Chamber News

The British Chambers of Commerce is calling for an immediate emergency budget to deal with the costs crises facing businesses and people throughout the country. It has developed a three-point action plan that would allow firms to keep a lid on rising prices, boost productivity and ease cost pressures. The proposals include:

• Ease upfront costs of doing business by reversing the recently introduced National Insurance increase until at least 2023/24.
• Help firms manage the impact of rising energy prices by cutting VAT on their energy bills from 20% to 5% for a minimum of one year.
• Address labour shortages by reinstating free Covid tests for companies to ease the strain on productivity caused by persistent high absences

Together the three steps would take the pressure off businesses that are battling to keep the economy afloat and offer a route to higher productivity and tax receipts in the future. Shevaun Haviland, Director General of the BCC, said:  “These are simple, straightforward measures that can be quickly reversed when the economy is in better shape. “The Treasury and HMRC have proven their ability during the pandemic to implement similar changes quickly and efficiently. Making these changes would have an immediate benefit for both businesses and the public. “The costs crises facing firms and people in the street are two sides of the same coin. If we can ease the pressure on businesses then they can keep a lid on the price rises being driven by surging energy bills, staff shortages and higher taxes. “Firms will then have the breathing space they need to raise productivity and strengthen the economy. But a change of course is needed now, if the government does not act immediately then rising costs will put our economic recovery in a stranglehold that will have repercussions for years to come. “The government has a variety of financial levers it can pull, and this is the time to use them. Acting today will then give businesses a chance to create the future profits needed to fill tax coffers.” The measures in more detail:

• Postponing the rise in National Insurance Contributions would not only ease the immediate pressure on companies’ balance sheets but it would also put money back into the pockets of people – boosting consumer confidence. When supply chain disruption has unwound and global factors influencing inflation have receded the economy will then be in a much stronger position to bear the increase.
• Cutting VAT on business energy bills to 5%, for all businesses, would provide another quick release valve on soaring costs for firms. For example: a small business which has an energy bill of £10,000 and currently pays the standard 20% rate would pay £2,000 VAT. Our proposal would see that cut to £500. This measure could be adjusted over time to take account of those sectors most in need.
• Many businesses in the UK are still seeing above average absence rates as Covid continues to impact the workforce. Around two thirds of more than 1,100 firms surveyed in April by the BCC reported staff absences due to Covid symptoms or self-isolation. Bringing back free testing would allow firms to limit the disease’s spread among employees. With wider structural staff shortages continuing to limit productivity this would be a key measure to keep the economic recovery on track.  New sub-variants of Omicron are reportedly leading to rising infection rates in the US and South Africa.

Our Biker Breakfast Co.llaboration with Westcotec has been in the diary since spring 2020, so it was only fitting that two years later this long-awaited event could finally happen under glorious sunshine at the beautiful Barnham Broom Hotel. The breakfast started with networking, teas, and coffee amongst an array of helmets and chatter. Chris Sargisson, Norfolk Chambers CEO welcomed our guests and explained that “this event is an opportunity for us to say thank you, where thank you is needed to be said. The Biker community stepped up to the challenge during the pandemic and showed genuine community spirit, supporting the NHS, care homes, and delivering to those in need”. Chris Spinks, CEO of Westcotec said, “We’re proud to sponsor the biker breakfast event and work in Co.llaboration with Norfolk Chambers”. Chris spoke of his previous career within the Norfolk and Suffolk Constabulary and seeing firsthand the results of not following road safety. We also heard from Andy Lawer, part of the Safe Rider Scheme within the Norfolk Constabulary.  Andy spent 20 years riding Police bikes in London, before moving to Norfolk. He has worked for NATO, escorting PMs and dignitaries, and members of the royal family.   He spoke of the superb training he received as an advanced rider and elements of the role, “it’s about educating riders and talking, and asking if they (the riders) can see, that what they are doing isn’t right”. “We take the guidelines we’re given, we pass them on to the public and it makes people safer on the road. Above all, we want people to thoroughly enjoy riding, and then get home safe”.   Following a delicious breakfast, we heard from Lydia McClintock, Manager of Infinity Norwich. Lydia talked of the improvements and developments to safety rider wear, showing examples with new custom clothing, and grading standards, and talked of new certifications coming into play to enhance rider safety. Our event charity was Nelson’s Journey, with guest speaker Gary Stevens. Nelson’s Journey is an incredible charity. Nelson’s Journey supports children and young people in Norfolk who’ve experienced the death of a significant person. We provide a range of resources and services, and accept referrals from families and professionals for those who may need our support. Since 1997, Nelson’s Journey has helped thousands of bereaved children and young people in the county. It is thanks to the tremendous support of our local community that our work is possible. Finally, Tim James, Design and Development Engineer at Westcotec closed the event, with a run-through of the route back to Norwich. The 90km route included stops at Lings Triumph, Seastar Superbikes and C J Ball Honda & Suzuki.  

We were delighted to be part of the launch of Thetford’s Business Awards launch. This prestigious event is now in its third year. The Launch was a Co.llaboration with the Award Founders and the Norfolk Chambers, and held on April 21st and hosted at the award-winning Thomas Paine Hotel in Thetford. The hotel is reputed to be the birthplace of Thomas Paine the celebrated free thinker and campaigner of the 18th century who wrote the Rights of Man, on which the American Constitution is based. The evening of canapes and Co.nnections was a celebration of this year’s launch, with guest speakers Daniel Mayhew and Matt Morton. Daniel started his career in sales in the mobile phone industry. He quickly became successful by the age of 20. In the years to follow, Daniel became a worldwide leader with Fintech & Ecommerce Eco-System.  Working for UK, Israeli, American, and other international businesses, specialising in Cross Border Payments, E-Commerce, GTM Strategy, and Commercialisation. and, an experienced entrepreneur specialising in sales, relationship management, and strategy. His career boasts a successful track record across both ideation & implementation helping brands to achieve huge growth in the health, fitness, sports & technology industries. In his early career, he cut his teeth working for some of the biggest brands in their field such as Grant Thornton and Life Fitness but where he really excelled and thrived was the fast-paced and creative world of start-up & SME. Matt is an experienced entrepreneur specialising in sales, relationship management, and strategy. His career boasts a successful track record across both ideation & implementation helping brands to achieve huge growth in the health, fitness, sports & technology industries. In his early career, he cut his teeth working for some of the biggest brands in their field such as Grant Thornton and Life Fitness but where he really excelled and thrived was the fast-paced and creative world of start-up & SME. He has set up, scaled, and managed sales teams both locally and globally. Our Connector, Andrea Wilson, Account Manager and Energiser, Amy Wright, Events Manager attended and networked with local Breckland businesses and Chamber members. With thanks to Gez Chetal FMBII, Executive Director of the Thomas Paine Hotel and his staff for a very warm welcome and incredible hospitality.   All photographs are credited to Thetford Photography  www.thetfordphotography.co.uk

• 4 out of 5 (78%) firms that attempted to recruit facing difficulties in finding staff
• Hospitality, construction, logistics and manufacturing firms most likely to report difficulties (80% or higher) but all sectors have significant issues
• Smaller firms reporting increasing wage pressures are making it harder to compete for staff

Latest figures released today by the British Chambers of Commerce show the pressure on firms struggling to recruit staff remains at record high levels. The data for the leading business group’s Quarterly Recruitment Outlook survey for Q1 2022 was drawn from a survey of 5,500 businesses.  Attempted recruitment in Q1 was down slightly with 60% looking to recruit staff (64% in Q4). However, the proportion of firms reporting difficulties filling roles remains at a historical high at 78%, dropping just one percentage point from the previous quarter (79%). The hospitality sector was facing the most challenging recruitment issues, with 85%, reporting difficulties, up from 83% in Q4 2021. This was closely followed by construction on 83%, logistics on 81% and manufacturers at 80%. Retail and wholesale firms were the least likely to report difficulties at 69% but the proportions of firms that cannot find the staff they need remains worryingly high. Views from Business Firms reported a broad range of issues which contributed to the overall recruitment squeeze – this included disruption due to Covid and a drop in the availability of foreign staff. More firms are also reporting that wage competition is proving disruptive. “We are finding it difficult to recruit all levels of staff. Applicants are able to choose between several employers as we are all chasing the same people. They feel we are on the edge of the Midlands but still expect Wolverhampton / Birmingham salaries.” Medium sized professional services firm in Shropshire “We are prepared to pay more for the right people, but there just seems to be no one to employ. If we cannot get staff our service slips drastically because we don’t have enough people to serve our customers.” Micro hospitality firm in Scotland Responding to the findings, Head of People Policy at the British Chambers of Commerce, Jane Gratton said: “It’s now harder than ever for businesses to fill job vacancies and there are no signs of improvement.   In an increasingly tight labour market, competition for skills is ramping up wage costs, leaving many firms unable to recruit the people they need. “When combined with the escalating price of energy, shipping, raw materials and other costs, it is a precarious situation for businesses.  Inevitably, it is the smaller firms, with little in the way of cash reserves after two years of pandemic, who are most exposed to the risk all this presents. “The UK government needs to take concrete action to address labour shortages as they are a key factor in the economy’s stuttering recovery. If firms cannot get the people they need then productivity and revenue are two of the first casualties. “Government must also ensure that people can access rapid retraining opportunities for in-demand jobs at all skill levels in the workforce.  At the same time, where there is clear evidence of national shortages damaging the economy, we need temporary visas for hard working people willing to come to the UK to work in the essential every-day roles that we all rely on. “Businesses are investing more in developing home grown talent – and creating a more inclusive and diverse workforce – but this won’t solve pervasive skills shortages overnight.  Right now, the priority has to be to improve access to skills and ease the wider cost pressures facing business.”  

• Proportion of UK exporters reporting increased export sales (29%) was largely unchanged for the 4^th quarter running
• Proportion reporting decreased sales historically high at 25%, also little changed since 1 year ago in Q1 2021
• Exporters more likely that non-exporters to expect increases to their prices in coming months

A survey of over 2,700 UK exporters has revealed that export sales growth has been effectively stagnant for the past year. The BCC’s quarterly Trade Confidence Outlook showed the proportion of exporters reporting increased overseas sales to be unchanged from Q4 at 29%, while those reporting a decrease rose 1 point to 25%. The data showed that manufacturers were more likely to report increased export sales than either business to business service firms (such as lawyers or accountants) or business to consumer service firms (like online clothing stores). In past 3 months exports sales have… Exporting manufacturers Exporting B2B Services Exporting B2C Services Increased 32% 26% 26% Remained constant 42% 56% 42% Decreased 26% 17% 32% Conversely, B2B service exporters were more likely than either manufacturers or B2C service exporters to expect profitability to increase in the coming year. Over the next 12 months, do you believe your profitability will… Exporting manufacturers   Exporting B2B Services   Exporting B2C Services   Increased 44% 55% 45% Remained constant 29% 29% 30% Decreased 27% 16% 24% Responding to the findings, Head of Trade Policy at the British Chambers of Commerce, William Bain said: “This data confirms our concerns – that for the last year there was a broadly flat picture for UK exports. This is in contrast with the performance of our near neighbours, with Germany’s exports both within and outside the Single Market steaming ahead by double digit margins and with trade losses from the pandemic already effectively recovered. “UK exporters are facing the headwinds of higher red tape costs from trading with the EU, raised raw material pressures, and ongoing issues in global shipping markets. If we are to realise the aspirations of the UK Government’s Export Strategy then 2022 has to be the year where these structural factors holding back our exporters are addressed. “Sustained export growth should be powering our economic recovery from the pandemic. Chambers and their members are already working hard to increase exports but need more substantive measures from Government now.”

On the 31^st of March, we hosted our fourth GEN-E young professionals networking event at the stunning Rooftop Gardens in Norwich. Over 130 attendees brought this space to life, along with our wonderful speaker, Rebecca Lewis Smith. These events have continued to grow in popularity and are set to be bigger and better as the world starts to open up. The aim is simple: creating a fun and safe space for young professionals to come together, network and grow. These events have been an integral part to the continued growth of Co.next, a new initiative from the Chambers designed to support and empower under 35s in Norfolk. The programme was launched in February and has big plans for 2022. Watch this space for more events, training sessions, mentoring and much more! “The GEN-E event is exciting in its goal to bring together Norwich’s ambitious young people whether entrepreneur or corporate high flyer. It’s the perfect place to network and connect with likeminded individuals in a safe and sociable space. To add to this, each event brings inspirational speakers to talk about their journeys and what we as the next generation of business leaders should strive for, most importantly being individuality. Excited to see the event grow!” – Thomas Panton, Greenr “By far one of the warmest and most welcoming networks I’ve been too (even on a rooftop in the snow!) The conversations, atmosphere, and event was unlike any other “networking” I’d been too. Nothing felt forced, and it was incredible to meet so many like-minded, motivated young people. They always say people do business with people they like, and the event was the perfect way to get to know new people. I’d highly recommend it to anyone looking to meet vibrant people in business in Norwich (if you can get your hands on a ticket!)” – Lizzy Dring, Huxley Events

On the 7th April Norfolk Chambers hosted its first Co.next event at The Forum in Norwich. This saw four individual speakers sharing their stories of navigating life with neurodivergent brains. Hosted by Co.next Chairman James Groves, we heard from Rose Steward, Josh Smith, Gavin Jones, and Toby Bennett. Areas covered included ADHD, Dyslexia, Dyscalculia, Epilepsy, and PTSD, with lots of light-hearted anecdotes and honest advice. Presentations were followed by a Q&A session with a brilliant audience, allowing a safe space for people to ask questions for themselves or on behalf of people they know. This was followed by networking, with a fabulous cake selection provided by The Feed. We received some great feedback from the event. “It was a pleasure – I think you are at the start of something really special and very important in putting on an event covering such a topic The speakers gave it such an air of authenticity” – Morris Peacock, Howes Percival  “Thank you again for speaking today and to all of you for having the courage to talk openly about your struggles, helped me feel a little less alone in the working world, that at times can seem very overwhelming! Still trying to adjust myself and deal with new coping mechanism. I hope to see more talks like this in the future!” – Isabella Elsworth, Layrd Design Ltd  “I found it incredibly insightful, both in terms of tips to take back to my employer and managing expectations of myself as a neurodivergent person.” – Joanna Brown, Larking Gowen Find out more about our Co.next prgoramme. Photo credit: Jordan Hutchings

Commenting on the latest forecasts by the Office for Budget Responsibility, Suren Thiru, Head of Economics at the BCC, said: “The OBR’s latest forecasts paint a bleak picture of the UK’s economic prospects over the near-term as the drag effect of rising inflation, supply chain disruption and higher taxes weakens key drivers of UK output. “The robust forecast for business investment looks too optimistic with rising cost pressures, higher taxes and a deteriorating economic outlook likely to dampen investment intentions by more than the OBR’s latest projections suggest. “The OBR has also confirmed that the UK’s fiscal outlook has improved since the Autumn Budget, despite a sharp uptick in debt interest payments. This leaves the chancellor with more than enough fiscal headroom to better support households and businesses through this difficult period.” Read more from the British Chambers of Commerce 

Transport Minister Baroness Vere made a special visit to Great Yarmouth on 25th March to see the fantastic progress being made on the town’s Third River Crossing which is on course to open one year from now. The minister was joined at Great Yarmouth by a delegation of senior leaders from Norfolk to view the construction first-hand and learn about the massive economic boost the project will bring to the wider region. Chris Sargisson, CEO of Norfolk Chambers of Commerce, says “Such a positive day both getting to see infrastructure investment actually happening and on such an impressive scale but also learning how inclusive this project has become to the local communities. For example, 70% of employees are local, as is 1/3 of the supply chain, and that 50 + of the businesses involved are from Great Yarmouth” The minister was shown how the new Great Yarmouth crossing will link the enterprise zone at the port to the A47, reduce congestion across the town, improve journey times and connect previously cut off local communities with new walking and cycling routes. Since construction on Norfolk County Council’s key infrastructure project began, lead contractor BAM Farrans Joint Venture estimate over £8 million has already been spent directly within the local economy and over 50 full time positions have been provided to local people. Cllr Graham Plant, deputy leader of both Norfolk County Council and Great Yarmouth Borough Council and Norfolk’s cabinet member for economic growth says: “I am delighted we have had the opportunity to show the minister the fantastic progress being made on this highly significant project for our region, that means so much to the people of Great Yarmouth”. Roads minister Baroness Vere said: “The benefits already being felt will continue to grow our local economy for generations to come and the opportunity to directly highlight to government the need for good local infrastructure across Norfolk is most welcome”. “It was fantastic to visit Great Yarmouth’s Third River Crossing to see work progressing on this important project. Our £98.09 million funding will provide a significant boost to Norfolk’s local economy, and this new link will be indispensable to the local community when it is completed – improving journey times and reliability and maximising investment to the area.” Whilst on site the minister was introduced to some of the young people who have directly benefited from the project, such as Reece Ryan, who has successfully gained full time employment after completing the government’s Kickstart programme. Reece said: “Kick Start has been an excellent scheme to support me getting back to work on such an exciting project in my hometown of Great Yarmouth. I have now completed the six month Kick Start process and this week started a fulltime position with BAM Farrans Joint Venture. I am very grateful to  all involved and look forward to developing my career in the construction industry.” The Great Yarmouth Third River Crossing which will link the A47 at Harfrey’s roundabout to the port and the enterprise zone on the other side of the river is expected to open in Spring 2023. You can find out more about the project at www.norfolk.gov.uk/3rc     ​

The Chancellor of the Exchequer, Rishi Sunak MP, delivered his Spring Statement 2022. The key headlines for businesses are:

• 5p cut to fuel duty
• SME’s will receive £5,000 to Employment Allowance
• A wider Tax Plan to support businesses to grow

The Spring Statement falls short of the action we have been calling for over the past few months. While there are some positive announcements that firms will welcome, it did not fundamentally address the huge cost pressures facing member businesses across the country. Nova Fairbank, Chief Operating Officer, Norfolk Chambers of Commerce says “The Chancellor’s Spring Statement will be welcomed by many households, however, there is very little comfort for local businesses.  Mr Sunak did nothing to fundamentally address the cost pressures that businesses are currently facing.  Whilst Norfolk businesses will welcome the increase in the employment allowance and the cut in fuel duty, these are just a drop in the ocean when they are faced with a tsunami of price increases. “Today was an opportunity to rebuild and renew the economy and Norfolk Chambers would urge the Chancellor to look again at putting in place an SME price cap on energy prices to help employers keep a lid on these costs and protect jobs, thus allowing them to get back to investing and growing our economy.” View the full business support factsheet here.

Checks on imports of live animals and germinal products from the EU

Your live animal and germinal product may have document, identity and physical checks, including tests, at the place of destination. Checks will depend on biosecurity and public health risks. Checks on live animal imports from July 2022 From July 2022, live animal imports that enter Great Britain through a BCP will have document, identity and physical checks. Live animal imports that enter Great Britain through a point of entry without a BCP will have a document check and may have identity and physical checks at the place of destination.

Checks on germinal product imports from 1 July 2022

From 1 July 2022, germinal products must enter Great Britain through an established point of entry with an appropriate BCP for document, identity and physical checks. How many physical and identity checks are carried out from 1 July 2022 will depend on biosecurity and public health risks. For full guidance on how to import or move live animals and germinal products from the EU and Northern Ireland to Great Britain please click here.

The UK has announced new economic sanctions against Russia. The new sanctions will deny Russia and Belarus access to Most Favoured Nation tariffs for hundreds of their exports and ban UK exports of high-end luxury goods to both countries. The full press release can be viewed here. In addition, UK Export Finance has announced it will no longer issue any new guarantees, loans and insurance for exports to Russia and Belarus, whilst retaining £3.5 billion of financial support for trade to Ukraine. You can view the press release here. Upcoming webinars:  HMG officials are hosting two webinars for businesses about the recent changes to UK sanctions relating to Russia.

• UK Sanctions relating to Russia: Briefing by UK Government, Thursday 17 March, 13:00 GMT  The webinar will cover; sanctions legislation overview; new sanctions measures: financial, trade and transport; individual and entity designations; and humanitarian issues. Please register via Eventbrite.
• UK sanctions against Russia, Thursday 24 March, 14:00 – 15:30 GMT The webinar will cover; the scope of sanctions, scope and application of trade sanctions; financial sanctions: restrictions and general licenses; the Export Support Service and enforcement of trade sanctions. Further details can be found here, and you can register here.

A reminder – businesses and traders with questions relating to trading with Ukraine, Russia, and Belarus can submit their enquiries to DIT’s Export Support Service by visiting https://www.gov.uk/ask-export-support-team, or calling the helpline using the number 0300 303 8955.