Chamber News

• The BCC’s Workforce Survey highlights that 92% of businesses have identified a skills shortage among their workforce in at least one key area
• Most common skills shortages are leadership and management, planning and organisation, languages, computer literacy and creativity
• 80% of businesses surveyed have plans to invest in training. 39% plan to invest more than £500 per staff member
• Cost, staff availability and a lack of suitable courses remain key barriers for businesses looking to invest in training

Overview

The British Chambers of Commerce (BCC) is calling on businesses of all sizes and in all sectors in the UK to invest in workforce training as a key driver for economic success and improved productivity performance.

Today (Wednesday) the business group is publishing further findings from its 2014 Workforce Survey:Training and Skills, which show that an overwhelming majority of firms (92%) have identified a skills shortage among their workforce in at least one key competency. Results from the survey of nearly 3,000 businesses from across the UK suggest the most common skills shortages are leadership and management, planning and organisation, languages, computer literacy and creativity.

In order to address these skills gaps, most respondents (80%) have indicated plans to invest in training their workforce over the next 12 months. The majority of businesses strongly agree (78%) that training is worthy of investment as a driver for growth and improving productivity performance, with large businesses most likely to strongly agree (90%). Four in ten firms (39%) plan to invest more than £500 per employee in external training over the next year. However, the major barriers to training investment are: cost (50%), freeing up staff to participate in training (31%), and a lack of suitable courses (19%).

Companies looking for guidance on appropriate training courses are turning to private training providers, (71%) sector based bodies (38%) and further education colleges (35%) to source and deliver training, frequently brokered by local Chambers of Commerce.

Key findings from the survey:

• Companies report that communication skills (83%), teamwork (82%) and customer service (72%) are important skills they look for when recruiting. Encouragingly, less than one in five firms report a shortage in these areas.
• Around a third (33%) of businesses say they have a skills shortage in leadership and management and planning and organisation (26%), which businesses recognise as core skills relating to commercial development. Firms also report a skills shortage in languages (35%), computer literacy (23%) and creativity (20%).
• In terms of future investment plans, more than a third of companies (41%) plan to invest up to £500 per employee in external training, while a similar proportion (39%) plan to invest a higher amount.
• Businesses within the energy, mining and utilities (59%), education (50%), IT and telecoms (48%) sectors are most likely to invest more than £500 per employee in training.
• Micro firms (those with nine or less staff) intend to invest in training over the next 12 months. 35% have earmarked more than £500 for each employee.
• The type of training being invested in varies, but for the majority it is on-the-job training (78%).More than half of companies have invested in health and safety (59%), first aid (56%) and technical / job specific training (56%).
• Within a firm, the overall workforce tends to receive one to five days training per annum, with 65% offering that amount. Newer members of staff (under one year) often receive more training – 34% receive one to five days, 26% receive five to 10 days and 16% receive 11 to 20 days.

Commenting, Nora Senior, President of the British Chambers of Commerce (BCC), said:

“Businesses recognise that investing in training can drive higher productivity and increased profits. In addition to specialised training, however, our findings make it clear that investment in leadership and management skills are crucial to enhance strategic thinking, foster innovation and motivate a firm’s employees.

“It is good to see that most businesses are taking a proactive approach by investing in their existing workforce. Four in ten tell us they are planning to invest £500 or more per member of staff to address skills shortages. Yet we need far more companies to reach this level, which will only happen if we break down the barriers to investing in training.

“Long-standing complaints around the cost of training, a lack of suitable courses, and staff availability – since people are needed at the front line – remain important issues. To ensure that even more businesses can invest in training, which in turn will drive higher wages, we need to improve dialogue between firms and the organisations that offer training – so that companies find training that is relevant, cost-effective and a good fit with staff working hours.

“Accredited Chambers of Commerce provide objective advice to employers on appropriate local training providers, and help negotiate lower costs through group purchasing. Many also offer direct, business-to-business training themselves. Governments seeking to promote investment in the UK’s workforce should work with Chambers to ensure that investment in training continues to grow.”

Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said: “Over the years, many of our members have reported skills shortages, particularly in the manufacturing and engineering sectors, where the existing skilled workforce is now starting to age and finding new talent is a challenge. The latest Workforce Survey highlights this case and shows why Norfolk employers are investing more in up-skilling their existing staff and turning towards apprenticeships to help fill the skills gaps.

Apprenticeships are becoming an increasingly popular route for many young people and this will also benefit employers seeking to ‘grow their own talent’. However more work needs to be down to ensure that employers’ links to schools are strengthened and young people are aware of the alternative routes to employment.”

• In the three months to September 2014, employment rose by 112,000 compared with the previous three months
• Unemployment fell by 115,000 compared with the previous three months
• The unemployment rate was 6.0%, down from 6.3% in the previous three months, and the lowest since late 2008
• Youth unemployment was 16.2%, down from 16.9% in the previous three months
• Pay including bonuses was 1.0% higher than a year earlier, while pay excluding bonuses was 1.3% higher than a year earlier

Commenting on the latest labour market statistics for November 2014, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“These figures highlight once again that the UK labour market remains strong, and that the pace of economic growth continues at a steady pace. Pay rises have increased but remain weak, and living standards are still under pressure. Despite this, these figures suggest that there is considerable scope for the economy to continue expanding steadily. Both the MPC and the government must make every attempt to counter signs of a slowdown – and next month’s Autumn Statement will be an opportunity for the government to take bold action and support growth and enterprise.”

Employment Minister Esther McVey said: “Record numbers of people in work means more people with the security of a regular wage who are better able to support themselves and their families. “With the vast majority of the rise in employment over the last year being full-time, it’s clear that thanks to the Government’s long-term economic plan, we are helping businesses to create the jobs that people need.

“The East of England has the joint highest employment rate of all the UK regions at 76.5% with 49,000 more people in work compared to this time last year, so as the economy continues to grow, more and more people are having their lives transformed by moving into work.”

Caroline Williams CEO Norfolk Chamber of Commerce said: “These figures confirm what our members are telling us is that they are quietly confident about the future. They are starting to take on new staff to provide them with additional resource to be able to take advantage of the new opportunities which are available to them. It is however still a tough economic climate and the Chancellor needs to give this region a boost by listening to the Norfolk business voice and investing in our infrastructure road, rail and broadband”

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ABP’s Port of King’s Lynn has teamed up with the Norfolk Chamber of Commerce to offer port companies a year’s guest membership in one of the biggest business networks in the country. As well as a thank you for their business, the scheme aims to give the port business community a bigger voice. The ABP Ports in East Anglia contribute £340 million to the UK economy each year and support over 5,000 jobs nationally. With a Chamber of Commerce membership, businesses will be able to expand their reach and influence in professional networks and grow their business support services. James Cooper, ABP Chief Executive, said: “We take our responsibility to contribute to the economic wellbeing of the region seriously. One of the best ways to do that is to support our customers to make the connections they need to become even more successful. “By making their voice heard and taking part in the business life of the region, they will also have the chance to play a part in making our region a better place to do business. And that’s something we can all benefit from.” The Norfolk Chamber of Commerce offers members a multitude of services including: lobbying at local and national levels, support for key business functions at a discounted rate and connection and networking opportunities for their business. Each local Chamber of Commerce is run by and for their members offering a dedicated focus on improving conditions for local business members. Caroline Williams CEO Norfolk Chamber of Commerce said: “It has never been a more important time for the business community to work together to do better business and to ensure their collective voice is heard by local and national government. We very much look forward to working closely with ABP and their customers through this very innovative scheme.” To request a brochure or to find out more information please call 01292 670144 or email bccmembershipoffer@abports.co.uk and quote ‘ABP Guest Membership Offer’.

Today (Wednesday) the British Chambers of Commerce (BCC) has published its Autumn Statement submission, calling on the government to introduce new measures to accelerate the progress of infrastructure projects that are critical to businesses, both locally and nationally.

Ahead of the Chancellor’s announcement on 3 December, the BCC is urging the government to enhance the compensation and incentives available to those affected by nearby infrastructure projects such as rail and housing, and commit funding to repair deteriorating roads over the next five years.

THE BCC’S SUBMISSION TO THE CHANCELLOR PROPOSES THE FOLLOWING:

• Boost incentives for local communities to help accelerate the delivery of urgent housing developments. Under the proposal, neighbourhoods would be allowed to claim a share of the revenue generated by the New Homes Bonus, and the proportion of Community Infrastructure Levy revenues currently earmarked for local communities would be doubled. This additional funding could be placed in a local development fund to improve neighbourhood services and amenities.
• A one-off investment to bring the UK’s local road network back to a ‘reasonable condition’. Although a recent survey1estimated the cost of returning the roads of England and Wales to a ‘reasonable condition’ at £12bn, just £6bn is currently expected to be invested during the next parliament. Under the BCC’s proposal, an additional £1.2bn in annual current expenditure over the life of the next parliament would be allocated to close this road maintenance funding gap.
• Increase the compensation for people required to sell their home to make way for infrastructure projects. The current compensation (100% of the property’s open market value) offered to people subject to a compulsory purchase order is inadequate by international standards, and leads to unacceptable delays in the infrastructure planning process. The BCC therefore proposes to increase compensation to 150% of the open market value of the property. This will better distribute the benefits of the development to those directly impacted and match international best practice.

Caroline Williams, Chief Executive of Norfolk Chamber said:

It is the business community that will deliver jobs and economic prosperity in Norfolk, we all need to continue to work together to ensure that the Government understands how vital the infrastructure improvements are to Norfolk’s economic wellbeing. Norfolk Chamber, the business community and our MPs have been very successful so far in highlighting the business case for improvements to the road and rail infrastructure in Norfolk.

In particular Norfolk Chamber has been lobbying hard for road improvements to the A11/A47 Thickthorn junction; dualling between Blofield and Burlingham; and the Vauxhall junction at the end of the Acle Strait. We have also been actively involved in highlighting the business case of investment in the rail service from Norwich to London via the Great Eastern Rail Campaign. And are working hard to get broadband and mobile coverage improved.

Greater accessibility is key to ensuring that the Norfolk business community can compete on a national level and infrastructure improvements in Norfolk will open up opportunities for local businesses to deliver more economic growth, housing and jobs for our County.

The case for accelerating the delivery of infrastructure projects:

• The UK is trailing the rest of the world in infrastructure development. According to the World Economic Forum’s 2014-15 Global Competitiveness report, the UK is ranked 27th for overall quality of infrastructure – the second worst in the G7.
• The current pace of infrastructure delivery is unlikely to meet the demands of consumers and businesses in the future. The UK’s National Infrastructure Plan has identified approximately 650 projects required by 2030, costing £375bn, but many of these remain on the drawing board or are progressing at a glacial speed.
• Businesses are dismayed by the lack of urgency in delivering infrastructure projects that are critical to future economic growth. Successive governments have failed to introduce measures to improve the UK’s international connectivity through new aviation capacity, deliver promised investments in road and rail schemes, and help to secure long-term energy security.
• Current delays in the planning process of infrastructure projects are costing taxpayers. Delays to the construction of the A12 Hackney to M11 link road are estimated to have increased the cost of the project by 100%. In 1994, the cost of building Crossrail was expected to be £1.55bn, but it was subject to delays as opponents questioned the business case. When construction finally commenced in 2009, the cost had increased to £14.8bn.

AN INTERNATIONAL COMPARISON:

• France – has long used a compulsory purchase order compensation scheme similar to the BCC’s proposal for the Autumn Statement, and delivered the TGV Sud Est in 10 years, from initial studies to the first part of the line opening. According to the World Economic Forum’s 2014-15 Global Competitiveness report, France is ranked 10th for overall quality of infrastructure, compared to the UK in 27th position.
• Spain – the high speed rail lines between Madrid-Barcelona and Madrid-Sevilla took 10 years from conception to operation.
• UK – the first section of the UK’s HS2 rail project will open in 2026, if there are no delays to legislation or construction.

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

“Infrastructure is at the core of British business – underpinning confidence, orders, jobs and competitiveness – but faces an alarming challenge in the coming years. A failure to invest in capacity and maintenance is hampering business growth and costing jobs. Too often, decisions on infrastructure are taken in the short-term interests of political parties rather than in the country’s long-term economic interest.

“Businesses across the country want to see more urgency in delivering infrastructure projects, and in turn they will deliver growth. The Chancellor’s Autumn Statement is a great opportunity to introduce targeted measures that unlock the roads, housing, rail links and energy developments businesses want.

“A world-class economy needs world-class infrastructure, and businesses need certainty that crucial improvements will actually be delivered and in a timely manner. Our proposals will help the UK become better at delivering the kind of infrastructure that will be an economic game-changer in the long term.”

Commenting on the government’s plans to improve mobile phone coverage across the UK, Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:

“Norfolk Chamber welcomes the proposed Government consultation on mobile coverage. At present Norfolk suffers from either a poor mobile service or no mobile service. This can seriously affect the ability of SME businesses in our county, especially those based in more rural or isolated areas, to compete on a national level with other businesses who currently benefit from decent mobile coverage.

Even when the ‘not-spots’ are reduced, it will still mean that good quality coverage will not be available across the whole of Norfolk. Further investment is needed and the Norfolk Chamber, together with the local business community, will continue to lobby the Government and the mobile phone operators to achieve this.”

Also commenting on the Governments plans, Adam Marshall, Executive Director of Policy and Public Affairs at the British Chambers of Commerce said: “Erasing mobile phone ‘not-spots’ is a priority for frustrated rural and urban businesses. Increasing mobile coverage throughout the UK is in the interest of businesses, residents and the nation as a whole. We are baffled that any government department would attempt to stop others from seeking solutions to this persistent problem.”

• Unlocking £4.5 billion economic potential – Great Eastern Rail Report goes to Government

After months of campaigning, involving support from Norfolk Chamber members, thousands of rail passengers, businesses, local authorities, MPs and education leaders across Norfolk, Suffolk and Essex, the Great Eastern Main Line Report has been submitted to Government.

Heralded as a ‘once in a lifetime opportunity’ the report calls on the Chancellor to invest millions of pounds and bring a ‘massive vote of confidence to the region’. It details the key improvements needed to bring better, faster trains and deliver a journey time of ‘Norwich in 90 minutes’. And a robust economic case explaining why the improvements are vital to the region.

It also includes a letter signed by more than 100 of the most senior business and education leaders in the region, representing over 111,000 employees and students. Over 1,600 rail passengers have also joined the online campaign.

The key highlights of the report include:

• A call for £476million investment to improve infrastructure
• Which will deliver up to £4.5bn wider economic benefits
• Unlocking an additional £1.3bn in capital investment along the route.
• With journey time savings of £9m per year

It also asks Government for new rolling stock to be included in the new rail franchise tender to be announced in 2015.

The report identifies the Great Eastern Main Line as the ‘golden thread running through our economy’. It states: “Modern economies need high-quality rail infrastructure to support and sustain growth and to help businesses compete and win in global markets. The Great Eastern Main Line is no exception. We need the rail service to serve our ambitions not to stifle them.”

In a letter to the Chancellor accompanying the report, Mark Pendlington, chair of New Anglia LEP and Chloe Smith MP, both joint chairs of the Great Eastern Main Line Rail Taskforce make a plea on behalf of East Anglia:

“Your decision for this Autumn Statement is simple: We ask you to confirm the infrastructure improvements needed to unlock the economic potential of the region through faster more reliable services; and provide for new rolling stock on the Great Eastern Main Line for better journeys.”

“Over the next decade our region will experience considerable housing, employment and economic growth leading to some of the fastest rates of passenger growth in the country. Our economy, built on the success of innovative and dynamic businesses is also growing and carries even more potential.”

“We could be the California of Europe, yet we have some of the oldest trains in Britain. Our rail service is over-crowded, the infrastructure not resilient to failures. It is as quick to go 225 miles over land and sea from London to Brussels as it is on the train to Norwich, over half the distance. We can’t go on like this.”

Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said: “Norfolk Chamber, together with Suffolk and Essex Chambers of Commerce are fully in support of the Great Eastern Rail Campaign. Improvements to rail infrastructure in Norfolk has lagged behind the rest of the UK for many years and action is needed to change this position. To ensure Norfolk businesses remain competitive and create jobs, we need a faster more reliable rail service between Norwich and London. This will help enable the Norfolk business community to deliver economic growth and jobs into our region.”

Notice is hereby given that the 118th Annual General Meeting of the Norfolk Chamber of Commerce & Industry will be held at the Dunston Hall Hotel, Ipswich Road, Norwich on Friday 28 November 2014. Registration will be at 10:00am, for meeting commencement at 10:15am.

Please see attached for all papers relevant to the meeting.

The October edition of the Norwich Economic Barometer is here! Below are highlighted a few of the key points from this edition:

• The ‘jobs gap’ since the start of the recession has finally closed as Britain’s recovery reaches an important milestone.
• The ONS has revised UK economic growth in the second quarter from 0.8 per cent to 0.9 per cent, as both the dominant services sector and construction enjoyed growth.
• Regional accountancy practice Larking Gowen will employ more than 300 staff and 22 partners across nine offices.
• Norwich-based chocolate maker Gnaw has formed a partnership with a distributer, Blakemore Fine Foods, to enable both firms to boost business with UK retailers.
• Commercial development activity picked up in September although developers have become more cautious.
• Business activity in the region’s private sector grew in September at the fastest rate since 1997, according to a survey of purchasing managers.
• East Anglia’s fastest growing medium-sized businesses have mounted combined sales of £3.9bn, according to new report underscoring their value to the local economy.

To read the full report on the Norwich Economic Barometer, click here.

Norfolk’s economy is expected to see a boost over the next week as shoppers flock to the High Street to prepare for what has become one of the biggest nights of the year. Retailers predict a bump in their autumn profits, and Norfolk traders will be taking full advantage as October 31 falls in the half term holidays.

And with more and more events lined up around the region, experts are confident the combined boost of Halloween and school holidays will be frighteningly good.

Nova Fairbank of the Norfolk Chamber of Commerce said: “Halloween now has one of the largest retail spends after the Christmas period and many Norfolk retailers are capitalising on this. However as Halloween invariably falls within the half term holidays, it is quite hard to differentiate between increased retail spending as a result of half term and spending specific to Halloween.”

Richard Marks from John Lewis, Norwich is one of our Chamber members, Richard said “John Lewis is expecting a boost in sales for gift food and Halloween novelty items during the week.”

And another Chamber member, Vicky Merrison, Marketing Manager from Castle Mall Shopping Centre said “Footfall was up this time last year in the centre, helped by the Spooky City Parade, our own Halloween activities and the children’s half term. We would expect the footfall this year to be level with last year.”

More of Norfolk’s attractions are pulling out all the stops for Halloween, including the Horrible History Trail in Sheringham Park, who are putting on shows, talks and walks with a spooky theme. There will be more people taking on what’s on offer in the city and anything that contributes to the vitality and vibrancy of the city centre is always going to be a positive thing.

As of Friday 07 November 2014 there will be some major changes to the roads in Norwich City Centre. The work will ensure that there will be major improvements to the prime shopping streets of Norwich, just in time for the Christmas Shoppers to feel the benefit. It will also be a big step forward for public transport by improving bus reliability and cutting journey times.

The changes include:

Friday 07 November, permanent changes will be made to remove most of the traffic from St Stephens Street, Rampant Horse Street and part of Surrey Street.

After the morning rush hour on Monday 03 November, new traffic signals at Grapes Hill roundabout will be switched on. This will be the means of access to Chapel Field North, Chapel Field East, and Theatre Street/Rampant Horse Street.

During the evening on Monday 03 November, at 7pm, a temporary road closure will be implemented on Rampant Horse Street (outside Marks and Spencer and Debenhams), to enable the construction of new traffic islands.

During this time no traffic will be able to proceed from Westlegate into Rampant Horse Street – you would need to turn right into Red Lion Street. This means that access to and from Chapel Field North, Chapel Field East, Theatre Street, Rampant Horse Street and all other roads will be via Grapes Hill Roundabout at its new junction with Chapel Field North.

During this closure, no traffic will be able to proceed from Rampant horse Street to red Lion Street or vice versa. The closure will remain in place until the morning of Friday 07 November, after which time only buses and taxis (and cyclists) will be able to proceed from Rampant Horse Street to Red Lion Street or vice versa; this will be the final access arrangements here.

On Tuesday 04 November to Thursday 06 November, completion of the works on Rampant Horse Street will be carried out.

From the morning of Friday 07 November, St Stephens will only be available for buses, taxis and cyclists, with access for general traffic to Red Lion Street via Westlegate: this will be the final access arrangement.

Westlegate will remain open throughout the final week of works, with a single lane and the right turn only onto Red Lion Street; this will be the final access arrangements here.

Full details of all the works can be found by accessing the following web page:

www.norfolk.gov.uk/citychanges

Twenty Four European banks have failed ‘stress tests’ of their finances, the European Banking Authority (EBA) has announced. The banks now have nine months to shore up their finances or risk being shut down. The review was based on the banks financial health as at the end of 2013. Ten of those banks have already taken measures to bolster their balance sheets. All the remaining fourteen banks are in the Eurozone.

The good news is that none of UK banks involved in the financial health-check failed the test. The four UK banks that were subject to the EBA test were: Royal Bank of Scotland, HSBC, Lloyds Banking Group, and Barclays.

Caroline Williams, CEO of Norfolk Chamber of Commerce said: “As the UK banks passed their ‘stress tests’, this should mean that these banks have stronger balance sheets. Which in turn will enable them to support Norfolk’s growing businesses, especially sectors to which they have historically been more reluctant to lend to – such as construction, life sciences and new technology companies.