation in the goal to remove repetitive tasks, the future of accountancy might well become fully AI-controlled. Many experienced accountants report that tasks are now automated and controlled by emerging softwares, becoming more and more challenging to catch up with digital skills. Although the goal of AI is to give more brain space to focus on fulfilling tasks a human can work on, many young skilled individuals find it challenging to keep up with the new technology & demand from the companies. Or a fear of being replaced by an AI-robot altogether. New sustainable trainings would make the young generation more certain and prepare for the future of digital skills & demands in the finance industry. Construction Although similar to the challenges Manufacturing & Engineering face, the construction industry finds it difficult to source skills. Projects at scales are facing a demand influx since a few years, now facing skills shortage. It is becoming difficult to attract talents and meet the inflated salaries for long-term projects. The construction industry is also facing a unique challenge when it comes to finding the right demographic to fill in positions. It is admitted that a certain type of demographic (middle-aged men) will be preferred for the positions which restricts the pool of choice to the employer. If the demographic gap was closed and would consider different demographic in the industry (e.g. women), it could solve a large chunk of the skills shortage on the market. Transporation & Logistics Since Brexit, UK faced a significant skills shortage when EU-workers returned to their home countries. There have been campaigns set by the government to fight against this crisis, but skills shortage remains an issue to this day. Additional to the Brexit issue, the Calais Crisis and other political challenges are amongst factors why it’s proven difficult to retain skilled drivers in the industry. There is big battle of image and standard that this industry needs to fight for. Attracting young workers into this career path should starts with directing to the right training & access the industry for all demographics. Although private industries can offer larger salaries and retain their talents in this way, it is proven more difficult for the public sector. Energy Sector inc offshore wind With the UK government target of becoming Net Zero by 2050, it is estimated that 200,000 workers will need training to fill in the skills shortage in order to meet the target. Skills from oil & gas can be transferrable, making it easier for some companies to make the switch, but as projects are booming, the skills gap is felt for many companies. It would be ideal for the government to work with school programs to educate the young generation at early stage, but companies will have to provide a long-term job security to retain young talents. Retail, Hospitality & Tourism Similar to transportation & logistics challenge, hospitality is facing a shortage of EU workers since Brexit. EU-workers in the UK accounted for more than 42% in the hospitality sector and has come down to 28% since, creating the skills gap we are now facing. However, it is not news that this sector is facing highest turnover of staff, positioning this sector as the least appealing for long-term career choice. Many young people look at hospitality as an entry-level to their careers, deemed as low skilled jobs with the lowest salaries on the market with little possibility of growth. There are no dedicated education towards hospitality, making it difficult for employers to find the right talents and retaining them. It has been pointed out that the government should relax requirements for immigrants to work in this sector, making it easy on external talents to enter the job market and close the skills gap where possible. Communication is also the main skills gap challenge employers find. Recruits might not have the knowledge about how to handle a customer-centric situation or fail to adopt a business etiquette. Because there are no regulated trainings towards communication for hospitality, it is hard to find the right talents that will represent the company to their customers. Health care According to the UK Commissions for Employment and Skills (UKCES), “the UK population is growing and ageing which is likely to lead to a 20% increase in demand for residential care, home care, day centres and meals for decades to come. However, the health and social care sectors have relatively low rates of innovation and investment compared to other sectors.” [PDF download] Since the pandemic and the rise in scandals with pay freeze and low investment in the sector, young talents are not looking at the health sector as a safe environment to grow their career in. With the right trainings & investments, there are ways to retain talents and upskill existing workers. The improvement of communication skills generates an obvious shift in how staff members interact toward patients.  Staff members exhibit greater empathy, greater sensitivity to patient cues, and superior questioning techniques. Evidence suggests that long-term change is maintained. In Conclusion Skills & talent shortages are widening in most industries, with the majority struggling with communication & digital soft skills. In recent years, the Brexit & the pandemic have been the main culprits for these shortages, leaving the UK with less individuals available on the market. Some sectors also struggle with skills awareness and lack of available specialised trainings to fill in most demanding positions. With the right investments from the government and the right institutions in place, there are ways to help the young generation in embracing the innovation in the working place and retaining them. Is there something that we’ve missed? Is your company seeing different challenges we haven’t mentioned here? Feel free to raise your voice and become part of the skills gap solutions in East Anglia by filing in this employer form: https://form.jotform.com/223474490001043  

Giving her initial reaction to today’s Spring Budget, Shevaun Haviland, Director General of the British Chambers of Commerce, said: “The Chancellor has acted to address the unfilled jobs blighting our economy. It is especially good to see the help on childcare and for over 50s workers. The plans for full capital expensing are also a step in a right direction to offset the rise in corporation tax, but the jury is out on how much it will help businesses compared to the Super Deduction scheme. “Almost half of businesses have told us they will struggle to pay their energy bills from April, and they cannot invest when they are fighting to survive. There is little in today’s announcement that will provide comfort to these firms. “The Government also failed to reform business rates which we have repeatedly called for. If the UK’s innovative growth industries are to remain competitive on the world stage, then Government must shift the dial further on investment, both within the UK and from overseas.”

Chancellor Jeremy Hunt announces the Spring Budget 2023, Wednesday 15 March. The budget includes:

• £27 billion tax cut for businesses
• £9 billion annual tax subsidy for corporate investment
• New R&D scheme for 20,000 SME’s in the UK – worth around £500 million a year
• Working parents (who work at least 16 hours) will be able to access 30 hours of free childcare from when their child is 9 months old until they start school. Starting April 2024
• £34.4 million funding for Skills Bootcamps and other programmes aimed at training young people and adults to reach their full potential in the labour market
• The energy price guarantee has been extended by 3 months and is now due to end in June
• The planned 11p rise in fuel dity will be cancelled maintaining last years 5pm cut for another 12 months
• Pensions annual tax-free allowance raised from £40,000 to £60,000
• The planned £500 increase in average energy bills cancelled

You can view the full Spring Budget 2023 here

Julie Austin, International Trade Quality Manager at the Norfolk Chambers of Commerce shares her expertise on the changes to the printing of UK Certificates of Origin. What is plain paper printing? Plain printing as its name implies is where the entire certificate is printed on plain paper rather than just printing details on to a pre-printed form. Many countries now print UK Certificates of Origin this way including China, Belgium, Netherlands, Finland, and Singapore. Will this affect other documents such as EUR1’s and Arab-British Certificates? No. This change only applies to UK Certificates of Origin. Will the online system be adapted to allow for this change? Yes. All applications for a UK Certificate of Origin will have to be done online. What happens if I cannot apply online or do not want to print the UK Certificate of Origin myself? The Chamber will be able to process the application for you and print it out for you if you wish. What format will the UK Certificates of Origin be received in? You will be able to print UK Certificates of Origin from the system as picture file or save it as a pdf. What happens if the document is printed in black and white? The UK Certificates of Origin must be printed in colour otherwise it is likely to be refused by customs authorities. It is written in the international conventions controlling Certificates of Origin that they be in colour. Do I need special paper to print the UK Certificates of Origin? No. Standard quality copier paper is acceptable. Will these documents be accepted by all countries? Yes. The British Chambers of Commerce have notified all relevant authorities if the change. Over 40 % of Certificate of Origin issued worldwide are now done this way. What happens if the country concerned requires a wet stamp? Where countries require a wet stamp the Chamber will print and wet stamp the document for you. Can we still raise more than one original UK Certificate of Origin if needed? Yes. It will now be easier to do this as the certificate number will not need to be changed on the additional originals. Will the UK Certificate of Origin still have unique numbers? Yes. Each Chamber will have their own two letter prefix followed by a seven-digit unique number. If a certificate has been issued before the 1st April and the good do not arrive until after will this still be valid? Yes. All UK Certificate of Origin issued before the 1^st April will remain valid and will be accepted by customs authorities. Will customs authorities etc still be able to use the QR code and the ICC verification website to check my UK Certificates of Origin? Yes. Can we still make amendment to documents? From the 1^st of April it will not be possible to amend UK Certificate of Origin by hand as they will not match the online version. Can we still have yellow copy documents? Yes there will be an option to download the yellow copy if required, however the copy is to be printed on plain paper and in black and white print. I currently use the UK Certificate of Origin form for Egyptian legalisation. How will these changes affect my application? You will apply as normal via the standard or chamber printed method and we will print the application, wet stamp and sign and forward on to the Egyptian-British Chamber of Commerce for processing. What happens if I accidentally print onto a UK Certificate of Origin blank form? This will not be accepted by overseas Customs, and you will need to apply again ensuring you add the “replacement” statement in the remarks box. If I have remaining unused UK Certificates of Origin would they need returning/destroying? Yes. Your Chamber will be able to advise you. Sometimes we cannot upload evidence to the system as the files are large and have to send by email – can this continue? Yes. At present this will still be acceptable but may change on the future. Can other documents such as invoices be stamped this way? Yes. This is currently available via the online systems and will not change. Do I need to let my colleagues know who arrange Letter of Credit applications for my company? Yes, we advise that you inform all colleagues who are involved in international activities on behalf of your company.   If you have any further questions, just get in touch with our friendly International team at: export@norfolkchambers.co.uk or call us on01603 729706

Reacting to the latest ONS Trade data for January, William Bain, Head of Trade Policy at the BCC, said: “There was no big boost to trade volumes to start 2023. Removing cyclical factors in the trade data, goods export volumes to both the EU and rest of the world, over the past year, have remained constant. “But goods trade values fell in January. On the imports side this can be partly explained by balancing it against the stronger performance in machinery and transport orders in December. “The overall picture over the past three months indicates no upward tick – with total goods import values down by 1.6% in the 3 months to January 2023, compared with the 3 months before then, and goods export values down by 4% over the same timeframe. “Services were only moderately better – with import values down by 0.3% over that period and export values down by 2.3%. “It is clear that cost of living pressures are hitting consumer incomes globally and this is widely forecast to be a drag on global trade in 2023. “Today’s data provides further signals that UK exporters require a year of strong delivery from the UK Export Strategy to provide ballast to their ambitions in 2023.”   Analysis of the data:  Trade values for goods (excluding inflation) fell in January, with imports down 9.3% on December and goods exports down 1.8%. Services export values were down by 0.6% on the previous month, once inflationary effects were removed. Over the past 12 months, the volume of UK exported goods has been relatively flat. There was a fall in goods export values to the EU of 4.2% (driven by lower fuels, chemicals and material manufactured goods exports). This was only partially offset by a rise in goods export values to the rest of the world by 0.9% (largely in higher chemicals exports to the US and pharmaceutical exports to South Korea).  Total goods imports values fell by 11.4% from the EU (decreases in machinery and transport equipment) and 6.7% from the rest of the world. In services, excluding inflation, import values fell by 0.3% while export values fell by 0.6% in January compared with the previous month. More detail on the ONS data can be found here.   Image: Chamber Canva Pro 2023

Reacting to the latest ONS Labour Market figures, Nova Fairbank, Chief Executive of the Norfolk Chambers of Commerce said: “Today’s ONS figures provide further evidence of historic tightness in the labour market. Despite a slight fall, there are still over 1.12 million vacancies across the UK. This confirms our own research that most Norfolk firms are still trying to recruit staff. “Finding appropriately skilled workers is one of the top issues for businesses, and many tell us that this prevents them from fulfilling orders or expanding. There are several levers which the Government can pull to ease the tightness in the market. “Firstly, alleviating childcare costs could give greater flexibility to those looking to return to the labour market. The Government’s plan in tomorrow’s Budget to start paying childcare costs on Universal Credit up front is positive news, but further tax relief on childcare costs and reforms to increase childcare capacity are also needed. “Secondly, there needs to be a fuller explanation of the causes of the significant number of people out of employment due to long-term illness in order for Government and businesses to invest in the right occupational health services. Occupational health services should also be made a non-taxable benefit in kind. “Finally, as the BCC has repeatedly said over the last year, Government must reform the Shortage Occupation List to help firms fill urgent job vacancies from outside the UK when they cannot recruit locally.”   Image: Chambers Canva Pro 2023