Chamber News

Businesses had identified that new infrastructure was needed to support the development of the Great Yarmouth area and in particularly linking the GY Enterprise Zone with the A143 and A12. It is therefore good news that the Government have recognised the potential of this area and awarded £4.7m ‘pinch point’ funding to road schemes put forward by Norfolk and Suffolk County Councils. The Government has also awarded £4.6m for the Lowestoft northern spine Road which will reduce traffic flows on the A12 Yarmouth Road and A1117 Bentley Drive.

Caroline Williams CEO Norfolk Chamber of Commerce said: “Norfolk and Suffolk Chamber members have been lobbying hard with their public sector partners and the NALEP to ensure that the potential of this area is fully recognised. Improved infrastructure is key to enabling local businesses to reach their full growth potential and to provide new and protect existing jobs. These are positive steps towards what is needed.

“We are however disappointed that the schemes in Brandon and Kings Lynn were not successful and will be reviewing what the options are of getting these schemes funded.”

At a recent meeting of the Great Yarmouth Chamber Council, Great Yarmouth Borough Council Cabinet and local schools, the Chamber challenged schools to work in greater collaboration with the business community.

The meeting highlighted that whilst all the schools have their own careers advice programmes and individual work experience arrangements with businesses, it was apparent that there is a lack of co-ordination between the schools and the business community as a whole. Similarly, the business community are willing to offer their support, but are unsure as to the best access to the schools and need a co-ordinated approach.

The meeting concluded with the schools agreeing to collate all their career advice key dates and provide a timeline to the Norfolk Chamber, to enable co-ordinated support from the local business community to ensure these key dates are supported by the different sectors of industry.

Norfolk Chamber board member Bobby Burrage and his wife Fiona, from The Click Design Consultants proudly showed off eight week old Stanley Thomas at their visit to the Norfolk Chamber of Commerce last week.

• 39% of SMEs reported using any form of external finance, the lowest recorded by the report.
• SME confidence that their bank will agree to a future lending request dropped to 40% in Q1 2013, from 43% in Q4 2012.
• Amongst ‘would-be loan seekers’, 40% said they had felt that ‘discouragement’ had stopped them applying for a loan.
• For those with any appetite for future borrowing, 27% cited access to finance as a major barrier to running businesses in the next 12 months. The current economic climate (43%) was still seen as the biggest barrier to running a business

Commenting on the independent SME Finance Monitor for Q1 2013, published today, Caroline Williams CEO Norfolk Chamber of Commerce said:

“The latest figures from SME finance monitor are concerning because they show a continued deterioration in companies’ confidence when dealing with financial institutions. It is disheartening to see that the availability of external finance remains a barrier to growth for many businesses. Although it is understandable that first-time applicants remain among the least successful when applying for loans, many of these will be young and fast-growing firms who aren’t getting the funding they need to expand. This is why we need to see a swift delivery of the British Business Bank with both the scale and the infrastructure needed to help dynamic businesses to grow.

Locally there are a number of new financial initiatives to help small and medium businesses supported by the New Anglia LEP with new opportunities being added all the time which will put our businesses in a strong position to go for growth”.

Norfolk County Council Leader George Nobbs (Lab) today (Tuesday 28 May) announced a new eight-member Cabinet, comprising five Labour members and three Liberal Democrats.

Cllr Nobbs was elected Leader of Norfolk County Council on Friday (24 May) and immediately announced the creation of two Cabinet posts for Children’s Services, and the appointment of Cllr Mick Castle, Labour member for Yarmouth North and Central, as Cabinet Member for Schools, and Cllr James Joyce, Liberal Democrat member for Reepham, as Cabinet Member for Safeguarding Children.

The full Cabinet announced by the Leader today (Tues) is:

• Cllr George Nobbs (Lab) – Leader of the Council with special responsibility for Economic Development.
• Cllr Mick Castle (Lab) – Schools.
• Cllr David Harrison (Lib Dem) – Environment, Transport, Development & Waste.
• Cllr James Joyce (Lib Dem) – Safeguarding Children.
• Cllr Steve Morphew (Lab) – Finance, Corporate and Personnel.
• Cllr Daniel Roper (Lib Dem) – Public Protection (Public Health, Trading Standards, Fire & Rescue).
• Cllr Sue Whitaker (Lab) – Adult Social Services.
• Cllr Margaret Wilkinson (Lab) – Communities (Adult Education, Libraries, Museums, Customer Service).

In addition to the Cabinet appointments, Cllr Nobbs announced that Cllr Colleen Walker, Labour Group Deputy Leader, will be taking on the vital role of Scrutiny lead.

“A Cabinet of eight Members represents a reduction that reflects the funding cuts the Norfolk County Council is facing from the Government. Although it is a smaller team, it draws upon some considerable experience, and focuses on the most critical areas – in particular Children’s Services when the people of Norfolk expect to see improvements in the performance of our schools, and assurance that our safeguarding services are keeping children safe. These services are so critical to the future of our county that I have separated them at Cabinet level, allowing Cllr Castle to focus upon schools and Cllr Joyce on safeguarding.”

Background of Cabinet Members:

Cllr George Nobbs

Labour member for Crome. First elected to Norfolk County Council in May 2005. Became Leader of the Labour Group after re-election in 2009. Elected Leader of the Council in May 2013. A local historian, writer and publisher, he lives in Eaton Rise, Norwich.

Cllr Mick Castle

Labour member for Yarmouth North & Central. Elected in May 2013, having previously served on the Council as a Cabinet member. Also a member of Great Yarmouth Borough Council where he chairs the Development Control Committee. Chairs the Yarmouth Area Committee and the North Yarmouth Resilience Group. A former chairman of Norwich Airport and the Gt Yarmouth Port Authority, he takes a special interest in economic development. A Norwich City FC season ticket holder.

Lives in Town Wall Road, Great Yarmouth.

Cllr David Harrison

Liberal Democrat member for Aylsham. First elected to Norfolk County Council in a by-election in November 2007 and was the former Lib Dem spokesperson on planning. Also serves on Broadland District Council and Aylsham Town Council. A scientist who has worked in medical and biological research, he has for the last 15 years been teaching science in local schools. Lives in Aylsham.

Cllr James Joyce

Liberal Democrat member for Reepham. First elected to Norfolk County Council in 2005 and was Liberal Democrat spokesman for Adult Social Services. He lives in Wood Dalling and runs a Post Office serving local villages. Previously worked in advertising industry, including Saatchi & Saatchi and J Walter Thompson. Serves on Broadland District Council and Reepham Town Council and several school governing bodies. Chairman of Norfolk Crimestoppers.

Cllr Steve Morphew

Labour Member for Catton Grove. Former Leader of Norwich City Council, elected to Norfolk County Council in May 2013. A full-time officer for NALGO/UNISON for 20 years, he is a consultant in human resources for not for profit organisations and for eight years has been non-executive director on Norfolk & Norwich University NHS Trust. He was a candidate in the Police and Crime Commissioner election. Lives in Catton Grove Road, Norwich.

Cllr Daniel Roper

Liberal Democrat member for Hevingham & Spixworth. Also serves on Broadland District Council where he is Deputy Leader of the Liberal Democrat Group. A qualified Probation Officer, he has worked for Probation for 15 years, most recently as a manager in community roles and in prisons. Previously served on Norwich City Council and Old Catton Parish Council.

Cllr Sue Whitaker

Labour member for Lakenham. First elected to Norfolk County Council in 2001 Re-elected in 2005 before losing her seat in 2009, later winning it back in a by-election in November 2011. Former Leader of the Labour Group and spokesperson on Adult Social Services,former Trust Board Member of the N&NU Hospital. Lives in City Road, Norwich. Governor of the Hewett School, Norwich. Sue is also a trustee of Future Projects in Norwich.

Cllr Margaret Wilkinson

Labour member for Gaywood South. Elected in May. A long-serving member of the Borough Council of King’s Lynn & West Norfolk, she is also former Magistrate. Moved to the Fairstead Estate, King’s Lynn, from London in 1967. Now retired, she worked at the Gayton Road surgical centre for many years. She is married with two children and three grandsons.

For political comment

• Cllr George Nobbs, Leader of the Labour Group and Leader of the Council, on 01603 611406;
• Cllr Bill Borrett, Leader of the Conservative Group, on 01362 860200;
• Cllr Toby Coke, Leader of the UKIP Group, on 01328 838288;
• Cllr Marie Strong, Leader of the Liberal Democrat Group, on 07920 286597;
• Cllr Richard Bearman, Leader of the Green Party Group, on 01603 504124.

For further information please contact: John Birchall Senior media and public affairs officer, Norfolk County Council Tel: 01603 224222 Email : john.birchall@norfolk.gov.uk

A survey whose results could lead to a major investment for skills for the Suffolk and Norfolk economy has been launched today.

The Suffolk and Norfolk Employers’ Skills Survey 2013 is an online questionnaire, developed by the Chambers of Commerce and County Councils, is aimed at local employers and businesses. It asks for information on current and projected training needs, experience of employing young people and links with local schools and education providers. It will produce results that will be used to show what the specific needs of employers are and where future investment needs to be directed.

Caroline Williams CEO Norfolk Chamber of Commerce said: “Developing our current and future workforce is key to our region’s economic success. We encourage all businesses across Norfolk and Suffolk to take a few minutes to fill in the survey so we can ensure that action is taken to support their needs”

“There is no doubt that employers from across Norfolk and Suffolk continue to face real challenges regarding work force skills,” said John Dugmore, the Chief Executive of Suffolk Chamber of Commerce

“That is why our organisations are coming together to ensure that not only is the matter addressed, but that real changes are made to give employers support tailored to their needs.”

The survey will provide the County Councils, Chambers of Commerce and other partner organisations with valuable information about the state of skills in Norfolk and Suffolk. The responses will help to understand current skill gaps and will provide the evidence needed to change things for the better. The survey will also give employers more say in what training is delivered in future in Suffolk and Norfolk. It should take no more than 10-15 minutes to complete.

The survey can be found at: www.surveymonkey.com/s/skillssurvey13 and closes on 21 June 2013.

The costs to Norfolk County Council of terminating its residual waste contract with Cory Wheelabrator are set out in a report to the Council’s Cabinet Scrutiny Committee, which meets on Tuesday 4 June.

The report on the contractual penalties that would arise in the event of the Council withdrawing from the contract was requested at the first meeting of the new Council on 13 May following the elections on 2 May.

The contract itself is a standard form of government contract. It has been reviewed by Defra and the Treasury before the Government confirmed Waste Infrastructure Grant worth £169m over the lifetime of the project, which includes the proposed construction of an energy from waste plant at the Willows, Saddlebow, near King’s Lynn. The contract is available on Norfolk County Council’s website, except for redactions where the Council has nondisclosure obligations.

A public inquiry into the proposals for an energy from waste plant at Saddlebow was ordered by the Government. This ended on 17 May, with a decision by the Secretary of State on whether or not to grant planning permission expected next autumn or winter (2013/14).

The report to Cabinet Scrutiny deals with two main scenarios:

~ Termination of the contract because planning permission has been refused,

~ County Council withdrawal from the contract after planning permission has been granted.

Termination of the contract because of planning failure would trigger compensation to the contractor. It was necessary for the Council to agree to this compensation clause in the contract or the project would have been very unlikely to be funded by the banks. However, the level of compensation was capped at £20.3m.

There would also be a risk of having to meet costs associated with exchange rates and interest rates. At current market rates this would add £11m to the council’s costs. Termination of the contract in these circumstances would also trigger the early repayment of public inquiry costs, expected to be between £1.5m and £2m.

Withdrawal from the contract by the County Council in other circumstances would be significantly higher, with the costs including debt repayments, redundancy costs and lost profits. The £20.3m cap would not apply. The report does not attempt to provide a figure since it would depend upon the timing of the decision to withdraw, and would require the gathering of a range of commercial information. However, it says that the £80m-£90m cost produced for Cornwall Council when considering abandoning its contract provides ‘a useful indication.’

The full amount would be payable within 40 days of contract termination, and the Council would not be allowed to borrow to cover the costs.

In addition, withdrawal from the contract would lead to the loss of Waste Infrastructure Grant worth £169m over the lifetime of the contract. The report points out that it is unlikely that these would be available for an alternative waste solution – there are ten cases where provisional Waste Infrastructure Grant has been withdrawn by Defra, and no equivalent support has been offered to help affected authorities meet future waste costs.

Economic recovery in the UK remains weak and uneven. Whilst domestic demand increased moderately in 2012, this was largely offset by a pronounced fall in exports. Employment continued to grow strongly, however the weakness of productivity suggests the financial crisis may still be impacting on the supply capacity of the economy. Full Bank of England Overview of Inflation Report

The British Chambers of Commerce (BCC) on Sunday published a major international trade survey, looking at how many UK companies, including Norfolk businesses, are currently exporting and the barriers they face in penetrating new growth markets. The survey of nearly 4,700 respondents shows that the number of member businesses that are actively exporting has risen from 32% in 2012 to 39% in 2013, and that the EU is still the most popular market. However, many businesses are now recognizing the changing dynamics of the global economy, with more companies targeting the fast-growing economies of the United Arab Emirates and India to try and increase their export sales. The survey also found that businesses that are currently established in China see that market as their greatest growth opportunity, compared with potential exporters (those who have never exported before).

The EU remains the most popular market for existing and potential exporters:

• Despite Europe losing its lustre (particularly after the weak Euro GDP data published this week) more than eight in ten exporters trade into EU markets – unchanged from 2012 at 87%.
• Central and South America came out bottom with only 28% of exporters trading with the region. This region is home to Brazil – an economy predicted to become one of the five largest in the world
• 88% of potential exporters would consider trading with the EU
• Only 40% of potential exporters would consider exporting to Asia. The slowdown in the region has diverted attention to Africa and the Middle East, which is experiencing faster growth.

Exporters are looking for the ‘next wave’ of opportunities:

• Of the 20 ‘priority markets’ identified by UK Trade and Investment, The United Arab Emirates, Poland, China and India are the most popular growth markets among current exporters
• Of those considering exporting in the next five years, Brazil, Russia and Qatar rank highly – 32% of businesses will consider exporting to Brazil in the next five years, compared to only 20% of businesses who are currently exporting there.

Market knowledge and access are key factors for those considering exporting:

• More than half of non-exporters (58%) say not having a suitable product or service is the principal reason for not exporting.
• 6% of non-exporters state they have limited knowledge of the commercial aspect of exporting and the difficulties they’ve had finding overseas customers, agents and/or distributors are reasons for not having exported goods or services. This highlights the need to address business’ lack of market knowledge and improve access for exporters.
• 80% of respondents cited ease of finding customers, agents or distributors as the most influential factor when deciding when and where to export, followed by 77% citing cash flow and payment risk and 74% citing the knowledge or skills required.

Commenting on the findings, Caroline Williams CEO Norfolk Chamber of Commerce said:

“With austerity measures set to continue until 2018, it is clear that a sustainable recovery will have to rely heavily on diversifying and re-balancing our economy towards exports. Norfolk companies have massive untapped potential to expand, but they need the right backing to help them compete globally and break into new markets. With Europe losing its lustre and falling behind the economic pace of the outside world, it is high time for all businesses to reassess their priorities. “Small, medium and mid-sized companies need support on the front line. Companies want to work with people who understand business, with the local knowledge on the ground that can deliver practical contacts, potential partners, real customers and supply chains. To meet the scale of the UK’s economic challenge, funding for the development of SME exporters and in-market support should be increased further as part of the government’s upcoming Spending Review.

“Those already exporting to China, the United Arab Emirates and India regard those markets as offering the greatest potential for their business. This shows the confidence and willingness of Norfolk businesses to expand their sales in the fastest-growing markets once they have taken the steps to export there. The positive experience of companies that have made the leap into these markets hints at the huge potential for Norfolk to grow its export base if the support is there to help them connect to these markets.

“The government has a responsibility to help bridge the gap between market opportunity and risk. Businesses should be better exposed to the opportunities of global trade through greater support from the government for promotional activity and tradeshow attendance. The time to act on these opportunities is now, as only then will the UK stand a chance at competing with the rest of the world, and driving our economic recovery for years to come.”

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.

The results from Q1 2013 showed that on a national level, almost all major balances improved compared with Q4 2012, however Norfolk and the East of England results were not so optimistic, in particular, the manufacturing balance showed a dip in confidence.

The findings suggested that the overall economic outlook would improve gradually and that growth will probably be positive, but subdued this year. The results also demonstrated resilience among Norfolk businesses, many of whom are remaining confident and looking to invest and increase exports this year.

Both the manufacturing and service sectors in Norfolk showed improved confidence in their turnover, as all recorded increases. However whilst confidence was high for turnover, the manufacturing sector in Norfolk advised that they were not expecting their profitability to improve. The Norfolk service sector results showed an increase in those companies expecting profitability to improve.

Whether you are in the manufacturing or service sector – we want to hear from you. Are you looking to increase your exports this year? 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 10 June 2013.

Complete the survey now. The Password is economy and your Chamber ID number is 75

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

South Norfolk Council, are seeking people’s views on the long awaited bypass around Long Stratton. Residents have campaigned for decades to have the A140 through Long Stratton bypassed, with it carrying tens of thousands of vehicles each day.

Along with the road, South Norfolk Council proposes 1,800 new houses will be built in the area and an industrial estate extended. People have until 26 July to respond to the Long Stratton Area Action Plan consultation which includes the proposed bypass.

The A140 provides the main road link between Norwich and Ipswich and the last time the road was proposed, almost a decade ago, the plans collapsed after they received no government backing.

Norfolk Figures

• Between March and April 2013, unemployment fell across Norfolk by 4.6%
• Over 17,800 current claimants in Norfolk between 16 – 64 years old
• 3.4% of Norfolk’s population is claiming unemployment benefits

National Figures

• In the three months to March 2013, unemployment rose by 15,000, and employment fell by 43,000
• Youth unemployment down 17,000, but still above 950,000
• The claimant count fell 7,300 between March and April 2013

Commenting on the unemployment figures for May 2013, published today by the ONS, Caroline Williams, Chief Executive, Norfolk Chamber of Commerce said: “It is disappointing that overall the UK unemployment figures are rising but Norfolk continues to show that its local economy is ahead of the rest of the country with unemployment figures across Norfolk decreasing. It is particularly pleasing to note that Norfolk businesses are rising to the challenge relating to employing young people with an upward take up trend for apprentices reported. Norfolk’s exporters continue to report strong order books. Business confidence in Norfolk is still fragile but there is an increasing feeling of cautious optimism.”

David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: “It is disappointing that once again we are seeing a rise in unemployment, even if the figures are slightly better than expected. However we have a relatively robust labour market in the UK, and a much lower unemployment rate than that of the eurozone. It is also pleasing that the number of those claiming benefits fell in April. “Worryingly, total pay has risen by only 0.4% compared with a year earlier, the lowest since 2009. With earnings growing at a rate far below inflation, disposable incomes are being squeezed, and it is important that the MPC takes no action that will add further to inflation. It is crucial that the government develops a stronger growth strategy, focusing on areas such as infrastructure, that will enable businesses to create jobs.”

John Wastnage, Employment Policy Adviser at the BCC, added: “With unemployment rising and average wages falling, the latest labour market figures suggest the UK jobs market is starting to run out of steam. The weak economic climate is taking its toll on business confidence and public sector cuts continue to bite. Our own research also suggests we may see a further, modest weakening in labour market conditions over the coming months.

“Against this backdrop, there is even more pressure on the government to implement a bold and effective growth strategy that will enable businesses to expand and to drive economic recovery. Businesses have the hunger and determination to do this, but need more support so they are able to achieve their full potential. The government should also look to radically shift its priorities through allocating more current spending towards capital investment, which will create jobs and wealth over the long-term.”