Chamber News

Commenting on Prime Minister Boris Johnson’s announcement of a new, tiered approach to local Coronavirus restrictions in England – and following the introduction last week of deeper restrictions in other nations of the UK, BCC Director General Adam Marshall said:

“Intensified restrictions will be a real blow to business and public confidence at a delicate time for the economy.  Firms have put hard work and precious cash into making their businesses Covid-secure, and must be allowed to operate unless there is overwhelming and clear evidence to the contrary.  Businesses cannot be subjected to a rollercoaster of stop-start restrictions with no end in sight.

“Speculation and rumour have badly eroded trust between Westminster, local government, and our businesses communities.  At a time when clarity and transparency are critical, local business leaders must be more deeply involved in decision-making, so that the real-world consequences for livelihoods and communities are understood.  The introduction of any new restrictions must go hand-in-hand with the appropriate level of financial support, both now and into the future.

“Above all, businesses need to see an exit strategy to prevent economic paralysis. Mass testing, faster processing and proportionate financial support for those forced to self-isolate are crucial to supporting businesses and communities in the months ahead.”

Also commenting on the Prime Minister’s announcement, Chris Sargisson, Chief Executive of Norfolk Chambers said:

“Whilst Norfolk currently remains in the lower tier, the Coronavirus infection rates in our region are rising.  It is therefore imperative that the Government ensures that the test and trace system is functioning effectively and efficiently.  Norfolk is not London, Manchester or Liverpool and there are many of our geographic areas and vulnerable sectors that will be adversely impacted by a tighter restrictions – despite the implementation of support measures from the Government.

“Norfolk Chambers wants to see the Government working on a strong and clear strategic response to the pandemic.  Businesses have had enough of short term, reactive measures.  The Government must deliver a clear plan for Covid-19 and roadmap for supporting the most impacted businesses – both through the immediate autumn and winter crisis and into recovery next year.”

Commenting on the government’s updated Border Operating Model, published yesterday, BCC Director of Trade Facilitation Liam Smyth said:

“Today’s announcement of a revised Border Operating Model provides some more of the detail that was missing from the version published less than 12 weeks ago. Duty deferment accounts and postponed VAT accounting will both help firms’ cashflow as we enter a period of huge change at our borders.

“However, as highlighted in our recent unanswered questions document, businesses still have many areas where they urgently need more certainty, such as how the border between Northern Ireland and Great Britain will operate, clear guidance on rules of origin, which will only be done by ramping up government engagement with business.

“With just over 80 days until the end of the transition period, the businesses that produce the £300bn of UK exports to the EU are desperate for news of a comprehensive free trade agreement that will provide jobs and future prosperity across the United Kingdom.”

The Kickstart Scheme is aimed at 16 to 24 year olds, on Universal Credit and registered with a work coach, who may find it more challenging to access the world of work.  The scheme provides 6 month placements, at 25 hours per week at minimum wage (dependant on age) – although the employer can offer more hours and cover the additional cost.  The total grant available from the scheme is £6,500, which pays for the wages and the on-costs such as NI etc.

In addition, there is a further £1,500 payable to the employers for them to provide wrap-around employability support – this can be either in-house or the employer can pay for the support to be delivered. Whichever way, you will need to be able to evidence what the support is and the impact/benefits to the employee.  Norfolk Chambers is currently talking to various training providers and others about a suite of support options to make it easier for the employers to provide the wrap-around employability support.

To qualify for a Kickstart placement – the business must be able to demonstrate that this role is additional.  The placement is for 6 months, at the end of that period, you can either take that person on, apply for an apprenticeship or replace them with another placement for a further 6 months.

As a Kickstart Scheme Gateway,  we can support local businesses to apply for Kickstart funding. The Norfolk Chambers will gather the information needed to submit an online application and if your application is approved, assist you with the process, provide guidance and pass on the relevant payments made by the DWP to you, the employer.

If your business wishes to take part in this scheme, you will need to advise how many placements and the type of placement.  To apply, please complete the below application form.

We will submit the cohort to the DWP and notify you of the submission day.  The DWP are quoting up to 30 days for a response on the cohort applications.

If your application is successful, a grant funding agreement will be issued and you must return the signed funding agreement and provide a detailed job description for the position.  Candidates via the DWP will then apply for the job placements and you can choose who to employ. Please note, you will only obtain funding if you appoint a young person that DWP have introduced.

For more information on what happens following the submission of the cohort to DWP – click here.

If you have any questions on the Kickstart Scheme, or need help completing the application form, please contact:

Charlotte Upcraft:  charlotte.upcraft@norfolkchambers.co.uk

Nova Fairbank:      nova.fairbank@norfolkchambers.co.uk

Or call: 01603 625977

The British Chambers of Commerce has published a critical update of its Brexit guidance dashboard containing 26 key questions that remain unanswered with just 98 days to go until the end of the Brexit transition period.

The leading business group published the document alongside new research which suggests business preparation for the coming changes is low due to the unprecedented challenges facing them.

• 26 unanswered questions reflect fundamental aspects of business operations, including UK/EU customs checks and rules of origin
• Just 38% of firms have done a Brexit risk assessment in 2020, compared to 57% in 2019
• BCC seeks clarity for businesses and an immediate resumption immediate resumption of weekly business preparedness summits with senior ministers

Unanswered questions

The BCC’s Brexit guidance dashboard compiles 35 questions most frequently raised by businesses, many of which apply in a deal or no deal scenario. The BCC gives just 9 a green status, indicating there is sufficient information available to plan. 19 are amber, indicating some information is available, and seven are red, indicating there is inadequate actionable information.

Many of the unanswered questions reflect fundamental aspects of how companies operate. Among other things:

• Firms do not know what rules of origin will apply after the transition period, preventing them and their customers from planning and potentially creating unprecedented new administration and costs;
• There is no clarity on how food and drink due to be sold in the EU and Northern Ireland is to be labelled;
• Very limited guidance on the movement of goods from Great Britain to Northern Ireland; and
• No information on the UK Shared Prosperity Fund, key to ‘levelling up’ the regions and nations – despite years of calls for clarity.

Low levels of business preparedness

The lack of information for firms is compounded by new BCC research released today, which found that just 38% of firms had completed a Brexit risk assessment this year, compared to 57% in 2019 and 35% in 2018.

The research also found that more than half (51%) of firms surveyed had not taken any of the eight steps recommended by the government to prepare for changes in the movement of goods between the UK and the EU. This includes fundamentals of operation for trading businesses such as checking on the need for customs declarations and assessing the possible impact of changes on existing customers and suppliers.

The lack of information with which to plan and potential deadline fatigue presents further challenges to firms up and down the UK that have faced reduced demand, ongoing government restrictions and sustained cashflow challenges due to the Coronavirus crisis.

Demanding action

The leading business group – which represents 75,000 firms of all sizes and sectors across the UK employing nearly six million people, and works with over 30,000 companies that trade internationally each year – has written to Cabinet Office Minister Michael Gove seeking action for businesses and urgent discussions to help firms prepare.

BCC Director General Adam Marshall said:

“With just 98 days to go, business communities face the triple threat of a resurgent Coronavirus, receding government support schemes, and a disorderly end to the transition period.

“Significant unanswered questions remain for businesses, and despite recent public information campaigns, base levels of preparedness are low. Many firms say they’ve heard talk of deadlines and cliff edges before, and others are still grappling with fundamental challenges as a result of the pandemic and have little cash or information with which to plan.

“While we recognise that some of the questions facing businesses are subject to ongoing negotiations between the government and the EU, other matters are within the UK’s own hands. The government must ramp up engagement with business urgently – to the levels seen prior to previous ‘no deal’ deadlines – to ensure that the real-world issues facing firms get tackled immediately.

“The ‘Check, Change, Go’ campaign gives the impression that Brexit-related changes are like getting an MOT – whereas the reality is that for many businesses, they’re more akin to planning a moon landing. Businesses need honest communication about the complexity of the changes they face – and stronger encouragement to act.”

The Board of the British Chambers of Commerce (BCC) has today announced that Director General Dr Adam Marshall will leave the organisation in the Spring of 2021. 

Marshall has been Director General of the leading business group for five years, and has been part of the leadership team of the BCC for almost 12 years. He leaves the organisation with an enhanced profile and impact, a stable financial position, strong governance and a record number of female leaders amongst both its non-executive and executive leadership.

Working closely with the Board, Marshall will remain at the helm over the coming months and will ensure a smooth and effective transition with his successor. He will leave the organisation with the respect and gratitude of the Board, staff, Chambers and members across the UK and worldwide. Marshall has not yet announced his future plans.

Outgoing BCC Director General Dr Adam Marshall said:

“Chamber business communities represent the best of British business. It has been an honour and a privilege to serve this civic-minded, passionate, and purposeful network for nearly twelve years. I feel the time is right to hand over to a great successor who will continue the fight for our business communities during the period of renewal ahead.”

BCC Chair Sarah Howard MBE said:

“I know I speak for so many Chamber members, both here in the UK and across the world, when I say that Adam will be missed. He took over at a time of great uncertainty but has led BCC confidently to its strongest position in years. Chambers have never been more relevant or more necessary than they are today and together with the BCC Board, I will be leading a search over the coming weeks to identify a suitable successor to build on the BCC’s achievements and lead the organisation into the future.”

BCC President Baroness Ruby McGregor-Smith CBE said:

“Adam’s commitment to UK businesses, communities and diversity is one of many reasons I was excited to become President of BCC this year. He has dedicated great energy and passion to the organisation, and leaves the BCC and the Chamber Network in a stronger position at this critical moment for our businesses and for our country.” 

Commenting on extended support to prevent business evictions until the end of 2020, announced by the government today, BCC Co-Executive Director Claire Walker said:

“Both tenants and landlords will welcome the government’s flexible and pragmatic approach which may protect firms from eviction who are struggling with their cashflow.

“Today’s announcement will provide much-needed breathing space and give businesses a chance to plan and successfully rebuild their operations.”

In a letter to the Prime Minister, BCC President Baroness Ruby McGregor-Smith has said businesses face “the most difficult trading conditions in post-war history” and set out a series of measures to help government take a “sharper approach” to restarting the UK economy.  

The letter from the leading business group follows their recent research which points to a sustained economic difficulties with almost a third of businesses expected to make redundancies in the next three months. BCC published a three-step approach to ‘Restart, Rebuild and Renew’ the UK economy in May.

The letter reads: “Prime Minister, a successful restart of the economy demands bolder and more ambitious action. We face a difficult winter ahead – even without a significant resurgence of the virus itself. If the Government wishes to avoid mass unemployment, significant levels of business failure, and long-term economic scarring in our communities, we urge you and your colleagues to act now.”

The letter sets out a series of proposals which could help offset the worst of the damage to businesses and livelihoods and begin a return to prosperity.

Comprehensive support through local restrictions

The letter notes that local restrictions are a “single largest blockage” to restarting operations, with BCC research suggesting more than half of businesses (52%) see it as a key barrier. Baroness McGregor-Smith calls for “support for businesses shuttered by local restrictions” – in the form of additional grant funding and wage support, not saddling firms with further debt.

Following local restrictions in Leicester, Aberdeen, Greater Manchester and Lancashire and cases rising across the UK, Baroness McGregor Smith added: “Government should take every step possible to avoid damaging local and catastrophic national lockdowns and instead place the highest possible premium on alternative measures that maintain the economy and keep businesses open, such as rapid improvements to test and trace systems.”

“Businesses are not ready to face the triple threat of further lockdowns, an end to government support schemes and the end of the Brexit transition period.”

She continued: “Government must develop a confidence plan for businesses where it is clear what type of measures are expected for each change in scenario. This will allow business to plan.”

Ambitious fiscal stimulus

The letter notes that “far more ambitious” fiscal stimulus will be needed to deliver a full restart of the UK economy. It reads: “The path to October and beyond appears very challenging, as the Job Retention Scheme, CBILS and BBILS schemes close, creating a perfect storm for otherwise viable businesses.”

Baroness McGregor-Smith sets out a comprehensive stimulus package, including a reduction in the overall cost burden on firms to protect businesses and preserve as many jobs as possible. An 18-month expansion of the Employment Allowance from £4,000 to £20,000 and an increase to the threshold for National Insurance contributions from £8,788 to £12,500 would help businesses with prolonged cashflow difficulties. The latter could save businesses around £500 per job.

Restoring business and consumer confidence

Baroness McGregor-Smith calls on the government to immediately improve its Test and Trace programme so that it is “quickly available to all who need it, results are returned quickly, and positive results tracked.” Only then would businesses and consumers have the confidence “that the disease can be properly managed without further crippling lockdowns.”

Commenting on the ONS labour market figures for September 2020, published today, BCC Head of Economics Suren Thiru said:

“Despite the slight rise in the unemployment rate, the furlough scheme continues to limit the pandemic’s full impact on headline job figures.

However, the decline in employees on payrolls and the rise in the claimant count in August as the furlough scheme began to taper is a clear warning that the full impact of Coronavirus on the UK labour market is yet to come.

“While there was a rise in the number of job vacancies, this is more likely to reflect a temporary bounce as the economy gradually opened, rather than a meaningful upturn in demand for labour. With many firms are still facing waves of cash flow problems, rising costs and an uncertain economic outlook, it is probable that unemployment will escalate sharply as government support winds down.

“To help avoid a damaging cliff edge for jobs more must be done help firms keep staff on through this deeply challenging period. This should include a significant cut in employer National Insurance Contributions and more substantial support for firms placed under local lockdowns.”

Commenting on the announcement that the UK and Japan have secured a free trade agreement, BCC Director General Adam Marshall said:

“Businesses will warmly welcome this milestone free trade deal with Japan, which provides access to a major market for traders across the UK.

“Chambers of Commerce stand ready to work with government to ensure that the benefits of this agreement are felt by businesses on the ground. Firms will want to see the specific provisions to support small businesses replicated in future trade deals to help business communities thrive and grow in future.

“Whilst this agreement is undoubtedly cause for celebration, securing a Free Trade Agreement with the EU remains critical to the future of businesses in the UK. We urge Ministers to redouble their efforts to reach a comprehensive partnership with our largest trading partner at a crucial time in the negotiations.”

Commenting on GDP figures for July 2020 published today by the ONS, BCC Head of Economics Suren Thiru said:

“The latest data confirms that UK economic activity continued to pick-up in July as lockdown restrictions eased further.

“The UK economy is currently in a period of temporary calm, with activity buoyed by the government’s emergency support measures and the unwinding of pent-up customer demand as more parts of the economy reopened.

“However, with many firms continuing to face an unprecedented cash crisis and unemployment likely to surge as the support schemes wind down, there remains little prospect of a sustained resurgence unless substantial action is taken.

“To protect jobs and livelihoods, the government should consider extending and adapting the Coronavirus Business Interruption Loan Scheme to ensure businesses are supported sustainably over a longer period, as well as introducing a more significant package of support for firms placed under local restrictions.”

Responding to the announcement that firms in England forced to close due to local Coronavirus restrictions will be able to claim grants of up to £1,500 every three weeks, BCC Director General Adam Marshall said:

“Businesses forced to close through no fault of their own will welcome any new grant support, but for most this will not be enough to offset the resulting cash crunch.

“With new local restrictions becoming more frequent, a comprehensive package of support will be needed for affected firms. More than half of Chamber members see local lockdowns as a major barrier to maintaining day-to-day operations and more than 1 in 3 have three months or less worth of cash in reserve.

“Ministers should increase the amount on offer to ensure businesses and jobs are protected, and extend coverage to more firms that are hard-hit but not forced to close.”

Last week, the Government announced its Kickstart Scheme, a £2 billion fund to create hundreds of thousands of high quality six-month work placements aimed at those aged between 16 to 24, who are on Universal Credit and are deemed to be at risk of long term unemployment.

The funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.

The Kickstart Scheme job placements must be:

• 6 months
• at least 25 hours per week
• paying at least the National Minimum Wage through PAYE
• paying the statutory employer duties for the health, safety and welfare for young people, National Insurance and pension contributions
• including support for young people to help them get work after they finish their Kickstart Scheme job

Larger organisations, that can offer a minimum of 30 new placements, are being asked to apply directly to the scheme.  More information is available here.

However, for those firms who are unable to offer such a large number placements, the Government is looking to work with intermediaries, such as Chambers of Commerce, to coordinate funding bids.

Commenting on the new scheme, Nova Fairbank, Head of Policy for Norfolk Chambers said:

“Norfolk Chambers and the UK Chamber network have been working with the British Chambers of Commerce Taskforce and the DWP to develop the Kickstart scheme. 

“We therefore welcome the intention of the scheme, but are looking at the detail to ensure that it will indeed create the long-term, quality employment opportunities needed, by ensuring that both businesses and employees are fully supported throughout the placement. 

“Norfolk Chambers are happy to support local businesses to access the Kickstart Scheme and we are in dialogue with various partners to explore ways of collaborating our efforts to make the application and delivery processes as easy as possible for businesses.”

If your business is interested in creating a fully funded placement for a young person, please contact: Nova.fairbank@norfolkchambers.co.uk and advise how many placements you are thinking of creating.