Chamber News

For 2022, The Big Debate returns as a face-to-face event at The Halls, St Andrews Plain, giving you the opportunity to engage with Norfolk MPs and business leaders. The event brings together Norfolk MPs, and local business leaders to discuss and debate key issues affecting businesses in the region, this high-profile annual policy event is a key date in the commercial calendar for the start of 2022. The topics for 2022 will be:

• People, Skills, and Wellbeing
• Transport and Infrastructure
• Growth and Innovation
• Climate Change

We are very pleased to announce our People, skills and Wellbeing speakers; Chloe Smith, Conservative MP, Rebecca White, CEO of Your Own Place, Jerry White, Deputy Principal of City College and David Melloy, Business Development at Ascot Lloyd. Chloe Smith, MP  Chloe Smith gets things done for Norwich North.  With thirteen years of experience as an MP, she’s an effective, energetic campaigner for the city. She’s won billions of pounds of investment for Norwich like new trains, new roads, new surgeries and hospital upgrades.  She is founder of a project that’s got over 2000 of Norwich young people into work. Her work locally is unlike any other MP: she has built a project which has directly helped bring down youth unemployment in the city faster than elsewhere in the country. Chloe grew up in Norfolk, she went to two comprehensive schools in West Norfolk, followed by York University where she studied English. Before being elected to Parliament, Chloe worked for Deloitte, a leading international firm which advises private businesses, government departments and public bodies. Chloe is currently Minister of State for Disabled People, Health and Work at the Department for Work and Pensions. In this role she uses her 8 years of first-hand experience from the Norwich for Jobs project, which she founded in 2013. The ongoing project, in partnership with the DWP and local private sector and third sector organisations, focuses on helping young people aged 18-24 into work and supporting those with mild to moderate physical and mental disabilities. Chloe is a member of the Wensum Academy Trust and has been chair of governors for a constituency primary school too. She has helped lead the Norwich Opportunity Area, because she believes in working both nationally and locally to lead improvements for the life chances of the poorest children in Norwich. Chloe’s a mum of two, committed to her family as well as her community.  If there’s any spare time left for hobbies she loves cycling and would like to take up kayaking! David Melloy, Business Development Manager, Ascot Lloyd David is responsible for creating and leading business development initiatives for Ascot Lloyd, further driving organic growth for the business. David brings over 25 years of experience within financial services, across business development, financial advice and portfolio management. David has a wealth of experience in promoting the value of financial planning and integrated investment advice to high net worth clients. Rebecca White, CEO Your Own Place Rebecca White is the CEO and Founder of Your Own Place CIC.  As a qualified secondary school teacher with years of experience working with people from all backgrounds as well as commissioners, politicians, business people and leaders, Rebecca exemplifies the successful combination of operational, strategic and business experience. What really drives Rebecca is social inequality.  By the roll of a dice a person’s life chances are dramatically altered. Homelessness is just one manifestation of this and until people have equality of opportunity Rebecca will work tirelessly to champion people facing disadvantage not of their own making. Jerry White, Deputy Principal City College Norfolk born and bred, Jerry began his professional career in Kent as a University Lecturer in Sport and Exercise Science, specialising in Sport and Exercise Psychology and the Sociology of Sport.  In this role he worked not only with University students, but also with elite and professional sports people and junior sports teams. Following a return to Norfolk in 2002 he held a number of roles within the Norfolk County Council’s Adult Education Service. In 2009 Jerry joined City College Norwich where he has been Deputy Principal since 2012. In this role he has key oversight for all aspects of the College’s provision, with a particular focus on Higher Education and the development of Adult Skills. Jerry holds a number of Board memberships including serving on Norwich City Council Towns Deal Board, the Productivity East External Board, as a Council Member for the Cambridge Access Validating Agency (which develops Access to Higher Education courses) and sitting on the UEA Learning and Teaching Committee. Jerry is also the FE representative on the Executive Group for the Network for East Anglian Collaborative Outreach (neaco, part of the UniConnect programme), facilitating communication with the college sector for the project. As a sector leader, Jerry chair’s the Association of College’s national Policy Group for Teaching and Learning and the New Anglia College’s Group Deputy Principal group. In addition, he currently co-chairs the Post 16 SEN Strategy Group for Norfolk. Jerry served as a school governor for over a decade at primary and secondary school levels including serving as a Governor of the University Technical College Norfolk. Jerry holds a Non-Executive Director’s position with the company RCU Ltd, which provides data analysis services to Further and Higher Education institutions and organisations. Make sure you are part of the debate on Friday 04 February 2022 – Book you ticket here.  

• 65% of Norfolk firms expect their prices to increase in the next three months and 78% of businesses cited inflation as a concern
• 1 in 4 (27%) Norfolk manufacturing firms were worried about rising interest rates, as concerns over rate hikes reach record high 
• Just over half of Norfolk firms (47%) reported increased domestic sales in Q4, compared to 45% in Q3
• 13% of Norfolk firms reported increases in export sales orders, compared to 17% in Q3

The BCC’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – has shown the recovery stalled in the fourth quarter, with firms facing unprecedented inflationary pressures. The survey of almost 5,500 firms, including those from Norfolk, showed that some indicators also revealed a continued stagnation in the proportion of firms reporting improved cashflow and increased investment. Inflation is the top issue for firms, while a rise in the interest rate was also a cause for concern for many. Norfolk Business activity: 47% of respondents overall reported increased domestic sales in Q4, only a slight increase from 45% in Q3. 21% reported a decrease, an increase from 16% in Q3.    Advance domestic orders slowed, with over a third of firms (36%) reporting a decrease. In the Norfolk services sector, the balance of firms reporting increased domestic sales increased to +52% in Q4 from +45% in Q3, however sales orders dropped to +36% in Q4, from +48% in Q3. In the Norfolk manufacturing sector, the balance of firms reporting increased domestic sales was +36% in Q4, down from +45% in Q3. Prior to the surge in Omicron infections, hotels and catering had been most likely to report increased domestic sales (55%). This represented the beginning of a potential recovery as the sector was also the most likely to report decreased sales throughout the rest of the pandemic. 94% reported decreased sales and cash flow at the start of the pandemic in Q2 2020. Worryingly, a similar decline is now possible in the face of the Omicron variant and the implementation of Plan B which led to new restrictions for some. Unprecedented Inflationary Pressures:   65% of Norfolk firms expect their prices to increase in the next three months, the highest on record.  The percentage expecting an increase rises dramatically to 87% for production and manufacturing firms. When asked whether firms were facing pressures to raise prices from the following factors, 100% of Norfolk manufacturers cited raw materials, 40% cited other overheads, 40% cited pay settlements, and 7% cited finance costs. When asked what was more of a concern to their business than three months ago, 78% of firms overall cited inflation (compared to 60% in Q3 and 36% in Q4 2020), the highest on record. For production and manufacturing firms, this rises to 87%. Concerns over higher interest rates rise sharply: The percentage citing interest rates as a concern rose in the quarter. Nearly 1 in 5 firms (20%) reported interest rates as a concern, up from 19% in Q3. The percentage mentioning interest rates as worry among manufacturers stood at 27% in Q4 and up from 22% in Q3. Little recovery to Cash Flow: For Norfolk firms overall, 33% reported an increase to cash flow, while 57% reported no change and only 9% reported a decrease. Given these figures were reported before the full impact of Omicron and the introduction of Plan B, this metric is a cause for concern, as some firms are still struggling to recover from large scale losses incurred since the start of the pandemic. Most Norfolk firms still not investing: Investment in plant, machinery, or equipment remained weak in Q4, with 38% overall reporting an increase, while 52% reported no change, and 10% a decline. Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: “Our latest survey suggests that UK’s economic recovery slowed in the final quarter of 2021 as mounting headwinds increasingly limited the key indicators of activity. “The persistent weakness in cash flow is troubling because it leaves businesses more exposed to the economic impact of Omicron, rising inflation and potential further restrictions. “The record rise in price pressures suggests that a substantial inflationary surge is likely in the coming months. Rising raw material costs, higher energy prices and the reversal of the VAT reduction for hospitality are likely to push inflation above 6% by April. “The notable uptick in concerns over higher interest rates underscores the need for the Bank of England to proceed with caution on further rate rises to avoid undermining confidence and an already fragile recovery. “The UK economy is starting 2022 facing some key challenges. The renewed reluctance among consumers to spend and staff shortages triggered by the Omicron variant and Plan B may mean that UK GDP falls in the near term, particularly if more restrictions are needed. “Rising inflation is likely to weaken the UK’s growth prospects this year by eroding consumers’ spending power and squeezing firms’ profit margins and ability to invest.” Responding to the findings, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said: “The Chambers’ latest Quarterly Economic Survey paints a challenging picture for the UK economy as we start 2022. “Many local businesses were facing a struggle to improve their cashflow and raise investment even before the Omicron variant surged and Plan B was imposed. “Supply chain disruption is continuing to persist, inflation is soaring, and rising energy costs are presenting firms with a huge headache. “With companies now having to grapple with the impact of Omicron and further changes to the rules on imports and exports of goods to the EU, there are significant hurdles for Norfolk businesses in the months ahead.” Also commenting on the QES results, Director General of the British Chambers of Commerce, Shevaun Haviland, said:  “The Government has listened to our previous calls for support, and it must do all it can to steady the ship and steer the economy through these uncertain times. If the current restrictions persist or are tightened further then a more comprehensive support package that matches the scale of any new measures, will need to be put in place. “The focus must be on creating the best possible environment for businesses to grow and thrive. By supporting firms, they can begin to generate wealth, create jobs and support communities. “That is by far the best way to sustainably deliver the tax revenue the government needs to support public services and the wider economy.” Photo credit: Norfolk Chambers

We have just passed the one year anniversary of Brexit, when the UK left the European Union.  The UK left the Brexit standstill transition period on its expiry on Friday 1 January 2021. The terms of the new EU-UK trading arrangements – in the Trade and Co-operation Agreement (TCA) – took effect the same day. In accordance with this, the EU decided to introduce full border controls on GB goods from Friday 1 January 2021.  The UK government decided to defer the implementation of inbound GB border controls in respect of EU goods. That deferment period ended on 31 December 2021 and Customs and Border controls on EU goods came into effect on Saturday 1 January 2022. Commenting on the border changes, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said: “The cost of importing and exporting has increased considerably since Brexit in January 2021.  We have also seen a reduction in the volume of import and exports between the UK and the EU.  The Norfolk business community have persevered and in the main, managed to get a handle on the requirements for importing and exporting their goods between the UK and the EU. However, the last 12 months have been a transition period where goods could be sent and the paperwork completed afterwards, but as of 01 January 2022, there has been a significant tightening of the rules and some very important changes. “When moving goods from the EU to the UK – you need to have completed the paperwork before the goods arrive at the UK border and there have been approx. 351 tariff amendments, so you need to double-check your commodity codes. There is also a new Goods Vehicle Movement System introduced and EU customers and suppliers will need to register for the UK database IPAFFS to pre-notify on plant and products of animal origin. It is vitally important that businesses understand the forthcoming changes and implement them correctly to avoid incurring delays and to enable their goods to be imported and exported across the GB/EU borders smoothly. Click here to view the business checklist for the GB/EU border changes in 2022. Photo credit: Getty Images/ Chamber Canva Pro 2022

Chambers have launched a new and useful tool which has been developed by the experts at ChamberCustoms and Exabler. The UK import tax calculator is quick, easy and free to use and can work out the different rates of duty available to businesses when importing goods. Businesses can use our calculator to work out what needs to be paid to HM Revenue and Customs (HMRC).

HMRC has produced a series of new leaflets aimed at supporting those moving goods from the EU to Great Britain.

• If you move goods between the EU and Great Britain (England, Scotland and Wales), you must register for the Goods Vehicle Movement Service (GVMS) now.  Find out more – click here.

• For hauliers, intermediaries and drivers using the short straits to move goods from the EU to Great Britain.  Click here to find out what you need to know.

• New guidance on claiming preferences under the Trade and Cooperation Agreement (TCA) – Click Here.

• The latest version of the UK Integrated Online Tariff for 2022 can be found here

Julie, Sam and Ethan, our Norfolk Chambers International Team are experts in their field and stand ready to support you in all your international trade needs.  If you have a question do get in touch. ChamberCustoms@Norfolkchambers.co.uk Tel: 01603 729 716

In a recent article from the BBC our Chief operating officer, Nova Fairbank talks about the challenges businesses are facing, following changes brought in on January 1st regarding new paperwork requirements. “Most businesses have coped with all the new red tape in the first year, but it has been hard”. West Norfolk Chamber Member, Richard Finney, owner of Captain Fawcett, a supplier of gentlemen’s grooming products also spoke to the BBC. “There are still some teething problems but things are a lot better’. You can view the full BBC article here

Staged Customs Controls end on 31 December, meaning that the free flow of goods that has prevailed since Brexit Day will come to an end. All EU imports will need to be accounted for with a full customs declaration. There will be new sanitary and phytosanitary (SPS) arrangements, new pre-notification deadlines and a new inspection regime. This will apply to all EU exports and imports. This webinar will discuss the changes and what practical steps you can take to reduce the possibility that your goods will be delayed at the UK border as well as what economic impact we should expect from the full implementation of the Trade Continuity Agreement. If you have any questions, or need any help from our International Team – Contact us at: chambercustoms@norfolkchambers.co.uk

Against a backdrop of Brexit and Covid disruption, manufacturers are experiencing huge increases in the cost of labour, energy and raw materials. This pre-recorded session presents the results of our latest International Trade Survey and reveal the impact that the past year has had on trader confidence, investment plans, new markets and getting goods into and out of the UK. Just what impact has the TCA had on exports to the EU and what confidence have traders gained in expanding their global reach under the UK Free Trade Agreements? Joined by: Liam Smyth, Director of Trade Facilitation at British Chambers of Commerce / Managing Director at ChamberCustoms David Bharier, Head of Research at British Chambers of Commerce Martin Ma, Group Financial Controller at Rayner Intraocular Lenses Limited Chaz Walia, Deputy Director at  DIT – Export Support Service If you have any questions, or need any help from our International Team – Contact us at: chambercustoms@norfolkchambers.co.uk

A year on from the deal which defined the terms in which the UK would depart from the EU, the BCC and ChamberCustoms have continued to campaign for greater clarity on the UK’s future trading relationship with the EU and to provide answers on the practical changes that will affect business. With the ending of Staged Customs Controls on 31 December, what impact will a fully controlled UK border have on traders. For lots of traders, the UK departure from the EU customs union has brought little change. Supplies have continued to arrive at their business, there has been no real increase in paperwork and their EU suppliers seem happy to keep delivering. If this is your business our webinar will cover what records you should have kept but didn’t. What customs entries you should have made but missed. And more importantly, what action you can take now to avoid future fines and penalties? If you have any questions, or need any help from our International Team – Contact us at: chambercustoms@norfolkchambers.co.uk

• 45% of firms in a new survey reported difficulties adapting to changes in rules for buying or selling goods brought about by the UK-EU Trade and Cooperation Agreement (TCA), while 15% reported that this was easy 
• Nearly 1 in 4 (23%) said they faced difficulties of buying or selling services, while 14% found it easy 
• 1 in 5 (20%) reported difficulties moving people, while 8% found it easy 
• The BCC also launched a report alongside the survey which explores solutions to the issues 

New data released today from a survey of 981 businesses, including those from Norfolk, carried out by the British Chambers of Commerce has thrown sharp focus on the impact the UK-EU trade deal (TCA) is having on UK firms one year from its implementation. The figures show rises in the proportion of firms reporting difficulties with the various changes brought about to UK-EU trade compared to when BCC last asked the same questions in January.  

The BCC has concurrently launched it’s ‘TCA – One Year On’ report, which explores the experiences of businesses with the new trade relationship over the past year, and ways in which that could be improved in the short, medium and long term.  Which was featured on the BBC.

 When asked how easy or difficult has it been for your business or supply chain to adapt to changes flowing from the UK-EU TCA areas across the following areas, the responses from November 2021:

• Buying or selling goods: Very/Relatively Easy – 15%, Very/Relatively Difficult – 45%, Too Early to Say – 9%, N/A – 32%
• Buying or selling services: Very/Relatively Easy – 14%, Very/Relatively Difficult – 23%, Too Early to Say – 9%, N/A – 54%
• Moving people: Very/Relatively Easy – 8%, Very/Relatively Difficult – 20%, Too Early to Stay – 7%, N/A – 64%
• Transferring data: Very/Relatively Easy – 17%, Very/Relatively Difficult – 9%, Too Early to Say – 12%, N/A – 62%

UK exporters were more likely than firms overall to report difficulties across these areas. For buying and selling goods, 60% faced difficulties; for buying and selling services, 30%; for moving people, 24%; and for transferring data, 11%.

These figures showed increases in the proportion reporting difficulties in each area than when the BCC last asked the same question in a survey in January 2021:

• Buying or selling goods: Very/Relatively Easy – 10%, Very/Relatively Difficult – 30%, Too Early to Say – 16%, N/A – 45%
• Buying or selling services: Very/Relatively Easy – 10%, Very/Relatively Difficult – 14%, Too Early to Say – 19%, N/A – 58%
• Moving people: Very/Relatively Easy – 8%, Very/Relatively Difficult – 9%, Too Early to Stay – 18%, N/A – 65%
• Transferring data – Question Not Asked in January Survey

Of the firms who reported that they have faced difficulties in adapting to changes, the survey followed up by asking what the specific problem was. The more than 400 business case studies we collected showed that while problems are occurring across a wide range of areas, the following areas were consistently referenced:

• VAT requirements such as the need for a fiscal representative and delays or returned goods despite VAT being paid
• Additional customs procedures and checks requiring additional paperwork and causing delays
• New rules of origin requirements which have required some firms to change production processes or audit complex supply chains
• Difficulty recruiting staff due to EU workers returning home (Covid is cited as another cause for this)
• The rules of the Northern Ireland Protocol causing increased costs and administration for businesses in Northern Ireland and Great Britain
• The loss of equivalence in areas such as financial services, medical devices, and certification marking has caused increased costs and a loss of competitiveness to EU firms

Liam Smyth, Managing Director of ChamberCustoms, said:

 “What these figures and our experiences on the front line with ChamberCustoms this year show is that there are several significant and specific issues that must be resolved so that importers and exporters can fully play their part in the recovery from the pandemic.

“At ChamberCustoms we work day in and day out with companies to help them navigate the complexities of international trade. We’ve seen a huge demand for our services in relation to trading with the EU since the implementation of the TCA, and we know first-hand what difficulties firms on the ground are facing.

“We need to see Government reach an agreement on VAT cooperation with the EU to reduce the number of UK companies requiring a fiscal intermediary to conduct cross-border trade – similar, for example, to the situation in Norway.

“It would also be advantageous to make agreements with the EU and member states, on widening access for labour mobility and mutual recognition of professional qualifications.

“The two sides must reach an agreed compromise on the Northern Ireland Protocol, ideally early in 2022, to ensure stability in NI and for the overall UK-EU trading relationship.

“These actions, as well as the further recommendations listed in our report, will serve to improve trading conditions and let businesses get on with growing our economy and generating prosperity.”

Shevaun Haviland, Director General of the British Chambers of Commerce, said:

“These results, especially when compared to our data from January, give us a strong indication of the experiences on the ground for businesses who are dealing with the changes to the UK-EU trading relationship. While the data does suggest, one year into the implementation of the deal, that trade is becoming more difficult rather than smoother, we do believe there are solutions which can improve conditions for our import and export businesses.

 “These data certainly do illustrate that the issues with the TCA are not ‘teething problems’ but more structural defects that, whilst fixable, if not attended to will lead to long term damage to our import and export sectors.”

“Businesses want political leaders on both sides to move on from the debates of the past and find ways to allow them to trade more freely. The Government have ambitious goals for the UK export sector, which we share, and if these are to be met then we must improve the experience of firms trading with our nearest and largest trading partner.

“We hope that these figures, along with our report detailing the experiences of businesses and suggesting ways forward, will provide an opportunity for an honest dialogue about how we can improve our trading relationship with the EU. Government needs to ensure that our importers and exporters can fully play their part in the UK’s economic recovery by unleashing their ability to trade as freely as possible with European markets.” Photo credit: Getty Images/ Chamber Canva Pro 2022

Chancellor, Rishi Sunak has today set out a £1bn fund to help businesses hit by the rise in Covid cases, including the leisure and hospitality sector. Hospitality businesses like pubs and restaurants will be able to apply for cash grants of up to £6,000 per premises.  The government will also help some firms with the cost of sick pay for Covid-related absences.  He also announced an extra £30m to help theatres and museums. Many hospitality and leisure firms have been hit by a collapse in bookings and reduced footfall due to people’s fears over the spread of the Omicron variant.  Mr Sunak said the new support was “generous” and recognised the situation facing businesses in the run-up to Christmas. Comment on the chancellor’s announcement, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said: “These measures will provide some welcome respite to many of those businesses who have been hit hardest by the latest Covid measures. “The Chancellor and his team have engaged with the British Chambers of Commerce in talks over the past week, considered the experiences of Chamber business communities and the proposals the Chamber network has put to them. “We are pleased that the chancellor heard our call for additional grant funding for hospitality and leisure businesses, which will provide some much-needed support in the face of this increasingly difficult trading period.  Clarity and speed will be needed to ensure that these grants are paid out swiftly to help these hard-pressed firms weather the next few weeks. “Whilst these measures are a positive starting point, if restrictions persist or are tightened further, then we would need to see a wider support package, equal to the scale of any new measures, put in place.” Photo credit: Getty Images/ Chamber Canva Pro 2022

The importance of being a Strategic Partner with The Norfolk Chambers matters because… For our company, although we are now a sizeable proposition who can offer expertise within every facet of our business, people locally especially had not heard of the Ascot Lloyd brand. Having two key offices within Norfolk, many Independent Financial Advisers based within the area, who look after hundreds of client’s financial needs already, we needed to “heighten our brand awareness” and gain that all important visibility. Whilst this remains an ongoing exercise, being involved within the Norfolk Chambers and specifically being a strategic partner is really helping us gain momentum in this area. Equally the importance of educating individuals around all aspects of what we do and why its important to have the right trusted network of professional advisers on hand is something we are passionate about. The Chamber see it the same way as us and we share that role in delivering that message to local businesses. The invites that you receive to attend special events, only available to strategic partners and the assistance gained around the delivery of bespoke campaigns is certainly starting to pay dividends for us. What positives your business has seen in 2021 The positives that can be taken from 2021 and how the pandemic has played out for us as a business have been numerous, however here are a few of the key ones:- ·         It has really focused our efforts around technology and what is important moving forward – one such thing that has become apparent for us is that we will harness new technology to be able to better work alongside our advisers, thus complementing and improving their working rather than replace ·         It’s given us that all important time to think and review existing practices, enabling us to enhance existing processes etc ·         Although markets were affected as part of the pandemic, we have seen these recover and perform well. This was helped in the early part of the pandemic by the experience that we have by way of our adviser population, who went out to all their clients to provide that all important reassurance they needed. Clearly this has also greatly helped build deeper, more meaningful trusting relationships. What does 2022 look like for Ascot Lloyd? 2022 looks exciting in many ways for our business, however of course one thing that hasn’t ever changed is our commitment to reassuring and helping our clients, staff and our local communities, which is unwavering. Our main priority is to be there help our clients to shape their financial future allowing them to do the things they wish to do in life and Ascot Lloyd will be a constant within that. We are here for the long term, no matter what twists and turns life takes. We remain super ambitious still around our growth strategy, with acquisitions looking set to continue. We remain adaptable both to the pandemic situation and our clients needs, certainly around how clients now wish to communicate with us, in terms of virtually (through use of technology) and the traditional method of that good old “face to face” meeting.