Chamber News

“The successful delivery of the Broadland Northway (NDR) was a clear signal that Norfolk is embracing growth and development in order to create the jobs and houses that our region needs and it was strongly welcomed by the Norfolk business community. However, from a business community perspective, to continue to maximise the potential for our region, the missing link from the A1067 to the A47 needs to be completed as soon as possible. The Norwich Western Link is a 3.8 mile dual carriageway to connect the Broadland Northway from the A1067 Fakenham Road to the A47 west of Norwich.   It will facilitate easier access to both Norwich Airport and Great Yarmouth port.  It will further help to improve journeys into and around the west of the city, support potential housing and jobs growth; provide the infrastructure to manage the additional traffic this will create, and improve quality of life for people living in the area. Commenting on the need for the Norwich Western Link, Nova Fairbank, Chief Executive of Norfolk Chambers said: “The Norfolk business community strongly welcomed the delivery of the Broadland Northway, but were equally adamant that the missing link needed to be completed with the Norwich Western Link.  The proof of economic growth in the Broadland area, as a result of the completion of the Broadland Northway can be clearly seen in the economic statistics – with a stratospheric growth curve, in comparison to the rest of Norfolk.  The planning application for the Norwich Western Link is now open for comment and we would encourage the Norfolk business community to have their say on this much needed piece of infrastructure.” There is not long left to have your say as the closing date for comment is Monday 19 August 2024.  Follow this link to comment on the Norwich Western Link, planning application: https://norwichwesternlink.oc2.uk/document/7.

Two key regional organisations have come together to promote the economic opportunity that Government can unlock in the East of England.

Chambers East (Cambridgeshire, Essex, Norfolk and Suffolk Chambers of Commerce working together) has produced the Opportunity East Report in partnership with the East of England Local Government Association (EELGA).

The East of England is one of the fastest growing economies in the country but could do much more to contribute to the new Government’s economic growth goal. This opportunity requires investment to unlock it. The East of England receives less funding per head compared to other regions, working out at over £1,000 per capita less than the UK average annually – an £8bn gap every year. This is despite the region consistently being one of the highest contributors to the exchequer over the last two decades.

At the report launch Nova Fairbank, Chief Executive of Norfolk Chambers of Commerce spoke about the range of challenges holding back the region: from unreliable road journeys and rail links to patchy digital infrastructure, to skills, grid and water issues which are creating huge uncertainty for businesses and the communities they are part of.

Denise Rossiter, Chief Executive of Essex Chambers of Commerce commented ‘The East of England continues to perform strongly, making a significant contribution to the rest of the UK, but without investment to address pressing challenges, there is a clear risk of slower rather than faster economic growth.’

John Dugmore, Chief Executive of Suffolk Chamber of Commerce provided an example of the benefits of investment in the East ‘Analysis shows that rail junction upgrades at Ely and Haughley will deliver a nearly fivefold economic return’

Charlotte Horobin, Chief Executive of Cambridgeshire said ‘The East of England also supports national resilience. Our energy production is set to play a major role in the UK’s transition to a low carbon future. We are a hub of food innovation, production and manufacturing – providing the country with vital food security at a time of increasing climate challenges. Our ports and airports keep the UK’s goods and passengers moving’.

Chambers East and the EELGA will now be working with the East of England All Party Parliamentary Group (EEAPPG) and the new Government to put in place plans and investment for major projects and other improvements across transport, digital, water, climate resilience, grid and skills to set our region, and the country, on a path to higher growth.

• Business conditions, measured by sales and cashflow improved in Q2, returning to pre-pandemic levels across the country
• Business confidence has stayed flat in the East, with 39% of firms expecting an increase in turnover in the next twelve months.
• Fewer firms expect to increase their prices in the next three months
• Concern from businesses about external factors continues to decline – with worries about inflation falling to 50% of Norfolk companies.
• Despite a boost in conditions and confidence most Norfolk firms (80%) are still not increasing investment, with wide sectoral variations.

The BCC’s Quarterly Economic Survey – the UK’s largest and longest-running independent business survey – shows measures of business confidence and business conditions slightly improved in Q2 2024, albeit from a very low base. Across Norfolk, 37% of firms said they had seen an increase in domestic sales over the previous three months, while 42% reported no change, and 21% a decrease. After a static national picture in Q1, business confidence in our county has increased slightly in Q2. 54% of firms say they are expecting an increase in turnover over the next year compared with 50% in Q1. Roughly 29% expect no change and only 18% expect a decrease. However, despite inflation easing to target – the data also reveals that more Norfolk firms (46% compared to 40% in Q1) expect to hike their own prices in the coming months. The survey, which was conducted between 13th May and 10th June, of nearly 5,000 firms across the UK including those in Norfolk (95% of whom are SMEs – fewer than 250 employees) – also reveals that despite improved trading conditions most firms are still not increasing investment. Improvement in overall business conditions The percentage of respondents reporting increased domestic sales rose noticeably across the UK to 38%, compared with 36% in Q1. In Norfolk meanwhile, this was mirrored at 37% vs 42% of saying sales had remained constant and 21% reported a decrease. There were, as ever, some sectoral differences.  In the national data 37% of manufacturers and 40% of business-to-business service companies (such as legal and finance) reporting a boost in sales. By contrast, only 33% business to consumer firms (such as hospitality and retail) saw an increase. In Norfolk, we again see hospitality & tourism businesses showing the most sluggish growth and lowest confidence, added to their long running challenges of recruitment and retention. There has been an uptick in firms experiencing an increase in cash flow in the national data, rising to 28% compared with 26% in Q1. That said, the Norfolk picture is less positive at 20% in Q2 vs 24% in Q1, a slight reduction. 47% report no change in cash flow, while 33% report a decrease. UK Business confidence has increased Nationally 58% of firms expect to see their turnover increase over the next 12 months – an increase from 56% in Q1. 29% expect no change and only 13% expect to see turnover decline. In contrast Norfolk firms have seen barely any movement from Q1 with turnover largely unmoved. This discrepancy is also shown in profitability confidence data which nationally has also increased, but unchanged in Norfolk. UK-wide we see 51% of companies expecting profits to increase in the next year. That compares to 48% in Q1. 32% expect no change and 17% of respondents believe their profits will fall. Fewer firms expecting to increase prices As inflation continues to ease, fewer firms are now expecting to put up their prices. 39% of UK respondents say they are expecting to raise the cost of their goods or services in the next three months, compared with 46% in Q1. 59% think their prices will stay the same, and just 2% are expecting a decrease. Interestingly in Norfolk, those in the professional services sector are bucking that trend with 46% expecting prices to increase compared to 40% last quarter. Labour costs continue to be cited as the main cost pressure across all Norfolk businesses. A startling 82% of respondents say they are facing this pressure compared with 67% nationally. Again, this can be partly explained by our county’s over-exposure to the issues in hospitality and tourism. As reflected in the national data, some sectors are feeling this pressure more than others, with 77% of hospitality firms and 76% of construction or engineering firms citing it as a key driver. Concern about external factors continues to decline  While inflation remains the biggest external worry among businesses, the level of concern has fallen significantly. Around half (50%) of Norfolk firms say they are more concerned about inflation than in the last quarter (64%in Q1). That’s returning to levels of concern last seen in 2021 and significantly below the 84% reported in national data in Q2 2022, at the peak of the inflation crisis. 40% of respondents say they are concerned about competition, and 48% tax. With an interest rate cut likely in the coming months – the percentage of firms raising the cost of borrowing as an issue is slightly higher – 36% in Q2 compared with 30% in Q1. Most firms still not increasing investment Despite a modest boost in business confidence and conditions in Norfolk, investment levels continue to struggle. Most firms say they haven’t increased the amount of new plant, machinery and equipment they’ve bought or rented. Only 19% reported an increase in investment, compared with 16% in Q1. 49% said levels had remained the same, 22% reported a decrease. There are large sectoral disparities in investment levels too. Nationally 42% of transport and logistics firms say they have increased investment levels, while the figure for retail companies was just 19%. Jack Weaver, Chief Operating Officer at Norfolk Chambers of Commerce said: “The latest results from our QES show that both business conditions and business confidence have improved, albeit from a relatively low base. And the improvement in Norfolk is certainly more modest than elsewhere in the UK. “The last four years have seen SMEs ride the waves of one crisis after the other, whether it be Covid lockdowns, supply chain breakdowns, energy price shocks, economic turmoil and new trade barriers with the EU. As some of these crises have ebbed, more SMEs are regaining confidence and reporting increased sales and cash flow. But as is so often the case we see Norfolk and other counties in the East lagging behind. “Positively, the data also show that concern about inflation among businesses has dropped to levels last seen in 2021 as fewer firms expect to raise prices. A Bank of England rate cut later this year will help bring down borrowing costs. “However, investment levels remain a long-term concern and significant sectoral divergences remain as sectors such as hospitality and retail continue to report far tougher trading conditions. Norfolk has historically been over-exposed to these disparities and more needs to be done to support them.” “We’re looking forward to working with our colleagues in other Chambers via our Chambers East partnership and the BCC to engage with this new Labour Government to capitalise on the confidence and resilience of local businesses. We need a collective effort to focus on addressing skills shortages, trade barriers and under-investment in regional infrastructure to unlock the potential of our amazing business community.” Shevaun Haviland, Director General of the British Chambers of Commerce said: “It’s really encouraging to see positive shoots of recovery from businesses across the UK. “Confidence has been improving among companies in recent months. Our data show the tangible impact of that positivity, as businesses report improved sales and cashflow. But investment levels remain an area of concern. “Our message to the new Government is clear. We need a long-term economic plan that has the green transition at its heart, with a workforce fit for the future, living in thriving local places and powered by businesses that are globally facing and digitally enabled. “Business stands ready to work in partnership with Government to capitalise on the positive signs our data is showing.”

Co.next Roots to Business Event Thursday 4^th July was a very busy day for Norfolk, not only did we see a general election take place, we also hosted our biggest Co.next event to date. Co.next Roots to Business event was hosted at Top of the City, Carrow Road. We welcomed 80 guests on the night. This event was an opportunity for leaders within the business community and those seeking routes into their career to come together and share their career experiences. We kicked off with our young professional panel, who were all so inspiring to listen to. Thank you for being open and honest. 💛 Nellie Allsop 🖤 Jamie Woodbridge 💛 Pippa Harris 🖤 Joel Sharp 💛 Ellie Reeves We then got our expert panel on the stage who provided some fascinating and thought provoking insights. 💛 Angela Brett 🖤 Nadine Tapp 💛 Tait Pollack 🖤 Paul Riddock 💛 Sonia Holman The event was brilliantly hosted by Kelly Cartwright and Taylor Tassie. Ending the evening with our guest speaker, Stephen Balmer-Walters who had the audience hypnotised with his talk and lifted spirits with ‘Hugless Douglas’. Thank you to our event sponsors, Pivotal for sponsoring our welcome drinks and Totally Branded for the incredible branded tote bags. Thank you to everyone for joining us and thank you for everyone who shared and opened up to the room. Rob Dodsworth captured the evening and we are so pleased to share with you the gallery from the evening, view full gallery here.

A five-point plan for immediate action by the new government is at the heart of the British Chambers of Commerce Election Manifesto published today. The BCC wants to see: 

• An Industrial Strategy with green innovation at its heart. 
• Better skills planning, bringing businesses and training providers together. 
• Business rates reform to encourage growth and investment. 
• Improved relations with the European Union to cut the costs for business. 
• A Government appointed AI champion for SMEs to spearhead uptake of new technology. 

The five-point plan is part of the BCC’s ‘Future of the Economy’ manifesto. The manifesto includes the biggest ideas from a series of extensive policy documents published this year, focusing on the key economic challenges identified by the BCC. The challenges are: Green Innovation, People and Work, Local Economies of the Future, Global Britain and the Digital Revolution. The manifesto has been brought together after extensive consultation with the Chamber network, the BCC’s Business Council, external stakeholders, and academics. Baroness Martha Lane Fox, President of the BCC said:  “In the frenzy of the election campaign, it’s crucial that all politicians focus on the power of British business. “As I travel across the UK meeting Chambers and their businesses, I hear amazing stories of people determined to grow their businesses and make a difference in our remarkable country. But time and again businesses tell me they want to see a long-term vision for the economy.” “Our manifesto showcases practical ideas on how politicians can help companies successfully navigate the challenges and opportunities our economy faces. It’s a blueprint for boosting productivity and a pathway to higher growth. “Whichever party is in power after July 4th the immediate focus must be on implementing our five-point-plan for business. The stakes for business from the next government could not be higher.” Shevaun Haviland, Director General of the BCC said:  “A General Election is an important time for our country, our economy, and our businesses. “The companies we represent are the drivers of economic growth and the employers of millions of people. They need to know that politicians have got their back. Once the votes are counted – we want government to know how to help business. Our five-point-plan is clear. “As companies play their part in the UK’s net-zero journey, we desperately need an industrial strategy with green innovation at its heart. “Firms are constantly telling us they can’t get the skills they need. We need better strategic planning on skills that helps business and training providers work together. “In local communities, firms are crying out for a fairer business rates system. Over a quarter (26%) of companies told us earlier this year they’d changed plans to upgrade or open premises because of the system. “The EU is the UK’s biggest market, so we urgently need to get a better trading relationship with our closet neighbour. It’s not about rewriting the referendum result, it’s about cutting red-tape and promoting trade. “The world of AI has huge potential to boost economic productivity. But it’s important that SMEs aren’t left behind, or vulnerable, as new technology accelerates. A Government appointed AI champion will help spearhead a boost in AI uptake by SMEs. “We believe our 5-point plan creates an immediate pathway for a new government, of whatever party, to help businesses succeed. When business succeeds, the country succeeds.” Read the full manifesto here: BCC Future of the Economy Manifesto – Final

Reacting to this morning’s inflation data, David Bharier, Head of Research at the British Chambers of Commerce, said:

“Today’s data showing CPI inflation is at 2.3% is positive news that should help settle nerves and increase the likelihood of an interest rate cut in the coming months.

“Other recent data would support a rate cut, with the economy growing by a larger than expected 0.6% in the first quarter and signs the labour market is cooling. However, this has been a four-year inflation crisis, and prices are not falling, only going up at a slower rate.

“Uncertainty will persist with global conflicts and trade wars threatening supply chains. Real wage costs also continue to grow – our most recent business survey https://www.britishchambers.org.uk/wp-content/uploads/2024/04/QES-infosheet-Q1-2024.pdf found almost half of firms expect their prices to rise over the next three months, with labour costs cited as the main driver.

“While the outlook may have brightened, the skies aren’t yet fully clear. UK firms need to see a long-term vision for the UK economy from politicians, including action on making trade easier, especially with the EU.”

Reacting to the UK’s ratification of the deal to join the Comprehensive and Progressive agreement for Trans-Pacific Partnership (CPTPP), William Bain, Head of Trade Policy at the BCC, said: “There are few multi-national trade agreements like this one. The UK’s addition to this bloc will open up new opportunities for both inward and outward investment. “Trade rules will be more favourable for manufacturers looking to sell products to other member countries and data transfers for firms in the services sector will also be more straightforward. “Crucially, it will also give the UK a say in the bloc’s future development, making it a deal that will work for our traders both now and in the future.” Chambers in the BCC’s international network also hailed this latest step forward. British Chamber of Commerce Singapore Executive Director, David Kelly, said: “We see today’s announced progress towards the UK joining CPTPP as a positive step in the right direction. Being ‘on the ground’, we see every day how vibrant and alive with opportunity the British business community is within Southeast Asia, and we look forward to championing the UK’s interests alongside our colleagues throughout the CPTPP trading bloc.” British Chamber of Commerce in Japan Executive Director, Sarah Backley, said: “The UK’s ratification of the CPTPP signifies an important achievement for the business world, presenting a valuable opportunity for the UK, Japan, and the other 11 member countries to come together in setting the benchmarks for global trade standards. We look forward to the avenues for fresh opportunities and collaborations this will unlock, paving the way for enhanced economic partnerships and growth opportunities for our members in the UK-Japan, and wider regional ecosystem. Australian British Chamber of Commerce CEO, Ticky Fullerton, said: “Our Chamber welcomes news of the UK’s ratification of the CPTPP. With its respected position in global affairs, the UK is a valuable addition to this very important partnership in our region. We look forward to the strengthening ties of CPTPP members in trade, investment and in regional security.” British Malaysian Chamber of Commerce CEO, Jennifer Lopez, said: “The ratification of the CPTPP is a pivotal milestone as it symbolises the first free trade agreement between the UK and Malaysia. This historic agreement not only fosters trade liberalisation but also offers expanded market access, boosts to GDP, and strategic influence, particularly benefiting sectors such as services and digital trade for both British and Malaysian enterprises. This also promises enhanced options and affordability for consumers and businesses alike, heralding a new era of economic dynamism and collaboration.” British New Zealand Business Association President, Phil Wood, said: “The Parliamentary ratification of the UK joining CPTPP is another major step towards deepening the UK’s access to a group of countries that represent one of the most dynamic and rapidly growing free trade areas in the world. We look forward to helping businesses take advantage of the Agreement’s entry into force later this year.”

Reacting to the latest GDP figures, David Bharier, Head of Research at the British Chambers of Commerce, said: “Today’s Q1 GDP first estimate of 0.6%, outstripping expectations, is a welcome sign that the UK has moved away from last year’s shallow recession. Businesses across the UK have been the driving force behind the recovery. “Firms have shown resilience in the face of multiple headwinds and this estimate should give business and investor confidence a boost. “However, significant challenges remain. The UK has seen waves of economic and political uncertainty in recent years, from inflation to skills shortages and trade barriers with the EU, which have weighed down on its growth potential. Our latest survey show that most SMEs are still not increasing investment. “With signals from the Bank that their next move will be an interest rate cut, it is now essential that policymakers show businesses a clear plan for growth to unlock their economic potential.”

Responding to the latest ONS Trade figures published this morning, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:

“The first quarter of 2024 shows the challenges UK goods exporters face, with a further drop in sales to both EU and non-EU markets, despite a brighter global economic picture.

“Services remain the good news story on UK export performance, with travel and other transport provisions, providing the impetus for a decent 1.1% increase across the quarter.

“But we need further action from policymakers to reverse recent declines in trade in goods. This means a focus on digital trade and more efficient customs processes to cut costs.

“Other steps include removing some of the trade frictions with Europe, completing free trade agreements already underway, and working with business to get more value for exporters out of our existing deals.

“The ONS analysis of the lack of an impact from Red Sea disruption is interesting. It would appear, the effects upon shipping markets and supply chains have been effectively absorbed.

“But if re-routing via the Straits of Hormuz and the Cape of Good Hope becomes the new normal there still remain questions for the long-term effects, including upon consumer prices, on sea freight from Asia to Europe.”

The UK Trade Picture In Detail Goods Imports

Overall goods imports volumes were down by 2.8% (£1.1bn) from February to March. Imports from the EU fell by 5.3% (£1.2bn). This was caused by lower transport and machinery imports (ships from Italy, aircraft from France). Non-EU imports volumes fell by 0.6% (£0.1bn) driven by lower fuel imports from the US and Kuwait, although car imports from China and aircraft imports from the US both rose.

Goods Exports

Export values to the EU fell by 3.5% (£1.6bn) during Q1 2024 after removing inflation – the main declines being in machinery and transport equipment (cars to Turkey and mechanical machinery to Germany), and material manufactures exports. Non-EU goods exports fell by a lower amount – 1.6% (£0.7bn) over the same period, driven by lower fuels (crude oil to China) and chemicals exports (medicines and pharmaceutical products exported to the US).

An overall fall of 0.3% (£0.1bn) was reported for UK goods exports volumes in March, with a 0.9% (£0.1bn) rise in sales to the EU being offset by a 1.4% (£0.2bn) fall in exports to the rest of the world.

Services

In Q1, UK services exports values, adjusted for inflation, increased by 1.1% (£1.3bn) led by increases in travel and transport, offset by declines in construction and other business services exports. Services import values by contrast fell by 0.4% over Q1 2024 – mainly due to falls in insurance, pensions and intellectual property services.

In the month of March, the volume of UK services exports increased by 0.7% (£0.2bn) – the same in percentage terms on values of services exported. Imports of services increased by 0.3% (£0.1bn) on the chained volumes measure, exactly the same as on the value of traded services measure.

Reacting to the Bank of England’s latest interest rate decision, David Bharier, Head of Research at the British Chambers of Commerce, said:

“Today’s decision to hold the interest rate at 5.25% was widely expected. Businesses will be hopeful that tentative signals from the Bank translate into a rate cut later this year.

“However, for many SMEs borrowing costs remain very high – and today’s hold means another month of hesitation on investment and growth.

“Our research shows that business concern about interest rates is easing, in part due to the period of stability since last August. Our latest survey showed 35% of firms worried about the cost of borrowing, down from 39% at the end of last year. But these remain high levels of concern, compared to pre-pandemic.

“Tomorrow’s GDP figures could bring some welcome news, but economic conditions remain tough. Alongside high interest rates, firms are grappling with rising costs, skills shortages and further trade friction with the EU.

“Business confidence has been gently ticking up as they see a way out of the inflation and interest rate double whammy, but policymakers need to support this with a clear plan for growth and stability.”

Responding to the latest labour market data published by ONS this morning, Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce said:

“Employers across the UK will welcome further signs that the labour market is cooling, but more must be done to ensure they can access the skills they need.

“Today’s data chimes with the picture we’re hearing from businesses. Our latest survey showed recruitment conditions eased in Q1 with fewer firms facing difficulties hiring.

“But significant challenges and pressures remain. Competition for skills, increased wage costs and high interest rates continue to ramp up pressure on businesses and act as a drag on investment and growth.

“More needs to be done to stabilise costs and bring people back into the workforce. While flexible and inclusive workplaces can help employers attract and retain skilled people, businesses will need support to increase their investment in workplace training if we are to tackle ongoing skills shortages.

“We need to see action from politicians to break down the barriers to work for everyone. The number of people outside the workforce because of health issues remains a particular concern.

“Getting the strong economic growth we all want to see will only be possible when the skills and workplace challenges are resolved.”

More detail on the latest ONS labour market data can be found here

Credit: Sarah Rigby from Norwich Theatre Last Thursday, Co.next and Norwich Theatre partnered up to bring young professionals a Masterclass on Public Speaking at the Norwich Playhouse. The masterclass taught participants how to connect with their voice, gain confidence for public speaking, present their work effectively, overcoming fear, body language, vocal range, and breathing techniques. The masterclass was lead by Joseph Arkley, a professional screen and stage Actor. Recent TV credits include The Capture and Wreck (both for the BBC). Throughout the course of his career he has given Keynote speeches and facilitated workshops for Arts organisations and businesses both domestically and abroad. Caroline Ellis,  Account Manager and Co.next Lead at  Norfolk Chamber of Commerce, said: “I had the pleasure of spending the morning on stage at Norwich Playhouse with 18 other professionals stepping outside our comfort zones and learning new techniques to help us with public speaking. Thank you Lauren Farley for making this event happen and supporting Co.next – Norfolk Chambers of Commerce and allowing us to use this iconic venue. Well done to everyone who attended, it was so lovely to see everyone have the opportunity to speak on stage – you guys smashed it!” Credit: Sarah Rigby from Norwich Theatre Lauren Farley, Business Development Manager at  Norwich Theatre, said: “This event was an absolute pleasure to bring together; firstly as a member of the Co.next Board it’s an absolute privilege to be able to be a part of such an amazing programme that provides young professionals with the opportunity to develop and learn new skills which can only help but broaden their professional knowledge and understanding. Being able to combine that with my role as Business Development Manager at the theatre, has not only allowed for a broadening of our relationship with Norfolk Chambers, but has also allowed our audiences to crossover, which for me is such a positive outcome of these events. The day truly was an absolute success, and to see people taking advantage of our great spaces at the Playhouse was really encouraging. I look forward to working more closely with the Co.next programme on many events in the future.”   Join us at our next Co.next Masterclass – Mastering your website with Yawn Marketing on 22nd May. For more tickets & info click here