Chamber News

• Manufacturing output in October 2013 up 0.4% on the month, up 2.7% on the year
• Total production figures: up 0.4% on the month, up 3.2% on the year
• The UK deficit on trade in goods and services was 2.6% in October, unchanged from September; but the September deficit was revised down significantly from £3.3bn to £2.6bn
• The trade deficit in goods with the EU reached a record of £6.5bn in October

Commenting on the trade and index of production figures for October 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“These figures show that the economy has continued growing into the fourth quarter of the year, which will boost business confidence and encourage companies to invest. But they also highlight the economic challenges that still remain. Though manufacturing is recovering, output is almost 9% below its pre-crisis level. The share of manufacturing in the economy has fallen considerably in recent years but the sector has maintained its skills base during the downturn and there is scope for improvement in the future.

“We still have a large trade deficit and not enough progress is being made to rebalance the economy towards net exports. Despite this, it is encouraging that the September deficit was not as large as originally estimated. Problems in the eurozone remain a major challenge for our exporters, especially given the record deficit with the EU in October. This shows there is a need to diversify our trade efforts towards other areas of the economy. British businesses want to drive the recovery, but the government must do more to help by introducing policies that will boost growth and by ensuring there is enough support for firms looking to export.”

Norwich City Council has released their quarterly economic barometer. This quarter shows the economy of the eurozone grew by just 0.1% in the July-to-September period, which was down from 0.3% growth in the previous quarter. Whilst the Office of National Statistics reported that the number of unemployed people in the UK fell by 48,000 to 2.47 million in the same period. Firms in this region took on more staff during October and the rate of job creation was the fastest since March 2007.

However, the gap between imports and exports was at its widest for over a year. The trades goods deficit widened from £9.557 billion in August to £9.816 billion now. Mild weather adversely affected the sales of winter clothing, which may account for the fall of 0.7% in retail sales volume. To read more, the full Norwich Economic Barometer is attached.

The New Anglia Local Enterprise Partnership will be helping to support at least 1,000 businesses, and create 200 business start-ups and 200 new jobs, after securing £3.9 million of Regional Growth Funding as part of the Ipswich and Norwich City Deals. The deal will also lever in at least a further £8 million of public and private sector funding.

Funding will be used to create a Growth Hub for Greater Ipswich and Greater Norwich, which will provide Norfolk and Suffolk businesses with a ‘no wrong door’ route for accessing business support.

Through the Growth Hubs, businesses will have greater and simpler access to national and local business support, as well as access to several new business support programmes, including: –

Early Stage Grant Scheme – Providing grants between £5k-£50k for businesses in first year of trading, to help them grow and employ people.

Innovation Readiness Programme – Two dedicated coordinators to help businesses apply to innovation programmes and draw down higher levels of funding to support their growth.

Innovation Vouchers – Allowing companies to purchase expertise at reduced cost from regional universities to access specialist facilities, mentoring, internships and consultancy or a combination of the above

Business Start-up Programme – Expanding support for business start-up through dedicated support, to increase the number of new businesses.

Growth Hub coordinators will be able to provide a first point of contact for any business, providing a diagnostic service and accurate, up-to-date information on support schemes to unlock both local and national support and funding.

Suffolk Chamber of Commerce will be responsible for the management of the Growth Hub, working in conjunction with Norfolk Chamber and with other elements being provided by enterprise agencies NWES, MENTA, Finance East, University of East Anglia, University Campus Suffolk and Norwich University for the Arts.

Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:

“It’s great that the Chambers have the opportunity to ‘front up’ the Growth Hubs across Norfolk and Suffolk and we will be looking to make sure that the Norfolk business community is aware of all the opportunities available to help them to grow their businesses and create jobs.”

Andy Wood, Chairman of the New Anglia LEP, said:

“We know that business support is complex and often businesses aren’t able to find the help and support they require.

“Our aim is to break down the barriers caused by this uncertainty and guide businesses to help and support to enable them grow to their full potential.”

Brenda Arthur, Leader of Norwich City Council, said:

“I’m delighted that we’ve secured funding for the business support element of our City Deal, which is a huge boost for the Greater Norwich economy.

“It will allow us to improve help available to local businesses for innovation and enterprise, which will in turn generate sustainable growth in quality local job opportunities.”

George Nobbs, Leader of Norfolk County Council, said:

“This is the news we’ve been waiting for for a long time. It will unlock even more business potential within our region.

“I can’t exaggerate how important this news is, not just for Norwich but for the whole of Norfolk and Suffolk. I want to thank all the people who’ve been working so hard for so long to achieve this fantastic outcome for us all.

“Any support to help boost business growth can only be a good thing and it appears that the Growth Hubs will allow the creation and development of business growth opportunities using practical and tangible means.”

Peter Funnell, President of Suffolk Chamber of Commerce, said:

“The main barrier to SMEs taking up business advice and support is that the business community often finds the current landscape complex, opaque and difficult to engage with.

“The Chamber and our partners including NWES, Menta, Enterprise Hub, FSB and IoD, will introduce a ‘no wrong door’ service that will improve access and at the same time broaden the range of services on offer.

“This is the grass rooted support that businesses in Suffolk need and we are delighted to be leading such an exciting initiative working with our key partners”

Chris Soule, Policy Lead at the East Anglia Federation of Small Businesses, said:

“The programme will bring real and tangible support to our members and will transform this region.

“The growth fund is for people like our members, it is about government putting its trust in Small and Medium businesses to deliver where others have failed.”

Allocation of The Regional Growth Funding will be through Lancaster University. As well as helping to decide which cities’ proposals received funding, Lancaster University academics will also be providing on-going support and evaluation of the cities.

Lancaster, which was named as a top-ten university for SME engagement by the recent review by Sir Andrew Witty, was brought in because of its experience and expertise in working with business, local authorities, as well as Local Enterprise Partnerships and growth hubs.

Lancaster has worked with more than 5,000 SMEs since 1999. It has also helped the creation of more than 250 new business and more than 4,000 new jobs.

Following today’s announcement (Friday) the LEP will work with partners to finalise contract terms with the Government, with the Growth Hubs expected to begin operating in the spring of 2014.

Commenting on reports that the upgrade of the A14 will be funded by the government rather than through tolling, Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC) said:

“Business has long campaigned for improvements to the A14, which is a vital import-export lifeline for companies across the UK. This has been in the BCC’s ‘top ten’ transport priorities for years now, as successive governments have dithered over how to address the road’s bottlenecks.

“We welcome the news that long-delayed improvements to the A14 will finally go ahead – and without the uncertainty generated by a tolling plan that lacked support from local business.”

During a round robin update, Norwich Chamber Council members highlighted that business confidence appeared to be growing, with members reporting that their businesses was getting busier. Hugh J Boswell advised that following a slow start to the year, trading was strong this was despite insurance companies hardening their rates, which will lead to price increases. John Lewis, Norwich reported that their Christmas ‘Bear and Hare’ TV advertising was already increasing footfall and Arnold Keys reported that the housing market was slowly picking up and the commercial property market was also showing signs of improvement.

An update on the Norwich Business Improvement District highlighted that some of their focus areas were: enabling Wifi across the city centre; improvements to the Park & Ride; and business rates.

• British banks and building societies drew down £5.5bn in Q3 2013 from the Funding for Lending Scheme. Net lending increased by £5.8bn in Q3 2013.
• The Business Bank to receive an extra £250m of funding

Commenting on the latest figures on the Funding for Lending Scheme (FLS) and the announcement of extra funding for the British Business Bank, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“It is really encouraging that overall lending is rising, as this will boost the confidence of businesses across the UK. However, the real litmus test for the Funding for Lending scheme is whether it can really get finance flowing to SMEs, and unfortunately the improvement in credit availability is still mostly being felt by the usual suspects in the mortgage market and among large firms. Young, high growth businesses that could be the wealth creators of tomorrow are still being left out in the cold when trying to access finance. Lack of access to long-term patient capital is a particular problem for small firms who want to expand, and this cannot continue.

“The re-focusing of FLS towards business lending plus the announcement that the British Business Bank will receive an extra £250m are both positive steps in the right direction. Both are evidence that policymakers are listening to SMEs about the continued difficulties they face in accessing finance. However, there is a long-term structural failure of business finance in the UK, and a fully functioning Business Bank is the most promising way to solve this problem. But the government’s current plans just aren’t ambitious enough. Unless the Business Bank is scaled up, and has the ability to work directly with high-growth enterprises, we will continue to miss out on a British Google, Apple or Samsung.”

Great Yarmouth Chamber Council members recently met with East Norfolk Sixth Form College to discuss employer engagement with their Work Placement Programme. Kasia Beblot, the Work Place Co-ordinator at the college advised that 130 students had currently registered for the Work Placement programme, however there were very few actual work placements available, due to lack of employer participation.

Kasia is very keen to hear from any employer in the Great Yarmouth area that could offer students a work placement of between 6 weeks to 8 weeks for one morning or afternoon per week. In addition, they are also looking for Great Yarmouth business community interaction to conduct mock interviews and help students make the most of their CVs.

John Morse, President of Great Yarmouth Chamber Council, said “It is really important for Great Yarmouth employers to get involved in any way they can. We need to invest time in the young people of today, as they are the workforce for tomorrow.”

For more information and to pledge your support, please contact Nova Fairbank – email: nova.fairbank@norfolkchamber.co.uk

The Norfolk Chamber is proudly sponsoring the Customer Care Award for the Mayor’s Business Awards this year. We are aware that West Norfolk Chamber members are successful, dynamic and hard working and one of the key aspects that we keep hearing, is that customer care is central to their business ethos.

Does your organisation pride itself on its exemplary customer care? Have you incorporated initiatives designed to raise service standards and can show increased customer satisfaction? Then highlight your achievements by entering the Customer Care category of the Mayor’s Business Awards.

These awards are important for West Norfolk, as they show the rest of the county what fantastic companies we have here, but for your business, it will demonstrate to a wider audience what you already know – that you are a great company. It is also a wonderful staff motivator to collate all your good points and even better when you win!

Click here to complete the online nomination forms for the Customer Care category

The full list of categories for the Mayor’s Business Awards are:

• Apprentice/Trainee of the Year
• Community Contribution
• Customer Care
• Independent Retailer
• Leisure & Tourism
• Service with a Smith
• Small Growing Business (up to 5 years)
• Business Person of the Year
• Mayor’s Business of the Year

For full information on the Mayors Awards and details on all categories go to www.lynnnews.co.uk/mayors-awards

The deadline for entries is Friday 29 November 2013.

We look forward to seeing lots of our successful West Norfolk Chamber members entering and winning the Mayor’s Business Awards.

Commenting on the report published by the National Audit office today, Infrastructure investment: the impact on consumer bills, Caroline Williams CEO Norfolk Chamber of Commerce said:

“The current debate over short-term energy prices is missing the point. Politicians should be worried first and foremost about energy security – because if we can’t keep the lights on, businesses can’t grow and nor can the economy as a whole.

“Companies are concerned about the rising cost of energy. Some, particularly SMEs, are demanding far more information and transparency around the rising energy costs they face, and are sceptical about claims made by their suppliers. All businesses, however, are concerned with whether the UK can generate and distribute the power needed for economic success.

“Westminster politicians are thinking short-term, but Britain’s energy issues are long-term. Energy supply is a question of national prosperity and security, not cheap retail politicking.”

A link to the National Audit Office report can be found here: https://www.nao.org.uk/report/infrastructure-investment-impact-consumer-b…

• Bank of England Governor, Mark Carney, says the 7% unemployment threshold is likely to be reached earlier than expected
• Bank of England upgrades economic growth for 2013 from 1.4% to 1.6%

Commenting on the November 2013 Inflation Report, issued today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“We have supported forward guidance since its introduction, as it helps to underpin business confidence. But we have also always said that the 7% unemployment threshold would be reached long before Q3 2016 as initially forecast. These revisions imply that the threshold is likely to be reached around the first or second quarter of 2015. This is a sign that the UK recovery, although not yet secure, is likely to be stronger than people felt three months ago.

“Governor Carney stressed that reaching the 7% threshold would not necessarily trigger a rise in interest rates, and this leads us to believe that there will be no increase until the end of 2015. This will provide stability for businesses to invest and create jobs. In the meantime, the MPC must continue to combine forward guidance with a commitment to maintaining economic stability.

“We support Governor Carney’s statement that the pressure on living standards can only be addressed when productivity increases. Simply raising wages before this happens would make businesses uncompetitive and threaten the recovery.”

Caroline Williams CEO Norfolk Chamber of Commerce, said:

“With the Bank of England now expecting stronger growth this year, the Inflation Report gives us more reason to believe that the upturn in the UK economy is gathering momentum. The improved outlook is testament to the resilience of businesses across Norfolk and the UK in the face of continued economic challenges.

“With the 7% unemployment threshold now likely to be reached earlier, we hope that Mark Carney will continue to reassure the business community that this is simply an indicator and will not automatically trigger an increase in interest rates. Any decision to tighten monetary policy must depend on a lasting improvement in economic conditions.”

Read the Inflation Report in full here:https://www.bankofengland.co.uk/publications/Pages/inflationreport/2013/i…

The British Chambers of Commerce Quarterly Economic Survey (QES) is used by the Bank of England and the Chancellor to plan the future of the UK economy and over 7,000 businesses across the UK take part.

Once again, the results from the Q3 2013 showed further evidence that the Norfolk economy was starting to recover, with a strong service sector helping to boost local economic growth.

The Norfolk manufacturing sector, home sales and order strengthened, whilst their exports results showed a slight slow-down and the service sector continued to go from strength to strength in both home sales and orders, as well as exports.

Norfolk Chamber has long-championed the idea that Norfolk businesses have remained confident about their abilities to grow. The QES results show that even more firms now believe they can increase their turnover and sales, and hire more staff, which is a testament to their hard-work, creativity and ambition.

However investment is still a concern, and if Norfolk is to achieve a high productivity, high skill and high wage economy then these areas also need to improve.

Has your business seen the benefit of a recent growth spurt, are you investing in plant and machinery or recruiting more staff? Let us know by taking part in this important economic survey.

The survey takes less than 3 minutes to complete, so please take the time to input into this survey to ensure Norfolk has a voice. The survey needs to be completed online by Monday 2 December 2013

Complete the survey now. Your Chamber ID number is 75

If you prefer a hard copy please print the attached form and fax it back to 01603 633032

Congratulations are in order for two Great Yarmouth Chamber members, who both had success at the EDP Business Awards last week. More than 300 firms across Norfolk entered this year’s awards – a record number – with 36 finalists competing to win 12 categories.

Blue Sky Leisure was crowned Barclays Business of the Year. Based in Bradwell, near Great Yarmouth, the company, which runs Kelling Heath and Woodhill Park, has been providing holidays in Norfolk for nearly 40 years. It also includes the Zaks American-style diner brand, which this year announced it was using a franchise model to expand beyond Norfolk.

Ian Hacon, Chief Executive Officer said “We’ve been relentless in driving our vision forward. It means that if you visit any one of our holiday parks or go into any of our restaurants or visit and ask our staff what our vision is they will tell you – we are passionate about our people, service and environment – and they will understand the part they play in delivering it. This award demonstrates the strength of businesses involved in Norfolk Chamber and help raise the profile of THE business network.”

Pasta Foods won the International Business of the Year category. Pasta Foods is a world leader in the production of snack pellets and the UK’s leading dry pasta producer. Based in Great Yarmouth, the company has been established for more than 40 years. With a workforce of approximately 130 people they are one of the main employers in the town and export on a worldwide basis.

Karl Jermyn, the Managing Director accepted the award and said “Winning the International Business award is a fantastic achievement for all at Pasta Foods and is testament to all the hard work that the team have put into the business in 2013. We currently export to 35 countries and growth in the business is being led by our overseas customers, particularly in the US where we have quadrupled our customer base in the last year. The company has also won new business in South Korea and Iraq demonstrating we are a truly global exporter.”