The Department for Education and the Education and Skills Funding Agency has created a webinar briefing presentation deck for Chambers, explaining the new employer incentives for Apprenticeships, Traineeships and Kickstarter.
If you would like to host a local webinar briefing for your members, please contact Nichola Akers at the National Apprenticeship Service.
Responding to today’s announcements of £200m for a new Trader Support Service the BCC’s Director of Trade Facilitation Liam Smyth said:
“Whilst the funding announcement for the Trader Support Service is welcome, we need to remember that the GB/NI Border model impacts businesses on both sides of the Irish Sea.
“Customs controls that are implemented through electronic means are still controls. For businesses to remain compliant they will have to upskill staff, implement new processes and invest scarce resources to be ready for the end of the transition period which is less than five months away.
“Until we know the outcome of the UK/EU negotiations, many questions will remain unanswered for businesses in the United Kingdom, and in particular in Northern Ireland where both the EU and UK customs rules will be applied, depending on the final destination of the goods.”
Norfolk County Council Public Health team have released new coronavirus communications toolkits to help support local businesses with reopening and controlling the virus.
The latest information and advice helps businesses understand and use the NHS Test and Trace to play their part in controlling outbreaks of Coronavirus in Norfolk. View the full toolkit and information here.
Alongside the toolkit, there are a variety of new resources for businesses to use. Posters and social media graphics are available on a wide range of topics from hand washing and social distancing, to scam and community support advice. In particular, they have just published a kit of tourism resources to help support accommodation providers, such as hotels, holiday parks, holiday lets and campsites. You will find these here.
Results from the latest BCC Coronavirus Business Tracker reveal that businesses are still facing significant cashflow challenges with the schemes announced in the Summer Statement failing to provide support at the scale needed to protect jobs after the furlough scheme winds down:
More than half of firms report cashflow decrease since June 2020, more than a third of respondents with improved cashflow cite furlough scheme cash
43% of firms intend to use Furlough Bonus, but other Summer Statement support schemes have low take up
BCC continues to call for bold interventions to protect businesses and jobs
The leading business organisation’s tracker survey, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 517 responses and is the largest independent survey of its kind in the UK.
Business conditions
Firms reporting an increase in UK sales remained static at 34%, 42% reported a slight or significant decrease. Just over half (55%) reported a slight or significant decrease in their cashflow compared to last month.
A minority, 21% of firms, said that their cashflow position had improved. Of these, 64% said new customer demand was the driver of this. 35% cited the government furlough scheme, and another 24% and 25% respectively said loan and grant schemes had helped improve their cashflow position, demonstrating that many firms are still relying on government support schemes.
Summer Statement support
This week’s Tracker contains the first comprehensive survey of business sentiment on the Chancellor’s Summer Statement announcements of 8 July.
43% of firms intend to access the Job Retention Bonus, which will award £1,000 to firms who retain furloughed staff until January. A further 40% will not use the scheme. Figures from the BCC’s latest Quarterly Recruitment Outlook found that almost a third of firms (29%) expect to decrease the size of their workforce in the next three months.
Elsewhere both awareness and expected usage were low. 56% of businesses said they did not intend to use the Kickstart scheme, a further 31% said they had not heard of the scheme and 8% said they would like to use it but are ineligible. 62% of firms said they did not intend to use grants for employers who take on trainees and 65% of firms said they did not intend to access grants for those who hire apprentices. Our previous research has shown that just 12% of firms are planning to recruit staff this quarter.
20% of respondents said they would like to make use of the targeted VAT cut for certain businesses but that they were ineligible, indicating that some businesses think the scope of the scheme is too narrow.
Reducing the cost of employment
BCC continues to call on government to reduce the overall cost burden on firms to protect business and preserve as many jobs as possible in the coming months. The leading business organisation has called for 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. The latter could save businesses around £500 per job.
Commenting on the findings, BCC Co-Executive Director Claire Walker said:
“Business communities continue to face significant operational challenges, with a prolonged period of reduced sales and cashflow meaning many firms are showing signs of distress.
“Expected usage of schemes announced in the Summer Statement is relatively low, indicating they do not provide the right kind of support for many businesses at this critical time and a rethink is needed.
“With confidence and demand not returning at the scale firms need, the government must take radical steps to slash the tax burden around employment to help companies pay valued staff. A major boost to the Employment Allowance, and an increase in the threshold for employers’ National Insurance contributions are needed now if he wants to help viable companies save jobs as the furlough scheme comes to an end.”
In a major investment to support one of Norfolk’s key industries, Council and business Leaders have agreed to fund a £2.225m Tourism Sector Support Package from the Norfolk Strategic Fund. The project, led by Norfolk County Council in partnership with all seven district councils and Visit East of England, is being put in place to help the tourism sector to recover from the impact of COVID-19.
The project aims to make Norfolk as safe as possible for both visitors to the county and local residents. Funding will be allocated to each District Council and to Visit East of England and will be used to help create a quality visitor experience whilst maintaining key Public Health messages to ensure we continue to keep Covid-19 figures as low as possible.
Cllr Graham Plant; Deputy Leader of Norfolk County Council said; “The visitor economy in Norfolk is worth £3.25bn a year and provides nearly 70,000 jobs in the county. With businesses forced to stop trading just before Easter – the start to the season – it has been amongst the hardest hit industries in Norfolk This package of funding will provide vitally-needed support to those businesses that Covid-19 may have had a devastating impact on. I hope this will help to restart the industry safely and our businesses will experience a safe and successful Summer.”
The package will support the ongoing work being undertaken at a regional and national level with VisitBritain and VisitEngland in seeking to become a Tourism Zone and to develop a sustainable, year-round visitor offer. Immediate activity will include improving the presentation, cleanliness and hygiene of key locations and communication with visitors in advance and, for example through marshalling. A small grants programme is being developed for businesses to support the costs of adapting to the ‘new normal’ and to make the changes needed to extend the season.
Intelligence from the sector reveals the deep impact of lockdown, with high levels of redundancies and business failure projected. This high impact fund is designed to support the Norfolk Recovery Plan and complement the Visitor Economy Recovery Plan developed by Visit East of England, local authorities and New Anglia Local Enterprise Partnership which was launched last week.
Pete Waters: Visit East of England: “This initiative is exactly what the industry needs as it seeks to get back on its feet. It is hugely important as businesses reopen that visitors and residents feel safe and are reassured. A second spike and lockdown would end Norfolk tourism in 2020 and exacerbate what is already a precarious position.”
Chris Starkie / Doug Field: New Anglia Local Enterprise Partnership: “This financial package for the hugely-important tourism sector in Norfolk is very welcome and complements the Tourism Recovery Plan which was developed with Visit East of England and all local authorities and published this week.”
Andrew Stokes: VisitEngland: “It is great to see this collaboration across the industry to developing a recovery plan for tourism, working together locally and nationally will ensure success and get tourism in the east of England on the road to recovery.”
Cllr Margaret Dewsbury: Norfolk County Council: “Working with Visit East of England, Visit Norfolk, local authorities and New Anglia LEP, and ensuring we follow Government guidelines and VisitBritain messaging, this demonstrates the level of joined-up thinking we are applying to helping tourism recover post-pandemic. The level of engagement and collaboration has never been greater, and we hope to see that continue in the future.”
The further easing of coronavirus restrictions in England – due to come in this weekend – has been postponed for at least two weeks, amid concerns over an increase in coronavirus cases.
Casinos and bowling alleys will remain shut, with Boris Johnson saying it was time to “squeeze the brake pedal”. Face coverings will be mandatory in more indoor settings, such as cinemas and people attending places of worship will also be among those required to wear face coverings, in a change that will be applied from next weekend.
The government’s rethink came in following new restrictions for some people in parts of northern England following a spike in virus cases.
The prime minister said progress against coronavirus continues, with the daily and weekly number of deaths falling, but warned that some European countries are “struggling” to control it – the UK must be ready to react.
Mr Johnson said planned reopenings for 1 August would be delayed for at least a fortnight. That means venues such as casinos, bowling alleys, and skating rinks must remain closed until 15 August.
Indoor performances will also not resume, pilots of larger gatherings in sports venues and conference centres will not take place, and wedding receptions of up to 30 people will not be permitted.
Separately, face coverings will be compulsory in more indoor settings where people are likely to come into contact with people they do not know, such as museums and places of worship, from next weekend. They are already required in shops and indoor transport hubs.
The prime minister said the rules for face coverings would become enforceable in law from 8 August.
Commenting on the Prime Minister’s announcement that the government will introduce new local restrictions and postpone the planned re-opening for some business from August 1st , Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:
“Whilst tackling the public health emergency must be the priority, these announcements – made at short notice – will be a hammer blow to the Norfolk business and consumer confidence at a time when many firms were just starting to get back on their feet.
“The local business community needs as much clarity as possible from government if they are to plan ahead and rebuild their operations in the coming months. Ministers must also consider extending support to all firms, many of whom will be forced to close for an even more prolonged period, as well as targeted measures to help businesses placed under localised lockdowns.”
The UK left the European Union on 31st January 2020, and the transition period comes to an end in December this year. It is vital that businesses take action now to get ready for a new border operating environment from 1st January 2021.
Until the new border operating model was published on 12th July, we could only speculate on how goods would be controlled at our borders once we left the EU. It’s now clear – and the new model brings this into stark reality – that businesses need to prepare for a significantly higher level of customs declarations and associated administration. It candidly states “customs declarations are complicated”.
Declaration volumes will grow from 55 million now, to almost 300 million next year. The cost to business is estimated at around £7bn per annum, and the customs intermediary market lacks the necessary capacity to deal with the increase.
The detail
New border procedures for importing and exporting goods to and from the EU will be in place. Traders importing ‘standard goods’ – covering everything from clothes to electronics – will need to prepare for new customs paperwork. You will need to keep specific records of imported goods and you can opt to take up to six months to submit a full customs declarations for goods arriving from the EU.
Taxes will need to be paid on all imports, but payments can be deferred for up to six months until July. This will help trader cash flow until the end of 2021, but only if you or your agent have the correct approvals in place to use simplified procedures. Full customs requirements will apply to controlled goods from 1st January 2021 whether they arrive from the EU or elsewhere.
Businesses will be able to account for VAT on goods imports using Postponed VAT Accounting from the start of the new year. This means that once the staged introduction period ends, payment of VAT due on imported goods can be delayed until the next VAT return.
What does this mean for business?
Despite the much needed clarity on customs procedures, and a welcome delay through staged introduction of full customs controls, big challenges remain for most businesses. Declarations volumes will increase, costs will rise, traders need to skill up to deal with new procedures and time is incredibly short.
Companies trading across the globe will need to make a choice. Should they take advantage of the staged introduction of measures for EU imports and gain a cashflow advantage through delayed duty and VAT payments? Or, stick with the systems and processes they already know, and use the newly introduced postponed VAT accounting and guarantee free deferment accounts to delay border taxes by up to six months? Whatever you decide, businesses that export and import goods have change coming and it’s inevitable.
The wise amongst you will wake up to change and plan your level of readiness. There is much to do and qualified and compliance led customs experts are becoming a rare commodity.
As a business you need to decide how you are going to handle your imports and exports. Many businesses already use a freight forwarder to clear their goods across borders and we would recommend that you talk to your freight forwarder as soon as possible to see what you need to do for January 2021.
Alternatively, our expert team at Chamber Customs, our international trade training programmes and our overseas connections make Chamber Customs an ideal customs partner. As your business gets ready for the end of the transition period, our customs agents are ready to help you clear your goods at the border. Give us a call to arrange a chat, Norfolk Chambers and the Chamber network is here to support you and to help you to trade with confidence.
For more information, please contact our International Trade Manager, Julie Austin on 01603 729 706 or email: export@norfolkchambers.co.uk
Norfolk County Council have released their latest economic report for January 2020 to June 2020. The report highlighted: Employment levels in Norfolk has increased by 2.1% from the same time last year, with Norfolk performing better than the national level (77.5% against 75.8%). The business birth rate for Norfolk has decreased steadily from 10.9% to 9.9% in the 5 year period between 2014 and 2018. Norfolk County Councl have successfully secured funding for a 2-year pilot project designed to increase applications to innovation funding streams. The IGFP project will work with existing business advice partners to address longstanding, low application rates from Norfolk and Suffolk based organisations to Innovate UK and other national innovation funds. The Business Secretary (Alok Sharma) published his long awaited decision on the Norfolk Vanguard Offshore Wind Farm on 1 July 2020, issuing a development consent order (DCO) for the offshore project and the onshore grid connection works/infrastructure. A new team is now in place to support apprenticeships across Norfolk. Sophie Allport and Simon Kenny (Apprenticeships Officers) joined in December 2019 with Katy Dorman (Strategy Manager) joining in February 2020. For full details of the latest economic intelligence report click here.
“Abrupt changes to quarantine measures will be yet another hammer blow for the fragile travel and tourism industries, both here in the UK and overseas.
“Firms will now have to manage the effects of this unexpected change as returning staff have to quarantine upon their return to the UK. Support measures should be extended to help firms and their employees manage the additional uncertainty generated by this and other government decisions.
“Businesses will be asking why Spain was on the safe list on Friday, only to be taken off it on Saturday. Changes to quarantine rules must be communicated clearly by Government with as much notice as possible. Continued improvement of the test and trace programme, alongside co-ordinated checks at departure and arrival airports, could alleviate the need for many of these restrictions.”
We are running a series of FREE virtual events with the help and expertise of our members, do you have the knowledge you would like to impart and think would be useful for businesses during this period.
The virtual events will be 30 – 90 minutes long and will focus on key topics or subjects relevant to businesses of different sectors. These can focus on a particular software, how to work remotely, how to motivate your team or the rise of e-commerce for particular markets for example.
If you’re interested in delivering a virtual event with Norfolk Chambers of Commerce, please complete the online form to register your interest. We will be in touch to discuss your virtual event and arrange a date and time for this to take place.
Norfolk County Council has today (Monday 27 July) launched a public consultation which asks for people’s views on how it could best support people to walk, cycle and use public transport in the area to the west of Norwich.
The consultation is part of the council’s Norwich Western Link project, which would see a new 3.8 mile dual carriageway road created between the western end of Broadland Northway and the A47. Together with the planned dualling of the A47 between North Tuddenham and Easton, the new road would create a fully dualled orbital route around Norwich, reducing the need for traffic to enter the city and alleviating local transport issues to the west of Norwich.
One of the Norwich Western Link’s objectives is to encourage and support walking, cycling and public transport use. While the traffic relief the new road will provide on the existing road network will help with this, the council wants to add to these benefits by bringing in additional measures. These could include new facilities and connections specifically for walkers, cyclists and horse riders, and giving cyclists greater priority on roads that link communities to key employment, educational and leisure locations.
The consultation will also gauge interest in a potential new ‘Western Arc’ bus service that could link the western suburbs of Norwich to places including Longwater Retail Park, the Norfolk and Norwich University Hospital and the University of East Anglia without the need to travel into central Norwich to change buses.
Another important element of the consultation is the council’s proposals for the four local roads that are crossed by the planned route of the Norwich Western Link as well as additional Public Rights of Way in the vicinity of the new road. [For more information on the proposals for the local roads, please see notes to editors]
Councillor Martin Wilby, Cabinet Member for Highways and Infrastructure at Norfolk County Council, said: “The Norwich Western Link will significantly change travel to the west of Norwich and we’ve been looking at the opportunities this creates to help people get where they want to go on foot, by bike or on the bus. This is an important part of what we’re setting out to achieve with the project and it has the potential to have a really positive impact on health and quality of life, as well as making it easier for people to get to schools, colleges, health facilities and places of employment.
“Local parish councils, walking and cycling groups, bus companies and others have fed into our work to come up with some proposals that we think could be effective at giving people more travel options. We now want to see what everyone else thinks, including those who currently use these routes or would want to in the future.”
The Local Access Consultation will run for eight weeks until Sunday 20 September. People can view information on the proposals and respond to the consultation online via the Norfolk County Council website at www.norfolk.gov.uk/nwl. People can also request a consultation brochure and paper questionnaire are posted to them by ringing 0344 800 8020 or emailing norwichwesternlink@norfolk.gov.uk. The completed questionnaire can then be returned to a freepost address.
In accordance with COVID-19 guidance, no local consultation events will be held, however people will still be able to discuss the consultation proposals with staff involved in the project via phone or internet calls during the consultation period. People can use the email and telephone contact details above to book an appointment to speak with members of the project team, with daytime and evening slots available.
Information gathered from this consultation will help inform design decisions and proposals for the project. A further public consultation on other elements of the project is due to be held next year ahead of the planning application being submitted. Subject to securing funding and completing necessary statutory processes, the Norwich Western Link is scheduled to start construction in 2023 and be open to traffic in 2025.
From today (24 July 2020) in England, you must by law wear a face covering in shops, supermarkets, indoor shopping centres, banks, building societies and post offices.
The UK Government have released full guidance on face coverings, including; where you must wear them, where you do not have to wear them, how to wear them, buying and selling face coverings, making your own face coverings, and maintaining and disposing of face coverings.