Chamber News

• Annual CPI inflation in December 2014 was 0.5%, a historically low level, down from 1.0% in November 2014
• The main contribution to the fall was the December 2013 increases in gas and electricity rises, which fell out of the annual calculation, and from the continuing fall in motor fuel prices
• Goods price inflation in December 2014 was minus 1.0% while services inflation was 2.3%

Commenting on the CPI inflation figures for December 2014 published today by the ONS,Caroline Williams, CEO at the Norfolk Chambers of Commerce, said:

“The historically low inflation figure in December 2014 confirms that inflationary pressures in the UK are very low. Although the fall between November and December was exaggerated by the increase in gas and electricity prices a year ago, it is likely that CPI inflation will remain below 1% in 2015.

“However concerns over deflation pressures are grossly exaggerated and risk undermining business confidence. These figures show that inflation in the services sector – which accounts for some 80% of the UK economy – remains persistently above 2%.

“The main factor which counts for the low level of goods inflation, the fall in energy and goods prices, is positive as it boosts consumers’ disposable income and makes it easier for businesses to devote resources to investment. On the basis of current trends we believe that the MPC can afford to wait until 2016 before considering a rate rise.”

Norfolk manufacturing and services firms reported mixed results to end 2014, according to the latest Quarterly Economic Survey (QES) published by the British Chambers of Commerce (BCC).

Shrugging off recent signs of a slowdown, Norfolk’s manufacturing sector recorded increased balances for export orders, however their domestic sales and orders continued a downwards trend, which started in Q2 2014.

The reverse was true of Norfolk’s service sector, who recorded increased domestic sales, which are now back up to levels last seen in Q2 2014, whilst their export orders and sales both dropped drastically to levels not seen since the beginning of 2012.

The survey, made up of responses from almost 7,000 businesses, also shows that Norfolk firms set out to recruit staff at an all-time high rate in the last three months of 2014. BCC’s Director General, John Longworth, advised that firms’ strong performance at the end of 2014 could translate to a strong year of growth in 2015 – but this will depend on unwavering support for business throughout the general election and beyond.

Key findings in the Q4 2014 Quarterly Economic Survey:

• Norfolk manufacturing, export order balances increased substantially (up 27 points to +60% in Q4). However export domestic sales and orders dropped to levels not seen since the beginning of 2013.
• In the Norfolk services sector, domestic sales balances rose (up by 14 points to +51%), yet domestic orders dipped (dropped by 19 points to +17%). The service sector’s export sales and orders continued to weaken.
• An all-time high number of Norfolk businesses have set out to recruit staff in the last three months, in both manufacturing (an increase of 24 points from +76% in Q3) and services (an increase of 32 points from +68% in Q3).
• The balance of Norfolk manufacturing firms operating at full capacity dipped by four points to +27% in Q4, while the number of Norfolk service firms operating at full capacity fell further dropping from +38% to +29%.
• A record number of Norfolk manufacturers invested in training in Q4 (+53%, up from +42% in Q3).
• In the Norfolk manufacturing sector, the turnover confidence balance rose to +80%, a record level not seen since 2010. Confidence in profitability also rose sharply (+86% from +57% in Q3).
• Norfolk’s service sector balances showed more positivity in their investments in plant and machinery, which rose by 5 points (+37% from +32%).

Commenting on the results, Caroline Williams, Chief Executive of Norfolk Chamber, said:

“This is a mixed set of results for Quarter 4 2014 in Norfolk. Whilst Norfolk businesses remain positive, a level of caution is reflected in these latest figures. Although manufacturing employers continued to be confident and invested in staff and training, the service sector employers showed a slight slowdown in terms of investing in training and staff, as their confidence in overall profitability was down. Increased concerns surrounding pay settlements may be one of the reasons for this.

Positively, export orders for Norfolk’s manufacturing sector have improved in both Norfolk and the East of England and the UK sales figures Norfolk’s service sector in this quarter increased from the previous quarter.

In the Chancellor’s Autumn Statement, Norfolk had positive news on funding for the improvements to the A47 and the Norwich in 90 rail campaign. When Norfolk Chamber members recently met the Prime Minister, in addition to the call for a swift commencement of these infrastructure projects, improved broadband and mobile coverage were also identified as key barriers to growth.

These QES results a showed a lower level of concern around business rates, which has been backed up by the Chancellor listening to the Chamber network and committing the government to a fundamental review.”

Commenting on the results, John Longworth, Director General of the BCC, said:

“British businesses are well placed to grow in 2015 – a testament to their hard-work and resilience. It is particularly pleasing to see the manufacturing sector bounce back, despite signs of a slowdown in recent months. However we must aim for growth that is sustainable for the long-term, rather than settle for second best.

With employment and investment intentions at historically high levels, businesses are gearing up for a big year in 2015. It is now vitally important that firms are able to convert their growth ambitions into reality. Strengthening our business finance system, which constrains the growth aspirations of too many firms, will remain a decisive factor in securing a sustainable recovery. Low interest rates and reduced regulation will also go a long way to creating an environment that encourages enterprise and wealth creation.

In spite of our survey showing an improvement in export balances, the UK’s lacklustre export performance and severely adverse current account balance, continue to act as drag anchors on GDP growth. This need not remain the case – lack of growth finance, patchy help on the ground in overseas markets, and a never-ending churn of short-term support schemes must be addressed without delay.

The UK’s economic recovery still faces several obstacles, intensified by the uncertainty of the upcoming general election. Businesses are bouncing back, but their optimism may not last if political point scoring outweighs sound economic policies. It is imperative that all political parties use the forthcoming election campaign to outline their plans to support long-term business growth and investment.

If current and future governments do the right things, there is no reason why the UK should not enjoy sustainable growth driven by re-energised and dynamic businesses. The UK economy is orientated towards the service sector, which is driven principally by people rather than equipment and machinery. The free movement of people in the EU means that capacity is no longer the barrier to growth it once might have been, and upward pressure on wages is much less likely to occur. With no signs of inflation and no upward pressure on wages, there is no justification for an early rise in interest rates.”

David Kern, Chief Economist at the BCC said:

“The latest results support our view that UK growth will stabilise well above 2%, and that Britain’s medium-term economic growth will be slightly higher in the next few years than the recent OBR forecast predicted.

However, many balances remain below the high levels seen earlier this year, indicating that the overall pace of GDP expansion is easing. In the face of a weak eurozone growth and domestic policies aimed at stabilizing our public finances, a slowdown in economic growth may yet occur in 2015 and 2016, despite increased strength and optimism from businesses.

Despite a slight improvement at the end of 2014, the current account deficit is unacceptably large. The UK needs a long-term push to rebalance the economy towards net exports and investment, rather than relying too heavily on consumer spending to keep growth going. With inflation likely to stay around 1% for much of the next year, the MPC must delay interest rate rises for the time being.”

The December edition of the Norwich Economic Barometer has now been published.

The latest figures from the ONS indicate that wage growth in the UK picked up on average by 1.6 percent. Aviva announced they are to buy rival Friends Life in a deal worth £5.2 billion and UK inflation rose to an annual rate of 1.3 percent in October, however the price of food and non alcoholic beverages fell by 1.4 percent. Norwich based technology company Epos Now has opened a new head office at Norwich Business Park on Whiting Road.

The firm supplies electronic point-of-sale equipment and software has recruited 17 new staff in the past month and is seeking 30 more recruits in the New Year.

The full report is attached.

As Europe’s heads of government gather in Brussels to discuss Commission President Jean-Claude Juncker’s economic growth proposals, the British Chambers of Commerce (BCC) is today (Thursday) publishing its latest EU Business Barometer, which tracks the attitude of UK firms toward Britain’s place in the European Union.

The latest survey of more than 3,500 businesses shows that British firms continue to see a recast UK-EU relationship, with Britain remaining a member of the Union, as the most favourable outcome of the ongoing EU debate. More than half of businesses (57%) believe that remaining a member of the EU, with more powers brought back to Westminster, would be positive.

The most notable shift since the Q2 survey is that negative views have diminished on remaining in the EU with no relationship change (down 7% on the quarter to 38% of firms saying this outcome would be negative), and on remaining in the EU with further integration (39% of firms see this as a negative outcome, down 7% on the quarter).

The results of the Q3 EU Business Barometer show:

• Business respondents view remaining in the European Union, but with specific powers transferred from Brussels back to Westminster, most positively. 57% of firms view this scenario as positive, 18% say it would have no impact, 9% view it negatively, and 16% don’t know.
• Business respondents view full withdrawal from the European Union most negatively. 59% of firms view this scenario as negative, 12% say it would have no impact, 13% say it would be positive, and 16% don’t know. However 28% of firms view withdrawal combined with a formal UK-EU free trade agreement as a positive scenario.
• Business respondents view further UK integration with the EU negatively – but less negatively than in previous surveys. 39% of firms view this scenario as negative (- 7% on the last quarter), 16% say it would have no impact, 23% view it positively (+3% on the last quarter) and 22% don’t know.
• Business respondents view ‘no change’ to the UK-EU relationship negatively – but again, less so than in previous surveys. 38% view this scenario as negative (- 7% on the last quarter), 38% no impact, 15% don’t know and 9% positive. Notably, fewer than one in ten firms see ‘no change’ as a positive outcome to the EU debate.

Commenting, John Longworth, BCC Director General, said:

“British firms are pragmatic when it comes to Europe. A majority of businesses continue to tell us that they want to remain in the European Union, but with a reformed relationship that sees a substantial shift of power from Brussels back to member-states. In a nutshell, companies support the Prime Minister’s ‘reform and renegotiation’ agenda, but are unsure of whether and how it can actually be delivered.

“While Britain’s domestic debate on EU membership continues, it is crucial for European leaders to take decisive action to support growth in the UK and all 28 member-states. The European Council must fast-track reforms that deliver a real single market in services and e-commerce – which would benefit Britain’s world-beating professional services and digital companies by enabling them to trade more easily across borders. Businesses want fewer barriers to trade and investment across Europe, but they also want clear safeguards for member-states like the UK that are not interested in further integration.

“While UK business remains level-headed on Europe, it is unfortunate that the Europhobes and Europhiles continue to dominate the debate. Their extreme positions – “exit now” or “in at all costs” – are a turn-off to businesspeople who want to see a pragmatic outcome that is squarely in the interests of UK growth and prosperity.”

Speaking on the Labour leaders visit to Great Yarmouth today, Norfolk Chamber CEO Caroline Williams said:

“Ed Miliband was in Great Yarmouth today presenting the second of what labour said were their five key pledges for next year’s general election relating to immigration.

It did give me the opportunity of behalf of Norfolk Chamber members to ask a question which was in two parts. The first part was to ask for reassurance the road and rail infrastructure funding committed by the Chancellor in his Autumn Statement would be honoured to assist in the connectivity of Great Yarmouth. Although Mr Miliband did confirm that Great Yarmouth needed better connectivity he did not give, in my opinion, an adequate assurance that a Labour Government would fully honour these commitments. I will therefore follow up with a formal request for reassurance as we have been led to believe that improved infrastructure for Norfolk has cross party support.

The second part of the question was to ask what support he would give to the energy sector so important to create the needed jobs in Great Yarmouth. Although Mr Miliband’s answer included a policy statement about Climate Change, he did confirm the Labour party’s commitment to renewable energy in particular offshore wind. This statement will be followed up by us on key areas of concern that we have relating to the local energy sector and to establish Labour’s positioning on these.

Mr Miliband answered many questions on the NHS, housing, benefits and immigration but there were only a couple of questions from business, maybe that was because there were very few businesses in the room and I would suspect there were few businesses invited. It is essential that business has the opportunity to influence all parties’ agendas as we move swiftly towards May 2015. Although businesses do not have the vote, it does not mean that we do not have a voice as in the end it is business that drives the economy and creates jobs whichever party is in power.

Ed Miliband showed great passion on the stage, now we need to ensure that he becomes passionate about Norfolk and fully understands our needs. We will follow up his visit to Great Yarmouth with direct correspondence with Mr Miliband and through the British Chambers of Commerce.

Within the last three weeks, Norfolk Chamber and its members have been able to have one to one conversations in Norfolk, with the Prime Minister, David Cameron, Secretary of State for Business and Innovation& Skills, Vince Cable MP, Leader of the Opposition Ed Miliband and the Secretary of State for Transport, Patrick Mcloughlin. Norfolk has become more visible and we need to ensure that we maximize this opportunity to make our requirements as a business community heard loud and clear.

The Norfolk Chamber’s theme for 2014 and 2015 is ‘Look at Norfolk. See Success’ I feel we are definitely starting to make our Westminster politicians understand the great potential that we have here in Norfolk.

The Barton Mills to Thetford stretch of the A11 dualling was finally opened today. Secretary of State for Transport, Patrick McLoughlin performed the opening ceremony, which was attended by business leaders from Norfolk and Suffolk, together with local MPs.

Campaigning for the dualling of the A11 started 30 years ago in 1984 and today the hard work by both Norfolk & Suffolk Chambers, the business community and the local authorities and MPs paid off with the opening of the newly dualled section ahead of time and ahead of budget.

Caroline Williams, Chief Executive, Norfolk Chamber of Commerce:

“The Norfolk Chamber network is known for its tenacious nature and today we see the result of many years of lobbying. The A11 dual carriageway is not just a road but a symbol that Norfolk is very much open for business. £600 million is the figure estimated to be delivered in economic benefits due to the improved connectivity which the A11 will bring. All sectors across Norfolk will benefit enabling new jobs, housing and business investment. This is a great day for Norfolk but is very much the beginning of a new chapter rather than the end”

Also commenting on the opening of the A11, Ian Hacon, Founder, Yellowbrick Road Solutions Ltd said: “The completion of the dual carriage between Norwich and Cambridge represented a major milestone in the previously neglected Norfolk Infrastructure. The reduction in journey times to both Cambridge and London and will be major economic driver for the whole country, in particular along the A11 corridor in places like Thetford. For us as a new start business in the east of the county with Cambridge and London as key markets for our services, this improvement will make access to these markets much easier, cheaper and journey times more certain.”

Whilst the A11 was a much needed improvement, Phil Harris, Managing Director, Norcom Technology Ltd commented that there was still more work to be done. He said: “With the opening of the A11, Norfolk will no longer be seen as a ‘sleepy back water’ which is difficult to get to. It clearly sends out a message that Norfolk is open for business. Improvements to Norfolk infrastructure should not stop here. A reliable and upgraded rail improvements is still badly needed, road improvement from Great Yarmouth are vital with the expansion of the offshore renewable sector and all areas in Norfolk need superfast broadband to be part of the digital age.”

Jonathan Cage, Managing Director, Create Consulting Engineers Ltd highlighted the opportunities that Norfolk businesses need to take advantage of. “Norfolk today finally gets taken off the life support system, with its main artery being connected to the rest of the transport network, the business community now needs to get into urgent training to make the most of this significant upgrade in our health and wellbeing, ensuring that we not only win future sprints, but also compete both nationally and internationally on the marathon circuit.”

On a blustery winters morning over 90 delegates joined us for a morning of festive fun and a delicious breakfast at Sprowston Manor on 11 December.

The morning was started off by our featured Charity and host for the breakfast Carol Plunkett, East Anglian’s Children’s Hospice talked a little bit about all the hard work they do and their new hospice The Nook, which is being built in Poringland, Norwich.

Carol then took the delegates through a packed morning full of activities to get them talking and making new connections. The first was ‘Christmas Anagrams’ which really got the delegates brains thinking with 62 Christmas words that had been jumbled up which they had to decipher. This was followed by a delicious breakfast and more networking around the tables as they eagerly anticipated the winner of the activity.

The networking didn’t stop at breakfast either as they then went straight into a ‘Christmas Movie Quiz.’ We then had Safari Networking to give delegates a whole new table to tackle the next challenge of ‘Christmas Song Scramble’ where they had to work out 10 Christmas songs from jumbled up lyrics.

It was a perfect way to close 2014 with fun, relaxed informal networking and some Christmas songs.

Our next breakfast in Norwich is on Friday 27 February. Join us for a morning of business networking over a delicious breakfast and hear from new Chief Executive Jeff Henry on the ever changing world of media. For more details or to book your place, please click here.

The British Chambers of Commerce (BCC) has downgraded its UK GDP growth forecast for 2014 from 3.2% to 3.0% in 2014, but this figure still represents the fastest growth experienced by the British economy since 2007. The BCC has also revised down its growth forecasts for the following two years from 2.8% to 2.6% in 2015 and from 2.5% to 2.4% in 2016. This is largely due to slower than expected growth in services, household consumption and exports and weaker than expected GDP growth in Q3 2014

BCC Director General, John Longworth, says that while we welcome the strong 2014 growth indicated by the forecast, he believes the downgraded forecast is an ominous warning sign and urges the government to waste no time in addressing key areas that are holding back good firms, such as access to capital to grow their business.

ECONOMIC FORECAST – OVERVIEW

• The BCC is lowering its UK GDP growth forecast from 3.2% to 3.0% in 2014, from 2.8% to 2.6% in 2015, and from 2.5% to 2.4% in 2016.
• The downgrades are mainly due to lower than expected growth in services, household consumption and exports.
• A slightly lower starting point of the new forecast, due to weaker actual GDP growth in Q3 2014 than previously predicted, also contributed to the downward revision.
• Quarterly GDP growth is expected to remain at 0.7% in Q4 2014, followed by a slowdown to 0.6% per quarter from Q1 2015 onwards
• Though household consumption and services output are forecast to grow more slowly than predicted in Q3, they will be the main contributors to GDP growth in the next few years.
• Strong business investment is predicted with growth of 7.5% in 2014, 7.5% in 2015 and 7.4% in 2016.
• UK interest rates are expected to rise to 0.75% in Q3 2015, two quarters later than in the Q3 forecast.

Commenting, Caroline Williams, CEO of Norfolk Chamber said:

“Despite the slightly lower growth prediction, Norfolk businesses continue to strive to deliver economic growth to our region. The latest Norwich Economic Barometer highlighted that East Anglia’s fastest growing medium-sized businesses have combined sales of £3.9bn, which helps underscore their value to the local economy. Falling unemployment rates, the recent news regadign investment in the A47, the Eastern Mainline and the opening of the A11 will help boost the confidence of the Norfolk business community.

Commenting, John Longworth, Director General of the BCC said:

“Although this updated forecast slightly lowers our growth predictions, it also confirms that Britain will be one of the fastest-growing developed economies as we close out 2014. This is a great achievement, and businesses up and down the country should be congratulated for their hard work and resolve to drive the recovery in the face challenges and uncertainty both at home and abroad.

“However, there is no reason why a 3% growth rate should be the height of our ambitions. Downgrades to our growth forecast are a warning sign that we still face a number of hurdles to securing a balanced and sustainable recovery. A number of headwinds from the global economy are also having a real impact on British businesses. The eurozone is weak, with a real risk of deflation, growth in emerging markets has slowed and political uncertainty in Ukraine, the Middle East and elsewhere is affecting business and consumer confidence. Uncertainty in the economy generally affects consumer confidence as does the spending and debt cycle.

“Our dependence on consumer spending and mortgages means that the UK economy is particularly sensitive to interest rates. Any short-term rate rises could present a huge risk to our economy. With UK exports broadly flat, it is crucial to reassess the UK’s overall export growth strategy and the support available to existing and potential exporters.

“Nonetheless it is encouraging to see that British businesses aren’t backing down from their expansion and investment plans, despite the uncertain economic backdrop. We must continue to support these businesses as they invest, grow, innovate and export. A sustainable, well-balanced economy can only be achieved if there is commitment from all political parties to long-term strategic planning, rather than the political short-termism that has plagued British growth prospects for too long.”

David Kern, Chief Economist at the BCC, said:

“Our GDP forecasts are slightly lower than in Q3, but overall the prospects are still positive. Although we expect a slowdown in the pace of expansion, UK growth in the foreseeable future will be stronger than in the eurozone, including in Germany and France. British business investment has recovered in recent years and we expect steady increases in the share of investment in GDP. But there are still some areas of concern – UK trade deficit continues to grow and the current account deficit is dangerously large.

“In the short term, the main concern for the UK is a continuation of the slowdown in recent months. A deceleration in growth may be unavoidable, given the weaker trends in the global economy, particularly in the eurozone. However, it is important to counter the impact of these downward pressures by maintaining low interest rates and pro-business policies, in order to minimise the risk of the recovery stalling. In the longer term the key structural risks facing the UK are persistent low productivity and the twin fiscal and trade deficits. Unless these issues are addressed resolutely, they could undermine Britain’s future credibility.

“Despite stronger than expected economic growth, the UK’s ability to generate tax revenues has deteriorated – due to weak earnings, the decline in oil and gas output, as well as big profit reductions from financial institutions. The UK must now persevere with the difficult job of cutting the deficit, while focusing on policies that support higher productivity.”

OTHER ELEMENTS FROM WITHIN THE FORECAST

Main components of demand

• Growth in household consumption is forecast to strengthen initially to 2.2% in 2014, and to 2.4% in 2015; it will then slow markedly to 1.9% in 2016. These new forecasts are lower than in Q3.
• The new forecast predicts continued strong positive growth in UK business investment – 7.5% in 2014, 7.5% in 2015 and 7.4% in 2016.
• The real net trade deficit will fall from 2.2% of GDP in 2013 to 1.8% in 2016, while the net deficit in current prices will fall from 1.9% of GDP in 2013 to 1.2% in 2016. As in recent years, future improvements in total net trade will be largely due to a higher trade surplus in services.

Main sectors of the economy

• The services sector is forecast to record growth of 3.2% in 2014, 2.9% in 2015, and 2.7% in 2016, slightly lower than predicted in the Q3 forecast. The share of services in total UK output is likely to rise further in the coming years.
• Total industrial output is predicted to record growth of 2.3% in 2014, 1.5% in 2015 and 1.6% in 2016.
• Manufacturing output: The new forecast predicts positive manufacturing growth of 3.5% in 2014, 1.8% in 2015 and 1.8% in 2016.
• Construction output: In full-year terms, we predict construction output growth of 4.9% in 2014, 1.9% in 2015 and 1.6% in 2016.

Official interest rates

• The first increase in UK official interest rates, to 0.75%, is forecast to occur in Q3 2015, two quarters later than we previously predicted.
• Further modest increases in official rates can then be expected, in small 0.25 percentage point steps, with official interest rates reaching 1.00% in Q4 2015 and 1.75% in Q4 2016.

Unemployment and productivity

• The new forecast predicts that the UK unemployment rate will fall from 6.0% in Q3 2014 to 5.6% in Q3 2015, 5.2% in Q3 2016 and to 5.0% in Q3 2017. These jobless rates are slightly higher than those we predicted in our Q3 forecast.
• UK jobless total is expected to fall from 1.959 million in Q3 2014, to 1.839 million in Q3 2015, 1.749 million in Q3 2016, and to 1.669 million in Q3 2017, a net overall fall in total unemployment of 290,000 over the next 3 years.
• Total youth unemployment (people aged 16 to 24) is predicted to fall from 737,000 (a jobless rate of 16.2%) in Q3 2014, to 533,000 (a jobless rate of 11.9%) in Q3 2017, a net fall of 204,000.
• UK productivity is now considerably lower than before the financial crisis. The forecast envisages that productivity will remain weak in the next few years, increasing at a pace that is slower than before the financial crisis.

Public finances

• UK public finances: The OBR forecast, outlined in the December 2014 Autumn Statement, acknowledges that cutting the fiscal deficit will be more difficult and take longer than previously estimated.
• While the OBR is forecasting that UK public sector net borrowing would move into a small surplus in 2018/19, the forecast shows that achieving this aim would take 1-2 years longer.

Inflation

• In annual average terms, annual CPI inflation is forecast for 1.5% in 2014, 1.2% in 2015 and 1.8% in 2016.

Small business leaders are more likely to seek business advice from family and friends than they are to ask for help from a professional, according to a new survey.

The research carried out for Growth Vouchers – a Government programme that helps businesses towards the cost of professional advice in areas including finance and cash flow, management skills and sales & marketing – found that 81% of decision makers in the East of England have approached someone in their personal life for help, compared to 57% who have taken advice from a professional.

This is despite 37% of business leaders in the East of England saying they are most likely to trust guidance from a professional above other sources of advice.

Furthermore, 19% of small business leaders said they would gain from some form of professional advice, with sales and marketing reported as the area that most businesses think they would benefit from support in (35%). This is closely followed by making the most of digital technology, which 27% of business leaders said they would benefit from advice on.

Expense was highlighted as the most common reason why people do not seek professional business advice. Of the small business decision makers surveyed, 56% of those who have taken advice from friends and family said they did so because it was free; and 25% that haven’t taken professional advice felt that it is too expensive.

Other barriers to accessing professional advice were not having the time (reported by 21% of respondents) and not knowing how to access advice (reported by 11% of respondents)

Business Minister Matthew Hancock said: “Expert business advice is incredibly important for many of the UK’s smaller firms and helps make sure they reach their potential. We know professional advice can be costly and that there is a lot of choice out there, so we are simplifying the Government’s businesses support schemes to make it easier to find and access the right support at the right time. This is all part of our plan to make the UK the best place in the world to start and grow a business.”

Shirley Gabriel, Growth Vouchers Adviser, Siz Marketing commented: “It’s great that our small businesses are talking about growth and development. They are a vital part of the East’s economy and, as they grow, they create jobs and benefit the community.

“I realise that small firms are unlikely to have huge budgets for professional business advice, but the Government’s Growth Voucher programme can help them bridge this gap and access the wide range of strategic support available. I’d urge all business owners in the East of England to consider applying for a Growth Voucher to help them take their business to the next level.”

Small businesses must be based in England and employ fewer than 250 staff in order to be eligible for a Growth Voucher worth up to £2,000 to cover half the cost of professional advice.

For more information on Growth Vouchers and how to apply, visit https://www.greatbusiness.gov.uk/growthvouchers/

Commenting on the announcement of a new Careers and Enterprise Company by Education Secretary Nicky Morgan, Caroline Williams CEO Norfolk Chamber, said:

“The gulf between the world of education and the world of work has never been wider, with far too many Norfolk firms saying that young people are unprepared for work due to inadequate careers advice.

“Nicky Morgan is absolutely right to be focusing the government’s attention – and real financial resources – on the critical transition from school to the workplace.

“However, business does not want to revert back to the old, tired form of careers advice in schools that served our young people so poorly for decades. The government’s Careers and Enterprise Company needs to focus on getting businesses into the heart of our schools, so that young people can make informed choices as they enter the world of work. Its investments should seek to ensure that all schools, not just a self-selected few, work hand-in-hand with local firms to inspire and inform young people about their career options.

“As a Chambers of Commerce we already play a pivotal role linking businesses with schools. The gap between education and business is wide, but we are committed to bringing them together – so that young people can aspire to great careers, and so that Norfolk firms can get the local talent they so desperately need.”

• Manufacturing output in October 2014 was down 0.7% on the month, but up 1.7% on the year
• Total industrial production in October 2014 was down 0.1%, but up 1.1% up on year

Commenting on the manufacturing and industrial figures published today by the ONS, Caroline Williams CEO Norfolk Chamber said:

“The decline in manufacturing output is disappointing and larger than expected. Although longer term comparisons still show positive growth, the pace of expansion is clearly slowing. Manufacturing exporters in particular are facing difficult challenges, which have become more acute due to stagnation in the eurozone.

“While total UK GDP is now well above its pre-recession level, these latest figures show that industrial production output nationally has not yet recovered fully.

“Despite manufacturing accounting only for just over 10% of total UK output, the sector remains an important driver for economic growth, and is critical to securing a balanced UK recovery. In spite of the challenging international backdrop we are making every effort to ensure that enterprising manufacturing firms are given the tools to invest and export.

Today Norfolk Chamber are holding an event on how to ‘Expand into Hong Kong’ which is a major trading and financial hub in Asia. On 20th January we have a similar event concentrating on Nigeria which as of 2012 is the second largest market within Africa. There is significant support available to any Norfolk company who either wants to investigate exporting for the first time or would like to look at new overseas markets. A wealth of information aimed at exporters can be found on our intenational trade section.

Commenting on a new report titled ‘Avoiding the same old mistakes: Lessons for reform of 14-19 education in England’ published today by the IPPR, Caroline Williams CEO Norfolk Chamber of Commerce, said:

“The IPPR is right to call for greater employer engagement in education and for an improved vocational education and training system. This will help to ensure that young people are given the right technical and soft skills to secure a job and work their way up the ladder.

“The Chamber Network, which has both schools and further education colleges in our membership, is already playing a crucial role strengthening local connections to build sustainable relationships between education and business.

“The recent British Chamber of Commerce’s Workforce Survey 2014 ,which included many Norfolk members, found that many firms think young people are unprepared for work, with 76% citing lack of work experience as a key reason. However, more than half of businesses (52%) say they don’t offer work experience placements. I have never come across a business who is not passionate about helping Norfolk young people but there needs to be simple solutions in order for them to get started. N4J in which the Norfolk Chamber members have played a role, has already had a significant impact on youth unemployment but every young person not in work is a loss on a personal and economic level.

“In the BCC Business Manifesto 2014/15 a number of measures have been proposed to better prepare young people for work and to encourage companies to play a greater role in preparing the next generation of workers. In practice, this means introducing business governance into schools, proper careers advice with direct links to business, and measuring the success of schools and colleges based on the employment outcomes of pupils.

At the BCC Chambers CEO Round table last week in Harrogate we all agreed to share best practise on work we were doing in our local areas to support young people, under the Young Chamber brand, to enable the Chamber Network to really have an impact at a local level which is a very exciting new development”