Chamber News

At a recent meeting between Henry Bellingham, MP for North West Norfolk and members of the West Norfolk Chamber Council, the topic of prompt payment was raised. Several members had examples of where they had been required to wait over 90, or even 120 days for payment from their clients, who were in turn were waiting for payment from their customers. This was particularly apparent where large organisations, especially some supermarkets were the end users.

One suggestion put forward was for the affected members to write to theircustomers and query if they had signed up to the Prompt Payment Code (PPC). The PPC is supported by the major business organisations, including the British Chambers of Commerce (BCC); the FSB; CBI and the IOD, who are all championing the importance of paying suppliers promptly and within agreed timescales.

The PPC has three key aims:

1. Pay suppliers on time

• within the terms agreed at the outset of the contract
• without attempting to change payment terms retrospectively
• without changing practice on length of payment for smaller companies on unreasonable grounds

2. Give clear guidance to suppliers

• providing suppliers with clear and easily accessible guidance on payment procedures
• ensuring there is a system for dealing with complaints and disputes which is communicated to suppliers
• advising them promptly if there is any reason why an invoice will not be paid to the agreed terms

3. Encourage good practice

• by requesting that lead suppliers encourage adoption of the code throughout their own supply chains

A survey carried out by the BCC last year on late payments, highlighted that 94% of businesses reported that they have been paid late. Almost one quarter (24%) of businesses reported that over 40% of payments were received late. 34% of firms stated that larger businesses were more likely than smaller businesses to pay late. Almost two-thirds (62%) of businesses said that private sector businesses are the most likely to pay late.

Over a third (38%) of businesses themselves admitted to paying late ‘sometimes’, ‘frequently’ or ‘always’. When asked when they might pay late, a third of businesses (35%) would do so to help cash flow, and another third because they would be unable to pay suppliers until they had received payment from their own customers.

Prompt payment, particularly by larger organisations ensures that the local supply chain and cash flow throughout that supply chain is kept moving. A healthy, fluent supply chain will help support and improve local economic growth.

It is noted that the public sector has improved their payment times and in particular, the King’s Lynn and West Norfolk Borough Council have a payment schedule of approximately 10 days, which benefits West Norfolk businesses considerably. SMEs look forward to the day when the larger private sector organisations adopt similar principals with regard to prompt payments.

At a recent economic round robin discussion by Norwich Chamber Council members highlighted what was happening in their sectors. The feedback included the following:

Arnold Keys advised that despite the recent inclement weather, Norfolk house builders were still reporting positive sales with lots of valuation work being done on behalf of the high street banks.

John Lewis, Norwich reported that over the last 6 weeks local sales were up by 12%, particularly in home and electrical items. Marks and Spencer and Debenhams also reported increases in their sales in this period.

City College Norwich (part of the TEN Group) reported that their student retention rates were up. It was also noted that new legislation will mean that, from 2013, young people will be required to stay in education or training until they are 17 (this increases to 18 from 2015), which can include apprenticeships as well as full time courses in colleges and schools.

The New Anglia Local Enterprise Partnership (NALEP) recently consulted members of the West Norfolk Chamber Council on the pre-consultation draft of their Plan for Growth. Having reviewed the Plan, the West Norfolk Chamber Council highlighted the following areas that they would like to see the NALEP consider within their Plan for Growth:-

• Improvements to the A47 are seen as vital by West Norfolk businesses to assist economic growth. However they voiced their concern that any improvements would put further constraints on the existing bottleneck routes around King’s Lynn. They asked for these concerns to be taken into consideration when planning the improvements to the A47. One suggestion was for an additional river crossing to ease congestion around King’s Lynn.

• One of the most congested rail routes from Norfolk to London is the King’s Lynn to Kings Cross line and they would like to see equal emphasis placed on this route, as well as the Norwich to London Liverpool Street line.

• Tourism for West Norfolk depends on good roads and good communications, however improving these aspects may have a detrimental effect on the very thing that attracts the tourists. The West Norfolk Chamber Council sought reassurances from the NALEP that the character of the region would not be lost due to growth, whilst benefitting from improved roads and communication links.

The NALEP advised that they would take the above comments into consideration when revising their Growth Plan, which will go out for wider consultation at the beginning of April.

Do you agree with the identified topmost burdensome EU laws?

The 20.8 million European small and medium sized enterprises (SMEs) create 85% of all new jobs in Europe, they employ 2/3 of the workforce in the EU and they contribute significantly to innovation and growth.

Following the principle “think small first”, and in line with the Small Business Act of 2008, the Commission advise they have put SMEs at the heart of its smart regulation agenda to help growth and job creation in Europe. In a broad consultation initiated by the Commission, around 1000 SMEs and business organisations have now identified the top 10 most burdensome EU laws.

The purpose of this broad consultation was to check where EU regulation might be impeding jobs and growth and to identify areas or issues which would require further examination and action where necessary. The result published today indicates that SMEs see the biggest difficulties and costs as a consequence of the rules regarding the REACH chemical legislation, value added tax, product safety, recognition of professional qualifications, data protection, waste legislation, labour market related legislation, recording equipment for road transport, public procurement and the modernised customs code.

The following EU laws have been identified by SMEs as the TOP 10 most burdensome EU laws:

• REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals)
• VAT – Value added tax legislation
• General Product Safety and market surveillance package
• Recognition of professional qualifications
• Shipments of waste – Waste framework legislation – List of waste and hazardous waste
• Labour market-related legislation
• Data protection
• Working time
• Recording equipment in road transport (for driving and rest periods)
• Procedures for the award of public contracts (public works, supply and service contracts)
• Modernised customs code

The full article can be read here

Commenting on the Chancellor’s Budget speech, Caroline Williams CEO Norfolk Chamber of Commerce, said:

“There is much for business to commend in the Chancellor’s statement, from a wider remit for the Bank of England, to measures on fuel duty, home ownership, and employment. However, many in business will feel that the government could have gone even further to support enterprise and growth – for example, through immediate action on business rates and road maintenance.

“We are at an unprecedented moment in our economic history, and the government should be doing everything in its power to get the economy moving. Many of the Chancellor’s measures are positive but may come too late, particularly for smaller and medium-sized companies. We need urgency, scale and delivery today.

“If Britain is in a global race, as the Chancellor said in his speech, our political elite needs to act accordingly, and pull out all the stops to support enterprise, jobs, wealth creation and exports. Business will appreciate many of the Chancellor’s measures, and his personal commitment to fiscal discipline, enterprise and infrastructure, but will wish he had been even more radical in the pursuit of growth.”

Commenting on the forecast by the Office for Budget Responsibility, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The new OBR forecast for 2013 of 0.6% is identical to our own. For 2014/15 the OBR’s forecasts are still realistic, only marginally higher than our own. However we believe that the OBR’s forecasts for growth beyond 2015 may be too ambitious, as it is hard to envisage UK growth consistently above 2.5%.

“The OBR has confirmed that restoring stability to our public finances will take longer than expected, and that public sector debt as a percentage of GDP will only start declining in 2017/18, two years later than planned in 2010. Nevertheless, the Chancellor’s efforts to switch resources from current to capital spending, and continuing with deficit reduction, are on the right lines.

“The Chancellor’s announcement of a more flexible monetary policy framework will offer some welcome transparency regarding the actions of the MPC, and we will examine the detail carefully. At a time when fiscal policy is squeezing demand, it is right to rely on expansionary monetary policies as the UK has done since 2008. However, it is important that changes to the monetary remit do not give the impression that the MPC will tolerate higher inflation for prolonged periods as this could be damaging in the long-term.”

COMMENT FROM JOHN LONGWORTH DIRECTOR GENERAL OF BRITISH CHAMBERS OF COMMERCE ON SPECIFIC MEASURES IN THE BUDGET

On fiscal policy and government spending:

“The Chancellor has tried hard to shift spending towards growth, with some success. However, the Coalition as a whole should have taken the tough political decision to remove ring-fences around health, overseas aid and universal benefits, which would have allowed more immediate investment in road maintenance, house building, business access to finance and support for exporters.

“The business community will welcome the Chancellor’s move to re-direct money from government departments to infrastructure over the medium term. However, businesses would have liked to see an even bigger shift in government spending towards priorities that unleash enterprise, which in turn delivers jobs, prosperity and the tax revenues needed to shrink the deficit and eventually the national debt.”

On ‘monetary activism’ and a new remit for the Bank of England’s Monetary Policy Committee:

“We welcome the Chancellor’s decision to review the Monetary Policy Committee’s remit, and to give it more latitude to support growth. We will look at the tweaked remit in detail, but the principle of targeting inflation while doing everything possible to support growth is right.”

On business rates:

“Companies across the country are crying out for relief from relentless annual rises in business rates for years, but the Treasury has put off action until the Autumn Statement. Unless a business’s premises are the size of a double garage, or if a firm is building speculatively over the next two years, there’s little relief on offer.

“Heavy taxes on inputs like property drag down business profitability. We urge the Chancellor to take further action on business rates without delay.”

On employment and the new Employment Allowance:

“The Chancellor’s move to help our smallest companies take on staff by cutting their employers’ national insurance bills by £2,000 will give many businesses an important boost of confidence. Small companies should be able to focus on growth rather than worry about getting hit by employment taxes.”

On Growth Vouchers:

“The British Chambers of Commerce proposed a voucher scheme to help businesses access growth advice in September 2012. We are pleased that the Chancellor has accepted our proposal and committed £30m to help companies around the country get the advice they need to grow, on their own terms. Chambers of Commerce around the country look forward to working with the government to bring the scheme to life – and enable businesses to get the specialist assistance they need, whether on finance, employment law, or other areas.”

On business access to finance:

Business bank:

“BCC has long campaigned for the establishment of a business bank, and for it to be of sufficient size and scale to provide the sort of support to new and growing businesses seen in Canada, the USA, Korea, and Germany. A British Business Bank requires a vision and proper resourcing. Unless it has both, it can’t back the dynamic companies that have failed to get patient growth capital in this country for decades.

“While we will await further detail on the business bank’s start-up activities, we would have liked to have seen a radical increase in the initial funding on offer. The Chancellor has, however, given greater flexibility to the Bank of England to support growth. So we will urge the incoming governor of the Bank of England to underwrite or capitalise the business bank using the BoE balance sheet.”

Funding for Lending

“The Chancellor mentioned that the Treasury are working on improvements to the Funding for Lending scheme, which has helped the mortgage market but has done little or nothing to solve the issues businesses face when trying to access finance. While will we support any idea that could help boost the scheme’s effectiveness for business lending, Funding for Lending can ultimately do little beyond lowering the cost of finance for companies already considered by banks to be ‘safe bets’. Only greater competition in the banking sector and a properly capitalised Business Bank, which would drive up appetite for risk, can deal with the very real frustrations we see in the business community across the UK.”

On housing and the mortgage market:

“The Chancellor’s efforts to grease the wheels of the mortgage market are significant and positive. However, we argue that moves in the mortgage market should be complemented by direct support for the building of new houses. Direct support for construction creates jobs and supply chain activity, and boosts business confidence fast.”

On transport infrastructure:

“Business appreciates the Chancellor’s personal commitment to improving Britain’s transport infrastructure – and his efforts to reverse the damaging cuts to transport spending that we warned all parties against. His £18bn shift from current spending to capital investment over the next Parliament is welcome. However, by its very nature, the switch announced in the Budget will only have an impact in the medium-term.

“As part of a wider re-prioritisation of resources on measures to boost confidence, jobs and growth, the Chancellor should have gone even further and used this Budget to divert unproductive current spending into road maintenance and repairs today. This would have had immediate effects on business confidence, construction sector jobs, and the effectiveness of our transport network.”

On energy infrastructure:

“We welcome the Chancellor’s commitments on energy, as they contribute to our overall energy security and resilience. We hope these announcements, together with the confidence generated by planning permission for new nuclear, will reduce the political risk that has dogged private investment in energy infrastructure.

“What’s more, we need to get more creative to de-risk investment in these major projects. The Bank of England could play an important role here, by offering guarantees that help to de-risk infrastructure investment for pension funds, institutions and sovereign wealth funds from across the world.”

On international trade and export support:

“If Britain is in a global race, as the Prime Minister is so fond of saying, we must pull out all the stops to support our exporters.

“While we welcomed the Chancellor’s commitment of new funds to support trade promotion in the Autumn Statement, and are working closely with the government to boost assistance to exporters, more can still be done to turbo-charge export support for British companies. There is a need to provide even more practical help in overseas markets for companies wanting to export.”

On corporation tax:

“All companies will cheer the news that Corporation Tax will fall to 20% by 2015. This is an important fillip to business confidence, particularly among global investors.

“The Chancellor may, in future, need to consider even further tax cuts of this nature if there is no sign of resurgent growth over the coming months.”

On public sector pay:

“The Chancellor is right to restrain public sector pay, especially in light of continued pay restraint in hard-working businesses across the UK.”

Based at the Norwich Research Park, ABC Food Safety provides specialist training and consultancy services to local authorities and the food industry.

About us

ABC Food Safety was established in 2002 by Dr Andy Bowles and Sharon Bowles. Andy had previously been employed as a Quality Assurance Manager by Dairy Crest Dairies; Head of Environmental Health at the London Borough of Enfield and lecturer in food law at Middlesex University. Sharon is a practising solicitor with experience gained in local government, private industry and a city law firm.

What do we do?

For the last 11 years our work has primarily been focused on the development and delivery of Continuous Professional Development (CPD) training courses for Environmental Health and Trading Standards Officers in food law and enforcement topics. We have provided many of these courses on behalf of the Food Standards Agency and we have, for example, trained over 1000 enforcement officers on the consistent application of the Food Standards Agency’s National Food Hygiene Rating Scheme. We have recently begun to provide training courses, seminars and consultancy services to the food industry on topics such as the Food Information Regulation, Food Traceability, Allergen Control, Imported Food and Food Law for Technical Managers. Many of our courses are held at Norwich City Football Club and our seminars are limited to 10 delegates to allow the opportunity for attendees to discuss their particular concerns with the tutor.

We also run two online training services: one on behalf of the Food Standards Agency to help enforcement officers to apply official controls on imported foods (www.importedfood.co.uk); the other online training service is available by subscription to local authorities and the food industry and provides courses on topics such as Dairy Products, Sous Vide and Vacuum Pack System, E.coli o157 Control of Cross Contamination and Food Allergen Control. The service is available at www.abcfoodsafety.co.uk.

How can we help your business? We are food law specialists and our services are of particular relevance to food manufacturers, importers/exporters, producers, processors, food research institutions, universities, local authorities and other interested parties. We can provide expert opinion and guidance on a range of food topics including:

• Traceability and product recall
• HACCP systems
• Food labeling
• Imported food controls
• Feed and food hygiene law
• Food sampling
• Food allergen control

Please feel free to contact us for an informal chat on how we can help your business to meet the requirements of food law. We can arrange bespoke in-house training, bespoke online training as well as consultancy.

Contact

ABC Food Safety

Telephone: 01603 274486

e-mail: lynn.gallant@abcfoodsafety.co.uk

West Site A Innovation Centre Norwich Research Park Norwich Norfolk NR4 7GJ

www.abcfoodsafety.co.uk

Commenting on the Government response to Lord Heseltine’s Review, No Stone Unturned, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“Chambers of Commerce welcome the government’s commitment to localise some funding and decision-making around transport and skills in order to unleash the enterprise and growth latent in local communities across England. We commend Lord Heseltine for his dogged pursuit of a growth blueprint that promotes business and innovation and reduces dependency on Whitehall and Westminster.

Working with others, we will also continue to develop our aspiration to be a ‘first-stop shop’ for any local business seeking advice or support, as Chambers have a front door in every main town and city across the country.”

Caroline Williams Chief Executive Norfolk Chamber of Commerce said: “It is essential that the business community identifies and articulates what its needs are to provide the growth needed to strengthen the local economy. We have regular meetings with our MPs and the two LEPs covering our area. and have recently given specific feedback on the developing New Anglia LEP Plan for Growth. Norfolk Chamber will continue to work with its partners and via its membership to give local help and support to its members and the wider business community through its lobbying activity, events and its community website.”

Today’s decision to grant EDF Energy consent to construct a new nuclear power station at Hinkley Point in Somerset represents a huge achievement. It follows three years of in-depth consultation with local communities and a year long examination by the UK Planning Inspectorate.

The approval was met with wide political consensus in the House of Commons today.

The process was an immense undertaking to examine the impact of the construction and operation of the site on the community and environment. It included detailed studies on housing, transport and jobs and demonstrated EDF Energy’s commitment to be open, transparent and to listen.

The submission included 55,000 pages of detailed evidence, more than 100 public meetings and exhibitions, as well as individual responses to 33,000 comments received from the public and stakeholders. Agreement reached during consultation with local communities led to a number of changes to the planning application.

Opportunity now for immediate UK economic growth

The approval is the final major permission needed to allow construction of Hinkley Point C. It is a project which can provide the UK with enough secure low carbon electricity to meet 7% of the country’s needs for 60 years or more.

Today’s decision follows the granting of a Nuclear Site Licence and the approval of the power station’s design (Generic Design Assessment) by the UK nuclear safety authority and the award last week of key environmental permits by the Environment Agency. Hinkley Point C also has the potential to give a massive boost to the economy with 25,000 people working on the power station during its construction, and 900 during its lifetime. Its construction can strengthen the UK’s industrial capability, equipping it to compete for business around the world.

The approval by the Secretary of State for Energy and Climate Change also means that Hinkley Point C is the first piece of national infrastructure on this scale to be approved under the new 2008 Planning Act. This rigorous process was achieved in time. This remarkable achievement now needs to be matched by the finalisation of a contract for the electricity to be produced at Hinkley Point C. Swift success in negotiations with Government over this Contract for Difference is the key to unlocking the investment needed.

EDF Energy Chief Executive Vincent de Rivaz said: “Receiving permission to construct a new nuclear power station at Hinkley Point C is a huge achievement, which represents years of hard work. It reflects an extraordinary level of edfenergy.comprofessionalism and work from EDF Energy’s planning team, the Planning Inspectorate, local authorities and a wide range of stakeholders.

“This decision sets up a huge opportunity for this project to provide enormous benefits to the UK in jobs, skills, cutting carbon emissions and future energy security. We are ready to deliver and an extensive supply chain is standing by to begin work.

“To make this opportunity a reality, we need to reach agreement swiftly on the Contract for Difference for Hinkley Point C. It must offer a fair and balanced deal for consumers and investors. Intensive discussions with the Government are taking place and agreement is still possible.

“The success of this pioneering project will kick start the new nuclear programme in the UK and is expected to lead to lower costs for successive UK nuclear plants.”

For media enquiries please contact:

Tim McCoy Head of Media Relations EDF Energy 07875119378tim.mccoy@edfenergy.com

Commenting on the announcement that planning permission for EDF’s nuclear power plant in Hinkley Point, Somerset, has been approved, Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC), said:

“British business is clear that nuclear power is a vital ingredient in the UK’s long-term energy mix. Planning approval for Hinkley C is a major step in the search for energy security and a huge opportunity for local businesses in Somerset and beyond.

“While this announcement is positive, Britain’s first new nuclear plant in nearly two decades is not a done deal yet. Planning permission alone does not mean the project will proceed; complex negotiations on energy pricing must also reach a successful conclusion. Whatever the financial deal reached, it must offer value for taxpayers and certainty for business energy users – who need clarity on their costs and on security of supply.

“Planning approval for Hinkley C is only one step in the much-needed upgrade of the UK’s energy infrastructure. It must not be the only step taken – as without a comprehensive UK energy security strategy, our business competitiveness will be seriously diminished.”

Rupert Cox, Chief Executive of the Somerset Chamber of Commerce, said:

“This announcement sends a clear message that the UK’s new nuclear build programme is on track. Local businesses are keen to play their part in developing the supply chain for nuclear power, and the Chamber has been at the heart of this effort. Here in Somerset, more than 1,200 companies have taken the necessary steps to ensure that they are ‘Hinkley ready’.”

Caroline Williams Chief Executive Norfolk Chamber of Commerce said: “It is great to see Hinkley C getting planning permission as it brings Sizewell C a step closer to the region. The Chambers have a key role to play in developing their supply chains and we look forward to ensuring that Norfolk businesses are ready to take full advantage of the business opportunities both locally and in Hinkley”

A recent meeting between the members of Great Yarmouth Chamber Council and Great Yarmouth Borough Cabinet, it was identified that there was a need for greater interaction between the schools and local businesses to ensure that comprehensive careers advice was available to the young people of Great Yarmouth to help secure a skilled workforce for the future. The group agreed that the first step should be to arrange joint meeting between the six main high schools in Great Yarmouth and local employers to determine the best way to bridge this gap.

Caroline Williams, CEO of Norfolk Chamber of Commerce said “It is vital to the economic growth of Great Yarmouth that the right skilled people are available. It is important that our young people can easily identify the options available to them at an early age and that they understand the fantastic opportunities that are on their doorstep in key sectors from tourism, hospitality and energy to engineering and IT.”

Broadland District Council have launched a consultation on how the Growth Triangle to the north east of Norwich should grow and develop over the next 15 years and beyond. Eventually, the plan will become part of the planning policies for Broadland.

They are looking for your views on different options for the policies and proposals that should be contained within the Area Action Plan. Some of the policy options consider how factors that affect nearly all development in the area will be dealt with. These are things such as design or the integration of transport infrastructure. Other options look at what sites should be developed as housing or employment, or used for other purposes such as open space. You can take part in this consultation by completing their questionnaire. The consultation period will run from 18 March 2013 to 10 June 2013.

Enterprise Europe Network (EEN) and UK Trade & Investment (UKTI) are organising a trade mission to the Central European Exhibition Centre, Brno, Czech Republic to enable UK companies to participate in an international business-to-business matchmaking event, Contact-Contract.

The Czech Republic is one of the UK’s largest European export markets, with sales of goods reaching £1.75 billion last year.

The central European country holds a strong strategic position at the heart of Europe with one of the most prosperous and stable emerging European market economies, and a highly developed infrastructure open to UK business.

Click here for further details of this mission which takes place from 23-25 April 2013.