Chamber News

• GDP grew by 0.5% in Q3 2015, compared with growth of 0.7% in Q2
• Services output increased by 0.7% on the quarter, production grew by 0.3%, but construction output plunged by 2.2%

Commenting on the preliminary UK GDP figures for Q3 2015, issued yesterday by the ONS, David Kern, Chief Economist at the British Chambers of Commerce,said:

“The main reason for the slowdown was the sharp fall in construction, a sector which is traditionally volatile and erratic. However, our strong services sector continues to keep the recovery on track.

“Our economic growth remains unbalanced. Although total production is slightly up, expansion in the extractive industries masked a further 0.3% decline in manufacturing output. The trade deficit also widened in this quarter, and we are still heavily reliant on consumer spending.

“Nevertheless, it is good news that real GDP is now 6.4% higher than the pre-recession peak in early 2008. What we need now is further measures to boost growth to support the recovery, with particular emphasis on exports and infrastructure investments. Fixing the fundamentals will place the economy on a surer footing.”

Norfolk Chamber of Commerce is proud to once again support the Lord Mayor’s Awards, and in particular sponsor the Customer Care Award. Helping businesses find new customers, and develop existing relationships, is at the core of Chamber activity. We’ve been providing help and support for the region’s commerce since 1896; always owned and directed by our business members, and always there for businesses of all sizes, and in all sectors.

Heather Garrod, President of West Norfolk Chamber Council said:

“West Norfolk’s businesses have always demonstrated the tenacity and resilience to survive in challenging times, and the innovation and attitude to flourish in brighter days. New technology will provide new opportunities to deliver even better customer care, but established concepts and beliefs, rooted in sound business practice, will underpin the level of customer experience that defines a successful business.

The challenge, to deliver such a level of customer care that is worthy of this award, has never been more demanding. Businesses in our region have raised their game to the highest levels and we are looking for those businesses who stand out above the rest. We are thrilled to be sponsoring this year’s Customer Care Award. It’s never been a more important barometer of West Norfolk’s commercial climate. “

For businesses domiciled in the Borough of King’s Lynn and West Norfolk, there are 9 categories to enter this year:

• Mayor’s Business of the Year
• Business Person of the Year
• Customer Care Award
• Apprentice/Trainee of the Year
• Independent Retailer
• The Community Event of the Year
• Contribution to the Community
• Small Growing Business (Up to 5 years)
• Leisure & Tourism Award

To view the criteria for the categories and to nominate a business online click here.

The closing date for nominations is 5pm on Friday 27 November 2015. The winners will be presented with their awards at a black tie dinner on the evening of Friday 4 March 2016 at the King’s Lynn Corn Exchange.

Commenting on the European Commission’s Single Market Strategy, Caroline Williams, Chief Executive of Norfolk Chamber said:

“At present the EU single market in services exists in name only – to the particular detriment of the UK, Europe’s services powerhouse.

So whilst the European Commission’s drive to make the overall market a more flexible and fairer place to operate is welcomed, Mr Juncker’s plan will be judged on whether a true single market in services and e-commerce emerges.

The European Commission’s new internal market strategy is heavy on measures, many of which appear more cosmetic than substantive. At first glance, it seems less than revolutionary. Firms in Norfolk, the UK and across Europe will hope it is not as light on real actions that make doing business easier.

Business enthusiasm depends entirely on whether these proposals make it easier to trade freely across borders.”

The State Visit to the UK of China’s President Xi Jinping is set to see the completion of a number of wide-ranging trade and investment deals.

Said to be worth £30 billion and credited with creating nearly 4000 jobs across the UK, the latest agreements are in addition to £14 billion worth of deals signed at the UK-China Business Summit last year.

Sectors set to benefit from deals being signed during the visit of the Chinese President include retail, energy, health and technology, financial services, aerospace, the creative industries and education.

It is also anticipated that agreements on commercial opportunities will see British and Chinese businesses forge stronger links.

UK companies looking to expand into China are expected to benefit from new export opportunities, with the retail sector alone said to be in for a £1 billion boost in export deals which will see British companies expanding into the Chinese market.

At home, the UK’s regions will benefit from Chinese investment, according to Ministers. Prior to the State Visit, Chancellor George Osborne showcased a selection of £24 billion worth of investment opportunities in the North of England.

The Northern Powerhouse will enjoy Chinese backing for infrastructure and regeneration investment projects such as the Atlantic Gateway (a series of projects connecting the Port of Liverpool to the City of Manchester) and Science Central (a cutting-edge development in Newcastle).

The State Visit will also provide an opportunity for the UK and China to discuss how they can better work together on global issues such as terrorism and extremism.

The European Union’s drive to complete trade deals across the world has continued with news that the European Commission has opened trade negotiations with Tunisia.

Announcing the launch of the talks, the European Commissioner responsible for trade, Cecilia Malmström, said that the EU wants to mark its support to the political and economic reforms in Tunisia by creating an ambitious partnership on trade and investment matters.

Negotiations will aim to reach agreement on what the Commission calls a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Tunisia.

The talks, which started on 19 October in Tunis, will build on an existing free trade area under the Euro-Mediterranean Association Agreement. Signed in 1995, the Association Agreement focuses mainly on trade in goods. Tunisia was the first Mediterranean country to sign such a deal with the EU.

The new DCFTA will broaden the scope of relations between the two parties to include provisions on a full range of regulatory areas of mutual interest. They include trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, investment protection, public procurement and competition policy.

Liberalisation of trade in services and establishment and of trade in agriculture will also be covered.

EU exports to Tunisia are dominated by machinery and transport equipment (34.9%), fuels and mining products (14.4%), textiles and clothing (12.4%) and chemicals (7.7%).

Machinery and transport equipment (38.1%) are the EU’s main imports from Tunisia, followed by textiles and clothing (24.9%) and fuels and mining products (14%).

In 2012, 62.9% of Tunisia’s trade was with the EU, and in 2014 total trade between the two was worth some €20 billion.

Norwich City Council have released their latest economic barometer. The report shows that the Office of National Statistics reported that Government borrowing fell in the first six months of the financial year and historical data shows that Britain has experienced the strongest recovery of any G7 leading national in both 2013 and 2014.

Business optimism has increased for the first time since February and employment in the region is rising as firms expect growth to continue into 2016 according to BDO.

The latest Markit/CIPS survey data shows that the UK service sector continued to experience a slowing rate of growth, however the construction sector continued to grow, which has been attributed to the easing of pressure on the building materials supply chain.

Weekly wages in the private sector are now growing at an annual rate of 3.6%, which is more than three times the rate of the public sector. A recent FSB survey showed that 38% of small companies expected the plans for the new minimum wage to have a negative effect on their businesses.

A study by ResPublica showed that more people are renting from private landlord than at any point in the last 30 years. 22% of tenants are renting from private landlords and only 9% from public.

For full details of the latest economic barometer click here.

Norfolk County Council is to hold a fresh special meeting of the Council following a legal challenge to its decision to find an extra £9.9m for Norwich Northern Distributor Road. The meeting will be held on Friday 6 November (10.30am) at County Hall, Norwich.

On 2 September the Council voted by 59 votes to eight, with three abstentions, to accept offers by the Department for Transport and New Anglia LEP of £10m each towards a £29.9m increase in the cost of the NDR, and for Norfolk County Council to find the remaining £9.9m.

However, on 1 October a representative of the Wensum Valley Alliance announced a legal challenge to the way the Council reached this decision, and subsequently lodged an application for permission to seek Judicial Review on the basis that councillors were given ‘misleading information’.

Rather than contest this challenge, which could delay and increase the cost of the NDR, the Chairman of the Council, Cllr Rex Parkinson-Hare, has agreed to a further Extraordinary Meeting of the Council, which will be heldon 6 November. This will bring back the matter to members of the Council, to confirm they are taking the decisions with the requisite information before them.

At the meeting of the Council on Monday, 19 October, Council Leader George Nobbs warned Members that this further meeting might be necessary. He said the estimated cost of delay in construction of the Northern Distributor Road was around £0.5m a month.

Hear a quick policy update from Adam Marshall, Executive Director of Policy & External Affairs at the British Chambers of Commerce (BCC). He outlines his disappointment at the Competition and Markets Authority investigation report who appear to have ‘pulled their punches’ on the investigation into the SME banking market.

Norfolk Chamber is holding a breakfast event with Norfolk County Council, on 26 November at Norwich City Football Club, which will look at the fast moving developments in transport. The breakfast is aimed at business leaders and CEOs from businesses across Norfolk who are interested in hearing about travel and transport developments in and around Norwich, in particular the impact and benefits of the Norwich Northern Distributor Road and its place in the wider ‘Transport for Norwich’ strategy.

The breakfast is free to attend to all Chamber members. For details on the event and to book you place click here.

Investment in the Norwich Northern Distributor Road (NDR) will help unlock thousands of jobs and support the development of up to 10,000 new homes. It will open up access to Norwich International Airport, large areas of Broadland and North Norfolk and business areas in the north-east sector of Norwich.Preliminary work will have started, ahead of main construction around March next year.

The NDR also enables progress on a number of other transport initiatives that come under the Transport for Norwich banner, including the latest city centre changes, further cycle route developments and Bus Rapid Transit.

Recently there has been a lot in the press about the delays in the start of the NDR. The Wensum Valley Alliance recently announced that it had launched a legal challenge to Norfolk County Council’s decision over funding for the NDR. Their claim being that the County Council meeting – where the Council agreed to put forward £10m towards the £30m funding gap, after the cost of the road escalated – was unlawful.

Today, Norfolk County Council announced that they would hold an Extraordinary Meeting to make the decision again, in an attempt to sidestep the legal challenge by the Wensum Valley Alliance. The meeting will take place on 6 November 2015.

Responding to Ofsted’s stark report on the state of apprenticeships in the UK, Caroline Williams, Chief Executive of Norfolk Chamber said:

“Businesses know that good apprenticeships can help bridge the gap between education and work. The overriding priority has to be delivering high standards, with training providers accountable for the long-term results they deliver. Otherwise, far too many apprenticeship schemes may fail to equip much-needed employees with the skills they need to succeed.”

Dr Adam Marshall, Executive Director of Policy and External Affairs at the British Chambers of Commerce, said:

“Businesses have been concerned about the direction of apprenticeships ever since politicians decided to prioritise big numerical targets over long-term results. Sir Michael Wilshaw is right to challenge the status quo. A conveyor-belt model, focused solely on hitting the government’s target of 3 million new apprenticeships, would be detrimental to quality – and weaken hard-won efforts to boost the reputation and profile of apprenticeships amongst employers.”

Yesterday, Prime Minister David Cameron and the Chinese President Xi Jinping signed a Strategic Investment Agreement for the construction and operation of the proposed Hinkley Point C nuclear power station in Somerset. The Heads of Terms of a wider UK partnership to develop new nuclear power stations at Sizewell in Suffolk and Bradwell in Essex has also been signed.

The signing has paved the way for the Hinkley Point C project to go ahead and sets the steps for a final investment decision. These include finalisation of long form documentation based on Head of Terms signed today, finalisation by EDF of its financing plan, final approval by the boards of EDF and CGN (China General Nuclear Power Corporation) clearance by merger control authorities in China and Europe.

EDF and CGN have signed the Heads of Terms of an agreement in principle to develop Sizewell C in Suffolk to a final investment decision with a view to build and operate two EPR reactors. During the development phase EDF Group will take an 80% share and CGN will take a 20% share. As part of the planning process, EDF’s initial proposals for Sizewell C were published in November 2012 and the first round of formal consultation with local communities has already taken place.

Caroline Williams, Chief Executive of Norfolk Chamber said: “This new nuclear programme will give the country the secure, low carbon and reliable electricity it needs as it renews old generating capacity and takes action on climate change. More importantly for our region, the signing of the Strategic Investment Agreement for Hinkley Point C will bring the development of the Sizewell C project a step closer. EDF are NorfolkChamber Gold Patrons and we will continue to work in partnership with them to ensure the local business community are engaged with the Sizewell C project.”

He Yu, Chairman of China General Nuclear Power Corporation (CGN) said: “Entering the UK’s nuclear market marks a new phase for CGN. At the same time this is also a triple-win for the existing nuclear energy partnership between China, France and the UK. CGN is highly committed to delivering safe, cost efficient, and sustainable energy and to supporting the UK’s goal of becoming a low-carbon society.”

EDF Energy CEO Vincent de Rivaz said: “Hinkley Point C and successive nuclear projects will guarantee the UK the reliable, secure low carbon electricity it needs in the future. Nuclear power will save customers money compared with other energy options and provide a huge boost to British industrial strength, jobs and skills both in Britain and abroad. Yesterday’s announcements are also good news in the fight against climate change”

Research has found that businesses in the South East could bolster their revenues by £19.5bn and take on 173,000 staff, if they had greater access to technology.

The report was compiled by Oxford Economics and Virgin Media Businesses, who interviewed senior executives at more than 1,000 UK based companies, including 213 from the South East. According to the report more than 38% of companies in the South East provide digital content, products or services and 16% of businesses in the region were classed as digital leaders.

Creation of a fertile area for digital technology will create more than 150,000 jobs over 2 years. Virgin Media Business advised that they are expanding their network significantly to bring the fastest broadband to businesses across the whole country.

Sarah Aspray, Regional Director – South, for Virgin Media Business said:

“Businesses in the South East have much to gain from digital, from increased revenues to greater job opportunities. However work is required to realise digital’s huge potential – businesses have to invest in the right technology, skills and training, while the Government and industry need to provide infrastructure and support.”

The UK is the tech capital of Europe, but digital advances never stop. So if we want to stay ahead, we need more young people studying computing to a higher level.

Caroline Williams, Chief Executive of Norfolk Chamber said:

“This report highlights how important digital technology is to growing businesses. Norwich has Tech City status and there is a growing start up scene. In addition, digital employment in Norwich and Norfolk has now reached more than 14,000. But Norfolk businesses need to be switched on to digital technology innovations. Digital innovation goes hand in hand with technology improvements. Whilst for some, the generation of new high tech products is their business, for the commercial world in general, the future is about how best to use digital technology to solve problems and deliver business, and customer, benefits.”