Chamber News

The Recovery Loan Scheme (RLS) will provide financial support to businesses across the UK as they recover and grow following the Coronavirus pandemic.

BCC’s Suren Thiru was included on the press release welcoming the new scheme which “can play a potentially pivotal role in supporting the recovery by getting credit flowing to the firms who most need it“.

Loans will include 80% government guarantee and interest rate cap. Businesses – ranging from coffee shops and restaurants, to hairdressers and gyms – can access loans varying in size from £25,000, up to a maximum of £10 million. Invoice and asset finance is available from £1,000.

The scheme will run until 31 December 2021, subject to review and be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders. 

You can find more information about the scheme here.

 Responding to the publication of the Global Travel Taskforce Framework for International Travel, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said:

 “The sector has been hard hit in the last year, with prolonged uncertainty about when the full resumption of travel will be possible. This framework provides some welcome clarity, however much uncertainty remains around what countries will be on the green list come May 17th.

“The PCR tests required under the guidelines will also prove costly for many travellers, harming those businesses and supply chains who rely on international travel to trade.

“The government must redouble their efforts to provide further clarity on the green list as quickly as possible and ensure PCR test are affordable and accessible to all.”  

Responding to the news that phase 2 of the roadmap out of lockdown for England will go ahead on April 12, Nova Fairbank Chief Operating Officers for Norfolk Chambers, said: 

“This is great news. Many firms will be breathing a huge sigh of relief that they will soon be able to reopen their doors to customers. The last year has taken a heavy toll on firms across the county and they will be counting down the hours until they can begin trading and rebuilding their businesses.  

“However, the route back to a full reopening of the economy is still a long way off, with continued uncertainty for some sectors about whether, and when, the next roadmap steps will be met, and many more firms asking questions, yet to be answered, about when they can open at full capacity or with fewer restrictions. 

“The latest Chambers Quarterly Economic Survey has shown that businesses are becoming more optimistic about the future. But that confidence is fragile and absolute clarity and honesty will be needed every step of the way over the weeks ahead, so that companies have a fighting chance to rebuild. 

“To translate hope of renewal into reality there must be a coherent strategy for growth which empowers and enables businesses to lead the economic recovery from Covid-19. Firms will need time to get back on their feet, with the security of knowing Government will support them should the roadmap falter.”  

Commenting on International Travel, Nova Fairbank, said:  

“The sectors which rely on international travel and their supply chains have been hit extremely hard over the last year and have faced one of the longest periods of uncertainty about when they would be able to resume normal operations. 

“It is absolutely vital that the Global Travel Taskforce provides certainty as soon as possible about what level of restrictions will apply on travel to, and from, specific countries in advance of the proposed resumption of international travel on May 17.”  

On proposals for time-limited Covid status certification, Nova Fairbank said:  

“The government should waste no time in setting out concrete proposals for how Covid certification could work and the rationale behind the inclusion of some sectors and not others. With businesses already investing significant time and money into their reopening plans, they have considerable questions around the implications of such a scheme, including the practical implementation for firms and issues of employment law and liability. The Government must be crystal clear on these issues and consult with business on how any system might function.” 

Commenting on plans to allow everyone to access twice weekly lateral flow tests, Nova Fairbank said:  

We very much welcome the plan to make lateral flow testing available to every adult in England twice a week.  Alongside the workplace testing strategy, this will buoy business confidence as companies start to plan for reopening and rebuilding the economy. But it is also crucial that Government makes sure that people who need to self-isolate are fully supported.” 

The British Chambers of Commerce’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – found that business conditions remained historically poor in the first quarter of 2021 as the third lockdown severely limited activity.

However, the bellwether survey of 6,103 firms, who employ almost a million people across the UK, including here is Norfolk, revealed that business confidence has been boosted in the first three months of 2021, amid the strong vaccine roll-out and the government’s roadmap providing some ability for companies to forward plan. 

Key findings:    

• All the key indicators for immediate business conditions remained in negative territory and well below pre-pandemic levels in Q1
• 83% of hospitality and catering firms reported decreased domestic sales in Q1
• 62% of Norfolk businesses expect turnover to grow over the next 12 months, back to pre-pandemic levels

Business activity

Overall, indicators of immediate business conditions remained troubling in Q1, with some deterioration from Q4 2020 and all key indicators still well below pre-Covid 19 levels.   

38% of Norfolk firms reported a decrease in domestic sales in Q1, 33% reported no change, and 29% reported an increase. 

Business to consumer (B2C) firms saw the largest falls in domestic sales in the quarter. 83% of hospitality and catering firms reported decreases in Q1, higher compared to 79% in Q4, but lower than in Q2 2020 (94%).  

Sectors with more scope to continue their operations through the pandemic, including shifting to remote working, saw some improvement, albeit not close to pre-pandemic levels. 35% of both Professional Services and Marketing & Media firms reported increased sales in Q1, up from 29% and 28% respectively in Q4 2020. With those reporting decreased sales standing at 29% and 33% respectively in Q1, significantly down from 35% and 44% in the last quarter. 

In the Norfolk services sector generally, the balance of firms reporting increased domestic sales decreased to 23% in Q1 2021, down from 35% in Q4 2020.  

In the Norfolk manufacturing sector, the balance of firms reporting increased domestic sales increased to -39% in Q1 2021, up from 33% in Q4 2020.  

Cash flow   

Cash flow continued to deteriorate for 30% of Norfolk firms in Q1. 11% of firms reported an improvement in cash flow, 48% reported no change. Levels are broadly unchanged from Q4, which itself showed little improvement from Q3, following the historic lows in Q2 2020. 

Cash flow indicators continue to worsen most severely for hotels & catering firms. 8 in 10 (81%) of these firms reported a decrease in cashflow in Q1, up from 77% the previous quarter, with only 7% reporting an increase. 

In the Norfolk services sector, the balance of firms reporting improved cashflow decreased to 9% from 30% in Q4. 

In the Norfolk manufacturing sector, the balance of firms reporting improved cashflow slightly increased to 26% from 22% in Q4.  

Investment   

Just under a third of firms (30%) continue to report decreased investment in plant, machinery and equipment. This is a small improvement from Q4, when 36% reported a decrease.  

Over half (56%) expected no change in plant, machinery and equipment investment, up from 41% in Q4. Just 14% of firms plan to invest, a marginal decrease from 23% in Q3. 

The fieldwork for QES was gathered largely before the spring budget and the Chancellor’s announcement of the super-deduction capital allowance. 

Confidence 

62% of Norfolk firms overall said they expected their turnover to increase over the next 12 months, the highest since Q1 2020 (the last pre-pandemic quarter) and an increase from 41% in Q4. 23% expected it to decrease, a decrease from 33% in the previous quarter, and 15% expected no change.  

All sectors have seen a rise in the level expecting turnover to increase when compared with the previous quarter. Professional service firms and marketing/media firms are most likely to expect an increase in turnover with 58% and 60% respectively expecting turnover to increase. Public or voluntary services firms (44%) recorded are least likely to expect an increase in turnover, followed by consumer services firms (48%).    

In the Norfolk services sector, the balance of firms reporting expecting turnover to increase over the next twelve months rose to 63% in Q1 2021, the highest since Q1 2020 and up from 40% in Q4 2020. 

In the Norfolk manufacturing sector, the balance of firms expecting turnover to increase over the next twelve months increased to 58% in Q1, the highest since Q1 2020 and up from 50% in Q4.  

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“Our latest survey indicates a particularly difficult first quarter of the year for the UK economy, as a third lockdown and post-Brexit border disruption weighed heavily on key indicators of activity. 

“We are currently witnessing a two-speed services sector. Consumer-focused services companies, where activity is most limited by lockdown controls, suffering an especially damaging quarter. In contrast, business and professional services firms, where adapting to operate under restrictions is more straightforward, fared markedly better.  

“Manufacturers had a challenging three months, with delays to supply chains caused by the ongoing disruption to post-Brexit trade weighing on the sector.  

“The marked improvement in business confidence suggests that the expected first quarter contraction in output will be the nadir for the UK economy in 2021. However, the economic scarring from Covid may mean that the recovery is dramatically uneven across different sectors, locations and cohorts of people.” 

Responding to the findings, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said:      

“The QES findings today demonstrate that our region’s businesses are beginning to see optimism emerge from the lowest point of the crisis, however much remains to be done to ensure that optimism is borne out into prosperity, and many businesses still face a fight for survival in the coming months.” 

“The damage wrought to trading conditions by repeated lockdowns and issues at the border will not be repaired by renewed confidence alone. The Government must recognise the compounded impact that the combination of the pandemic and Brexit related issues have had on firms in Norfolk and the rest of the UK.” 

“The hope for growth represented in the findings is contingent upon the Government continuing to hit its target dates for re-opening the economy, successfully rolling out the coronavirus vaccines and providing ongoing support to businesses who have suffered throughout the crisis. Particular emphasis must be placed on those sectors which face continued uncertainty about when they will be able to fully trade again.” 

 “Norfolk businesses are desperate to play their part in the recovery from the pandemic, and the Government must provide them with the security and certainty that they need to do just that. These first quarter findings show there is a glimmer of hope that the start of rebuilding and renewal for the UK is within reach, though there is no room for inaction or overconfidence. 

Now is not the time for complacency, to translate hope into reality there must be a coherent strategy for growth which empowers businesses to lead the economic recovery from Covid-19.” 

The British Chamber of Commerce has signed the Armed Forces Covenant in a virtual signing event attended by the Assistant Chief of Defence Staff, Major General Simon Brooks-Ward CVO OBE TD VR.

The British Chamber of Commerce has pledged to the Armed Forces Covenant – a promise that those who serve or have served, and their families, are treated with fairness and respect in their communities, economy and society for which they serve with their lives.

By signing the Covenant, the BCC has made a commitment to support serving personnel, service leavers, veterans and their families by fostering relationships between business and the Armed Forces, supporting employment opportunities for veterans, service spouses and partners and offering favourable employment terms to support reservist duties. 

Assistant Chief of Defence Staff, Major General Simon Brooks-Ward CVO OBE TD VR said, “I am delighted that the British Chambers of Commerce have decided to sign their Armed Forces Covenant. This is a very important step which brings together the supportive pledges of many individual Chambers across the network. I welcome the key pledges which include the promotion of the Armed Forces Covenantacross the Chamber Military Network, ten day’s fully paid reservist leave and support to military spouses including the ‘Supporting the Unsung Hero’ start-up programme. This sets a fine example to all Chambers and their membership. Thank you, British Chambers of Commerce, for your support.”

To date more than 6500 organisations have signed the Armed Forces Covenant including businesses and charities nationwide. The British Chamber’s covenant pledge is made in support of the Chamber Military Network a unique project (funded by the Forces in Mind Trust) which helps Chambers, and their members undertake the signing of the Armed Forces Covenant and deliver their employment pledges as part of the Defence Employer Recognition Scheme (ERS).

British Chamber of Commerce Director General Adam Marshall said, “BCC is proud to sign the Armed Forces Covenant, and to pledge to the whole defence community whether serving, veteran, reservist or family member that we will do all we can to ensure they are treated fairly and without disadvantage. Over the years, I have seen just how much the Armed Forces community contributes to business, both as employees that bring a wealth of skills, experience, and innovation, and as entrepreneurs driving forward our economy. 

The British Chambers of Commerce and the Chamber Military Network are well-placed to support the Armed Forces Covenant, to deepen links between the business and defence communities. Our unique position helping British businesses in every region and nation and across the globe means we can work together with the Chamber Military Network to foster relationships, dispel myths, and support service people and their families.”

Norfolk County Council and the Norfolk Resilience Forum have put together a toolkit for businesses to support reopening after lockdown. 

The toolkit is a comprehensive guide for all businesses reopening from 12 April across the Tourism, Leisure, Hospitality and Retail sectors. The guide can also be used by other businesses who would like information and guidance to help them reopen and operate their business safely.

  In February 2021, the UK government set out its roadmap for easing of lockdown restrictions. The easing is a gradual process, and although dates are mentioned (as earliest dates), the next step in the process will only happen if the numbers of key factors such as infections and vaccinations are demonstrating that it is ok to do so.   Although the exit from lockdown has now begun, we need to proceed with caution. Coronavirus will be in our community for some time to come, meaning that outbreaks can, and will, occur.   Developments over the past few months, particularly rapid testing and the roll out of the vaccination programme, mean that we now have more strategies to manage Covid whilst re-opening our economy.   Customer confidence will be a key aspect of re-opening the economy. Seeing businesses take customer safety and concerns seriously could be a deciding factor in whether a customer chooses you or someone else. This guide will give you information on key measures which you can take to look after your staff and customers. No single approach is a ‘silver bullet’ in managing coronavirus / Covid-19 – each are important and when taken as a collective approach, will be more effective.   Getting the balance between providing a service, generating income and ensuring Covid-secure measures are in place and adhered to is not easy. Some of the changes are likely to be beneficial and you may like them to stay; for the ones that are more difficult and restrictive, remember that they are not forever, and if they help your business to stay open then they’re probably worth it.     You can access the full toolkit and sign up for email updates on reopening resources here

The full guide is below:

The BCC is urging the government to give businesses much greater clarity on its roadmap out of lockdown as firms continue to suffer. 

The business organisation, which represents tens of thousands of companies of all shapes and sizes across the UK, has written to the government seeking updates on a number of vital issues. 

In particular, it says firms need to know how the government is assessing its four tests to determine if the roadmap will be followed. This includes providing regular updates on progress against the tests so that businesses can plan ahead. 

Firms also need more detail on the practicalities of reopening and the government’s various reviews so they can make concrete plans on how they will operate – for example, what social distancing rules will be in place at each stage of the roadmap and beyond. 

Companies are also looking to government for clarity on potential legal issues surrounding vaccinations. 

Finally, businesses which operate across the UK need the government and devolved administrations to work together on synchronising their differing routes out of lockdown. 

It follows a BCC survey of more than 1,000 firms at the end of January which revealed that many firms were struggling due to the continued COVID restrictions: 

• 55 per cent of respondents say they are looking to access finance over the next twelve months. Of these, almost two out of three (63 per cent) are doing so to support their cashflow and only 28 per cent are doing so to invest in products, research and development, or equipment.
• A quarter (26 per cent) of firms describe their current level of debt as either ‘unmanageable’ or ‘high and manageable’. This rises to 32 per cent for consumer-facing firms like hospitality and retail.
• Almost a third (32 per cent) of all respondents said they saw write offs relating to Covid-19 lockdowns or restrictions in the last twelve months.

Of the firms reporting write offs, the mean average approximate financial value of these write offs was just over £61k, while the median average was £5k. 

 Of the 527 micro firms (businesses with less than 10 employees or sole traders) that responded to this question, 34 per cent of respondents said they saw write offs relating to Covid-19 lockdowns or restrictions in the last twelve months. The mean average approximate financial value of these write offs was £28.5k. 

Commenting on the lack of roadmap clarity, Baroness Ruby McGregor-Smith, President of the BCC, said:  

“The route back to a full reopening of the economy is still a long way off, with continued uncertainty about whether, and when, the roadmap steps will be met.  

“Far too little has been revealed about how the Government is assessing its four tests on the roadmap for businesses to accurately judge whether it will happen as planned. 

“The timescales for some firms to get ready are already short. Others will be holding out for decisions to be made around issues like international travel and tourism to finally give them hope for the future. 

“The UK Government must also find a way to work much more closely with the devolved administrations in Wales, Scotland and Northern Ireland on a collective route out of lockdown. Many businesses operate across these borders, in both directions, which makes planning their restart even more complex. 

“Many companies appear reluctant to invest, buy in new stock or make plans for how they will operate when so much is still unknown. They have built up huge levels of debt throughout a year of continued restrictions, seen their cashflow reduced to a trickle in some sectors, while others have been forced to absorb large write-offs due to sudden lockdowns.” 

The move will see the training provider take a leading role in helping Norfolk Chambers of Commerce support all businesses with their learning and development

A partnership between Norfolk Chambers of Commerce and learning and development training provider Turning Factor will provide businesses with more opportunities to develop skills, knowledge and continuous learning.

Turning Factor delivers high quality training both nationally and internationally with a specialism in bespoke training programmes. Norfolk Chambers of Commerce has recently launched the Norfolk Knowledge Hub, a knowledge and skills sharing digital platform that helps businesses learn from each other.

The partnership will enable more businesses being able to access free-to-view training videos, podcasts and articles from Turning Factor within the Hub, which is available on desktop or free downloadable app, and also at key events.

James Howells, Director of Turning Factor said: “As a long established Norfolk born business we are delighted to be partnering with the Norfolk Chamber of Commerce, it gives us the opportunity to help support and be at the centre of Norfolk’s dynamic business environment. It is a pleasure to be working with the team at Norfolk Chambers and we all look forward to an exciting 2021.”

Chris Sargisson, CEO of Norfolk Chambers of Commerce said: “This is an exciting time for Norfolk Chambers as we look to drive forward our plans to provide businesses with a Digital Chamber – a place to gain knowledge, make connections and share success in a digital space.

“Having Turning Factor as a Strategic Partner means that we can collaborate on taking ‘classroom learning’ to the digital space of the Norfolk Knowledge Hub. Businesses can then access this bite-sized learning and development training in one place and can get a taster to what Turning Factor can do for business.”

For more information about Turning Factor click here

Commenting on GDP figures for January 2021 published today by the ONS, BCC Head of Economics, Suren Thiru, said:  

“The latest data confirms a better than expected start to the year for the UK economy as the third lockdown and post-Brexit border disruption combined to trigger only a relatively modest decline in economic activity in January.   

“The vaccine rollout and budget stimulus will boost output as restrictions ease. However, the lingering economic effects of covid, including elevated consumer and business debt levels, may severely limit the pace of any recovery.  

“Despite a number of welcome announcements in the budget, there are still many businesses and individuals who have, through no fault of their own, been excluded from government support. Many will require help if they are to navigate a difficult few months ahead before the economy is able to fully reopen.”  

 On the ONS UK-EU trade figures for January 2021, Thiru added:

“While changes in data collection limit historic comparisons, the significant slump in UK exports of goods to the EU, particularly compared to non-EU trade, provides an ominous indication of the damage being done to post-Brexit trade with the EU by the current border disruption. 

“Continued coronavirus restrictions and the unwinding of Brexit stockpiling also added to downward pressure on trade between the UK and EU in January. 

“The practical difficulties faced by businesses on the ground go well beyond just teething problems and with disruption to UK-EU trade flows persisting, trade is likely to be a drag on UK economic growth in the first quarter of 2021. 

“Although the postponement of import checks will help avoid exacerbating the current disruption, there must be a greater focus on long-term solutions to improving the flow of UK-EU trade. Offering tax credits to support firms to adapt to the new arrangements would help many address new burdens and requirements better.” 

Commenting on the announcement of the extension, Jane Gratton, Head of People Policy at the BCC, said:  “Businesses would welcome the additional flexibility and pragmatism that an extension to the eviction ban brings in helping to weather this period of tightened restrictions. “We are pleased that the government has listened to our calls for further action. As we look to reopen the economy, the flexibility this gives landlords and tenants to reach agreement and plan for the successful restart of their operations, will be welcomed by Chamber members. “The BCC engages regularly with government to ensure all businesses receive the financial support commensurate with the restrictions placed upon them.” 

Post-Brexit checks on some EU goods coming into Great Britain have been delayed by six months in order to give businesses more time to prepare.

The government said the new timetable would help firms recovering in the wake of the Covid-19 pandemic.

It means physical checks on products such as meat and milk due from July will now begin in January 2022.

The requirement for health certificates on such products has been pushed back from April to October.

It is the second time that the timetable for the checks, originally due after the post-Brexit transition ended in January 2021, has been put back.   

Commenting on this announcement of the postponement, Adam Marshall, Director General of the BCC, said: 

“This is a positive step as it recognises what everyone in business has known for weeks now: UK-EU trade has faced, and continues to face, significant disruption and difficulty.  

“Ministers are right to delay the implementation of import checks that would slow trade even further – but this can only be a temporary solution. 

“What businesses want to see is an end to the damaging political rhetoric from both sides, and a focus on improving border flow for the long term. The UK and the EU must get back around the table and thrash out the remaining structural problems in the Trade and Co-operation Agreement. 

“For some UK firms, the continued problems with EU trade are threatening their very existence.  It should not be the case that companies simply have to give up on importing from, or exporting to, the market next door.”   

Norfolk’s leading business to business showcase returns on Thursday 14th October 2021 at Norfolk Showground* 

The B2B Exhibition is Norfolk’s largest business-to-business exhibition. Free to attend and attracting hundreds of businesses on the day, B2B is a highlight on the Norfolk events calendar. 

For exhibitors, the event gives the opportunity to meet new potential clients, catch up with existing contacts and have a presence at this prestigious event. 

If you are interested in becoming an exhibitor at B2B you can find out how to book your stand here

Here’s what some businesses have said about the B2B Exhibition: 

“Every year the B2B just gets better and better. It’s the place to truly engage with people. The go to business event of the year.” – Business Growth Club

“We have exhibited at the Norfolk B2B every year for as long as I can remember. It is always a good event and provides an excellent opportunity to catch up with local customers and contacts.”

– 101 Smart Ltd

“(B2B) is a fantastic event and a greatplatform to meet new people and businesses. The shell schemes were great and weloved the venue. We look forward to exhibiting again!”

– Archive-Vault Ltd

“The event was superbly organised and promoted – we loved the venue and will definitely be back next year!”

– University of East Anglia

*We are doing everything we can to bring you this event in October by following government COVID guidelines. However, due to the unpredictable nature of the pandemic we may have to postpone this event at short notice if circumstances arise that are out of our control.