UKtrade deficit in goods and services was £2.7bn in September, compared with a deficit of £4.3bn in August
Commenting on the trade figures for September 2012 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: “Although an improvement in the trade deficit in September was unsurprising after the setback we saw in August, the progress was better than expected. Underlying export volumes rose by 4.1% in the third quarter, while imports fell slightly over the same period. Longer term comparisons show that exports rose more than imports on an annual basis, reversing the disappointing trends seen at the beginning of the year. “It is encouraging that exports to non-EU countries were stronger than exports to the slow growing European Union in both the second and third quarters of this year. This welcome development must be supported as the UK is still experiencing a significant trade deficit. The government must do everything in its power to help UK exporters move to faster growing areas outside the EU. Exporting companies have huge untapped potential to expand, but they need the right backing to help them compete on equitable terms and break into new markets. “Firmer action from the government is needed in key areas such as trade finance, promotion and insurance, which we hope the Chancellor will address in his Autumn Statement next month. But this must be part of a general shift in priorities towards more policies to boost growth.”
“The news this week that Norfolk Chamber member joint venture ScottishPower Renewables (SPR) and Vattenfall, the developers of East Anglia Offshore Wind (EAOW), and the companies behind a major wind farm scheme planned off East Anglia’s coast have already invested £6.65million in the region through local contracts, is the news we all want to hear” says Norfolk Chamber CEO Caroline Williams “There will be considerable opportunities for Norfolk and Suffolk businesses in particular and the two Chambers will be working together to ensure that their members are well informed”
EAOW programme director Andy Paine said that where possible, they were trying to use local contractors to ensure the region benefits as much as possible from jobs and investment as a result of the scheme.
“With the help and support of local contractors, East Anglia Offshore Wind is making strong progress and we are on schedule to lodge our first application for consent this year,” he said.
We anticipate there will be further opportunities for businesses in the region as the East Anglia ONE windfarm progresses through its consenting, construction and operational phases.”
EAOW has already placed a number of contracts with companies in the region and that over the last two years, as part of plans to build one of the largest offshore wind farms in the world; it estimates it has helped support almost 170 jobs across East Anglia through its investments.
These include Chamber member Gardline marine services, marine researcher Centre for Environment, Fisheries & Aquaculture Science (Cefas), fisheries consultants Brown and May, online consultation experts Consense, consultants Eastern Edge and land agents Freedom Group who are all working on East Anglia ONE, the first phase of the East Anglia Zone.
The developers say that as the development of future wind farms within the zone continues there will be further opportunities for businesses in the region to benefit from these types of contracts.
Development rights for the East Anglia Zone were awarded to SPR and Vattenfall by the Crown Estate in December 2009 and plans are already under way for wind farms that could power the equivalent of over five million homes.
At a recent meeting of the Chamber Planning and Development Group, members noted that whilst the planning and development market is still very challenging, improvements could be seen over the third quarter, in comparison to the previous quarters.
Members advised that a larger quantity of planning consultancy work is being undertaken at present but, of the projects that achieve planning, very few are actually progressing to ‘breaking ground’ The most active area of the market appears to be residential, with high quality sites selling well within the City and its suburbs.
Other public sector construction work such as education and health schemes are still ongoing and effectively providing much of the work for the contracting industry in the area. Development finance is still not readily available and there is little appetite for new strategic development sites (1,000+ units) over and above those already identified, but smaller sites (50-100 units) seem to be more viable. Clients are also being more realistic in their expectations of the work required and the fees involved.
“The market is still very challenging, however there does appear to be a glimmer of light, with some small sparks of interest in the commercial sector, clearly we need a focussed effort to ensure that the City makes the most of the limited opportunities to attract inward investment. A large number of the available sites in the City are either distressed or are tied down with financial restrictions. It is important that a real private and public sector partnership is developed to concentrate our efforts in finding ways to unlock these sites” said Jonathan Cage Chair of the Chamber Planning & Development Group and Managing Director of Create Consulting.
Also debated at the meeting was the proposed closure of St Stephens and what would happen to the surrounding area and re-routed traffic. The Group believed it was essential that before any decisions are made with respect to removing cars from St Stephens that a detailed appraisal had been undertaken on how this would impact on other routes. It was generally considered that removing cars on their own would not make that much of a difference and believed that the current level of bus usage of this area was causing a greater impact on pedestrians and businesses.
It was also noted the Inspector’s findings from the Community Infrastructure Levy (CIL) Examination, which was held on 16 October will be known within the next few weeks. The Chamber Planning Group made representations to the Inquiry, requesting that any CIL charge be set at a sensible level that would not prevent development coming forward. This will impact on any potential development proposal being undertaken within the County. Once the Inspector’s findings have been made public then we will update the chamber membership.
Elveden Village Hall, Elveden Village, Norfolk IP24 3TJ
Thursday 22 November, Friday 23 November and Saturday 24 November 2012
The Highways Agency invites you to attend an exhibition about the upgrade works to improve the A11 between Fiveways and Thetford roundabout.
The exhibition will be held at Elveden Village Hall and will be open to the public on Thursday 22 November 3pm to 8pm, Friday 23 November 10am to 8pm and Saturday 24 November 10am to 3pm.
Members of the project team will be on hand to answer questions and take into consideration any comments you may have.
It is 7 months since the launch of the Youth Contract, which means that the first cohort of employers will have earned their full 6-month subsidy of £2,275. The Norfolk Chamber would like to hear from businesses about their experiences of using the Youth Contract and barriers preventing greater participation. To submit your views, please contact caroline.williams@norfmber.co.uk. We have also produced a brief, employer-friendly communication explaining the Youth Contract and how to find out more information, which can be found below:
Do you want to give a young person a chance to prove themselves in your business and claim a Government subsidy? With youth unemployment still unacceptably high, thousands of talented young people are available to help your company, but can’t get a first step on the ladder.The Youth Contract provides support to employers to create nearly half a million new jobs or work placements by 2015.
Three opportunities:
Wage Incentives: Hire an unemployed young person for at least 6 months through the Youth generation of talent and test a potential new member of your team at a reduced cost.
Work Experience: Offer voluntary unpaid work experience to an 18-24 year old for 2-8 weeks without the hassle of recruitment. Support a local young person to get a real taste of a private business and learn new skills. You may even decide you want to keep them on. Contract and receive a £2,275 wage incentive (£1,137.50 for p/t position). Help develop the next
Hire an Apprentice aged 16-24 and receive £1,500 from Government (if you have fewer than 1000 employees and have not employed an Apprentice in the last 12 months). The Government will also pay 100% of training fees for 16-18 year olds and 50% for 19-24 year olds. Apprentices are an investment in the future skills and growth of your business, and offer a great way to increase staff loyalty.
Further information:
For the wage incentive or to offer work experience:
Jobcentre Plus on 0845 601 2001 (option 2) or textphone 0845 601 2002 for people with speech or hearing impairments.
For a £1,500 Apprenticeship Grant:
Apprenticeships Norfolk Phoneline: 0344 800 8024 for further advice and how to proceed
This week saw a Westminster Hall debate on business rates, with the Chamber network’s position on this key business issue being cited by Peter Aldous MP. The Minister for Business and Enterprise, Rt Hon Michael Fallon MP, also welcomed the British Chamber of Commerce’s supply chain report which highlights the continued problem of late payment to businesses. It was also announced this week that Stephen Metcalfe MP and Andrea Leadsom MP have secured a debate on the floor of the House of Commons to help small and medium-sized businesses by highlighting the problem of late payment in the supply chain of public sector contracts. The Chamber will be working to ensure that our members’ concerns are raised during this debate.
The Infrastructure (Financial Assistance) Bill, which will enable the government to guarantee up to £40 billion of investment in infrastructure, and up to £10 billion of new homes, received Royal Assent this week.
The next reading of the Growth and Infrastructure Bill is expected next week, which contains several positive measures around planning and infrastructure. The Chamber is also expecting the important Energy Bill – which will reform the electricity market to make nuclear and renewable more attractive to investors – early next week.
Commenting on Lord Heseltine’s independent review of UK competitiveness, John Longworth, Director General of the British Chambers of Commerce (BCC), said:
“Lord Heseltine’s analysis of the state of the UK economy is compelling. Businesses will welcome his call for steady, long-term thinking to improve the UK’s economic performance. Yet Heseltine’s prescription for action focuses too much on institutions, rather than on the fundamental barriers to business growth.
“Ministers should think carefully before committing to a restructuring of government, and focus first on the key constraints facing the real economy: the availability of growth finance, practical help for our exporters, our creaking physical infrastructure, and an education and training system that responds to business needs. Government can best support enterprise by collaborating with business to get the basics right.”
On Lord Heseltine’s recommendation that Chambers of Commerce play an expanded role in business support and local growth:
“We welcome the fact that Lord Heseltine has recognised that Chambers of Commerce are local, resilient, independent, internationally-focused and pro-active in their communities. We are pleased that he believes Chambers can continue to play a central part in making local growth happen.
“Lord Heseltine makes a range of recommendations that, in his view, would help bolster Chambers’ ability to serve local business. We will be studying these recommendations carefully and discussing their implications with Chamber members, the government, and other business organisations in the weeks and months ahead.”
On business access to finance:
“As long-standing campaigners for a British Business Bank, it is helpful that Lord Heseltine’s report acknowledges the fact that there is a structural problem around long-term, patient loan finance in Britain and that the Business Bank offers a possible solution. This is a much more fundamental issue for UK competitiveness and growth than the structure of government.”
On exports:
“Lord Heseltine argues that Britain’s competitors have a more systematic, joined-up approach to exporting and international trade, involving both government and business organisations. “This is a critical issue for our global competitiveness, and we are working actively with Lord Green on ways to better use Chambers of Commerce at home and across the world to provide British exporters with the best possible support to break into new markets.”
On skills and training:
“Lord Heseltine is right to highlight the fact that the education and training system doesn’t currently deliver to employers’ needs. Chambers of Commerce stand ready to link employers to local schools and other training providers to ensure that British businesses can compete globally.”
On decentralisation away from Westminster and Whitehall:
“Local businesspeople across England tell me they would like more influence over local growth and economic development. Many companies in the real economy will agree with Lord Heseltine’s view that England is over-centralised, and that power, money and real decision-making need to be rebalanced away from Westminster and Whitehall.”
SMEs often find the burden of bureaucracy and red tape overwhelming. The European commission is now carrying out a consultation to find out which are the most burdensome pieces of legislation to smaller companies. The online consultation is now open and will run until 21 December 2012.
Once the consultation is complete, the European Commission will analyse the results and consider how the situation can be improved for SMEs. Areas covered by the consultation include services, customs, employment and social affairs, energy, product safety, environment and taxation.
The Norfolk Chamber, together with the British Banking Association, recently held the annual British Banking Association Dinner for Norfolk. The main debate centred on access to finance and allowed local businesses the opportunity to raise any concerns on this issue. The guests included representatives from the major high street banks and Norfolk Chamber members from across the business community.
One year on from the last Norfolk dinner, the overall perception was that nothing much had changed, but this is not the case.
The banking world is moving forward, albeit in small steps, more importantly these steps are positive. Since the banking crisis, many of the chairs and chief executives for the leading UK banking institutions have been replaced. Bank governance and the risk elements of lending have all been reviewed. New fail-safes have been implemented, including ring-fencing retail finance from the investment sectors of the banks.
The result of these measures is that the legal criteria which the banks have to work within is more rigid and the banks are now trying to get a better balance between lending and borrowing, as well as concentrating on being more open in their dealings and regaining the confidence of the business community.
SMEs were recently asked about bank lending. 13% stated that they were discouraged from seeking funding from their bank and 12% said they did not trust banks in general and would not use them for funding. Despite this perception and, whilst the banks have a duty of care to lend responsibly, only 1% of SME’s were actively discouraged by their bank from seeking funding, due to bad risk. The same results also showed that in the second quarter of the year SMEs had obtained new borrowing facilities of £5.9bn and banks continued to maintain approval rates of more than 8 out of 10 lending applications.
Similarly the business community should not automatically look to the ‘traditional’ route of the bank as the only source of access to finance. Alternatives to the usual lending routes could be considered. Routes such as ‘angels’, credit unions and equity finance are all possible alternatives that might be better suited for a particular business’s needs.
The days of automatic access to finance are gone and the businesses should also be responsible in their approach to lending. SMEs should ensure they have done their homework and a solid business plan is a ‘must’ when approaching a funding source. Amazingly only 6% of SMEs take professional advice when looking for finance.
Support mechanisms, such as SME mentoring services (www.mentorsme.co.uk); and the Funding for Lending scheme, designed to stimulate the economy by making cheaper loans available to firms and individuals; are supported by the British Banking Association to help drive economic growth. The recent announcement of the formation of a National Business Bank is also another positive step.
The British Banking Association dinner provided an ideal opportunity for the banks to understand the concerns of the Norfolk Chamber business community and to discuss ways in which the banking world and local businesses can work together to promote prosperity and economic growth in Norfolk.
This week, the British Chambers of Commerce (BCC) hosted its first annual International Trade Conference in central London. In his speech to delegates, Minister of State for Trade and Investment, Lord Green, said that exports should be increased to 40% of UK GDP, and that exporting is ‘not just good for Britain’, but that it is ‘essential for Britain’. In a stark message to the UK, he explained that after 50 years of trade deficits, we run the risk of an unsustainable economy as this cannot be funded by the government for much longer. Commenting on the speech, John Longworth, Director General of the BCC, said: “We are really encouraged by some of the comments made by Lord Green, as we believe that exports are going to be vital to any sustainable recovery in the UK. In Germany, exports make up 46% of GDP, so there is no reason why with the right support, we can’t hit the 40% target here in the UK. “We are pleased that the government wants Chambers to play an increasingly important role in promoting international trade overseas. The BCC already has strong relationships with Chambers of Commerce around the world, and we will continue to work with colleagues to help British firms break into new markets. But the government needs to provide sufficient funding to British Chambers overseas as a platform for practical help for businesses looking to export if we are to compete with countries such as Germany, France and Italy who are already doing this for their exporters. “But we are running out of time, and action needs to be taken immediately to help kick-start export growth if we want to see a bright future for our children and grandchildren. Businesses have the right attitude. They want to grow and break into new and evolving markets, but they need the right support in order to do this. The latest report by the BCC and DHL shows that more than a third of companies increased their export sales in the last three months, and while this is encouraging, the figure is down on the previous quarter. The government must intervene and help new and potential exporters increase orders and expand into fast-growing markets. “If the government is serious about exporting, ministers should create an export voucher scheme. There are unspent funds available that have been allocated according to government priorities, not business needs. Businesses, not government, are best placed to decide which services they need most to help them boost exports overseas.”
The latest figures show that the number of private sector businesses in the UK increased significantly to 4.8 million at the start of 2012 – a record high.
This is an increase on last year’s figures, which showed there were 4.5 million businesses in the UK at the start of 2011.
The statistics, published by the Department for Business, Innovation and Skills, also show:
•The 4.8 million private sector businesses employed an estimated 23.9 million people and had an estimated turnover of £3,100 billion •Of the 4.8 million private sector businesses, 99.9 per cent of them were small and medium sized enterprises. •SMEs also account for 59.2 per cent of private sector employment and 48.8 per cent of private sector turnover.
Belgium may not be as well known as some other global markets, but it is an open and dynamic export market for British goods and services, and the most globalised country in the world . You wouldn’t guess that this country of 11 million people with three official languages is also the UK’s 6th largest trading partner in the world, with UK exports worth £12.7bn in 2012 – more than India and China put together!
Compact, close and affluent, Belgium is a great starting point to build your business across all of Europe. It’s just over two hours by Eurostar to Brussels or a short and hassle free hop from the wonderful London City Airport to Antwerp.
“It is an ideal place for the first time exporter and a great stepping stone to the rest of Europe” says Jonathan Brenton, HM Ambassador to Belgium, “English is widely accepted, and there are quick and easy communications and connections with the UK and the rest of mainland Europe”.
As a market place, the country is full of opportunities, especially for small and medium-sized business. Belgians value good life and place a premium on non-price factors such as design, quality, delivery, and after sales service. British exports to Belgium powered ahead by 9% over the past year, the highest increase for any EU market. Key sectors include chemicals, ICT, renewable energy and healthcare.
The Golden Bridge Award 2012 is a new annual award for the most successful UK businesses exporting to Belgium. Open to both service and manufacturing companies, the awards celebrate the success of UK businesses in the Belgian market, and give British products and services a higher profile at the heart of the EU.
For further information about the Golden Bridge awards, please contact:
Joanna De Keyeser Business Development Executive British Chamber of Commerce in Belgium Boulevard Bischoffsheim 11 1000 Brussels T +32 (0) 2 613 28 53 E Joanna@britcham.be