Chamber News

A new study has shown that there is a strong economic case for an east-west rail link that would open up the possibility of new journeys from Norfolk to the Midlands and beyond, without the need for passengers to make their way across London.

The East West Rail Consortium has published a report showing that extending the East West Rail line from Oxford to Cambridge has real potential. It shows that the delivery of attractive new rail services between key locations could deliver substantial economic benefits and support significant growth in the East West Rail corridor.

The report concludes a study by Atkins Consultants and is the first step towards developing an outline business case for the East West Rail ‘Central Section’. The Western Section, between Oxford, Bedford and Milton Keynes is already going ahead**.

Working closely with the East West Rail Consortium and Department for Transport, Network Rail will now lead the next phase of work which will examine the feasibility and cost of several potential route options for the Central Section. That work is expected to identify a preferred route and service pattern in early 2015 and provide the basis for the development of an outline business case.

All the route options would link to Cambridge, opening up the possibility that the line, if constructed, would provide rail journeys from Norfolk to hard to get to destinations in the south Midlands such as (depending upon the final route) Luton, Bedford, Milton Keynes and Oxford, and onward journeys to south-west England and south Wales – and without the need to cross London between rail terminals.

The aim of the next phase of work is to establish a scheme with a robust and convincing business case that can be submitted to Government in 2016 to secure inclusion of the scheme, subject to funding availability, in the 2019-24 investment plans for the rail industry.

It has been a long term aim of the East West Rail Consortium to improve rail connections within the region by re-instating the former ‘Varsity Line’ between Cambridge and Oxford. This would provide the rail infrastructure for train services to run from East Anglia to Oxfordshire and beyond, with connections to all national mainline services to the north, west and south of England.

Bev Spratt, Chairman of Norfolk County Council’s Economic Development Sub-Committee, said: “Improving rail infrastructure is vital for the Norfolk economy, and new east-west rail connections to Oxford and beyond would complement the road improvements underway on the A11, that are planned for the A14, and that we are pressing for on the A47.

“There’s no doubt that improving Norfolk’s strategic links to the rest of the country will strengthen the world-class industries we already have, and make the county even more attractive for further inward investment.”

Bob Menzies, Service Director for Strategy and Development at Cambridgeshire County Council and Chair of the East West Rail Central Section Steering Group, said: “Now that the Western Section between Oxford, Bedford and Milton Keynes is going ahead, we are working to develop the business case for the Central Section to complete the missing link. To do this, we need to identify a route that will deliver the greatest benefits to support the case for investment.

“The good news is that this study shows there is significant economic growth potential that could be unlocked through new rail services and that the Government is providing funds for Network Rail to undertake the next vital phase of feasibility work to identify a preferred route.

“The former line between Bedford and Cambridge has been dismantled, the land sold and sections used for other purposes, including housing. This means that we are looking at constructing a brand new stretch of railway. Several routes have been considered in the past but until now there has not been clear justification for investment.

“This is why we commissioned Atkins to identify where the greatest economic benefits could be realised through improved transport links. The study considers forecast population growth, employment levels, economic activity and planned growth as well as a review of existing and forecast transport requirements.”

Dr Julian Huppert, MP for Cambridge and Vice Chair of the All Party Parliamentary Group for East West Rail said: “There’s no doubt that we need this railway – linking Norwich and Ipswich through Cambridge to Oxford and Reading has huge benefits; that’s why I’ve pressed for it for years. But the route is hard to find, and people have quite rightly been asking which route would be taken, how much it will cost and when it will finally happen – this study helps us to answer those concerns. I am delighted that Network Rail will now take forward the next phase of route design and produce a business case.”

• Bank of England raises 2014 growth forecast to 3.5%, up from 3.4% in May
• Inflation will remain slightly below its 2.0% target over the next two years
• Amount of slack in the economy is now estimated at 1% of GDP, below previous estimate of 1.25%

Commenting on the Bank of England’s Quarterly Inflation Report, David Kern, Chief Economist at the BCC, said:

“The Bank of England’s Inflation Report conveys mixed messages on the outlook for interest rates. The higher growth forecast for 2014 and the lower estimate for the amount of slack in the economy may be seen as a signal to bring forward interest rate rises. However, Governor Carney’s comments will reassure businesses that the MPC will not rush any increases in rates. He also acknowledged that the rising supply of labour in the economy may provide new sources of economic capacity.

“It is pleasing that the MPC has reaffirmed its commitment that when rates start to rise, they will do so slowly and not reach the level seen before the recession. We must nurture the business confidence we are seeing at present by giving businesses the security of working in a low interest rate environment for the foreseeable future.”

• In the three months to June 2014, employment rose by 167,000, while unemployment fell by 132,000 (to 6.4%)
• Total pay including bonuses fell by 0.2% while pay excluding bonuses was up 0.6%

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

“These figures show that the UK labour market is strong and flexible. However, wages growth declined on the quarter for the first time in five years, which is a warning sign that the economic recovery although on the right track, is still fragile.

“The earnings figures confirm that there are no serious inflationary pressures at present, with the strength of sterling also putting downward pressure on inflation. In this environment, the MPC needs to take its time before considering a rise in interest rates, and assure businesses that when they eventually start rising, this will happen slowly and at a measured pace.”

Commenting on today’s A-Level results, Marcus Mason, Policy Manager for Employment and Skills at the British Chambers of Commerce (BCC) said:

“Students and teachers across the UK deserve to be congratulated for achieving a strong set of academic results. Businesses will applaud the increased take up in science and maths, subjects that are vital for the success of the UK economy. However, the continued decrease in the take up of foreign languages is a worrying trend as many businesses report that there is a skills gap in this area. Having strong knowledge of a foreign language is an excellent way of preparing young people for the wide-range of opportunities available in today’s globalised world.

“The halting of continuous grade inflation will also help to restore business confidence in A-levels.

“Despite strong academic results, youth unemployment remains persistently high, and action must be taken to ensure young people are attractive candidates to employers looking to hire. Young people should leave the education system with a career direction that is relevant to them and the skills and attitude that employers want.

“Pupils should be exposed to local businesses during their schooling – as this is one of the best ways to learn about local labour market demands and opportunities. Better careers education from primary school age, compulsory work experience placements and employer visits in schools and colleges will equip students with the best possible chances of finding employment.

• BCC publishes the results of its international trade survey highlighting the untapped potential of service sector exporters in rebalancing the UK economy
• The BCC calls for action to tackle language, regulatory and funding barriers to encourage potential exporters to take their first step towards doing business overseas
• Caroline Williams: ‘We need to turn this untapped export potential into reality and help drive the Norfolk economy.’

Overview

The British Chambers of Commerce (BCC) is releasing further results from a major international trade survey, which highlights the untapped potential of businesses within the service sector to rebalance the economy towards exports.

The results, collated from more than 1,565 service sector firms within the UK, show that 18% of service sector companies are on the verge of exporting. The service sector is performing well and growing, and provides huge opportunities for export growth. But the BCC is calling for more to be done to support potential exporters in taking that first step, as this could go a long way towards eliminating the UK’s trade deficit by 2020 – an ambition shared by the BCC.

Barriers and calls to action

Reflecting on their experience of exporting for the first time, service sector firms identify the biggest barriers to entering new markets. These barriers must be addressed if we are to support those firms who are on the verge of exporting in taking that initial first step:

Barrier: Excessive overseas regulation was the largest barrier to trading internationally identified by almost one third of service sector exporters (32%). Call to action: The Chamber is calling for a reduction in red tape, including the completion of the EU Single Market in services.

Barrier: One quarter of service sector exporters (26%) reported that language and cultural differences are a barrier to exporting Call to action: The Chamber is calling for foreign language learning to be made compulsory between the ages of 7 and 16 to help entrepreneurs become more globally minded.

Barrier: Exporting firms also identified a lack of funding (24%) as a barrier towards exporting for the first time. Call to action: The UK should be matching the efforts of countries like Germany that invests much more in its bilateral Chamber Network. Furthermore, the UK banking sector could and should do more to provide businesses with the working capital they need to fund exports.

Additional findings from within the survey:

Untapped export potential and barriers facing UK service firms

• Of the service sector firms surveyed, 23% are currently exporting. This is only one percent higher than in 2013.
• An additional 18% of service sector companies (almost one in five) are on the verge of exporting – the same figure as last year.

More service sector exporters need to target emerging markets

• Europe (81%), Asia including the Middle East (54%) and the Americas (48%) remain the largest target markets for service sector exporters.
• The BCC is encouraging more service sector firms to look beyond traditional markets for export opportunities. Africa for example has been identified by the IMF as having one of the largest GDP growth prospects, with an increased demand for services in countries such as Nigeria.
• Encouragingly, 32% of exporters are already trading with Africa but there is the potential for this figure to become even higher.

Professional services are leading the way

• Professional services (35%) have the largest share of service exports, followed by financial and business services (25%).
• Education and training contributes 22% of service exports and IT and communication services account for 20%.

Caroline Williams CEO Norfolk Chamber said: “Norfolk exporters have consistently be growing their businesses and the Norfolk Chamber has consistently beaten its own international business plan targets through their activity. During the down turn many owner managers did not have the time resource to look at trading internationally but now we have noticed a considerable increase in enquires for countries across the globe. During the Autumn we will be holding specific events for business looking to start exporting as it is a great way to grow a business.”

Commenting on the findings, John Longworth, Director General of the British Chambers of Commerce (BCC) said:

“The services sector could hold the key to unleashing the export potential of the UK – with its large trade surplus playing a significant role in offsetting the UK’s goods trade deficit, totaling more than £100bn. This proves that the sector is strong, but if we can convert the remaining untapped export potential into a reality, it could go a long way towards eliminating the UK’s trade deficit by 2020 – an ambition shared by the British Chambers of Commerce.

“We need a culture change in the UK when it comes to international trade. This means more investment, stronger language skills and a global mindset instilled in people from a much younger age. There is no reason why we shouldn’t be matching the level of export support provided by our major international competitors, like Germany, which spends ten times more on its bilateral Chamber Network than the UK. Having places to go and people to meet in market when business people step off the plane is key to helping make these connections, and selling goods and services into fast-growing global markets.

“The results also highlight that a shortage of relevant skills is undermining the UK’s export performance. To nurture the next generation of exporters we need to encourage young people to gain experience in international trade, by offering them a range of vocational subjects, such as foreign languages, that prepare them for the wide-range of opportunities available in today’s globalised world.

“Only a collaborative approach from the government, Chambers of Commerce and business groups in the UK and overseas and the private sector, will reduce the barriers to international trade – and make significant headway towards rebalancing the UK economy in the long-term.”

Commenting on today’s Monetary Policy Committee (MPC) interest rate decision, Caroline Williams CEO Norfolk Chamber of Commerce said:

“The MPC made the right decision to keep interest rates and quantitative easing on hold. Norfolk’s economic recovery remains on track but is still facing challenges and this is not the time to put it at risk with premature rate increases. The current calls for higher rates, particularly while wage pressures are still weak, are unjustified. Official figures show that a large number of people are working part time because they are unable to find a full time job – refuting the view that there is no spare capacity in the economy.

“The rise in sterling over the past year has put pressure on UK and Norfolk exporters, and is equivalent to a tightening in monetary policy. This strengthens the case against premature on interest rate rises. To sustain business confidence, the MPC must deliver a clear and consistent message on the future path of interest rates.”

Norfolk Chamber members are part of the fantastic response to pledge support for the Great Eastern Rail campaign. Over 500 pledges have been received since its launch on 25th July, representing an important milestone.

Norfolk business have joined with rail passengers and businesses across the region, calling on Government for greater investment in the Norwich to London rail line. In addition to pledging their support Norfolk Chamber members have also been making their reasons heard loud and clear

Caroline Williams CEO Norfolk Chamber of Commerce said: ” Improved rail infrastructure is key to enable Norfolk’s businesses to continue to drive the local economy forward. Norfolk Chamber members are passionate about their businesses and are joining the campaign to show how much they care. We would encourage all Norfolk businesses and their staff to click on the link and pledge their support. We are calling for a faster more reliable train service Norwich to London in 90 minutes, more seats and carriages and significant investment to upgrade the track.”

Mark Pendlington, chairman of New Anglia LEP and co-chairman of the Great Eastern Main Line Rail Taskforce, said: “500 pledges of support is a significant milestone in the campaign. This figure continues to rise and we’re delighted that so many people have signed up for the campaign in such a short space of time. However, we urge as many people as possible – rail users, business people and all those who want a better rail service across Essex, Suffolk and Norfolk to join the campaign now, by signing up on through the New Anglia website. The Great Eastern Main Line is fundamental to the region’s future growth. Let’s make our voice heard loud and clear to influence Government and get the rail service the three counties need and deserve.

It will take only a few seconds, so the Norfolk Chamber encourages all its members and the wider business community to click on the link and pledge their support. It is all about timing and the time is NOW for this final push to show Government our passion and get the service we need and deserve. www.newanglia.co.uk/gerailcampaign

Penny Mordaunt – Parliamentary Under Secretary for Communities and Local Government today visited Great Yarmouth’s Town Centre and was accompanied by a delegation from local businesses including the Chairman of Palmers David Howard, Jonathon Newman, the Great Yarmouth Town Centre and Bid Manager, Brandon Lewis – Great Yarmouth MP and Andy Penman representing the Great Yarmouth Chamber Council.

The tour of the inner town involved a walk through the main thoroughfares; a trip around the busy market place; through Market Gates Shopping Centre; onto Queens street and finished at the Mercury Newspaper headquarters. The discussions focussed on the hard work of each of the local stakeholders – work that is desperately needed to regenerate Great Yarmouth Town Centre and to bring economic growth to the town.

Norfolk Chamber staff have all signed up to the Great Eastern Rail Campaign. The campaign is calling for a faster, more reliable service on the London to Norwich line including:

• Significant investment in track infrastructure
• Better trains and a higher quality travelling experience
• Greater capacity with more seats and more carriages

The overall goal is to achieve London to Norwich in 90, Ipswich in 60, Colchester in 40 and Chelmsford in 25 minutes.

Add your support by signing up now via the website: www.newanglia.co.uk/gerailcampaign

A Technical Consultation on Planning has been issued by the Department for Communities and Local Government (DCLG). The consultation document presents a number of proposals for how Government wants to improve the planning system, to make it more responsive, more straight forward and less confusing.

Changes proposed include:

• Neighbourhood Planning – to make it easier for residents and businesses to come together to produce Neighbourhood Plans and Neighbourhood Development Orders – by limiting the time a Local Planning Authority has to respond to an application for a Neighbourhood Plan and changing requirements for consultation;
• Reducing red tape and regulations – to support housing, high streets and growth – by expanding permitted development rights to enable new homes to be created from light industrial, warehouse and office buildings and buildings in other uses; to allow more dwelling extensions without the need to apply for planning permission; to allow greater flexibility to change shops to finance and professional service premises and vice versa; to allow retail units to expand without planning permission; and to provide more flexibility for leisure uses in the high street etc;
• Improving the use of planning conditions – to enable development to start more quickly – by deeming the discharge of certain conditions where a LPA does not make a timely decision on applications to discharge; and for LPAs to justify the use of pre-commencement conditions;
• Planning Application processes – to improve speed and responsiveness – by changing thresholds whereby statutory consultees are notified; and a change to ensure that rail infrastructure managers are consulted where development is proposed close to operational railway land;
• Environmental Impact Assessment (EIA) Thresholds – to reduce the number of projects ‘caught’ by EIA – by raising the thresholds whereby EIA screening requests are required; and
• Nationally Significant Infrastructure Planning Regime – to enable the system to work more effectively – by increasing the flexibility within Development Consent Orders.

Comments on the proposed changes must be made to the DCLG before 26 September 2014.

Add your comments online now

Great Yarmouth Borough Council are running a 12-week public consultation from Monday 28 July 2014 to Monday, October 20, 2014, covering the vision for the borough, how the borough council will work in the future, and proposed income and savings options for 2015/16.

During the 12 weeks, you will be able to complete and submit the consultation online. The consultation allows everyone in the borough to give feedback on the proposals and to share their own priorities, aspirations, views and ideas to help councillors make informed decisions on future plans and council budgets.

At a recent meeting of the Greater Cambridge Greater Peterborough (GCGP) LEP and business organisations, including Norfolk Chamber of Commerce, the discussions centred around the Growth Deal announcement. The GCGP had secured £21.4 million of funding for infrastructure projects such as the improvements of Junction 20 on the A47, to the north east of Peterborough, and various schemes that will bring forward business and enterprise in the regions covered by the GCGP LEP. Funding was also allocated for an extension to the Agri-tech funding scheme and the Growth Hub.

Graeme Nix, the Chair of GCGP LEP also took the opportunity to confirm that Neil Darwin from Opportunity Peterborough has been seconded to the GCGP LEP for one year with a remit to promote enterprise and skills, via the Growth Hub.

Nova Fairbank, Norfolk Chamber of Commerce said: “It is really good to be able to join with the other business organisations, working in partnership with the GCGP LEP to improve economic growth in our region. However we were disappointed that no West Norfolk schemes were succesful in the first round of the Growth Deal and we look forward to continued involvement with the GCGP LEP to try to ensure that funding for West Norfolk projects are successful in the next round.”