Chamber News

This month’s headlines:

• UK economic growth in Q2 unrevised, as the trade deficit narrows and investment rises.
• UK unemployment rises again, but earnings continue to outstrip inflation.
• US growth is revised up sharply, but China weighing heavily on the global outlook.

Based on August 2015 data releases, this month’s economic review showed that UK GDP growth in Q2 remain unrevised at 0.7%. In Q1 a 0.4% rise was recorded. In annual terms the UK economy grew by 2.6% in Q2. The UK’s trade deficit narrowed by £13.4 billion in Q1 2015 to £9.1 billion in Q2 2015.

Overall the UK job market weakened in the 3 months to July 2015. However, here in Norfolk the trend was somewhat different. In the same period, those seeking Job Seekers Allowance (JSA) in Norfolk continued to fall from 6,679 to 6,518. Strong real wage growth continued. Wit two thirds of UK GDP being driven by consumer spending, the rise in real earnings and therefore consumer’s spending powe will continue to support growth.

The economy is the Eurozone grew by 0.3% in Q2 2015. Although this was down slightly from Q1 growth of 0.4%. US growth was revised sharply upwards, as the second estimate of US GDP relvealed that the US economy grew at an annualised rate of 3.7% in Q2.

Despite cutting interest rates and devaluing their currency, the Chinese economy remains a major concern. China is the world’s second largest economy and accounts for a quarter of global GDP growth. This means that the uncertainty over China’s economic outlook is starting to weighon the overall global economy.

For full details of this month’s economic review click here.

Earlier this year, Norfolk County Council awarded the multi-million Park and Ride contract to Konectbus. The operator, who is based in Dereham, already ran three routes for Norwich’s park and ride, but as of yesterday Konectbus now runs all of them.

18 new buses were specifically purchased to run on the city centre services, at a cost of £3.3 million. Konectbus have said that by linking up the cross city routes this will give passengers a better service and a new link to Norwich railway station. They have also introduced a new timetable and fare structures

However, in a change to the previous park and ride contract, the Costessey Park and Ride will now only call at the University of East Anglia and the Norwich University Hospital.

Konectbus celebrated the start of their updated services with a launch party at The Forum at the weekend, where two of their new fleet of buses were on show.

Tracy Jessop, County Council Assistant Director for Highways and Transport, said:

“Konectbus has outstanding levels of satisfaction from users of their current services at over 98pc, so I am confident the services are moving into very good hands.”

“Their bid was bold and ambitious and will bring in a number of changes in response to passenger needs. It is great news that this is now a fully commercial service that will be able to move and flex to meet the needs of our growing city.”

Access to finance is still a barrier to exporting for UK firms, a report by the British Chambers of Commerce (BCC) has found. In its annual International Trade Survey, the BCC found that 60% of potential exporters cite general access to finance as a key factor in their plans to export goods or services.

Additionally, one quarter (24%) of UK businesses preparing to export have reported difficulty in accessing trade finance or credit insurance from lenders – products tailored specifically to support firms trading in overseas markets.

Access to finance is an issue for firms of all sizes. Of the 60% of UK firms on the cusp of exporting who stated that securing the right funding was a key consideration in deciding if, when and where they would export to, over half (57%) are micro firms, 29% are small firms and 14% are medium or large firms.

Despite this, 90% of businesses that are already exporting say further expansion is a priority, indicating that confidence in economic growth is becoming more widespread across the country and that appetite for new expansion is returning.

Accessing the appropriate financial products is crucial to businesses planning to enter export markets, to help cover new costs including market research and product development, and managing the risks around shipping and payment.

John Longworth, Director General of the British Chambers of Commerce, said:

“A fundamental revolution in our approach to exporting is needed if we are going to reverse our historic trade deficit, overturn our current account deficit and maintain Britain’s position as a leading global trader. We already have world-class products and services that are in demand globally – we now need to ensure the door is open for all UK businesses wanting to trade overseas.

“While support for UK companies to finance exports of goods and services should be further enhanced, we also need to understand why a quarter of the exporting firms surveyed have been unable to access the financial products specifically designed to help them trade overseas.

“There are huge potential rewards for firms that can access overseas markets, but there are also costs associated in exporting. The government needs to ensure that UK Export Finance and the British Business Bank offer world-class support to UK businesses, and remove one of the main barriers to exporting – access to finance.

“To ensure that UK exporters have direct access to on-the-ground support in new markets, the BCC and chamber network are playing our part by actively expanding our Global Business Network to link British firms with customers and opportunities in the fastest-growing economies overseas.”

Julie Austin, International Trade Manager at Norfolk Chamber said:

“It is disappointing that so many business have experienced a barrier to exporting due to accessing finance. As the Norfolk economy improves and companies look to expand their markets, exporting is often a profitable route but the barriers do need to be removed to make this happen. Norfolk Chamber assists exporters with access to finance through a number of services. Regular training courses on Letters of Credit and Methods of Payment are held throughout the year to assist export staff understand the rules and regulations involved. A Letter of Credit service is also available which takes away all the concerns exporters have when dealing with overseas clients and the worry about getting paid.”

Notice is hereby given that the 119th Annual General Meeting of the Norfolk Chamber of Commerce & Industry will be held at the Dunston Hall Hotel, Ipswich Road, Norwich on Friday 09 October 2015. Registration will be at 09:45am, for meeting commencement at 10:00am. Please see attached for all papers relevant to the meeting.

The September meeting of the Great Yarmouth Chamber Council was held at Conductor Installation Services’ new premises on Beacon Park. Andy Penman, Group Managing Director of CIS is the President of Great Yarmouth Chamber Council. He provided members with a guided tour of his ‘state of the art’ premises, including showing members the underwater piling and survey equipment in his workshops and yard.

The Chamber Council debated how to increase the visibility of businesses in Great Yarmouth and discussed how to improve Great Yarmouth Town Centre. Following the recent announcement by the Borough Council of Great Yarmouth of a £1 million initiative to regenerate the town centre, the Borough Council has commissioned Carter Jonas to carry out a study and produce a master plan for the town which sets out the vision for the next 15 years. In order to plan key changes and guide investment to create a commercially successful town centre, they need to hear from residents and businesses. If you would like to input into this study click here to download the questionnaire.

The aim will be to define the possible options for regenerating the town centre which will then be consulted upon in early 2016.

Following the two recent fatal crashes on the A47 at King’s Lynn and Swaffham, the Norfolk Chamber has joined with the A47 Alliance and others to call for important safety improvements along this busy and vital route through Norfolk.

Henry Bellingham, MP for North West Norfolk said:

“The A47 is a dangerous road because it is busy and only parts of it are dualled, which gives people the impression they are on a fast trunk road. The vast majority of accidents happen on the single carriageway.”

Jonathan Cage, Vice President of Norfolk Chamber and Managing Director of Create Consulting Engineers said:

“The A47 is the main route from east to west across Norfolk and is important to the economy of our County. The route has a combination of single and dualled sections of the carriageway and the two recent tragic accidents illustrate how dangerous this road can be. Dualling the A47 would have both economic and safety benefits and Norfolk Chamber wants to see more sections of this vital route dualled as soon as possible.”

The next A47 Alliance meeting will be held in October and Jonathan Cage will be attending the meeting on behalf of Norfolk Chamber to ensure business views are heard.

Norfolk Fire and Rescue Service is offering businesses ‘simple’ safety messages. ‘Now is the time to think about fire safety in your organisation’ – That’s the message from Norfolk County Council’s Fire and Rescue Service, as they gear up for UK Business Safety Week (07 – 13 September 2015).

The Service will offer local businesses ‘simple’ safety messages to share with their staff during the week which is taking place at a time when many businesses will be recruiting additional members of seasonal staff in the run up to Christmas.

The new recruits might not have the same level of fire safety awareness as permanent members of staff, and may not be aware of the steps needed to protect themselves, their customers and colleagues. It is also a good opportunity to remind existing staff of the importance of fire safety.

Richard Herrell, Head of Community Fire Protection at Norfolk Fire and Rescue Service, said: “I would encourage all businesses to ensure their staff are fully aware of potential fire risks and hazards, and know what to do in an emergency.”

“We are pleased to support the Chief Fire Officers UK Business Safety Week. The message is a SIMPLE one, but it is vital that businesses consider the risks of fire and that their employees are also aware of the potential dangers. Fire risks in businesses may change at this time of year as there is the potential for more staff, more stock and more customers.”

This year’s message for businesses is ‘Keep it SIMPLE and Safe’ and offers the following reminders:

• Store stock safely: keep corridors, stairs and exits clear
• Identify alarm points so you can warn others
• Make sure doors are closed to stop fires from spreading
• Place things that catch fire away from things that cause fire
• Let someone know if you spot fire safety problems
• Ensure everyone knows what to do if a fire alarm sounds

Helping businesses to manage their fire risks and hazards, and potentially save lives and safeguard their businesses against financial and commercial loss is of key importance, particularly in these competitive times when growth and sustainability are a priority.

Fire can cause major disruption for businesses – there is a far greater chance of recovery, if risks have been identified and appropriate arrangements have been put in place to prevent fires starting, or to mitigate their impact.

Norfolk Fire and Rescue Service are using social media with the Twitter hashtag #BusinessSafetyWeek to support the initiative and get key messages across to the business community.

In Norfolk, between 2012 and 2014, Norfolk Fire and rescue Service attended 583 accidental fires in business premises. The most common cause was faulty appliances, issues associated with electrical supply and cooking.

Cllr Paul Smyth, Chairman of Norfolk County Council’s Communities Committee, said: “Fire can cause major disruption to businesses, so it makes good business sense to identify risks, to put appropriate arrangements in place to prevent fires from starting in the first place, and to mitigate their impact.”

“The SIMPLE approach will also help employers with their duty of care to employees, so I would encourage Norfolk businesses to make use of the advice the Fire Service is offering.”

Hear a quick policy update from Adam Marshall, Executive Director of Policy & External Affairs at the British Chambers of Commerce (BCC). He outlines the work that is being done by the BCC in lobbying for further cuts to red tape and regulations that affect the business community. The government are looking at a new initiative to cut £10 billion in red tape over the lifetime of this Parliament.

If you have any feedback on onerous regulations please contact Nova Fairbank on email: nova.fairbank@norfolkchamber.co.uk and we will pass your comments to the British Chambers of Commerce.

The Skills Funding Agency is running a series of small business webinars to inform and update on apprenticeships and traineeships. A series of six 30 minute webinars will be available to small businesses across Norfolk and Suffolk for free!

The webinars will feature a presentation delivered by an apprenticeship expert, Anna Morrison. They will cover a range of topics on apprenticeships from: the business benefits; employers’ experiences on how apprenticeships have worked for them; and the Government grants available to support with salary costs.

Caroline Williams, Chief Executive of Norfolk Chamber said:

“At Norfolk Chamber our apprentices form an integral part of our work force and are a valuable asset to our business. I would recommend all employers to find out more about apprenticeships and so we welcome these short free webinars, which will help answer many employers’ questions.”

The free webinars will be held on the following dates:

Friday 23 October 2015 8:30am – 9:00am

Tuesday 17 November 2015 4:00pm – 4:30pm

Thursday 26 November 2015 10:00am – 10:30am

Wednesday 09 December 2015 5:30pm – 6:00pm

Monday 25 January 2016 3:00pm – 3:30pm

Monday 08 February 2016 9:30am – 10:00am

If you are interested in attending, please click on the relevant date to book your place.

Apprenticeships Broadland – which offers apprenticeships in Norfolk under the guidance of Broadland District Council was recently launched in Norwich. The initiative will provide help and advice for those unsure about their future.

Hamish Melville, Head of Economic Development for Broadland Council, said: “More young people need more options. We want to make sure young people know there’s a vocation for them, and employers want to hire someone who has done an apprenticeship and worked up the ranks so they can do the job on their own. There’s another way than just university.”

The scheme’s aim is to support young people to ‘earn while they learn’ through business administration, customer service, team leading, retail, warehousing and storage, equestrian studies, hairdressing, dentistry, health and social care and construction.

Krystyna Burns started her apprenticeship five years ago and is now a Contracts and Compliance Co-ordinator at Broadland Council. She said: “I didn’t learn well in a classroom and instead I got to learn on the job, which was great. I have been offered so many progression opportunities and I feel like I have really established myself in my role.”

Josh Baldwin started his customer service apprenticeship at his father’s firm, Unique Signs, Norwich, and describes the experience as “100pc worth it”. He said: “A lot of my friends are going to university but they aren’t guaranteed a job when they graduate. I do something different every day and get to try all different parts of the business.”

Ninety per cent of apprentices stay in employment after finishing. The specialist training provided by Broadland Apprenticeship allows experienced assessors to offer guidance and support from the moment people sign up for an apprenticeship.

Organisers said: “We’ve had lots of young people and employers through the door, there’s been a steady stream of people and it’s great to build new relationships.

For more information, email apprenticeships@broadland.gov.uk.

Offshore Europe takes place in Aberdeen every two years, organised by the Society of Petroleum Engineers. It will run from 8th – 11th September, attracting a global audience of engineers, technical specialists, industry leaders and experts to share ideas and debate issues of offshore energy industry.

Nineteen companies representing the unique all-energy East of England coast will take upbeat messages of investment and ambition to Europe’s biggest offshore exhibition next week.

The businesses on the East of England Energy Zone (EEEZ) stand will be celebrating 50 years of gas in Great Yarmouth and Lowestoft at Offshore Europe in Aberdeen but they will also be marking new investment this year and high confidence for more.

The East of England energy industry is renowned as ambitious, innovative, robust and flexible with a competitive cost-base, James Gray, director of the East of England Energy Zone said.

“The renowned low-cost-high-quality ethos of the East of England make it the clear choice for developers across the energy spectrum. The welcome mat is down for investors who want to share in the success of the East of England. All the information and data needed is available from EEEZ.”

Considerable reserves of gas are still to be recovered in the Southern North Sea after five decades of continuous activity and new prospects stretching into the future were offered by offshore wind..

Gas from the Cygnus field, the most significant gas field to be discovered in the SNS for 25 years, will start to come into Bacton, Norfolk this year in a £1.4bn investment by Engie – formerly GDF Suez – expected to bring spin-off benefits in the ports and supply chain across Norfolk and Suffolk.

Supply chain companies in the EEEZ are sharpening their offer ready for the North Sea decommissioning programme to dismantle hundreds of platforms and plug and abandon wells, concentrating on collaborating and turning to innovation to drive down costs to be ready to have the most cost-effective quality offer when operators start the process.

East of England Energy Zone, Mr Gray said. The Norfolk and Suffolk Energy Alliance, comprising Norfolk and Suffolk County councils, Great Yarmouth Borough Council, Waveney District Council, North Norfolk District Council, EEEGR, the New Anglia Local Enterprise Partnership and the Norfolk and Suffolk Chambers of Commerce, provides potential investors access to land and port data, the extensive local supply chain, skills, programmes, local politicians and planning support.

“Given the scale of some of the investment projects we work with, investors undertake a rigorous due diligence. That’s where our combined intelligence and local networks are an incredibly valuable resource.

“As a region, we have pooled our collective resources, and have produced what is really a simple portal. Most importantly we can always deliver the information requested.

‘This is true collaboration to make it easy for investors and it is working.”

“We will be reinforcing this at Offshore Europe.”

The EEEZ stand is 5B60.

Councillors have agreed to an extra £10m to help fill a funding gap for the Norwich Northern Distributor Road (NDR).

It emerged last month that the cost of the 12.5 mile road, stretching from the A47 at Postwick to the A1067 Fakenham Road, had increased from £148.5m to £178.5m.

Norfolk County Council cited construction cost inflation and design changes for the £30m hike and approached the government asking for help.

The government said it was prepared to provide £10m and the New Anglia Local Enterprise Partnership signalled it would ask its members to provide a further £10m.

And, at an extraordinary meeting of the county council today, councillors agreed its £10m share should come from reserves and from the highways budget for the next four years.

Labour leader George Nobbs said: “I know I speak for most councillors when I say the NDR is a much cherished scheme which has the majority backing of all parties except the Greens. We have been pushing for this vital infrastructure for a decade and it is within our grasp.”

UKIP leader Toby Coke said: “We must look forward with ambition and there must be no dithering.”

Conservative group leader Cliff Jordan and Liberal Democrat group leader Marie Strong also voiced their support, although a number of UKIP councillors spoke against allocating the £10m for the scheme.

Councillors voted 59 to 8 in favour, with three abstentions.

The LEP board will meet next week to decide whether to agree its £10m share.

Initial work on the road is due to start in October, with full blown construction starting in February or March next year.

Caroline Williams CEO Norfolk Chamber of Commerce said:”We very much welcome this decision from the County Council and would encourage the NALEP Board to agree to its £10m share next week. The NDR will bring significant economic benefits to Norwich and Norfolk which will assist the business community to create and retain jobs so important to our local economy.”