Commenting on the launch of the Youth Contract today, Caroline Williams CEO Norfolk Chamber of Commerce, said: “For too many businesses, economic uncertainty has made it tough to hire more young people over recent months. Norfolk companies are concerned that many lack basic skills or past work experience. That translates into higher training costs and greater risks for employers.
“The Youth Contract will significantly reduce those risks, and give employers more confidence to invest in young people. We are pleased that the government has listened to our concerns about administration and about the need for up-front payments, particularly for smaller businesses that are keen on taking up the scheme but worried about delays.
“Business isn’t just good for Britain, it’s good for young people, too. Companies are ready to play their part to support the next generation into work, since younger workers are vital to future business success. Assuming the Youth Contract proves successful and popular with our employers, we will continue to push for it to be extended even further.”
Commenting on the threat of a strike by fuel tanker drivers, Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:
Norfolk is a rural county and relies heavily on access to fuel, add in the fact that Norfolk has a high percentage of small to medium size businesses and it shows that a fuel strike could be very detrimental to businesses large and small. – Caroline Williams
“Norfolk employers are working flat out to keep their businesses afloat and deliver growth during challenging economic times. The last thing they need to contend with is a fuel strike, which could have a damaging effect on their businesses. Norfolk is a rural county and relies heavily on access to fuel, add in the fact that Norfolk has a high percentage of small to medium size businesses and it shows that a fuel strike could be very detrimental to businesses large and small.
Not only will firms struggle to access the goods they need to run their business, staff won’t be able to get to work, and smaller companies will be forced to shut down and lose takings. Public services could end up being affected, and parents who can’t get childcare will have to take time off and lose pay. Furthermore, many Norfolk jobs depend on sending goods to ports and markets overseas.
“People have already started panic buying, which will lead to further shortages and make the problem even worse. For this strike to go ahead would be totally reckless. With the Queen’s Jubilee and the Olympic Games only months away, the world’s eyes are watching the UK and any decisions to strike will only tarnish our reputation to global investors.”
UK GDP in Q4 2011 fell 0.3% on the quarter; revised down from previous estimate of 0.2% fall
Commenting on the revised GDP figure for the fourth quarter of 2011, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The revised GDP figure for the fourth quarter is disappointing, with most analysts expecting the ONS to confirm its previous estimate of a 0.2% fall. The downward revision is largely due to the new estimate that the service sector fell by 0.1% on the quarter, with the ONS previously suggesting that services were unchanged. Although the fall in investment was much smaller than expected, the improvement in net exports was not as strong as we had hoped.
“The UK economy faces huge challenges, but we still believe that GDP has returned to positive growth in the first quarter of 2012 and there will be no new recession. But the austerity measures and unresolved problems in the eurozone will continue to put pressure on the economy, so it is crucial that policies to support growth are put at the top of the agenda.
“The recent Budget has not done enough to benefit small- and medium-sized businesses. More must be done as a matter of urgency to help firms create jobs, export and invest. While the government perseveres with measures to reduce the deficit, priorities must be reallocated within the overall spending envelope. The credit easing programme needs to be made more substantial, and the MPC must ensure that the QE programme encourages increased lending for smaller firms. Ministers must also look seriously at prospects for the creation of an SME bank.”
Commenting on the government’s decision to move ahead with crucial reforms to planning laws, John Longworth, Director General of the British Chambers of Commerce (BCC), said:
“This country’s impossible planning regime has for too long prevented our development and growth. We have said that without reform, businesses will shelve development projects, and our economy will lose out on crucial inward investment from overseas.
“Business will warmly welcome the government’s decision to push ahead with planning reform. If implemented properly, the new National Planning Policy Framework could give companies greater clarity and certainty when looking to expand. It will also allow planning to be restored to a positive tool, rather than a weapon used to fight reactionary battles against change, growth and jobs. Ministers must ensure that the new system works for companies of all sizes, whether in urban centers or rural idylls, North and South.
“The opponents of planning reform have been voluble in recent months. They have said there’s no need to change the planning system – but the evidence from good businesses trying to expand proves them wrong. The BCC’s own research shows that the complexity, cost and inconsistency of the current system discourage demand from companies that want to grow. That in turn limits economic growth. So a failure to reform the planning system would not just be a blow to business’s bottom line. It would also undermine Britain’s ability to pay for the public services we all want to see.
“No one in business wants to concrete over the countryside, damage the environment, or allow reckless and poor development. Businesses understand the need for planning to promote sustainable and responsible growth. But in its current form, that system limits even the most modest expansion, tying companies up in red tape, heaping costs upon owners and discouraging firms from applying in the first place.”
On the ‘presumption in favour of sustainable development’:
“We welcome the government’s decision to maintain a presumption in favour of sustainable development at the heart of the new system. This presumption will encourage growth while retaining the environmental safeguards that have long been part of the British planning system. It will also provide a powerful incentive for local authorities to complete their local plans to guide growth if they do not already have one in place.”
On the use of brownfield land first:
“The reinstatement of a ‘brownfield-first’ approach clarifies the government’s original intention in the draft. While we broadly support this change, local authorities must work to ensure this supports future business growth. An adequate supply of commercial land must be maintained.”
On the greenbelt:
“Local authorities must be careful not to score an own goal by putting too much protection around greenbelt land, some of which has little amenity value and could be better used to provide jobs and homes. Our cities require an adequate supply of land for commercial development, and in some cases this may require making the tough choice to use close-by greenbelt areas, rather than see environmentally-unsustainable development many miles away.”
On implementing the policy:
“We welcome the additional detail on how the changes will be implemented. But government and local authorities must work hard to provide certainty and consistency for businesses looking to expand over the 12-month transition period.”
BCC research shows:
70% of applicants had to pay for planning support during the application process, demonstrating the system’s complexity and cost
21% of businesses that needed planning permission but did not submit an application said it was because of negative perceptions of the planning process, demonstrating discouraged demand
Of those that considered applying but did not, 44% said their decision damaged their plans for growth or constrained output, demonstrating negative economic impact
65% of those who had applied for planning permission in different parts of the country said that they received different advice across local authorities, demonstrating inconsistency and complexity
Over half (53%) of applicants said that when a decision on an application is finally reached, it runs contrary to the advice of expert planning officers. This shows that under the current system politics too often trumps the need for growth.
World-leading sustainability expert Gunter Pauli will be one of the speakers at Norfolk and Suffolk Chambers’ Sustainability 2012 Conference on 10 May at the John Innes Centre, Norwich.
Gunter Pauli is an entrepreneur, lecturer, author and commentator on culture, science, politics, sustainability and the environment. His presentation at the event is entitled ‘Redefining competitiveness by changing the rules of the game’.
Gunter Pauli said: “I am delighted to be speaking at Sustainability 2012, because it’s established as the largest show of its kind in East Anglia and therefore plays a vital role in keeping the region up to date with sustainability issues.
“I hope my presentation will get delegates thinking. The main challenge of the ‘Green Economy’ is that it requires companies to invest more and consumers to pay more. This is justified when the world economy is expanding and unemployment is decreasing, but is a more difficult strategy when demand drops, consumer confidence dwindles and people know their jobs are in jeopardy.
“The aim of The ‘Blue Economy’ is to stimulate entrepreneurs to bring innovations to the market that has been inspired by the way ecosystems work; moving from the core business competencies to the search for a bundle of activities where the best is cheap, social capital is built and everyone aims to meet the basic needs of everyone else.”
Gunter Pauli also writes children’s fables. To date, he has written 36 which have been translated into more than 100 different languages. They are special because of the unique way they stimulate children to think and ask the kind of questions parents usually do not know how to answer.
Gunter says: “These are exactly the kind of questions that inspire children to be innovative and, for sure, we need more innovators as there is little doubt that we are creating a world where our children will have to find ways to solve the problems our generation has created, and, sadly, is still creating.”
The Government of China has recognised this, and has recently approved Gunter’s fables as the staple of all schools across China. So pleased are they with his fables that they have asked Gunter to write one fable for every day of the year. In true Gunter spirit, as if taking on that challenge is not enough, has started talks with TATA, India’s largest integrated power utility, as well.
Caroline Williams, CEO of Norfolk Chamber of Commerce, commented: “We are delighted to that Gunter Pauli has agreed to speak at the Sustainability 2012 conference. He is a very distinguished spokesman on the key issues which we need to address at the conference and we know that he will raise some thought-provoking issues. Securing Gunter, plus a host of other industry-leading speakers, shows how important this event has become for tackling sustainability issues.”
There will also be other expert speakers at Sustainability 2012, including George Padelopoulos, Sustainability Manager, Ethical Trade, B&Q; Tom McGarry, from EDF Energy: and Mark Pendlington, from Anglian Water.
Now in its third year, the Sustainability 2012 conference will focus on Low Carbon Technologies and Built Environment Innovation. The aim of the event is to highlight the clear distinction between how small and large companies need to react and plan for a range of new initiative.
Delegates will be offered a global insight into the need for sustainable developments, the UK-based regional perspectives, as well as county-based opportunities. The conference will also offer a wide choice of learning and interactive workshops and include an exhibition to showcase new products and innovations.
Caroline Williams added: “This conference is a must-attend for regional businesses of all sizes because it clearly sets out the opportunities that are available in the short and long term and the benefits of getting involved.”
For more information, to book a place on the conference, or to book a stand, go to www.sustainability2012.com or call 01603 625977.
February 2012 retail sales volumes: down 0.8% on the month, up 1.0% on the year
Commenting on the retail sales figures for February 2012 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“A fall in sales in February was widely expected following the relatively strong figures seen in December and January. The poor weather in the first week of the month could have hindered the retail market, so these figures should not cause undue concern. Longer-term comparisons show that while the growth in sales remains in positive territory, the pace of expansion is modest. The value of sales has risen by more than 3% over the past year, which is mainly due to inflation. If hikes in energy and food prices persist, this could create new obstacles to a sustained recovery in retail trade and in consumer spending in general.
“While there were some measures to support growth announced in the Budget, more must be done. It is important that retail sales continue to grow over the next year, but we cannot rely on consumer spending if we are to secure long-term growth in the economy. Increasing net exports and business investment remain crucial to driving the recovery in the months and years ahead. While sticking to its deficit reduction plan, the government will have to do more to reallocate priorities within the overall spending envelope.”
The Chancellor’s Budget could never have satisfied everyone. While the accelerated reduction in Corporation Tax, as well as the continued commitment to deficit reduction, are both reasons for businesses to be cheerful, we are disappointed that action was not taken today to prevent the coming ‘Great Business Rates Robbery’, nor the lack of action to boost investment and employment by SMEs in the real economy.
Here at the Chamber, we can’t help but feel that the Chancellor could have done more to help the small- and medium-sized companies that are at the heart of local economies up and down the UK. Corporation Tax reductions are undeniably positive, but benefit biggest companies the most. Changes to tax rules may help three million companies, but these are the tiniest in the land, with turnover of under £77,000 per annum.
We can be heartened by a number of the Chancellor’s decisions, including commitments to deliver planning reform, to finally getting on with Tax Increment Financing, to incentives for Enterprise Areas in Scotland and Wales, and to devolving decisions on Air Passenger Duty to the Northern Ireland Assembly. Yet I was hoping for more radical steps to support the solid-citizen employers in cities and towns up and down the land who have kept this country afloat during a period of protracted economic uncertainty.
Detailed grid of policy changes and commitments click here
Australia recorded a seasonally-adjusted trade deficit of A$673 million in January 2012, the first monthly deficit since February 2011, according to figures released by the Australian Bureau of Statistics.
Exports of metal ores and minerals fell 15 per cent, or A$1.1 billion. This was in part caused by cyclone Heidi, which prevented companies like Rio Tinto and Fortescue Metals loading ships in Port Hedland in Western Australia.
Non-monetary gold, exports of which fell 56 per cent, or another A$1.1 billion, is a volatile item whose shipment mostly depends on the Perth Mint. It imports, refines and exports large quantities of gold, often in different months.
Services trade, however, contributed positively to January’s trade balance. Services exports rose 3 per cent for the month, with travel up 4 per cent and other services – mainly business – up 3 per cent. Services imports rose 2 per cent.
Manufacturing exports were also up, by 5 per cent, with transport equipment shipments ahead 29 per cent.
Weaker demand in Asia was reflected by a 17 per cent drop in exports to Japan, and a 28 per cent decrease in exports to ASEAN economies. Exports to China fell 23 per cent to A$5.2 billion, in part reflecting lower economic activity during the Lunar New Year holiday in January. However, there was continuing growth in exports to India, up 7 per cent in January.
Imports of intermediate and other merchandise goods fell 5 per cent, while capital goods dropped 1 per cent. There was an increase in imports of consumption goods – up 3 per cent – and non-monetary gold, up 6 per cent.
If you went to Germany on a business trip or exhibited at a German trade fair in 2011, you can potentially save approximately 16 percent of your business expenses by claiming back the German VAT you incurred during the trip.
Since 2010, British businesses can submit their claims via an online system with HM Revenue and Customs (HMRC). Applications can be filed directly via standardised forms and, in most cases, original invoices will not have to be provided. Claims for 2011 have to be submitted to HMRC by 30 September 2012.
VAT may be claimed back on many products and services, such as hotel accommodation, training courses, expenses for conferences and exhibitions, meals and beverages, car rental and car fuel, parking, public transport and taxi fares.
In order to qualify for the refund procedure, you must not be resident in Germany, or have a place of business or domicile in Germany, nor own property or maintain a branch in Germany.
Angelika Baumgarte, Deputy Director General of the German-British Chamber, explains: ‘The online procedure makes it easier for British companies to file their claims for refund of German VAT. However, the claims will still be dealt with by the German tax authorities. Therefore, any requests regarding further information and all correspondence will be in German.’
More information on reclaiming your German VAT can be obtained from the Tax Services Department of the German-British Chamber of Industry & Commerce. The staff can also carry out the whole application process on behalf of your company: from preparing your application, to filing it online and responding to enquiries of the German tax authorities in German.
It’s that time of year again when the Arab Embassies review their legalisation costs so if there are to be any changes, they normally come into force from 1st April.
If you are looking to ship goods to any of the Arab League countries and will require legalised paperwork, please ensure that you check with us exactly what the costs will be.
For more information, please contact the International Trade Team on 01603 729712 or export@norfolkchamber.co.uk
A new version of the Export Control Organisation’s current Training Bulletin is now available.
The Bulletin includes details of all forthcoming ECO seminars and workshops taking place from March to September 2012 (along with an attached course booking form at the bottom of the bulletin). Courses are scheduled to be held during the next few months in Southampton, Leeds, Birmingham, Glasgow and Aberdeen.
These courses are all designed to increase your understanding of UK strategic export controls and what your responsibilities are when exporting controlled items. All courses are delivered by UK government experts working within the UK’s Export Licensing Community.
Details are also provided about the option of on-site bespoke company training.
With some of them having avoided the worst of the economic crisis, the countries of Central and Eastern Europe (CEE) hold considerable potential for UK exporters, according to UK Trade and Investment (UKTI).
Over the last 10 years, UK exports of goods and services to the region have more than doubled, from £6 billion in 2000 to £14 billion in 2010. The UK’s business with the region continues to hold up strongly, despite ongoing instability in the eurozone, with exports of goods to Eastern Europe up by 33% over 2011.
A busy programme of events over the year can be tracked by way of UKTI’s forward calendar, which offers opportunities to engage with expert sources of information and advice both in the UK and overseas.
On 29 March, for example, the London Chamber of Commerce and Industry will host “Doing Business in the CEE – an overview of regional export opportunities” while, on the next day, British Water will present “Water and environment sector opportunities in the CEE”.
Ambassadors from across the CEE region will return to the UK at the beginning of May with a business briefing/networking event, to be announced shortly, and the Lord Mayor of London will be taking a City of London delegation to Croatia and Slovenia in June.