In the three months to January 2013, unemployment fell by 5,000, and employment rose by 24,000
Youth unemployment fell by 43,000, but remains high
In the first quarter of 2013, public sector employment fell by 22,000, while private sector employment increased by 46,000
Commenting on the unemployment figures, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“This modest improvement in the labour market is very welcome, especially as it reverses the decline seen in the last couple of months. Despite the level of inactivity rising slightly, the UK labour market remains robust and is performing well by international standards. However pay, excluding bonuses, remains well below inflation at 0.9%, exacerbating the squeeze on real incomes.
“The private sector is creating jobs while the public sector shrinks, which proves that British businesses are able to drive the economic recovery while circumstances at home and abroad remain challenging. In this month’s Spending Review, the Chancellor should look towards a shift of priorities away from current spending and towards capital investment, to improve the supply potential of the economy.”
There are now only 2 weeks left to submit your entry for the Chamber Awards. The Chamber Awards are considered one of the UK’s most hotly contested and prestigious business awards.
Norfolk has lots of highly successful businesses and this is your opportunity to showcase the best of Norfolk at a national level. The Awards recognise and reward business success with a range of specialist categories to meet the needs of any organisation. Each year hundreds of businesses compete for the coveted National Chamber Awards along with the £25,000 cash prize on offer.
Entry to the Chamber Awards is free for Norfolk Chamber members – so take the first step towards winning and enter your business today. Businesses submitting an entry for any of the above award categories by Friday 21 June will automatically be entered into a prize draw to win an iPad Mini.
The final closing date for entries is 28 June and the regional winners will be announced on 30th September. The winners will go through to compete in the National Final, where they will be judged by a panel of business leaders and entrepreneurs. The Chamber Awards programme will conclude with the prestigious gala awards dinner on 28th November in central London, where one business will be awarded the £25,000 prize courtesy of the RBS Group. To enter online click here.
Read updates issued by the Export Control Organisation including details about imposition of arms embargoes, Open General Export Licence amendments or announcements about Control List changes.
Notice to Exporters 2013/14 In a recent Notice to Exporters (2013/11), the ECO advised that changes to SPIRE, that would enable you to provide them with information to meet government transparency requirements, would be completed in April. It has since become clear that further development time is necessary and they are now planning to roll out the reporting system in July.
At a recent meeting of the Chamber Planning & Development Group, members advised that there has been a small improvement in the development market. Although some development projects were underway, the housing market showed more signs of improvement than the commercial property market. Commercial developers were being very cautious and had little appetite for development without guaranteed end users.
A robust mortgage market is required if further improvements further in the house building market is to be achieved, which at present does not appear to be happening on a large scale, despite Government initiatives. There is however optimism within the Housing industry with respect to the Governments new Mortgage funding initiative NewBuy. The NewBuy scheme helps people bridge the deposit gap, allowing people who only have a 5% deposit purchase a new house, it is proposed that NewBuy will be rolled out to existing houses in 2004. It was felt however whilst this may stimulate the market in the short term care should be taken that it did not artificially raise prices and create more of a problem in the mortgage market long term.
Jonathan Cage, Chair of the Chamber Planning & Development Group and Managing Director of Create Consulting Engineers said: “The market is still very challenging, however there does appear to be some small improvement in the house building sector. Clearly we need a focussed effort to ensure that Norfolk makes the most of the opportunities for inward investment, both in terms of housing and the commercial sector.”
Mike Strawson has received a prestigious honour, in recognition of more than half a century’s work promoting British exports.
Mike, who has been working with the Norfolk Chamber for more than a decade, delivers the organisation’s highly successful training programmes covering all aspects of international trade.
He has received a Lifetime Achievement award from the Institute of Export for his outstanding contribution to export sales and also in teaching international trade skills to others. He was one of only three people to receive the honour.
Mike, who’s 71 and has been involved in exporting since he was 17, has also received a prestigious Fellowship from the Institute he first joined as a student in 1962. The organisation has just 24 Fellows.
“It’s a source of great pride because it’s an award given to me by my peers – the highest honour anyone can give,” said Mike. “I’ve spent a lifetime doing something I thoroughly enjoy. And I’ve had a lot of pleasure in travelling and learning about different cultures, trying different foods and making many friends around the world.”
Mike’s career has involved working with top firms such as Croda Chemicals, Triang Toys, the Bunzl Group and Novatech Adhesives.
Tracey Howard, International Trade Director at Norfolk Chamber said “It’s a privilege to work alongside Mike. He’s passionate about international trade and is without doubt the top export trainer in the country.
“I’m sure many of our local exporters who have been trained by Mike, will join me in congratulating him on this honour, which is well deserved.”
Commenting on the new Small and Micro Business Assessment, which has been announced by Michael Fallon today (Thursday), Caroline Williams CEO Norfolk Chamber of Commerce said:
“Smaller Norfolk companies often find it difficult to comply with regulations, compared with their larger counterparts who have more resource. If this policy directly reduces the time and money that firms spend on needless bureaucracy, then the business community will show its support.
“Smaller businesses have the potential to become the wealth creators of tomorrow, but they do need an enterprise-friendly environment to be able to do this. Part of this is freeing them from red tape ,which prevents them from focusing on more important growth priorities, such as creating jobs and exporting their goods.
“We hope that this policy will help to deliver significant reductions in regulation and provide a more common-sense approach to regulation more generally. The Chamber will keep an eye on this new policy over the coming months to ensure that it is actually making a difference to local firms on the ground.”
The British Chambers of Commerce is today (Wednesday) publishing its submission for the government’s Spending Review, which will be announced later this month. Following extensive research into business’ priorities for the Spending Review, the business group is calling on the Chancellor to shift government spending away from current spending towards capital investment that will help get the economy back on track.
In April, the BCC polled nearly 1,800 firms across the UK, from which three clear messages emerged:
1. Lower public spending matched by lower taxes would deliver the best outcome for the UK economy
Almost half (42%) of businesses ranked the reduction in public spending and taxes as their preferred option to boost the health of the UK economy
This compared to only 13% of firms who listed higher public spending and higher taxes as their first choice
The BCC believes that maintaining departmental ring-fences for short-term political gains is not consistent with a long-term vision of a low-tax, enterprise-friendly and internationally-competitive economy.
2. The top three areas that businesses would like the government to prioritise were economic development, education and transport. Foreign aid and social security were the lowest.
Economic development (which includes trade promotion and business support) came out as the top priority for government spending at 68%, with education second (57%) and transport third (47%).
Only 1% see foreign aid – currently protected by a ring-fence from cuts – as a priority area and only 6% see social security – the largest area of spend – as a priority for government spending.
While the BCC is not calling for the protection of any specific Whitehall department budgets, we reiterate our long-standing call to shift state spending towards supporting the economy.
3. The present balance between capital investment and current spending is far out of line with business perceptions and expectations
On average, UK businesses wanted to see a 3:1 split of current and capital spending in budget allocations after learning of the actual ratio, which is closer to 13:1.
This suggests businesses would like to see a massive boost to capital expenditure, which would require a radical reprioritisation of government budgets.
The BCC is calling for a greater focus on investing in capital assets including transport, energy, education, digital and other local economic infrastructure, such as road maintenance and house building.
PRIORITY SPENDING MEASURES TO BOOST GROWTH
The following priority areas are consistent with the business opinion identified from our survey, and would have a significant impact on economic growth. They are costed, and we believe the government can offset these costs through cutbacks to other, less growth-focused, areas of spending.
Promote access to finance for growing businesses
The BCC welcomed the initial £1 billion commitment to the new British Business Bank as an important first step, but investment must be on a greater scale if it is to succeed in supporting growing companies
An additional investment of £9 billion from the government over the next three years would provide the necessary capital base to allow the Business Bank to start lending directly to businesses.
The government and the Bank of England should use their balance sheets to extend the backing of the Funding for Lending scheme’s billions to the embryonic Business Bank. This would energise a crucial player in the lending market, and help to solve the long-term structural gap in finance that continues to strangle far too many growth businesses across the UK.
Direct Exchequer cost: £3 billion per annum
Immediate infrastructure stimulus to boost house building and road maintenance
The BCC believes that continued underinvestment in road maintenance will lead to further deterioration in the state of Britain’s road networks; whereas additional investment would boost employment, support local construction and underpin local economies more generally.
The BCC continues to call for a Road Repair and Renewal Fund, which would need to be at least £12 billion over the next three year period. This would help to address the current backlog of repairs which stands at £9 billion and is growing by nearly £800 million per year.
We urge the government to directly invest in much-needed new social housing, and for 100,000 more new homes to be added to the Homes and Communities Agency (HCA) target to 2015.
The BCC strongly believes that house building, not uncertain mortgage market interventions as announced in this year’s Budget, is required to boost the economy and help remove distortions in the housing market.
Investment in more affordable housing would directly boost the economy through employment in the house-building sector and would benefit mostly UK-based companies.
Direct Exchequer cost: £4.8 billion per annum
Promoting exports
If we are to successfully rebalance the economy towards exports, the government must do more to enhance the level and effectiveness of support available to UK companies trading internationally
In the Autumn Statement, UKTI was allocated a budget of £70 million to deliver services to more small- and medium-size exporters and help to refocus UKTI activities on the highest-value opportunities and emerging markets. To date, a small proportion of this funding has been allocated towards the direct support of SME exporters.
The BCC is urging the government to allocate more funding towards supporting SME exporters, with more funds going directly to the coal face rather than into Whitehall-driven programmes.
Trade missions, development of in-market support and promotion of market opportunities to companies in the UK must be prioritised. An extra £33.3m per annum over the course of the Spending Review period, if split between the 20 priority markets identified by UKTI, would yield a market development budget of £1.65 million per annum. This equates to £5m per market over the whole Spending Review period.
The government has issued an export challenge, and wants to see 100,000 more British firms exporting by 2020. Without additional export support on a large scale, achieving this will be difficult.
Direct Exchequer cost: £33.3m per annum
Long-term commitment to renewing Britain’s infrastructure
• Without significant efforts from the government to accelerate and deepen reforms to attract private investment in the country’s infrastructure, the UK’s ability to compete internationally will be further undermined. The government must go further and faster to de-risk private investment in infrastructure. • The Bank of England could also help to lever private investment in infrastructure by providing guarantees to make involvement attractive to investors • Mechanisms that would support infrastructure investment over the longer-term could include establishing a government-backed Infrastructure Investment Bank or a ‘Reverse Sovereign Wealth Fund’. This would allow institutional investors to invest in projects indirectly and at a guaranteed rate of return.
TOTAL COST OF RECOMMENDED MEASURES: Approximately £8bn per annum
Commenting, John Longworth, Director General of the British Chambers of Commerce (BCC), said:
“This is the Chancellor’s last chance to make a real difference to the health of the UK economy, this side of the next general election. Our Spending Review submission, based on business opinion, is calling for a radical shift of focus towards areas like infrastructure, economic development and skills – the big enablers of an enterprise-friendly economy. Our submission proves that the government can have its cake and eat it. It can continue to reduce the deficit while investing heavily in measures that will support growth.
“It is unacceptable that ministers continue to ring-fence certain areas of spending for political reasons, and programmes that do little to boost UK output are being protected at the expense of capital investment. Infrastructure spending and radical action on direct house building and road maintenance would provide a significant boost to the construction sector and local growth. Furthermore, the UK’s overall export performance is still not where it could or should be. If we are to win the ‘global race’ described by the Prime Minister, we need a huge increase in the resources dedicated to supporting international trade. But these measures must be focused on frontline support to businesses, not the extension of agencies or bureaucracy in Whitehall.
“Businesses across the UK are crying out for more support to help them drive growth, boost trade overseas and create jobs and wealth. The Chancellor must be brave and listen to the business community, and seize this opportunity to go all out in the name of growth.”
Norwich North MP Chloe Smith visited Norse Commercial Services on Friday 31st May to talk to the team of apprentices about their experience of learning and aiming for a qualification whilst working.
In January of this year, Chloe founded and launched the ‘Norwich For Jobs’ Campaign which is seeking to halve youth unemployment in Norwich in two years. The Campaign is seeking to highlight that various routes available to young people into employment, including apprenticeships. Chloe visited Norse, an employer that has pledged its support to the campaign, in her capacity as Chair of the ‘Norwich For Jobs’ campaign to meet with and discuss the successful apprenticeship campaign that Norse currently runs in order to encourage other employers to consider offering similar apprenticeship programmes.
During her one and a half hour visit, Chloe also took part in a roundtable discussion with the team and senior members of Norse’s human resources and training divisions, about the value of apprenticeships and about the Norse initiative that will see over 100 apprentices on the company scheme during 2013.
Norse already commits over £880k a year to apprenticeships across its three operating companies, Norse Commercial Services, NPS and Norsecare, a figure match-funded by Norfolk County council.
“In 2011 Norse Commercial Services implemented a policy of turning entry-level jobs into apprenticeships,” commented Norse Human Resources Director Tricia Fuller. “We pay them a worthwhile salary that takes them out of the benefits system, provide them with the opportunity to do real work whilst getting accredited to NVQ levels 2 or 3 in their apprenticeship year.”
“We value all jobs the same at the apprenticeship stage, removing any stigma potentially attached to lower paid roles and making all vacancies equally attractive in terms of remuneration,” Fuller added.
Chloe Smith commented, “I really enjoyed visiting Norse again and was interested to learn more about their successful apprenticeship programme, which puts apprentices at the heart of the business. Their acknowledgement of the value that young people can offer to employers is very important and I would encourage other employers to consider offering apprenticeship places.”
“Norse’s inclusion of those ‘Not in Education, Employment or Training’ (NEETs), those with learning difficulties and care leavers is great. It is encouraging that a large employer like Norse helps these young people achieve their potential.”
Linda Savage, Head of Learning and Development at the company said, “At the end of their apprenticeship with Norse, a number will be offered permanent positions within the Norse Group, but everyone that completes the course will have a very portable qualification, putting them in a far better position to get a job”
Nineteen year old Hannah Codling-Thomas has been an apprentice with Norse since January 2013. “My position is Group Support Services Administrator, which means that I support three different functions: environmental, customer services and procurement. Supporting three different functions with three different managers keeps me on my toes, but I enjoy the variation and like a challenge.” “Getting an apprenticeship to me feels like I am able to work, earn and learn at the same time. It feels like I have learnt the skills to do so much more – not just for work but also for myself.”
Another apprentice, Jay Trivedi, also started in January this year, in the sales support team: “I believe that being on an apprenticeship opens up doors for my future, gives me the chance to network with other people, to build my confidence and to gain more knowledge in the company.”
“The skills I am picking up from my apprenticeship have already helped me with external tasks, and I feel like I am learning something every day, which I know I will help me in the future.”
The Norse team of nine apprentices has won through to the finals of the national ‘Brathay Challenge’, aimed at finding the ‘Apprentice Team of the year’.
Having impressed the judges with their regional heat entry, which included taking part in community projects and promoting the value of apprenticeships to both potential apprentices and employers, the team is currently completing further fundraising and awareness raising activity. The Challenge culminates in a series of team building tests, logistical challenges and physical competition against seven other teams at Brathay Trust’s Windermere headquarters from 10th to 12th June 2013.
Norse Commercial Services has signed the latest partnership in its growing portfolio of highly successful local authority Joint Venture Companies (JVCs), forming Medway Norse with Medway Council.
Medway Norse will start trading on the 1 June 2013, providing facilities management services that include cleaning, catering and maintenance for the council’s 140 buildings and for other local organisations The 10-year, £7 million a year agreement is the first of its kind in the South East.
Geoff Tucker, Norse’s Sales Director, said: “We are delighted to be working with a progressive council like Medway, using our experience and commercial expertise to deliver cost savings, and at the same time preserving local jobs and maintaining high quality services.”
“Norse currently has 19 joint ventures with local authorities in the UK,” he added. “The business model is now well proven in helping our partners respond to budget cuts, whilst maintaining and improving frontline services. Medway Norse will also create income for the council by bidding for additional work.” Medway Norse is committed to spending 40% of its budget with contractors who are small or medium sized local businesses, reflecting the firm’s commitment to supporting the local economy.
Medway Council Portfolio Holder for Finance Cllr Alan Jarrett said: “Medway Norse will allow us to continue to protect front line services for the people of Medway while providing value for money. This ground breaking joint venture, with a well-established company that understands the needs and operations of the public sector, offers an opportunity for Medway to share in the profits the joint venture company makes by attracting new contracts from across the South East.”
Norse Commercial Services is the UK’s leading service provider in this type of local authority JVC, and has a forward order book of nearly £1.8 billion.
British banks and building societies drew down £2.6bn in Q1 2013 from the Funding for Lending Scheme.
Net lending to businesses decreased by £300m in Q1 2013
Commenting on the latest figures on the Funding for Lending Scheme (FLS), Caroline Williams CEO Norfolk Chamber of Commerce said:
“Although the £300m fall in lending was a smaller drop than the previous quarter, it is a concern that lending continues to contract despite the Funding for Lending Scheme having been in place for nearly a year. It is also worrying that usage of scheme seems to have dropped significantly since the end of 2012.
“The real test for Funding for Lending is whether it is able to get credit flowing to Norfolk’s young and fast-growing small businesses. Unfortunately many of these small business with aspirations to grow are still being left out in the cold when it comes to accessing finance, which prevents them from expanding, creating jobs and helping to drive a business-led recovery. These figures give weight to the argument for the swift delivery of a British Business Bank, which must have both the scale and the infrastructure needed to help young firms grow.”
Abellio train operator Greater Anglia has reported its best-ever period of punctuality with 95.7% of all trains on time for the four-week performance period from 28 April – 25 May 2013.
Greater Anglia has consistently delivered improvements in train punctuality since taking over the franchise in February last year, and for the 28 April – 25 May 2013 period, punctuality for the various route sectors of the Greater Anglia network was: Metro & Southend 98.1%, Mainline 96.3%, West Anglia 94.6%, Rural 93.9% and Stansted Express at 93.4%.
This further improved performance by Greater Anglia has also seen the moving annual average (MAA) punctuality figure – which measures performance over a 12 month period – again at a new high of 92.6%, the best MAA figure recorded so far for the Greater Anglia franchise area, which was established in 2004. The current 12 month MAA punctuality for both the Mainline (91.7%) and Stansted Express (90.1%) services are the highest recorded since 2004.
Individually, for the 28 April – 25 May 2013 period, five of Greater Anglia’s rail lines recorded their highest-ever four-week period of punctuality under the current franchise structure. The Norwich to London Intercity service achieved a punctuality of 95.4% and in Essex the services from London to Chelmsford, Witham and Colchester (plus the Clacton, Frinton-on-Sea and Walton-on-the-Naze branches) recorded 96.5%. The London to Shenfield Metro services performed exceptionally well with punctuality of 98% and the services to Southend Victoria at 97.7%. The Marks Tey to Sudbury line recorded 97.6% punctuality.
Ruud Haket, Managing Director Greater Anglia said: “I am very pleased that train punctuality at Greater Anglia continues to improve and we have recorded our best-ever four-week period of punctuality. This reflects our continued and relentless efforts, working in partnership with Network Rail, to provide better train service performance.
“We recognise there is more work to do in achieving greater consistency and will continue to focus on delivering further improvements in train punctuality for our customers across the region.” Richard Schofield, Network Rail route managing director, said: “We have worked very hard with Greater Anglia to improve the train service in the east of England and deliver a safe and efficient railway.
“Our focus has been to drive up reliability levels through continued investment and to improve our contingency plans to help ensure that the service can recover more quickly following any issues on the railway.
“We will continue to work with our colleagues at Greater Anglia to continue delivering consistent levels of service for passengers.”
A survey whose results could lead to a major investment for skills for the Suffolk and Norfolk economy has now been launched.
Taking part in this survey is your opportunity to help inform and be part of the solution to the skills gaps/issues affecting businesses in Norfolk.
The online survey takes just 10-15 minutes to complete and the more information gathered, the easier it will be to understand and resolve the skills gaps and issues facing Norfolk employers.
For more information on the survey and how to take part, click here.