Chamber News

Commenting on George Osborne’s speech at Conservative Party Conference in Birmingham, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“In what was essentially a political speech, Osborne was right to state that the public services, like businesses, should be judged by what they deliver not how much they spend or how many they employ. Osborne was right to acknowledge that the country must face up to the challenge of global competitiveness through enterprise, effort, aspiration and a real sense of urgency. We face a choice of becoming a ruritanian museum or a dynamic and prosperous economy, which could be uncomfortable for some in the Conservative Party.

“The Chancellor’s announcement of a new form of business ownership, with individuals swapping greater employment flexibility for an equity stake in the company, could be a useful option for some new and fast-growing businesses. It is an innovative and imaginative proposal that deserves to be tried out, but it is unlikely to be a game-changer.

“His clear support for a British Business Bank and further investment in science will be viewed positively by companies, as will his resolve on deficit reduction. But business will want to see far more weight on the growth agenda in the coming months – to create a new model economy that’s fit to compete globally and for the long term.”

Norwich City Football Chief Executive David McNally with one of the three well-known faces making an appearance at Norfolk Chamber’s B2B Autumn 2012 business exhibition on 18 October – Formula One and 2012 Olympic Games presenter Jake Humphrey, Anglia Tonight presenter Emma Baker are the other two.

All three personalities will be appearing at the free-to-attend flagship event to show their support for local business and give a boost to the popular event, which is the largest business exhibition in Norfolk.

David McNally will be speaking at the exhibition at 11.00am. Prior to joining Norwich City Football Club in June 2009, David McNally was Chief Executive at Fulham and Sales and Marketing Director with Celtic. Before working in the football industry, he held a number of roles at blue chip companies including Courtaulds Textiles, Sara Lee, L’Oreal, Max Factor and Colgate-Palmolive.

David said: “I am very excited to be speaking at B2B Autumn 2012, because this event has been giving a boost to the business community for 14 years. With the continually challenging economy that we currently have to contend with, anything that can give business that cutting edge or an extra spark of inspiration has to be of benefit.

“This B2B event gives businesses a chance to pick up some new ideas and innovations, which is something we are always looking to do at the football club. Given that the event is free to attend, it’s the perfect opportunity for local business owners or directors to come down to see what B2B can offer them.”

B2B Autumn 2012 will be held at Norwich city football Club on 18 October between 10am and 5pm. For more information or to book a stand, go here

Three well-known faces will be making an appearance at Norfolk Chamber’s B2B Autumn 2012 business exhibition on 18 October including Formula One and 2012 Olympic Games presenter Jake Humphrey, Anglia Tonight presenter Emma Baker, and Norwich City Football Chief Executive David McNally.

All three personalities will be appearing at the free-to-attend flagship event to show their support for local business and give a boost to the popular event, which is the largest business exhibition in Norfolk.

An experienced and knowledgeable Television and Radio broadcaster, Jake Humphrey, originally from Norfolk, is at the forefront of much of BBC Sport’s coverage for many national and international events. He was part of the team hosting an incredible Summer of sport, broadcasting at the European Championships in Poland and Ukraine, hosting Summer Olympics coverage for BBC One and BBC Three, as well as continuing to anchor the BBC’s award-winning Formula One coverage, a role he has performed since the sport’s return to the broadcaster in 2009.

Jake will be the studio face of BT Vision’s Barclays Premier League programming from the start of the 2013/14 season. BT won the rights to show 38 live games a season for three seasons, including 18 of the best quality ‘first pick’ games, which is the first time anyone but Sky has won any of the prime live Premier League matches. As a patron for the Break Charity, Jake is also an Ambassador for the ‘Go Go Gorillas’ project, where a parade of painted gorilla sculptures will appear on Norwich city streets. Horatio the gorilla will be being painted live at the B2B Autumn 2012 exhibition and you can hear from Jake at 2.20pm on the day.

B2B Autumn 2012 will be held at Norwich city football Club on 18 October between 10am and 5pm. For more information or to book a stand, go here

Anglia Tonight presenter Emma Baker will be opening the Norfolk Chamber’s B2B Autumn 2012 free to attend business exhibition on 18 October then judging the exhibition stands. She will be joined during the day by Formula One and 2012 Olympic Games presenter Jake Humphrey and Norwich City Football Chief Executive David McNally who are lending their support to this important event.

Emma Baker is an experienced broadcast journalist. She got her first taste of the industry, working for The Independent and the BBC in Paris. She went on to secure sponsorship from ITV to study a Broadcast Journalism postgraduate degree at City University, later working at ITV London, and then ITV Anglia. She’s covered a range of stories both for ITV national news and regional news, including the 7/7 London bombings, the Suffolk murders, and the Olympic torch relay.

She has been nominated for a number of television journalism awards and most recently won an award for ITV News Group Feature of the Year. She is currently presenting Anglia Tonight on weekday evenings.

Emma said: “I’m very much looking forward to hosting this year’s Norfolk Autumn B2B exhibition. It’ll be great to see the wide range of innovation and business expertise that I know Norfolk has to offer.” Emma will open the event at 10.00am.

B2B Autumn 2012 will be held at Norwich city football Club on 18 October between 10am and 5pm. For more information or to book a stand, go here

A survey released today by the British Chambers of Commerce reveals falling levels of trust in financial institutions among businesses. The results, comprising responses from 1,560 businesses including Norfolk show that although banks and building societies are the main source of finance for firms, half of businesses lack trust in these financial institutions. Over a third of respondents said that they trust financial institutions less than they did a year ago, and almost four in ten are not confident in securing finance.

The survey shows the following:

• Almost half (49%) of firms use banks or building societies for external finance, with only 10% using equity, and 8% using grants, venture capital, private equity, peer-to-peer lending and angel finance combined.
• 50% of firms mistrust banks and building societies; 38% of businesses trust them less than a year ago.
• Only 57% of respondents feel confident that they could secure external finance, but over a third (37%) are not confident. However 59% of firms say a government-backed business bank would make them more confident about accessing finance.
• When asked about government-backed finance schemes, 43% of businesses had not heard of any of them, with younger businesses and micro firms more likely to be unaware of them.

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

“As we approach the end of the party conference season, Britain’s politicians must stop scoring points against each other and start scoring points for economic management, starting with the thorny problem of business access to finance.

“Our new research clearly identifies the scale of the problem: half the companies we surveyed mistrust banks, and levels of trust have worsened significantly over the last year. Four in ten companies are not confident that they could get external finance. And awareness and take-up of existing government support schemes, which are run through the banks, is extremely low, with the recent LIBOR and mis-selling scandals damaging confidence among businesses. While it is important to avoid stifling growth in financial services with over-regulation, the City’s primary role should be to oil the wheels of the economy, providing the patient capital businesses need to plan for the future and grow.

“Financial institutions need to rebuild trust and repair damaged relationships with businesses and improve transparency. Regulators should look to increase competition in the banking sector to ensure businesses have more choice, and the government must ensure that plans to create a British Business Bank mean more funds available to growing businesses. Six in ten companies would feel more confident in seeking finance if Britain had its own dedicated business bank.

“While it is right that the businesses consider other forms of funding, the results of this survey show that bank finance is, and will remain, the dominant source for businesses. Other BCC surveys conducted this year have shown companies’ concerns about access to working capital, and the impact of this, for example, on small businesses looking to export for the first time.

“Political leaders always seek to woo the favour of corporate Britain. But the next election will be won or lost on what happens in the real economy. Our findings suggest that the parties need to focus on access to finance for Britain’s army of small- and medium-sized companies, and particularly new and growing companies, if they are to win the votes of Britain’s wealth creators, and the people who work in business, in years to come.”

Over 100 Norfolk businesses, large and small, came together this morning to discuss the economy from both a local and a national scale at a bustling Norfolk Chamber breakfast at Dunston Hall, sponsored by Steeles Law.

Attendees heard a presentation from John Longworth, Director General at the British Chambers of Commerce, who provided an overview of key economic issues facing businesses across the country, including the Eurozone and USA. Mr Longworth commented on the confusing economic data coming out of Government. He felt that the data was “not inaccurate but incomplete” and was causing businesses to lack confidence in investing.

He felt that access to capital remains key to economic success, as was the funding of infrastructure rail, road, aviation, energy, digital and of course skills. Mr Longworth complimented Norfolk Chamber on its campaign work and emphasised the need for the Chamber network to continue to make the business case to government and to “hold people’s feet to the fire” if they try to avoid addressing the key issues.

Chloe Smith, MP for Norwich North and Parliamentary Secretary at the Cabinet Office, highlighted three areas that are essential for economic growth at a local level, namely infrastructure, in particular rail, young people and export. Ms Smith emphasized the need for local businesses to work together with the Chamber to get behind the new Norfolk Rail Prospectus as there is a window of opportunity to get the business voice heard.

John and Chloe then went on to interact with several Norfolk businesses by holding a Q&A session and addressing the questions and concerns of a varied audience.

John commented “I was delighted to be speaking at the Norwich Economic Breakfast. The economic climate is of concern to businesses of all sizes, though many tell us things aren’t as gloomy as newspaper headlines suggest. I enjoy hearing from members, and will do all we can at the British Chambers of Commerce to ensure the government listens to what Norfolk businesses need to grow, and contribute to a strong economic recovery.”

Chloe commented “As a local MP and minister, economic growth for Norwich, Norfolk and the country is my top priority. I make it my business to understand business, and so I was delighted to join the Chamber for such an informative event.”

The breakfast also featured a very special guest, Nelson the Gorilla, who was there to highlight the work the Chamber is doing with the charity Break. Aiming to have 50 Gorilla sculptures around Norwich in 2013, Break have launched their ‘Go Go Gorillas’ project and are looking for the support of Norfolk businesses to sponsor a sculpture.

Nelson’s cousin, Horatio, will be being painted live at the Chamber’s forthcoming B2B Autumn 2012 event, taking place on 18 October at Norwich City Football Club, with a special guest appearance from Jake Humphries, an Ambassador of the ‘Go Go Gorillas’ project.

To view photo’s from the Norwich Economic Business Breakfast, visit the Norfolk Chambers’Facebookpage.

Sponsored by Steeles Law

Working with partners, Norfolk County Council is seeking to progress a number of key infrastructure initiatives in 2012/13 and beyond. The attachedupdate aims to keepeveryone up to speed on progress.

Responding to Ed Miliband’s keynote speech to the Labour Party Conference in Manchester, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“Ed Miliband extended an olive branch to business by saying that Labour wants to engage with the private sector and small businesses. Many companies in the real economy will want to hear more over the coming months about Mr Miliband’s promise to support businesses focused on long-term growth.”

On banks and access to finance:

“Many businesses will sympathise with Ed Miliband’s ultimatum to the banks to reform or face regulatory action. However, there could be perverse consequences of a political witch hunt. In designing its future policies to improve access to finance, Labour must be careful not to undermine the financial services industry, which makes such a valuable contribution to our economy. Labour must also set out how it will make a British Business Bank a permanent part of our national growth strategy.”

On skills and education:

“Employers have long said that our national obsession with university leads to a blatant disregard for the majority of young people. Too often, young people come out of education without the skills required for the world of work. We need to value all types of skills equally, as they are all critical for the success of the economy. Business cannot function without the right mix of academic, technical and manual skills – they are all vital.

“Ed Miliband wants to put employers in the driving seat for training and skills. He’s right to say that giving employers greater control over training funds will deliver results. But introducing yet another overhaul of qualifications is not the answer. Businesses have a hard enough time determining the value of current qualifications. Instead, we need to focus on getting businesspeople into schools to help prepare young people for the world of work, boosting apprenticeships, bringing back enterprise education, and ensuring no one leaves the classroom without the basic skills needed to succeed in work.

“To get there, however, Labour may need to reconsider its long-held views on academic selection. The systems that work best in the rest of Europe separate academic, technical and manual schools, where they are funded and valued in equal measure. Labour must also look beyond the issue of apprenticeships in tackling problems with public procurement.”

The Family business, once a staple of British industry, is disappearing. Although two thirds of UK industry is made up of family business, fewer than 13% survive beyond the second generation.

A generation ago, family firms were thriving and the heirs were jumping at the chance of income, job security and ultimately the sense of pride of taking over the family legacy. But nowadays the future of family businesses is not so certain, children are choosing to follow their own career paths and are more reluctant to carry on the legacy and tradition of the family business.

Each year 30,000 businesses close because they can’t find someone to take over. With the help of leading business expert Alex Polizzi, the second series of this hugely successful programme, will guide and advise family businesses through some of the trials and tribulations a family run company can face – whether it’s how best to plan for the future and preserve the legacy of previous generations, or looking at ways to improve profitability and diversification and developing the business to make sure it’s a success for years to come.

Twofour want to hear from struggling family businesses who are finding it tough in the current economic climate and who are uncertain about the future of their business. To find out more please contact Celia 0207 438 1918 or email celia.frayne@twofour.co.uk

HMRC is introducing Real Time Information (RTI) for PAYE from April 2013. The vast majority of employers are required to start submitting PAYE returns in real time in April 2013 and all employers will be routinely reporting PAYE information in real time by October 2013.

From April, PAYE returns are electronically required each time a payment is made, as part of routine payroll processes. Employers operating their own payroll will need to consider and take the appropriate action to either update their payroll software, obtain new payroll software or, where an agent or payroll bureaux is used, discuss the changes with their payroll provider. During October HMRC will be writing to all employers telling them about RTI, advising what they should be doing to get their business ready for the changes to PAYE in April 2013, and signposting HMRC guidance.

Information on these changes can be found here.

The British Chambers of Commerce’s new Quarterly Economic Survey (QES) released today (Tuesday) shows that economic growth in the UK remains weak, with the Q3 results slightly worse than the previous quarter. The survey, comprising responses from 7,593 businesses across the UK including Norfolk, shows stagnation in the domestic market, and a fall in balances measuring exporting activity, although Norfolk appears to be bucking the national trend.

John Longworth, Director General of the British Chambers of Commerce, commenting on the results urged the government to focus on policies that will create the right business environment for firms to invest and grow.

“The Q3 2012 results confirm that improvements in the UK’s economic performance remain inadequate. While we do not agree with the ONS’ gloomy estimation that the UK was in technical recession for three consecutive quarters, it is clear that the economy is stagnant. Though most key Q3 balances are weaker than in Q2, the survey results could still signal a return to positive GDP growth in Q3, as weaker balances may not indicate a contraction in overall economic activity.”

Caroline Williams, CEO of Norfolk Chamber of Commerce said: “Despite the backdrop of the national results of weak economic growth and poor business confidence it is encouraging that Norfolk businesses report that in some areas they are doing better than the national figures.

Both the manufacturing and the service sectors are showing positive results around the future export orders, as well as their domestic orders. This has influenced their confidence in their turnover balances, which also rose and, for the manufacturing sector, are back at the levels last seen in Q4 2011. Confidence in their profitability dipped slightly, but these figures still reflect or are better than the national figures.

Norfolk businesses are working hard in these challenging economic times which will have a beneficial effect on the local economy. However we do need our local MPs to lobby government to focus on policies which will create a business environment for our Norfolk companies to invest and grow”

The survey results show the following:

Business confidence and investment falls: The survey showed worsening confidence and investment levels from both manufacturing and services firms. For both sectors levels are lower than long-term historical averages, and have not yet recovered to levels seen before the recession. Fewer firms are looking to invest in training and plant & machinery, and confidence in future turnover and profit has fallen to levels last seen at the end of 2011. However the Norfolk manufacturing and services sectors both reflected an overall higher level of confidence than shown at both a regional and national level. Both sectors showed an increase in their confidence in turnover of 10 points, with manufacturing now showing a balance of 38% and the service sector showing a balance of 28%.

Encouraging Norfolk export results: The Norfolk manufacturers showed mixed results, with exports sales dropping from the last quarter, although future orders increased. Meanwhile the Norfolk service sector continued to increase both their export sales and their future orders. However, the national picture showed their export recovery has weakened. Previous surveys this year had shown strong results for exporters in both sectors. While balances are still positive indicating growth, this quarter they fell to levels similar to Q4 2011, meaning export growth this year, has dropped back.

Norfolk increases future domestic orders: Nationally, the balances measuring domestic activity have fallen on the previous quarter. In both manufacturing and services, balances for domestic orders for the last three months have fallen. More worryingly, the results point towards a contraction in the future, with the national forward-looking home orders balances in negative territory. Conversely, both the Norfolk sectors bucked the trend and showed an increased balance for future domestic orders, despite current orders showing a downturn. The domestic balances nationally are higher than those seen in 2008 and 2009 during the recession. However, they remain lower than their long-term historical averages, and far below pre-recession levels.

Firms less confident in taking on staff: The figures measuring whether firms have or are likely to take on new staff have also fallen in the last quarter. Asked whether they had taken on staff in the last few months, the balance of Norfolk manufacturing firms hiring fell very slightly by +1%. This is a much better result than the national figure which fell by +11%. The Norfolk service firms, although showing better results than national, declined by two points to +20%, similarly the national service sector balance fell by 3 points to +9%.

Companies reported cashflow problems: The service sector balances measuring cashflow (the movement of cash in an out of a business) for the UK and Norfolk remain weak, and were in negative territory. Exceeding expectations, the Norfolk manufacturers, having been in negative territory since Q1 2012, increased their balance by 16 points to +5%.

Commenting on the results, John Longworth, Director General of the BCC, said: “Economic growth is weak and businesses are less confident and less likely to invest than they were at the beginning of the year. The BCC’s survey results should be a clear signal to government that more needs to be done to stimulate growth alongside continued deficit reduction. Despite official estimates, we believe the economy is still growing, but it is slowing. We need immediate measures now to support confidence and investment, a radical long-term growth plan, and a continued commitment to deficit reduction.

Domestic austerity and the eurozone crisis have dented confidence. In addition, business concerns around access to finance are also undermining the rebalancing of the economy towards exports. Businesses need to know that the government is taking decisive action to get the economy growing. They also need advice and support to be able to grow. The BCC has proposed a Growth Voucher scheme offering 20,000 small businesses £5,000 worth of advice to jump start investment and expansion plans. We need to encourage businesses to look to new markets, develop new products and invest, by boosting confidence and creating a positive cycle of growth.

Ahead of his Autumn Statement, the Chancellor will need to consider other measures to move Britain towards a new model economy. That means implementing plans to create a British Business Bank, and far-reaching proposals to unlock infrastructure investment and special capital allowances that encourage companies to invest.”

David Kern, BCC Chief Economist, said: “The Q3 2012 results confirm that UK economic performance remains weak and inadequate. While the official ONS assessment that the UK was in technical recession for three consecutive quarters is still too gloomy in our view, it is clear that the economy has been stagnant for too long, and urgent measures are needed to enable businesses to drive a sustainable recovery. Though most key Q3 balances are weaker than in Q2, our results could still signal a return to positive GDP growth in Q3. This is because our Q2 survey pointed to a stronger economy than the ONS suggested. Also, our members’ replies have probably given a smaller weight than the ONS to temporary distortions due to the impact of the Diamond Jubilee on the number of working days. Starting from the ONS estimate that GDP fell by 0.4% in Q2 2012, we expect positive quarterly growth of 0.5% in Q3 2012.

The job of repairing Britain’s public finances will take longer to complete than initially planned. But, if the Chancellor demonstrates firm commitment to a credible fiscal plan, additional spending policies aimed at creating growth will help preserve market credibility. Overcoming the impediments dampening economic growth will be difficult and will take time, but we are confident we can get there. However, until excessive debt levels are reduced much further, businesses and consumers will have to accept a prolonged period of relatively low growth.”

Norfolk Chamber, through its linkage to the British Chambers of Commerce, is pleased to be able to offer Accredited Training Courses covering International Trade from January 2013.

The British Chambers of Commerce (BCC) is playing a leading role in the Government’s Get Britain Exporting agenda by launching a new National Trade Skills Training programme.

The ‘core 6’ course set will be accredited by the BCC and offered through the Chamber Network as a family of short courses. The courses are individually and collectively relevant to SMEs who wish to improve the skills and competence of their staff.

Candidates achieving Pass or Merit in any of the courses will receive a uniquely numbered certificate in each area. Those who pass all six courses will achieve a nationally recognised Foundation Award in International Trade.

The training programme has been developed after demand from employers for a national skills experience for their staff. By developing a national solution to the exporting skills gap, the BCC is making a vital contribution to helping the government achieve its target of creating 100,000 new exporters.

These courses are suitable for both experienced exporters and those with no previous knowledge of exporting.

The 6 course titles are:

• Understanding Exports
• Methods of Payment
• Export Documentation
• Incoterms® 2010
• Letters of Credit
• Import Procedures

Using the unique international trade experience within the chamber network, the BCC identified these six core, one day courses that businesses need to be able to start exporting. Through a steering group of Chamber experts they developed an accreditation process to give employers confidence that those attending the course have gained relevant and applicable knowledge and that their competence has been assessed and verified enabling them to boost their businesses export drive.

The courses will continue to be delivered by our trusted, accredited trainer Mike Strawson, who has been working with us for many years. Those of you who have attended our courses will know that Mike has an incredible knack of delivering the content in such a crystal clear manner, delegates walk away with a sound understanding of the subject. Mike has in fact, played an instrumental part in writing the new Accredited Courses for the BCC, and they are very similar to our existing ones.

For more information on these courses, please see our flyer or contact the International Trade Team on 01603 729712, email export@norfolkchamber.co.uK