Chamber News

With an employment rights report, commissioned by the Prime Minister from a leading venture capitalist,a second publication has appeared with the aim of making life easier for businesses.

The TaxPayers’ Alliance (TPA) and the Institute of Directors (IoD) have put forward a comprehensive plan for growth which they describe as the culmination of 18 months’ evidence gathering by the 2020 Tax Commission and the start of a major new campaign.

A joint project by the TPA and IoD, the Commission in its final report calls for “radical but realistic reform” of the UK tax system including the abolition of eight taxes and the creation of just one – a Single Income Tax.

According to a full analysis of the proposals by the Centre for Economic and Business Research (Cebr), a leading economics consultancy, the changes would increase GDP by 8.4% over 15 years – equivalent to an additional £5000 per family in 2012-13.

Among other recommendations, the report suggests that marginal tax rates should not exceed 30%, and the personal allowance should rise to £10,000. Taxes on capital and labour income “disguised as business taxes” should be abolished and replaced with a tax on distributed income.

Furthermore, transaction, wealth and inheritance taxes should be abolished while transport taxes should be cut.

Income Tax and Employees’ and Employers’ National Insurance should be merged into a single tax on labour income, with rates levelled down so that certain groups do not face higher bills.

Corporation Tax and Capital Gains Tax should be replaced with a single tax on capital income – dividends, interest and rent – at a rate of 30%.

Allister Heath, Chairman of the 2020 Tax Commission, concluded: “It is time for Britain to make a vital choice between tweaking the status quo and letting our economy continue to be crippled by complex and punitive taxes, and drastically changing course with a radical but realistic plan for a tax system fit for the 21st century.”

Click here to view the full report.

30.05.12

Food and Farming Minister Jim Paice has recently visited China on a mission to open up trade for Britain’s farming, food and drink sector.

“Food and farming already plays a vital role in the UK economy but I believe there are still great opportunities for growth in emerging markets like China,” he explained. “We need to keep ahead of the game by developing strong trade relationships with the world’s second largest economy.”

China’s growing middle class is increasingly buying foreign food and drink, seeing it as aspirational and recognising its high quality.

Whether it is Scotch whisky or frozen lobster, artisan crisps or malt drinks, an increasing number of British favourites are becoming supermarket staples, the Minister claimed.

He was looking to build relationships with key retailers and importers to smooth the path for British producers looking to make their mark in China. At the same time he was also promoting high quality breeding pigs from UK producers.

China is the world’s biggest market for pig meat and, at the end of his visit, the Minister announced a £50 million trade deal to sell British pork.

As well as the trade in breeding pigs, Mr Paice promoted the skills and technologies available in the UK to support breeding programmes, which have the potential to be even more lucrative.

30.05.12

The World Trade Organization (WTO) seems incapable of bringing its members together in a binding agreement to complete the Doha round of trade talks, and yet countries are still queuing to join.

In September 2003, talks being held in Cancun, Mexico, collapsed in the face of irreconcilable differences between rich and poor countries. In December 2005, another make-or-break WTO meeting failed in Hong Kong.

Director-General Pascal Lamy reported to the WTO General Council on 1 May 2012 that, with regard to the Doha Round, “my conversations over the past few weeks with Ministers and delegations have provided me with a sense that Members wish to continue to explore any opportunities to gain the necessary traction and make tangible progress soon”.

So not yet dead, but certainly not about to come to a conclusion any time soon.

Nevertheless, the WTO remains open for business and countries continue to make their way through the long accession process, with the two most recent recruits being Montenegro and Samoa.

They have become respectively the WTO’s 154th and 155th member after both informed the WTO that they had accepted their membership package. Under WTO rules, a country becomes a member 30 days after national ratification.

As part of their accession commitments, both have agreed to further liberalise their trade regime and to accelerate integration in the world economy. The countries have also pledged to provide a transparent and predictable environment for trade and foreign investment.

Samoa has promised to fully implement the WTO Customs Valuation Agreement by June 2012.

See the WTO website for details of the accession package agreed by both countries.

30.05.12

The Government has received 269 bids from employers looking to take part in a new pilot to design and develop their own vocational training programmes, Skills Minister John Hayes has announced.

The Employer Ownership pilot invited the first round of bids earlier in the year for a share of the £250 million fund which will aims to channel public investment directly to employers so that they can invest in the training and skills development they need to develop their business.

“Skills are central to the UK economy and our long-term competitiveness,” Mr Hayes said, “and we’re making excellent progress with the biggest apprenticeship programme in modern history. That’s why the Government has put building workforce capabilities through training at the heart of our economic strategy.”

Testing the impact of greater employer ownership of the vocational training agenda is the key objective of the pilot, he explained.

The vision of greater employer ownership has been championed by the UK Commission for Employment and Skills (UKCES) – a non-departmental public body that provides strategic leadership on skills and employment issues.

Its Chairman, Charlie Mayfield, said: “The pilots are all about encouraging innovation and partnership in an area that is critical to the growth and success of our economy. I look forward to seeing what changes we can start to make as a result of these investments.”

The winners of the bids will be announced later in the year.

30.05.12

On 16 May 2012 the European Union published an amendment to the EU Dual-Use Regulation (Council Regulation 428/2009). The amendment which is made in Council Regulation (EU) No 388/2012 amends the EU Dual-Use List. The new list comes into force 30 days after publication (ie on 15 June 2012).

On this date, the ECO will re-publish the “UK Strategic Export Control Lists: the consolidated list of strategic military and dual-use items that require export authorisation”. This listing is integral to UK strategic export control legislation. You need to refer to this listing whenever you need to determine whether your goods need an export licence.

The amendments are wide ranging from text changes to decontrols of certain specified items.

Thenotice advises of the:

• publication of revised Control List on 15 June 2012.
• subsequent amendments to be made to a number of dual-use and transhipment open licences
• comprehensive change note summary list detailing text change amendments

All exporters of dual-use items are advised to read the attached notice carefully and make themselves aware of any list changes that potentially impact on their business. You also need to ensure you ensure you refer to the updated Control List (when amended on 15 June 2012).

Depending on the exact nature of your business activities, you might also subsequently need to either apply for or de-register from export licences as appropriate.

30.05.12

With effect from 21st May 2012, the Iraq Embassy will make a slight increase to their legalisation fees.

Please see Iraqi Circular 724 for more details

30.05.12

The latest edition of a newsletter on Mutual Recognition Agreements (MRAs), concluded between the European Union and non-EU countries, has been published.

It provides information on the current status of MRAs with the USA, Canada, Japan, Switzerland, Australia and New Zealand, as well as on the Agreement on chemical Good Laboratory Practice with Israel.

This has been compiled from a trade perspective and also includes an overview of the Agreements on Conformity Assessment and Acceptance of Industrial Products (ACAAs) currently agreed and under consideration with countries in the European neighbourhood.

The latter covers 16 partners to the east and south of the EU’s borders, namely Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, the occupied Palestinian territory, Syria, Tunisia and Ukraine.

Traditional MRAs enable Conformity Assessment Bodies (CABs) nominated by one Party to certify products for access to the other Party’s market, according to the other Party’s technical legislation.

They provide for the mutual recognition between trading partners of mandatory test results and certificates for certain industrial products.

No regulatory convergence is implied by a traditional MRA. In other words, there is no implication that the regulations imposed on products by the Parties are to be brought into alignment at any stage.

As far as the EU is concerned, no further traditional MRAs are foreseen, but there is a certain amount of evolution in their operation, for example, as amendments to their scope are considered and as mandatory certification gives way to reliance on suppliers’ declarations of conformity.

Accordingly, it is intended that this newsletter will be issued from time to time to reflect the evolution of the current position.

30.05.12

John Morse, Operations Director of marine survey company Gardline, has been appointed as new Vice President of Great Yarmouth Chamber Council.

Commenting on his appointment, John said: “I am very excited to take up this new role. As an employee of Gardline, which is one of the largest Great Yarmouth employers, plus my previous relevant experience, I will be able to contribute to the Chamber’s forthcoming development and help to support this vital industry sector.

“I believe there should be a concerted effort to regenerate a new economy in Great Yarmouth, based upon the offshore renewables and other related opportunities. An economy such as this will provide long-term employment, net inward migration and general viability away from, but parallel to its traditional tourism base.

“I think it should be the responsibility of every Chamber member to provide support and direct mentoring to businesses in Great Yarmouth, and in collaboration, we should all strive to generate a strong, vibrant, and expanding business environment for the town.”

The following is update on the BIS Business in You (BiY) campaign businessinyou.bis.gov.uk. So far there have been over 90,000 visits to the “Business in You” portal and there are now 9,900 subscribers to email updates.

The current theme is employment which covers existing and new offers to businesses, cutting across several departments and channels. There is also a new online tool, “Taking on an Employee”, which brings together everything a business needs when considering employing for the first time. The new tool can be found at: www.businesslink.gov.uk/employ.”

Other content which may be of interest includes:

Myth-busting around employment law/regulations (hosted at https://www.bis.gov.uk/common-employment-myths) Financial help to employ apprentices and young people (eg via DWP’s Youth Contract) – https://www.improve.businesslink.gov.uk/node/12988

The Business in You has also teamed up with The Guardian and Channel 4 as part of the drive to support small and medium sized businesses.

The partnership includes a competition run by The Guardian for start-ups and growing businesses, who get a chance to win a package of business support, mentoring and £15,000 worth of advertising in The Guardian. Channel 4 have produced adverts and video clips, which show real-life case studies of successful small businesses designed to inspire new start-ups and help existing ones to grow. To find out more go to www.guardian.co.uk/business-in-you

Finally, a major direct mail campaign has also been launched – targeted at growing businesses – via Companies House, who are in turn promoting BiY through their new “Get it Right, First Time” series of events. Events are taking place in London on 3 July: https://www.ipo.gov.uk/getitright.htm

It has been almost three months since the National Planning Policy Framework (NPPF) was published with the aim of making the planning system less complex, more accessible and an enabler of economic growth. The NPPF came into force immediately for local authorities with no local plan. For local authorities with a local plan already in place, they were given 12 months to adjust so they are in complete conformity with the new framework.

The key to the success of the NPPF will be its implementation and we will be monitoring this over the coming months. Therefore, if you are aware of businesses that have applied for planning permission since the NPPF publication and would like to share their experiences, please let us know. We are also interested to find out if the general perception by businesses of the planning system has changed please let us have your feedback below.

On 18th October 2012, more than 800 business men and women from all over Europe will get the chance to take over the European Parliament hemicycle for an afternoon. Those taking part will debate and vote on issues that affect the day to day running of their business and the environment in which they operate.

The event will be opened by Jose Manuel Barroso, President of the Commission and Martin Schultz, President of the European Parliament. The afternoon will be devoted to a discussion around what government and business can do to boost growth in Europe after which, key Commissioners and MEPs will be asked to respond. A series of practical recommendations will then be voted on by the members and given to the press and EU leaders meeting in Brussels the next day.

The British Chambers of Commerce has been allocated 73 seats in the hemicycle, in line with the number of MEPs that represent the UK in the European Parliament. These will be allocated to businesses on a first come first served basis and online registration will be available in June. If you are interested please let caroline.williams@norfolkchamber.co.uk know.

Commenting on the new StartUP Loan Scheme launched by the Prime Minister today, Caroline Williams CEO Norfolk Chamber of Commerce said:

“We have some excellent businesses here in Norfolk that have been built up from scratch; companies that have become successes thanks to the drive and ambition of our entrepreneurs.. Every business has to start from somewhere and it is these smaller, growing companies that will be integral to the future of our economy.

“But for many young people, the finances needed to get a business idea off the ground can deter them from starting up. This scheme will inspire more young people with a passion for business to transform their ideas into reality. If the loan scheme is successful, and we see more young people starting up businesses, it has the potential to benefit the economy, and tackle the problems of getting young people into work. Furthermore, schools and colleges should take an active role in encouraging young people to make the most of these opportunities. Norfolk Chamber is doing all it can to encourage new businesses with its own special membership offer to all start up businesses of only £99+vat which can be paid monthly installments with no joining fee.. This not only gives great benefits needed when you start up a business but all the marketing opportunities available to members are also included. More details “.