Chamber News

HMRC is closing its Customs Handling of Import and Export Freight (CHIEF) system on 31st March 2023.

• From 30^th September 2022, all import declarations will be declared on CDS
• From 31^st March 2023, all export declarations will be declared on CDS

Some differences:

• It is essential that you use the correct tariff. The code lists are not the same for CHIEF and CDS, the declarant must select the correct code, or the declaration will fail.
• In CDS most data elements are restricted to code format (other than name and address fields) which is different from CHIEF which accepted data in a free text format.
• A new dashboard to monitor and manage declarations
• More detailed customs information is required

“Registering takes time so businesses should start moving to the Customs Declaration Service to ensure a smooth transition and avoid disruption to their business.” says Government Department. To access CDS you will need a Government Gateway account. Most businesses will have an account already to access for tax purposes and this can be used to access CDS. HMRC has also now automatically registered EORIs on CDS. Find out more on the new requirements for CDS

Andrea, one of our account managers visited Teknomek’s factory on the 4th of August. “Yesterday I had the pleasure of having a tour around our member Teknomek’s factory. They have devised an amazing traffic light system in their factory which has increased their productivity massively. Teknomek make products out of stainless steel for food preparation businesses and they also work with pharmaceuticals and hospitals.  Due to the increase in productivity, they have freed up space in their workshop to enable them to bring in Adhoc work for other businesses. They are currently looking to insource work from manufacturers that use stainless steel as core components for their products that don’t have the capacity to fulfil their orders. For example, during the pandemic, they were making stainless steel hand sanitiser units for a client that couldn’t keep up with demand.” View Teknomek’s directory here Photo Credit: Teknomek

“This rise is the clearest signal yet of the Bank of England’s intention to get inflation under control. Spiralling prices are cited by businesses as by far and away the top concern right now. 

“However, given the extremely precarious state of the economy, this decision is not without risk for businesses and consumers that are exposed to banking or overdraft facilities. 

“There are many causes of the current inflation crisis – global supply chain problems, trade barriers, soaring energy costs, increased taxes, and labour market shortages. Interest rate rises alone will do little to address these. 

“Worryingly, our research indicates strongly that most small businesses are not investing for growth, and that longer-term confidence is beginning to wane.” 

The Bank of England’s Governor correctly highlighted in his recent Mansion House speech how the incredibly tight labour market is putting upward pressure on inflation. 

The BCC has written to the Government outlining a three-point plan on how it can work with businesses to solve these recruitment difficulties. 

The steps are: 

– Firms must be encouraged to find new ways of unlocking pools of talent – by investing more in training their workforce, adopting more flexible working practises and expanding use of apprenticeships;   

– Government must help employers invest in training by reducing the upfront costs on business and providing training related tax breaks; and   

-The Shortage Occupation List (SOL) must be reformed to allow sectors facing urgent demand for skills to get what they need.     

Our international expert Julie (the oracle) celebrated 21 years at the Norfolk Chambers on the 1st August. For the first 9 years Julie was administrator to the CEO and for the last 12 years, she has worked in the International Department. What Julie doesn’t know about International Trade, is not worth knowing! So you know where to come if you have an international question. Thank you Julie!

The Queen’s Awards for Enterprise are the most prestigious awards for businesses, recognising and celebrating business excellence across the UK. The winners of the awards demonstrate outstanding success in their respective fields of innovation, international trade, sustainable development and promoting opportunity (through social mobility). Her Majesty The Queen personally approves the winners and the Department for Business, Energy & Industrial Strategy publicly announces the winners on the 21st April each year. Winners often state that their achievement has opened new doors for them in terms of securing new contracts, venturing into new markets, and further developing their business. If successful in winning a Queen’s Award for Enterprise, the organisation receives a Grant of Appointment and is able to display the award emblem for up to 5 years, and access to a thriving alumni network of previous award winners! This year there were 232 Queen’s Award Winners. 2022 winners can be found here: https://www.thegazette.co.uk/queens-awards-enterprise-2022 This year’s winners include The Co-op, the World of Books, AES (solar panel pioneers) the 100-year-old family-run business Bettys and Taylors, and DSNM’s innovation which is the world’s only Cloud-based software to correct maritime charts in the interests of safer navigation. The Awards are open to all UK-based organisations with two or more employees. 90% of the winners are SMEs but big businesses like KPMG, Willmott Dixon, Holland and Barrett and JCB also recognise the importance and the benefits of these Awards. Now, more than ever is a vital time for great UK businesses to be celebrated and recognised. Applications are open now and close midday 6^th September. https://www.gov.uk/queens-awards-for-enterprise QA Leaflet 2023

• Percentage of UK businesses reporting increased export sales remains flat for the 5th quarter in a row at 29% 

• A quarter (25%) of exporters saw decreased sales, while 46% report no change 

• Concerns over manufacturing recovery as exporters report unprecedented cost pressures and inflation worries 

A survey of over 2,600 UK exporters has revealed that overseas sales growth has been effectively stagnant for more than a year since the economy fully reopened after lockdown. The BCC’s quarterly Trade Confidence Outlook for Q2 2022 showed the proportion of exporters reporting increased overseas sales to be unchanged from Q1 at 29%, while those reporting a decrease remained at 25%. This compares to around 40% of businesses consistently reporting increased domestic sales across the same time period in the BCC’s Quarterly Economic Survey (QES). Manufacturers trading overseas are under particular pressure, with only 39% expecting their profitability to increase in the next twelve months, compared to 48% of service sector exporters. This compares to 43% of all businesses surveyed in the QES. Manufacturing exporters are also the most likely (78%) to expect to raise prices in the next year, a record high. Almost nine out of 10 (89%) firms in this sector cite ‘raw materials’ as their biggest cost pressure, with 74% citing ‘utilities’ and 70% citing labour costs. Responding to the findings, Chief Executive Officer at the Norfolk Chambers, Nova Fairbank said: “The combination of supply chain disruption, soaring prices, and the impact of Brexit red tape and compliance costs has had a chilling effect on exports, especially for smaller firms already scarred by the pandemic. “Recent ONS figures have shown in increase in exports to the EU, driven in part by shortages caused by the war in Ukraine. But our data shows there are serious underlying issues – which are hitting smaller manufacturing exporters the hardest. “Any new Prime Minister must acknowledge the huge challenges being faced by our exporters – often the most dynamic, innovative and forward-thinking businesses in the UK economy. “Then Government must help businesses to harness the opportunities provided by existing free trade agreements, and those coming on stream. Far too many firms are either unaware of the possibilities or are uncertain how to take advantage. “Chambers of Commerce have the expertise and business network to help Government shift the dial. By working together, we can build an end-to-end support service for our exporters which could truly make a difference.”

Future Spaces was held on Thursday 21^st July, and hosted by Layrd Design at Norwich City Football Club. The event was all about exploring sustainability and wellness in interior spaces. The event started with networking with a selection of drinks and plant-based canapes offered to the attendees followed by an introduction to the event by Will Mayes from Layrd Design. The first speaker was Ruscha Fields from The Good Plant Company. Ruscha talked about biophilic design and how to successfully incorporate planting within the workplace. Ruscha stated that having plants present makes us feel connected to nature and the environment ultimately making us feel relaxed and calmer. Having plants in the workplace has been proven to enhance wellbeing and increase productivity. If you are worried about the upkeep of having numerous plants around the office then why not get artificial plants, these give off the same positive effect as real plants. Ruscha was also involved in the Moss workshop which took place after her talk. Here attendees built their own moss frame which they could take home and put in their office. After a short break, Michael Aastrup from Tarkett talked about their company’s approach to sustainability. Tarkett is the 3^rd largest flooring company in the world, and they have now taken the approach of putting sustainability first ahead of design and functionality. Tarkett recycle old carpets and fishnets for yarn and even acquire the film from car windscreens to use in their products. Michael stated how committed Tarkett is to better living spaces and promoting healthy indoor environments, one way they show this is with their unique dust capture system in their carpets. The last speaker to finish the event was Nathan Huxley from Orange Box. Nathan spoke to us about the importance of being/working together and creating spaces people want to be in. He spoke to us about the idea of relationship buildings “where the ‘office’ is no longer the health problem, it’s the wellness solution”. The top of the terrace, where the event was held was kitted out with furniture from Orange box for everyone to try, which you can see below. A group favourite was their QT pod which provided privacy and comfort to work in. Future Spaces provided some interesting points businesses should consider around sustainability and wellbeing in the workplace, and how having a small plant on your desk can make a huge difference. Photo credits – Norfolk Chambers of Commerce https://www.layrddesign.co.uk/ https://thegoodplantcompany.com/ https://home.tarkett.co.uk/en_GB/ https://www.orangebox.com/ Speakers:

• Will Mayes
• Ruscha Fields 
• Michael Aastrup 
• Nathan Hurley 

We’re all now familiar with the cost of living crisis – how households are struggling to keep up with bills and afford the rapidly rising cost of food, fuel and other essentials. But there’s another crisis which is dramatically hitting businesses, and that’s the ‘cost of doing business’ crisis.  Firms across the country are being confronted by rapidly rising costs of vital raw materials, fuel, wages and, of course, energy. Battered businesses now face a stark choice – whether to pass on the increases to their customers, or to try and absorb these new expenses to keep prices down. In order to cope with these dramatic cost increases, firms need to get a grip on their expenditure.   Installing a smart meter is a positive step in taking control of business outgoings.  Once installed, energy readings will be sent directly to the supplier, bringing an end to estimated bills. Firms with 10 employees or less could be eligible for a smart meter.  To find out more please click here. You can also contact your energy supplier or broker. Photo credit Smart Energy GB / BCC

Commenting on the launch of the negotiations, Chief Operating Officer Nova Fairbank, said:  

“Business supports these efforts to develop an improved trade agreement with Israel to boost the supply of services between our countries. 

“There are also opportunities to cut the costs of exports and imports through strong digital trade rules and more efficient customs regulations.  

“An upgraded agreement could create future-proofed trading terms for years to come, raise investment, and increase the value of our export sales, which are currently worth £5bn a year.” 

Anita Leviant, President of Israel Britain Chamber of Commerce (IBCC), said:   

“The IBCC business community, in Israel and in the UK, very much welcome the significant steps taken by both governments with the upcoming negotiations.  

“The UK is Israel’s largest trade partner in Europe, and both countries already have strong relations, tech, science and innovation cooperation as well as longstanding fruitful bi-lateral trade and investments.  

“The IBCC team has been working during the last months, to gather feedback and comments from British and Israeli businesses in order to channel those to the governmental teams on both sides. They have been very keen to listen, remove barriers, update and upgrade the scope, volume and the quality of mutual business and cooperation between our countries into the future.  

“It is a unique opportunity where businesses are involved and being heard at such a level, and we wish the teams on both sides a great mutual success.” 

Commenting on the Office for National Statistics inflation figures for June 2022, Chief Operating Officer, Nova Fairbank said:    “The rise in Consumer Prices Index inflation to 9.4% is the ninth monthly increase in a row and another record high. “That represents a huge amount of cost pressure that businesses and households across the UK have had to absorb. These costs are set to rise further with surges in energy bills coming down the track. “This squeeze on businesses’ operating costs is also reflected in the latest Producer Price Inflation figures which show a 24% rise in the year to June 2022, the highest level since records began in 1985. “Against that background it is no wonder that two out of three firms are telling us they expect to raise their own prices, and three quarters are reluctant to invest. “It is vital that Government sends business a clear signal that despite political upheaval it can still take action on the economy. Beginning a long-promised review of the Shortage Occupations List to ease the incredibly tight labour market would be a start. “The autumn budget must then be the main priority of the new Prime Minister and Chancellor – a chance for them to reset, rethink and get their house in order. “This inflationary surge sits alongside a poor economic outlook and unless the Government acts with urgency the chances of a recession will only increase.”

Commenting on the launch of the negotiations, William Bain, the BCC’s Head of Trade Policy, said:   

“Business supports these efforts to develop an improved trade agreement with Israel to boost the supply of services between our countries. 

“There are also opportunities to cut the costs of exports and imports through strong digital trade rules and more efficient customs regulations.  

“An upgraded agreement could create future-proofed trading terms for years to come, raise investment, and increase the value of our export sales, which are currently worth £5bn a year.” 

Anita Leviant, President of Israel Britain Chamber of Commerce (IBCC), said:   

“The IBCC business community, in Israel and in the UK, very much welcome the significant steps taken by both governments with the upcoming negotiations.  

“The UK is Israel’s largest trade partner in Europe, and both countries already have strong relations, tech, science and innovation cooperation as well as longstanding fruitful bi-lateral trade and investments.  

“The IBCC team has been working during the last months, to gather feedback and comments from British and Israeli businesses in order to channel those to the governmental teams on both sides. They have been very keen to listen, remove barriers, update and upgrade the scope, volume and the quality of mutual business and cooperation between our countries into the future.  

“It is a unique opportunity where businesses are involved and being heard at such a level, and we wish the teams on both sides a great mutual success.” 

Image credit: Getty Images/Chambers Canva Pro 2022

Sizewell C has moved a step closer to starting construction after the Government today gave planning consent for the new power station in Suffolk. The DCO application was submitted in May 2020 and sets out the range of measures the project will take to mitigate the effects of construction and maximise the benefits for local communities. More than one thousand interested parties and statutory consultees gave evidence during the public examination which ran from April to October last year. Today’s decision is the biggest milestone so far in the approval process for Sizewell C. It follows four rounds of public consultation which began in 2012 and involved more than 10,000 East Suffolk residents. Carly Vince, Sizewell C’s Chief Planning Officer, said: “I am delighted that, after months of careful consideration, the Government has given planning consent for Sizewell C. It is a big endorsement of our proposals and supports our view that this is the right project in the right place. “I would like to thank the thousands of people in East Suffolk who contributed to our consultation sessions and the public examination. The input of residents, local authorities, environmental groups and many others has helped us to improve our plans. We will continue to work closely with them to make sure we minimise the impacts of construction and maximise the huge opportunities for the area. “Sizewell C will be good for the region, creating thousands of opportunities for local people and businesses. It will boost local biodiversity and leave a legacy Suffolk can be proud of.” Sizewell C is set to become one of the UK’s biggest net zero infrastructure projects, supplying reliable low carbon electricity to around six million homes. By displacing fossil fuel electricity, it will avoid around 9 million tonnes of CO2 emissions a year. Negotiations with the Government on raising funds for the project are continuing and a Financial Investment Decision is expected in 2023. Last month, the Government announced that Sizewell C could be eligible for funding using the so-called Regulated Asset Base (RAB) scheme which will drive down the cost of the project to consumers. Julia Pyke, Sizewell C’s Financing Director, said: “Energy costs will be lower with nuclear in the mix, so today’s decision is good news for bill-payers. The tried and tested funding arrangement we are proposing means that, by paying a small amount during construction, consumers will benefit in the long-term. “Sizewell C will give a big boost to jobs and skills in nuclear supply chain companies across the country. It will strengthen the UK’s energy security and play a key role in our fight against climate change. “Planning approval brings us closer to delivering the huge benefits of this project to Suffolk and to the UK.” Other approvals required before the project can begin construction include a Nuclear Site Licence from the Office for Nuclear Regulation and permits from the Environment Agency. https://www.edfenergy.com/media-centre/news-releases/major-milestone-government-grants-development-consent-order-sizewell-c Photo credit: EDF Energy