Chamber News

Commenting on the Chancellor’s Fiscal Statement, Nova Fairbank, Chief Executive of Norfolk Chambers, said:  “Norfolk businesses will welcome many of the measures announced today that should boost economic growth, relieve cost pressures and encourage investment. “The announcement to reverse the increase to National Insurance Contributions (NIC) is a big win for the British Chambers of Commerce and the business communities across the UK. This is much needed support for companies during these difficult times. “Firms will also be glad to see the Annual Investment Allowance made permanent. It is a crucial tool which gives them the confidence to push ahead with investment, and will add greater certainty to their plans, now we know it is guaranteed to remain. “Business wants to create the wealth that funds Government spending, and plans for Investment Zones, and steps to encourage new funding in our growth industries have the potential to do just that. “Investment Zones could also finally deliver on the Government’s long-standing promise to level up, if the scheme is truly UK-wide. But lessons must be learned from the past, otherwise they can simply displace growth and investment from one area to another without creating new economic activity. “This is a bold start, but is still looking at the short term, when businesses need certainty and stability to plan their future investment.  We now await further detail on the reforms the Treasury have announced, to see if this will develop into a comprehensive long-term economic strategy. “All eyes will also now turn to the forecasts by the Office of Budget Responsibility in the autumn for reassurance on public finances.” On the repeal of IR35, she added:  “We welcome this decision. It will allow workers and business owners to have more flexibility, ease skills shortages and ultimately create a more flexible labour market.” On VAT free shopping for overseas visitors, she said:  “This is a measure the BCC has been calling for. International inbound tourism is a vital part of the UK economy, supporting people and places, especially industries such as hospitality.” Image credit: Chambers Canva Pro 2022

Commenting on today’s Bank of England interest rate rise, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:   “The decision by the Bank of England to raise the base rate to 2.25% is further evidence they are taking a hard line on tackling inflation. Our research shows that unrelenting inflation, largely driven by rising energy costs, is by far and away the top business concern at present.  “But the Bank faces an increasingly tricky balancing act. The interest rate is a very blunt instrument to control inflationary pressures that are largely driven by rocketing energy costs and global supply chain disruption. The Bank’s decision to raise rates will increase the risk for individuals and organisations exposed to debt burdens and rising mortgage costs – dampening consumer confidence.  “Recent energy price cap announcements will have provided some comfort to businesses and households alike and should place downward pressure on the rate of inflation.  “Friday’s fiscal statement by the Chancellor is now a critical moment. He has the unenviable task of shoring up the economy whilst avoiding additional  inflationary stimulus.  “The Bank, looking to dampen consumer demand, and Government, looking to increase growth, could now be pulling in opposite directions.  “What businesses will want to see is a plan to address the short-term drivers of inflation as well as a long-term strategy to promote investment that gives them confidence for the future and counteracts the recessionary pull of rising interest rates.”   

Comment from Shevaun Haviland, Director General of the British Chambers of Commerce:  “After months of campaigning, today’s Government announcement to reverse the increase to the National Insurance Contribution (NIC) is a big win for the British Chambers of Commerce and the business community. This is much needed support for businesses during these difficult times.  “There are a range of other challenges that must be addressed including labour shortages, supply chain disruption, and rising raw material costs. Tomorrow’s mini budget from the Chancellor is now a critical moment. To truly revitalise our economy for the difficult months ahead then tomorrow must bring a clear long-term plan that gives business the confidence to grow.” 

Konect bus is kindly providing discounted tickets for those traveling to the B2B Exhibition on 13th October 2022. To claim your discount, simply download the Konectbus App via i-store or Google Play, then register for an account. Once set up, select mobile tickets > Anywhere > Anywhere Adult Day and go to checkout. You will then be prompted to add a discount code: B2B22 A discount of £1.80 will be applied to the normal ticket price of £6.80. The discounted ticket can only be purchased on the morning of travel. The Konectbus service No4 ( Fab 4)  takes you direct to the Norfolk Showground,  which as you can see from the current timetable operates an hourly service, with the the first bus departing Dereham Market Place at 06.10am and the last bus to Norwich Bus Station is 17.43pm and to Dereham is 18.52pm. From Dereham and Norwich Bus Station, the journey takes around 35 minutes and you would need to get off at the stop at New Costessey, showground.

Norfolk Chambers is part of the A47 Alliance and we are Chair of the A47 Alliance Task & Finish Group. We have helped to draft the below letter to the Prime Minister and we would like business signatures to show the level of support for the full dualling of the A47. The A47 Alliance is a collaboration of 26 organisations covering business leaders, Local Enterprise Partnerships, Chambers of Commerce, local authority members from Norfolk, Cambridgeshire, Lincolnshire, and Suffolk who have come together to make the case for a fully dualled A47. The A47 Alliance recognises that the whole of the A47 cannot be dualled at once and therefore have three priority schemes which we are currently lobbying government to provide funding for in the next trunk road programme, which starts in 2025. These are:

• Acle Straight dualling
• Tilney to East Winch dualling
• Peterborough to Walton Highway dualling

Dualling of these sections of the A47 will increase the economic performance of the eastern region, as well as reduce congestion, improve safety and increase journey reliability along the route. Support from businesses in the East is essential to make the case for A47 dualling as businesses are key to the economic prosperity of the region. As part of the A47 Alliance’s campaigning activities, we are sending the letter (see document below) to the Prime Minister Liz Truss. With a Norfolk MP in Number 10, this is a prime opportunity to campaign for much-needed investment in the A47 and make a strong case for dualling. To show the vast support in the region for A47 dualling and the importance of the route to the businesses in the East, we would like to obtain your support for dualling in the form of a signature to add to the attached letter. Including the signatures of businesses from across the region with show clearly to the Prime Minister just how important A47 dualling is for the economy of the East and supporting our businesses. We would be extremely grateful to receive your signature and organisation logo to include within the letter. Please may you send these to the A47 Alliance mailbox (A47Alliance@norfolk.gov.uk) by Friday 30^th September which is when we intend to send the letter to Liz Truss. Letter to PM from A47 Alliance (002)

Responding to the findings,  release of further details from Government on the energy support plan for business, Chief Executive Officer at the Norfolk Chambers, Nova Fairbank said: “The latest government news will give Norfolk businesses a much-needed sense of relief from the pressures of rising energy costs.” “For months we have been calling for Government intervention to help businesses with eye watering energy costs. This support package is significant and will ease the cost pressures that have been piling up on businesses. “It will allow many firms that were facing closure, or having to lay off staff or reduce output, to keep going through the winter. “But the exact level of support will vary greatly from business to business depending on the detail of its contract, so some will inevitably do better than others. “We now need action to get this saving passed onto business as soon as possible – every day will put some firms closer to the edge and they cannot hang on much longer. “There must also be effective legal oversight to ensure no firms that are due this money miss out. “For those that will benefit, six months support is not enough for most firms to make plans for the future. “We understand there are a range of unknowns for the Government in looking ahead, but without that reassurance very few firms will make plans to invest or grow. “Some businesses will still struggle to meet their bills despite this government intervention, the Chancellor must prioritise those firms in his mini-budget on Friday. “There are a range of other challenges that must be addressed including labour shortages, supply chain disruption, and rising raw material costs. “To truly revitalise our economy for the difficult months ahead then there must be a clear long-term plan that gives business the confidence to grow.” More detail on the Government plan can be found here.  

Commenting on the Office for National Statistics inflation figures for August 2022,  Director of Policy and Public Affairs, Alex Veitch, said:   “This rise in Consumer Prices Index inflation by 9.9% confirms the sustained pressure businesses and consumers have been facing over the past year.  “This is also reflected in the squeeze on businesses’ operating costs as Producer Price Inflation figures remain at record highs of 20.5% in the year to August 2022.  “While the rate of growth has eased slightly, this has been driven by a fall in motor fuel costs – other goods continue to rise. “There is a limit to how long any firm can sustain these rising costs before something has to give. We know from our research that two thirds of businesses plan to increase their own prices.  “The size of last week’s Government intervention on energy prices should have a dampening effect on inflation when it is enacted.   “But the lack of detail on exactly how much help any individual business will get, and for how long, means very few will be planning to invest any time soon.  “There are also a whole host of other issues ranging from transport and shipping costs, raw material prices, energy sector regulation and the tight labour market that must be addressed.  “It is imperative the Government’s forthcoming ‘fiscal intervention’ provides business with confidence that there is a cohesive plan to take the economy forward.”  

Commenting on the latest ONS Labour Market statistics released today, BCC Head of People Policy, Jane Gratton, said:      “With firms doing their best to keep afloat during a period of spiralling costs, they are also facing an extremely tight labour market which is further impacting their ability to invest and grow.  “Despite a second month of a decrease in job vacancies, the overall number of vacancies in the labour market remains high. With over 1.2 million unfilled jobs across the country, labour shortages have reached crisis levels for businesses across many sectors and regions.   “During a period of increasing inflation, and a stagnant economy, we cannot afford to let recruitment problems further dampen growth.  “The cost-of-doing-business crisis is intensifying the challenges present in the already tight labour market, as it is having a significant impact on firm’s abilities to invest in the workforce. As rising costs force businesses to put investment plans on hold, budgets for people training and development are taking a hit.     “Government can help by reducing the upfront costs on business and providing training related tax breaks, increasing flexibility in the apprenticeship levy, and ensuring job seekers have access to rapid retraining opportunities.   “The Shortage Occupation List (SOL) must also be reformed to include more jobs at more skill levels, to give firms breathing space to train and upskill their workforce.” 

A recent announcement from TV Licencing: We offer our deepest condolences to the Royal Family following the death of Her Majesty The Queen. Her Majesty was the embodiment of public service. We know that many communities may wish to come together and observe the funeral of Her Majesty The Queen and so the BBC is providing local communities a TV Licence dispensation. The dispensation will allow any communal setting where TV is not usually watched, such as town halls, community centres and libraries across the UK, to screen the live programmes without needing to purchase a licence. We want to reach out to communities and those who are making arrangements to let them know that the dispensation is in place and therefore we welcome your support in making your service users aware. By law, if live television or BBC iPlayer is viewed on any premises, those premises must be covered by a valid TV Licence. However, in exceptional circumstances, the BBC can grant a dispensation for the temporary viewing of television, so long as the viewing is for the sole purpose of screening an event which is judged by the BBC to be of national importance. As the BBC Board has said, Her Majesty Queen Elizabeth II was a unifying figure across generations, communities and borders, who represented the very best of our nation. We are grateful at the BBC to have witnessed, recorded and shared so many of the special moments in her long life and reign. She will always be remembered with the greatest affection and admiration. For further information click here.

The Chambers inaugural engagement focus groups have now been held in both Norwich (Tuesday 06 September) and Great Yarmouth (Thursday 08 September) and the King’s Lynn group will meet on Friday 23 September.  The inaugural groups were led by our CEO, Nova Fairbank. Norfolk Chambers mission is to connect, support and give voice to every business in Norfolk.  The Engagement Focus Groups provide a platform for local businesses, both members and non members, to debate issues that are most important to you, and your business.  They will help us to understand the immediate needs of the business community and will inform any lobbying and influencing we do on your behalf, using our dedicated team, our website, social media channels, and our digital platforms. Whilst we have kicked the Engagement Focus Groups off in the major city and towns, we are determined to represent businesses across the whole of Norfolk, and we will bring these groups to the market towns, villages and more rural locations in the upcoming months.  Watch this space to see where the nearest group to you will meet. Click here to view our upcoming Focus Groups It has come to no surprise that the key points taken from the recent Engagement Focus Groups are concerns around the cost-of-living crisis and how this will impact businesses, as well as challenges with recruitment. Just some of the key points highlighted by the two groups were:

• Everyone highlighted recruitment struggles around accessing skilled and experienced people
• What will the cost-of-living crisis do to the wellbeing of those that either have to, or choose to work from home?
• Independent traders are likely to be in the firing line as people tighten their belts – how can we support these businesses?
• Older people already have a level of work experience – so accessing skills is not just for young people – how do older people upskill or re-skill?
• Soft skills are still a challenge for employers – do we need to change our perception of young people and should we expect to have to teach them the soft skills we need?
• Lots of uncertainty in the construction industry – cost of materials. Smaller projects are on hold until businesses know more
• Need more apprenticeship advice and awareness for parents – i.e. demonstrate the wider benefits of an apprenticeship
• STEM industry in the region are increasing with multiple projects in the pipeline however people are unaware of the supportive scheme running in the background to support people coming into the industry and those companies bidding for work.
• Businesses used cash reserves to get through COVID period and no longer have these emergency funds to fall back on.
• SME transport businesses with current pressures will be unable to fund the change to EVs which could force them to close.

Our thanks go to the amazing business contributors including: STEMPOINT East, Method Marketing, Osborne Creative, Access Creative College, Natwest, Chadwicks, Great Yarmouth Borough Council, East Norfolk Sixth Form, CJC Consultants, Impact Energy Consultants, Dan Morgan, Isle Architects, Coaching Limited and Nexus Tree Consulting We are now looking forward to the Engagement Focus Group in King’s Lynn – if you want to join in, there is still time to book your place. If you would like our Engagement Focus Groups to come to your town or village, please email hello@norfolkchambers.co.uk with your suggestions. Image credit – Rebecca Osborne, Osborne Creative

Reacting to the latest ONS figures on Trade for July 2022, William Bain, Head of Trade Policy at the BCC, said:  “July was a better month for UK trade than the previous month. We are seeing trade in fuels, particularly oil and gas, at elevated levels. Vehicle and other mechanical engineering exports did well too.   “We will be outlining measures which could consolidate the progress in this set of trade data over the coming months once the period of national mourning has come to an end.”  Trade data overview  Imports  Overall goods imports from the EU decreased by 0.3% (lower car imports from Germany and Spain were factors here) while goods exports to the EU rose by 7.9%. Fuel exports to the EU rose by £0.8bn in July alone, largely down to increased oil and gas exports to the Netherlands and oil exports to France.   Non-EU goods imports fell by 1.5% in July 2022, offset by higher levels of gas imports from Norway and refined oil from Kuwait. Overall goods imports were 0.9% lower in July 2022 compared with the previous month.   Exports  Total goods exports in July 2022 rose by 6.7%, with a 7.9% rise in exports to the EU accompanied by a 5.4% rise in goods exports to the rest of the world. Exports of ships to Gibraltar, mechanical machinery items to China, and vehicles to the US and China were at the centre of the rise in rest of the world goods exports in July.   The overall trade deficit (ex-inflation) narrowed in the 3 months to July 2022 by £2bn, coming in at £20.8bn. 

Reacting to the latest ONS figures on GDP for July 2022, David Bharier, Head of Research at the BCC, said: 

“Today’s estimated rise in monthly GDP for July 2022 by 0.2% shows that growth continues to fluctuate considerably on a month-by-month basis.   

“The main driver of growth is the services sector following a fall in the previous month. However, the production and construction sectors have both seen a second consecutive fall in growth. 

“The UK economy faces serious immediate and longer-term structural issues which could lead to quarterly recession by the end of 2022, and anaemic yearly growth after that. 

“BCC’s research shows that business confidence is trending downwards, with inflation wiping out turnover and profitability for many firms and a record proportion facing recruitment difficulties. 

“Last week’s announcement on support for firms’ energy bills will have provided some reassurance to business and should dampen one of the key sources of inflation, but further details of the scheme are needed to restore long-term confidence. 

“The Bank of England face a delicate balancing act on monetary policy and while inflation is the dominant issue, further rate raises could compound the economy’s move towards recession.  

“Crucially, while the war in Ukraine continues, we are unlikely to see a stabilisation in gas prices, and the economic outlook will remain challenging.”