Chamber News

The Greater South East Energy Hub installer Dynamic Purchasing System (DPS) for Energy Efficiency Measures is now live.

This is an opportunity for PAS2030:2019 and MCS accredited trades to access £69 million energy efficiency measures to be delivered by local authorities across the Greater South East region in 2021. The Dynamic Purchasing System will be running until March 2026 and will be available for all local authorities and social housing providers in the Greater South East region to use to procure contractors for energy efficiency measures.

A Dynamic Purchasing System (DPS) is public sector procurement tool for buying works, services and goods. The Greater South East Energy Hub Trades DPS is a two-stage process, the first stage is setup, all suppliers who meet the selection criteria are admitted to the DPS. Suppliers can join each month when the opportunity opens. Individual contracts for works are awarded in the second stage. In this second stage the authority invites all suppliers on the DPS (or the relevant category within the DPS) to bid for the specific contract. This is suitable for small to medium sized companies.

The Greater South East Energy Hub are holding a free supply chain event on the 23 March 2021 in association with the Built Environment Network to explain how it works, what the jargon means, pitfalls to avoid and how to get on board. Don’t worry if you are not ready to join the DPS this month as the portal for new suppliers will open every month.  

Register for the event here:  

Not accredited to PAS2030 or MCS? – Free or subsidised training is now available for tradespeople or businesses who install energy efficiency measures or low carbon heating and want to carry out work under the Green Homes Grant schemes:

Apply for free or subsidised training under the Green Homes Grant skills training competition scheme – GOV.UK (www.gov.uk)

Results from the latest BCC survey on the impact of Coronavirus on businesses show they have been pushed to the brink by the effect of multiple lockdowns.

Among the sobering findings from the survey of more than 1,100 businesses, including those from Norfolk are:

• Three in every five firms (61%) have seen their revenue from UK customers fall in the last three months
• Almost a third (31%) of business-to-consumer (B2C) firms say they will run out of cash in the next three months
• A quarter of survey respondents (25%) say they will make staff redundant if financial support stops in March and April.

The leading business group has called on the UK government to set out a clear roadmap for reopening, advancing vaccination and workplace testing plans, and extending key financial support measures for businesses throughout 2021.

Business conditions worsen

Compared to October 2020, 61% of firms reported decreased revenue from UK customers. Only 19% of firms reported increased revenue and 20% reported no change. B2C service firms are significantly more likely to report decreased revenue (74%) from UK customers, as are firms with less than 10 employees (65%).

When asked approximately how long firms could continue until they ran out of cash, almost one-quarter (23%) said less than three months. This figure rises to almost one-third (31%) of B2C service firms. Just over one quarter (28%) of firms overall and only one-fifth (20%) of B2C firms have cash for more than 12 months.

The results paint a bleak picture of a business landscape which has been severely squeezed by repeated lockdowns and massive changes in trading conditions. The survey results also suggest that without the huge amount of government support given to companies to date, that business failures and job losses could have been much worse.

Crucially, more support is needed until firms can fully reopen, with just over a quarter (28%) of businesses indicating they have enough cash to last more than a year. On average, B2C firms are currently operating at only 42 per cent of full capacity, while all firms were averaging 57% capacity against a pre-pandemic level of 75 to 80 per cent. Almost half (48%) of companies reported they still have staff on furlough.

Rating the support from government

When asked to rate the effectiveness of the various government schemes to support their business throughout the crisis, the Coronavirus Job Retention Scheme (CJRS), allowing firms to furlough staff, had by far the highest effectiveness rating. More than two-thirds (68%) using this scheme say that it has been very effective, with a further 28% rating it as somewhat effective. Only 4% said it was not effective.

Other schemes with high effectiveness ratings included Government loan schemes (such as CBILS and BBLS) where 46% rated them ‘very effective’ and 44% rated them ‘somewhat effective’, and the local authority business grant scheme, where 45% rated it ‘very effective’ and 40% rated it ‘somewhat effective’. Business rates relief (49%), VAT deferrals (34%), VAT cuts for certain sectors of the economy (26%) were also rated as very effective.

What firms may do if support expires in March and April

When asked what their business might do if the government support schemes end according to published timetable in March and April, 25% of firms overall said they would ‘make staff redundant’, 25% would ‘reduce staff hours’ and 19% would ‘cancel or reduce investment or recruitment plans’. Only 21% of B2C firms said the expiry of support ‘would have no impact on their business’, compared with 39% of B2B firms and 37% of manufacturers.

Responding to the survey results, BCC Director General Dr Adam Marshall said:

“The last year has taken a heavy toll on businesses across the UK. With cash flow still the top concern, it is vital that the UK government keeps financial support going until firms can reopen and rebuild. Pulling the plug now would be a huge mistake, and would be akin to writing off the billions already spent helping firms to survive.

“Firms are desperate to start trading again so they can boost revenue and start thinking about the future. To do so they need to see a clear, evidence-based plan for reopening, and they need time to get back on their feet without unnecessary additional taxes, and the security of knowing that Government will once again support them should we see additional restrictions imposed at any point.

“In the meantime, support must remain in place for firms that need it until a full reopening of the economy is possible. With cashflow being a major challenge for many businesses, we can expect to see further redundancies or business failures should Government support end prematurely.

“Alongside a clear roadmap for reopening, business confidence will also come from a commitment to further accelerate the vaccination programme and a wider workplace testing strategy that’s accessible to businesses of all sizes.”

Commenting on the delay to HM Treasury’s Fundamental Review of Business Rates until autumn, BCC Head of Economics Suren Thiru said:

“Delivering fundamental change to this longstanding drag anchor on business has become only more pressing in light of Covid-19.

“Delay in reforming a broken system will hamper any recovery by exacerbating business cash flow concerns as part of the fixed cost base that firms can do little to push downward.

“The delay in the review underscores the need to urgently extend business rates relief for retail, hospitality and leisure and provide rates relief to all firms whose ability to generate revenues are severely impaired by the pandemic.”

The Kickstart Scheme has been underway since September 2020 and has now seen 120,000 16-24-year olds find employment.

The Kickstart Scheme, which is fully Government funded, is aimed at 16-24-year olds who are on universal credit and who may find it more challenging to access the world of work, which has been hit hard by the pandemic. 

The scheme offers six-month work placements of which the Government will pay 100 per cent of the young persons’ age-relevant National Minimum Wage, National Insurance and pension contributions for 25 hours a week, which the employer can top up if they chose to in both salary and hours. In addition, the Government will also pay the employer £1500 for each young person they take on, to support any training or associated costs like uniforms that they might incur when setting up the scheme.

Recently it was granted that companies with less than 30 vacancies can now apply directly via DWP without using a Gateway, however, the Norfolk Chambers of Commerce is a recommended Gateway and without cost to you, will help you with your application and liaise with the DWP in ensuring your application is successful. We can also assist with any training needs you require from recommending and putting you in touch with training providers, as well as saving you time in the application process while making the whole process as smooth as possible.

For more information and to be part of this amazing youth employment programme, please get in touch via charlotte.upcraft@norfolkchambers.co.uk

How is your business doing? How has Covid-19 and/or Brexit affected your business? How confident are you about your financial position, your workforce and your future orderbook? What support do you need to face the challenges ahead?

The Chambers Quarterly Economic Survey (QES), the UK’s largest independent business survey, is open and we would like to hear from you so that we can help give voice to Norfolk businesses. 

This survey is a significant piece of economic data, used by many organisations and the country’s decision makers to help shape economic policies for the UK, so right now it is more important than ever that both the Chancellor and the Bank of England hear from businesses just like yours. Without this vital local and regional knowledge they cannot make the right decisions and put relevant support mechanisms in place that will ultimately impact on you and your company.

The QES is anonymous, open to anyone and only takes a couple of minutes to complete online.

We need your input, if you only take one survey, then please make it the QES. Deadline is Monday 8th March, 2021.

Take Part Now

An online portal has been launched to make it even easier for business to get involved and find out more about offering rapid testing in the workplace.

Business that are open during lockdown can now sign up to rapid testing programmes that identify cases of Covid-19 in employees who are not showing symptoms, to help stop the spread of Covid-19, and ensure vital public and economic services can continue.  

Businesses can register to order coronavirus rapid lateral flow tests for employees if:

• Your business is registered in England
• You employ 50 people or more
• Your employees cannot work from home

Testing is key to breaking the chains of transmission. Around one in three people who have coronavirus have no symptoms and may be unknowingly spreading the virus. This expansion of testing will find more positive cases, keeping workers who cannot work from home unknowingly passing on the virus and protecting vital public services.  Click here to register.

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

“The UK economy recorded stronger than expected growth in the final quarter of 2020 as the squeeze on output from the November lockdown was more than offset by a temporary boost from the release of pent-up demand from the subsequent easing in restrictions, increased activity from the coronavirus testing schemes and Brexit stockpiling.  

“Despite avoiding a double-dip recession, with output still well below pre-pandemic levels amid confirmation that 2020 was a historically bleak year for the UK economy, there is little to cheer in the latest data.   

“Modest growth at the end of 2020 is set to be followed by a substantial fall in output in the first quarter of this year as the current lockdown, the unwinding of Brexit inventories and disruption to UK-EU trade flows combine to suffocate activity. 

“While the vaccine rollout offers optimism, with the scarring caused by the pandemic likely to crystallise as government support winds down and the prospect of persistent post-Brexit disruption, any recovery may be slower than the Bank of England currently predicts.  

“The current drip-feed approach to support measures means firms cannot plan for more than a few weeks ahead. It is critical that the government swiftly implements a package of measures that support businesses and the economy for the whole of 2021, including removing the cliff-edges for business rate reliefs, VAT deferrals and furlough.” 

This year sees the update of Norfolk’s Rural Strategy, and Norfolk County Council want to hear your views about their vision for rural Norfolk in the coming years.  Please click here to find out more about the strategy and to give your feedback in the survey.

The Norfolk Rural Strategy was first produced in 2013, on behalf of an extensive public-private partnership, with a steering group supported by Norfolk County Council.  It is refreshed every 3 years and we are asking for your ideas to address the challenges and opportunities Rural Norfolk faces today.

The principles underpinning the Strategy are to: 

• Be ambitious for Rural Norfolk so it delivers quality of life for all age groups 

• Make the case for Rural Norfolk to decision makers at every level – from district to national 
• Ensure businesses, communities and partners have access to the data and evidence to make the case for investment in Rural Norfolk 
• Learn from other areas and build on successful models of rural development elsewhere. 

Your feedback is valuable, so please do take part in the short survey about the Norfolk Rural Strategy for 2021-2024.  

Have Your Say Now

The deadline to take part in the survey is 5pm on Friday 19 March 2021.  

If you would like to submit additional documentation to support your response (such as a report or case study which could help make the case for investment) please email it to haveyoursay@norfolk.gov.uk

If you have any queries about the survey, or need it in a different format, such as a paper copy, please email haveyoursay@norfolk.gov.uk, call 0344 800 8020 or Text Relay on 18001 0344 800 8020 (textphone) and we will do our best to help.

Commenting on the announcement of the fund, Nova Fairbank, Chief Operating Officer for Norfolk Chambers said:  

“This is a welcome first step in dealing with some of the major issues that small businesses trading with the EU are facing.  With their finances already under a significant squeeze firms, particularly those which export, are inevitably encountering difficulties in adapting to the complexities of the new arrangements. 

“It is now crucial that the grants provide sufficient funds to make a real difference and the government should stand ready to increase their size if needed.  We will continue working closely with government to make sure this scheme is delivered as quickly and smoothly as possible for firms still adapting to the new EU trading arrangements and the impact of the pandemic. 

“The Norfolk Chamber will also continue to offer as much direct support as we can to SMEs especially through ChamberCustoms and our other International Trade Services.

HM Treasury and the British Business Bank have released further details of the Pay As You Grow Scheme.

It is confirmed that the scheme will enable businesses who have started repaying their Bounce Back Loans to:

• Request an extension to their loan term to 10 years from 6 years, at the same fixed interest rate of 2.5%.
• Reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan.
• Take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.

Borrowers can use these options individually or in combination with each other and remain responsible for repaying their Bounce Back Loan and fully liable for the debt.

Borrowers should be aware that they will pay more interest overall if they use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.

Am I eligible?

PAYG is available to all businesses who have taken out a Bounce Back loan subject to the restrictions outlined above.

What do I need to do to access it?

Businesses first began to receive BBLS loans in May 2020 and the first repayments will become due from May 2021 onwards. Lenders will start to communicate PAYG options to Bounce Back Loan Scheme borrowers three months before repayments commence.

Who do I need to speak to?

Lenders will inform their customers about PAYG directly, so borrowers should wait until they are contacted by their lender before enquiring about the scheme. Lenders will advise customers about how their repayment options may change according to their choices under the scheme.

Results from the first major business survey for 2021 by the British Chambers of Commerce and the UK Chamber Network on Brexit found that half (49%) of  exporters  are  facing  difficulties  in adapting to the changes in the trade of goods following the ratification of the UK-EU Trade and Cooperation Agreement (TCA) on 1 January 2021.  

The survey

Fieldwork for the survey, which received 1,000 responses, mainly from SMEs, was carried out between 18 and 31 January 2021. Nearly half (47%) of respondents  exported goods or services.   

 The survey sought to understand the extent to which businesses found it easy or difficult to adapt to changes in trading goods and/or services and moving people in the month since the ratification of the TCA. Businesses reported the highest proportion of difficulties in adapting to changes in trading goods. 

The survey found that: 

• overall, around a third of respondents (30%) reported  difficulties  adapting to changes to moving or trading goods in the first month of the year, while 10% said they had found adapting to the changes easy. 45% said trade in goods was not applicable to their business, and 16% said it was too early to say; 
• however, the percentage facing difficulties in adapting to changes in trading goods rose for exporters, where half (49%) reported issues, as well as manufacturers, where the percentage facing difficulties was more than half (51%);  
• overall, 14% of firms said that they faced difficulties in adapting to changes in the trade of services. 10% said they had found adapting to the changes easy. The percentage facing difficulties rose for exporters, where 21% reported issues. 

When asked about the specific difficulties businesses were facing, commonly cited concerns included increased administration, costs, delays, and confusion about what rules to follow. 

Need for Action 

The BCC will continue to support UK businesses through its trade documentation services and Chamber Customs, a customs advisory, training and brokerage service delivered through Chambers of Commerce across the UK, and by working closely with the government. 

The leading business group is calling on the UK Government, and where necessary with EU partners, to:  

• work with us and the Chamber network to identify the most significant blockages for business and immediately publish plans for resolving those problems;  
• create tax credits allowing firms to offset their spending on adaptation to the new UK-EU requirements against their tax bill, helping businesses navigate new burdens and requirements better;  
• push back the imposition of additional SPS checks (from April) and full customs checks (from July) on imports into the UK. Sanitary and Phytosanitary (‘SPS’) checks are scientific tests on animal and plant goods; and   
• look at key areas of the new relationship and work with EU partners on easements to minimise unhelpful burdens, including on  aspects of  Rules of Origin and VAT. 

Commenting on the results, BCC Director General  Adam Marshall  said: 

“Trading businesses – and the UK’s chances at a strong economic recovery – are being hit hard by changes at the border.  

“The late agreement of a UK-EU trade deal left businesses in the dark on the detail right until the last minute, so it’s unsurprising to see that so many businesses are now experiencing practical difficulties on the ground as the new arrangements go live.  

“For some firms these concerns are existential, and go well beyond mere ‘teething problems’. It should not be the case that companies simply have to give up on selling their goods and services into the EU. Ministers must do everything they can to fix the problems that are within the UK’s own control, and increase their outreach to EU counterparts to solve the knotty issues that are stifling trade in both directions. 

“This situation could get worse if the UK sticks to its guns and introduces additional SPS checks in April and full customs checks on imports in July. These timescales need to change – and the support available for businesses who are battling to adapt to new trading conditions significantly increased.”  

Commenting on what this means for businesses on the ground, BCC Director of Trade Facilitation and ChamberCustoms Liam Smyth said: 

“Underneath the overall figures, firms’ concerns fit broadly into three areas.  

“First, difficulties arising from the challenges adjusting to the new arrangements, such as the sheer volume of paperwork and significant new costs of adjusting to those.  

“Second, issues about how new rules have been implemented, such as new customs arrangements.  

“Third, core provisions of the TCA which are currently of significant concern to businesses, such as on Rules of Origin and VAT.  

“Taken together, and on top of decreased revenue and cash flow as a result of the pandemic, this is a difficult moment for exporters. Some tell us they will respond to the challenges by switching away from international trade or by moving their operations overseas.  

“The Government needs to respond to this risk by giving firms tax credits to help with their ongoing adjustment and leaving no stone unturned in educating businesses and removing every barrier they can.” 

Norwich City Council have released their latest economic barometer. The report highlighted:

Locally

• The East of England economy is on track for a positive, albeit slow recovery, over coming years led by activity in the health and education sectors, according to a regional economic forecast from EY. It identifies the East as one of five of the nine English regions which will be larger in 2023 than it was in 2019 although its growth will be fractional at 0.08 per cent pa.
• Just over half of East of England SMEs (53 per cent) say that becoming more environmentally sustainable is important and a similar share have worked on green measures during COVID. a quarter of firms have used using cash reserves and government grants (15 per cent) to fund green improvements.
• Business confidence in the East of England rose 20 points in December – albeit to minus one per cent – which was its highest point since the beginning of the pandemic in March.
• The growth of online retailing will mean more development of warehousing and logistics space and business parks in Norfolk and nationally.
• The East of England has seen the highest rise of any region in employer demand for fintech skills, up 30 per cent over 2017 – 2019.
• KPMG’s Future of Towns and Cities Post COVID-19 report predicts that Norwich is set to lose more than 4,000 jobs post-pandemic as 18.5 per cent of people continue to work from home rather than working from an office.
• During the month of November, average house prices fell by 0.20% in Norwich and by 0.235 in the region; prices across England grew by1.23%. The average house price in Norwich currently stands at £208,663 against £302,624 for the East of England and £266,742 for England.
• The 2020 impact of the Covid-19 pandemic has been one of steep growth in claimant count unemployment. The increase has been strongest in the Norwich city council area.

Nationally

• December data highlighted a marginal expansion of UK private sector output, driven by another solid increase in manufacturing production.
• In contrast, overall levels of service sector activity stagnated at the end of 2020, largely due to ongoing coronavirus disease 2019 (COVID-19) restrictions on hospitality, leisure and travel businesses.
• The latest survey also indicated severe pressure on manufacturing supply chains, which was overwhelmingly linked to freight delays following congestion at UK ports.
• UK construction companies recorded a sustained rebound in business activity during December, according to the latest PMI data compiled by IHS Markit.
• Finance leaders expect levels of home-working to rise five-fold by 2025 compared to pre-pandemic levels and are forecasting higher levels of taxation and regulation in the longer term,