Chamber News

The Future Fund – announced by the Chancellor of the Exchequer on 20th April – is open for applications since Wednesday 20th May 2020. 

The Future Fund uses an online platform for applications, whichpublishes its set of standard terms and eligibility criteria for borrowers, investors and solicitors to view. 

The new Future Fund will support innovative UK companies with good potential, that are essential in ensuring the UK retains its world leading position in science, innovation and technology. These companies typically rely on equity investment and are currently affected by Covid-19.

Until now these companies have been unable to access other government business support programmes because they are either pre-revenue or pre-profit. The financing supports companies facing a significantly extended length of time between funding rounds, due to the impact of the current economic situation.

Developed by government and delivered by the British Business Bank, the Future Fund will help these companies through the current period of economic disruption and recovery, so they are able to continue their growth trajectory and reach their full economic potential.

How it works:

• Open for applications since Wednesday 20th May.
• Scheme operates on a commercial basis to deliver an initial commitment of £250m of new government funding.
• Financing will be unlocked by additional third-party investment on a match funded basis.
• Applications submitted via an online platform based on a set of standard terms and eligibility criteria.

Eligibility criteria:

• Companies must be UK-incorporated and if part of a corporate group, only the parent company is eligible.
• Companies in receipt of the loans will be required to have previously raised at least £250k in equity investment from third party investors in the last five years.
• Only eligible companies that can attract at least 50% of third-party investment will receive funding.
• Companies cannot have any of their shares traded on a regulated market, multilateral trading facility or other listing venue.
• The company must have been incorporated on or before 31st December 2019.
• At least one of the following must be true for the company:
• Half or more employees are UK based;
• Half or more revenues are from UK sales.

For more information on the Future Fund eligibility criteria and applications process, download the factsheet or visit the Future Fund webpages here.

The Future Fund online platform is now open for applications.

The UK government has provided guidance for businesses on working safely during Coronavirus. In consultation with industry, this guidance has been produced to help ensure workplaces are as safe as possible.

5 Steps to Working safely

There are 8 guides which cover a range of different types of work:

1. Construction and other outdoor work
2. Factories, plants and warehouses
3. Labs and research facilities
4. Offices and contact centres
5. Working in other people’s homes
6. Restaurants offering takeaway or delivery
7. Shops
8. Vehicles

A glazing and locks services firm has carried out a courtesy ‘disinfectant clean’ of the offices of Norfolk Chambers of Commerce to prepare them for the return of staff.

New Chambers member Evander – which has its headquarters in Norwich – joined the organisation at the start of the year as part of a plan to boost its corporate social responsibility activity and get closer to the communities it operates in.

Matt Smith, Head of HR at Evander, advised that the aim was to reassure the Chambers team that they would be returning to a safe environment after the coronavirus lockdown. He said:

“During these difficult times, we have shared with them some of the feedback we’ve received from our clients and customers around the challenges and nervousness colleagues might have in returning to their workplaces over the coming weeks and months,” he said. “The Norfolk Chambers provide valued support and services for local businesses, which will be key going forward as we move into an eased phase of lockdown and businesses start to re-open and begin operating again.”

Commenting on the support from a new Chambers member, Chris Sargisson, Chief Executive of Norfolk Chambers said:

“We’d like to thank Evander for their support and we are very happy that our offices will be safe and ready for our staff to return to work at the appropriate time.”

Evander has put in place numerous initiatives to ensure safe working at its offices on Broadland Business Park and at its depots across the UK. Click here to read more about their specialised services. 

Results from the latest British Chambers of Commerce Coronavirus Business Impact Tracker reveal that the majority of firms surveyed are in a position to partially restart operations as lockdown restrictions are eased: 

• 83% of respondents report that they know some or a lot of details about government guidance on working safely
• 37% of firms report they can implement the guidance and fully restart, and 45% report they can partially restart
• 85% of respondents have received payment from furlough scheme

The leading business organisation’s weekly tracker poll, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 609 responses. 

The eighth tranche of polling was conducted from 13 – 15 May after the Job Retention Scheme was extended until the end of October.  

Restarting operations 

Encouragingly, the majority of respondents (83%) reported high levels of awareness of the government’s new workplace guidance as sectors of the economy begin to reopen gradually. 

Just over a third (37%) of respondents said that they could fully restart operations by implementing the government guidance, while 45% said they could do so partially. However due to social distancing guidelines, it is likely that many firms will see a reduction in demand and will not be able to restart at full capacity.  

10% of respondents did not agree that they would be ready to implement guidance and restart operations, mainly citing social distancing as difficult.  

Businesses furloughing employees

Results from this week’s poll continue to show that majority of employers (around 70%) have furloughed a portion of their staff. Cash-poor firms, with less than three months’ cash in reserve, remain more likely to furlough portions of their workforce. 

The number of respondents that have submitted a claim to HMRC and received payment is around 85% – a significant increase from last week (73%) and the week before (59%). 

The furlough scheme continues to prevent firms having to make redundancies, with very few respondents making any.  Employers have welcomed the extension of the furlough scheme in some form until the end of October, and it will be critical to introduce high levels of flexibility if it is to phase employees back into work.  

Bounce Back Loans 

This week’s survey reports encouraging take up of the government’s Bounce Back Loan Scheme, with over half (54%) of respondents who attempted to secure a loan reporting success, which is an increase compared to last week (26%).  

Just over a third (38%) of respondents were awaiting a decision on a loan. This is a decreased from last week (58%).   

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

“While businesses have welcomed the publication of official guidance on how they can reopen premises and restart operations, some sectors still require greater clarity from the government on when and how they will be allowed to do so. This is particularly the case for hospitality and leisure companies, which will not reopen before July at the earliest.  

“Companies at all levels of readiness to restart, of all sizes, and in every part of the UK will need sustained government support as they navigate the ‘new normal’ with reduced demand and restrictions still in place. Many support schemes will need to be adapted and updated, but must not be withdrawn prematurely.” 

On the Coronavirus Job Retention Scheme:

“HMRC and the Treasury deserve enormous credit for the successful rolling out of the Job Retention Scheme, which is helping huge numbers of businesses to protect livelihoods.  

“But the message from firms on the ground is clear: the furlough scheme must become more flexible if it is to help companies bring employees back to work successfully. Furlough has helped businesses to avoid millions of immediate redundancies – and now must be adapted to help firms keep as many of these jobs as possible as they restructure and reconfigure post-lockdown.”  

On the Bounce Back Loan Scheme: 

“Our results show that the Bounce Back Loan Scheme is continuing its encouraging start. Yet there are many firms out there who are not in a position to take on debt, so the government must consider further expansion of grant schemes to ensure that as many businesses as possible get access to the support they need.” 

Employers will be able to make claims through the Coronavirus Statutory Sick Pay Rebate Scheme from 26 May.

A new online service will be launched on 26 May for small and medium-sized employers to recover Statutory Sick Pay (SSP) payments they have made to their employees, the government announced today (19 May 2020).

The Coronavirus Statutory Sick Pay Rebate Scheme was announced at Budget as part of a package of support measures for businesses affected by the COVID-19 outbreak.

This scheme will allow small and medium-sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying coronavirus-related SSP.

Employers will be able to make their claims through a new online service from 26 May. This means they will receive repayments at the relevant rate of SSP that they have paid to current or former employees for eligible periods of sickness starting on or after 13 March 2020.

Tax agents will also be able to make claims on behalf of employers.

To prepare to make their claim, employers should keep records of all the SSP payments that they wish to claim from HMRC. You can read further guidance on checking whether you can claim back SSP paid to employees due to coronavirus (COVID-19) on GOV.UK

Join us next Tuesday 26th May and one of King’s Lynn’s most loved business leaders, Captain Fawcett, on our virtual online networking event 2 Hour Tuesday.

The marvelous Richard Finney will be speaking on Captain Fawcett’s journey during COVID-19, and all the things they have been getting up to.

Including, if you haven’t already seen, his latest Captain Fawcett and his Tales of Derring-do a short story delivered by the Captain himself on Youtube. You can find the first episode here.

The UK Global Tariff (UKGT) has been released today. UKGT will be the UK’s new most-favoured nation (MFN) tariff regime (replacing the EU’s Common External Tariff) on 1 January 2021, unless an exception applies. For example, the goods you’re importing:

• are from a developing country that pays less or no duty because it’s part of the Generalised Scheme of Preferences;
• are from a country that has a trade agreement with the UK; or
• have a relief or tariff suspension that’s operated by the UK.

Changes:

UKGT is broadly in line with EU tariff schedule, though it introduces a number of changes, including:

• removing tariffs on products which are used in UK production, not made in the UK or are a nuisance tariff of below 2%;
• rounding tariffs down (to the nearest 2% below 20%, 5% between 20-50%, and 10% for tariffs over 50%) and moving complex agricultural tariffs to a single percentage; and
• removing the EU’s Meursing table of tariffs to allow the scrapping of thousands of tariff variations on products.
• UKGT also removes tariffs on £30 billion worth of imports entering UK supply chains.

Continuity:

• tariffs on agricultural products such as lamb, beef, and poultry to be maintained;
• 10% tariff on cars to be maintained;
• tariffs for the vast majority of ceramic products to be maintained; and
• maintaining some tariffs which support imports from the world’s poorest countries who have preferential access to the UK market.

Coronavirus:

• Almost all pharmaceuticals and most medical devices (including ventilators) are tariff free in the UKGT.
• While some products used to fight Coronavirus maintain a tariff, the UK has introduced a temporary zero tariff rate on these products. This relief waives the tariff and VAT for PPE, medical devices, disinfectant and medical supplies from non-EU countries.

Key Takeaways:

• The UKGT is estimated to ensure that around 60% of trade will come into the UK tariff free on WTO terms or through existing preferential access from January 2021. Future trade agreements will increase this proportion.
• The UKGT will provide important leverage in future trade talks with EU, US, New Zealand, Japan and other key trading partners.
• The UKGT increases the importance of getting a trade deal with the EU to avoid an increase in business costs and a negative impact on the wider economy.

Commenting on the announcement of the UK Global Tariff, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“We look forward to hearing from the Norfolk business community to understand what the impact of this new tariff will have on their businesses and what challenges and opportunities those businesses are seeing going forwards.”

If you would like to comment on the new UKGT please contact nova.fairbank@norfolkchambers.co.uk

Norfolk Chambers recently surveyed the local business community to understand what challenges they were facing and how they were coping with the lockdown and potential easing of these measures. 

A cross-section of the business community responded and the results highlighted that 34% of businesses had concerns about implementing social distancing in their workplaces and 32% of businesses cited concerns over future business demand.

The results represented firms employing over 1,433 people between them.  When asked where their staff currently where, as a result of Covid-19, they advised that 29% were still operating within the workplace; 25% were working from home; and a further 34% had furloughed their staff.  Just 1% had had to make staff redundant, whilst 11% had terminated zero hours or contracted personnel.

When asked about gearing up and re-opening their premises, 54% of respondents said this could be done within 1 to 5 days, and 23% within 1 to 2 weeks.  A further 18% said they would need 3 weeks or more to be ready to open.

Other results showed:

• 26% had received a Small Business Grant
• 47% had deferred the Tax and VAT payments
• 18% had requested a business rates holiday
• 1% had successfully applied for and received a Coronavirus Business Interruption Loan
• 33% had applied for a Bounce Back Loan
• 7% of businesses were concerned about future cashflow

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

“Norfolk businesses are clearly concerned about implementing the social distancing measures.  As the lockdown is eased, clear guidance and information on what each business must do to ensure their workplace is safe, must be available.

“Norfolk Chambers welcomed the government’s recent announcement that the furlough scheme would be extended until the end of October.  However, business concerns around future demand highlights that a phased approach and lots of flexibility with the furlough scheme will be needed.  Businesses are facing the challenge of balancing between bringing staff back and having sufficient business demand to generate the income to pay them.”

Commenting on the extension of the Coronavirus Large Business Interruption Loan Scheme, including extending the lending limit to £200m, BCC Head of Economics Suren Thiru said:

“It is good to see the government continue to listen to business concerns and make improvements to existing schemes.

“These important changes could make a real difference to larger firms in particular and alongside the other lending support schemes will help ensure that more businesses of all sizes get access to the finance they need to help weather this unprecedented economic storm.”

As we all move into the next phase of the UK’s response to Coronavirus, the Rail Delivery Group has issued important guidance.

Only those who cannot work from home should be travelling to work, and where people do so, they should aim to avoid public transport if possible.

The railway in England will be gradually increasing services from today (Monday 18 May) and running longer trains in some places to cope with increasing demand. To maintain social distancing wherever possible, there will still only be space for as few as a tenth of the usual number of passengers.

In our region, Greater Anglia have advised that they will be running a timetable, similar to that operated on a Saturday but with  some variations to reflect weekday working patterns – please check their website for full information.

The Rail Delivery Group is asking the public to keep the trains for those who really need them by only travelling when there is no alternative. They are also asking employers to help by considering staggered start and finish times, which will enable people to avoid peak hours, and by actively encouraging people to drive, walk or cycle if possible.

Commenting on the guidance, Jonathan Denby Head of Corporate Affairs for Greater Anglia said:

“It’s important to reiterate that only essential journeys should be made and that we are asking those customers that do need to travel to observe social distancing, wherever possible. We will be doing everything we can to help customers do so, with extra signage, floor markings and announcements where practical, but we are also seeking support from customers to adhere to the guidance.  In addition, we are asking customers to consider starting or finishing work earlier or later, so that not everyone is travelling at the same time, and to buy tickets online wherever practical (and if that’s not possible to please use contactless payment). The Government is also advising people to wear a face covering when using public transport.

“Our top priority is that customers and staff can travel safely while the coronavirus outbreak persists. We are continuing to pay particular attention to cleaning high contact areas on our trains and stations such as push buttons, door handles and grab rails. We have also been using some “fogging guns”, which are used for spraying and sanitising large areas.  They use cleaning chemicals which kill different types of viruses, and are a good way to clean areas which are difficult to reach, quickly and efficiently. The machines can be used to clean trains at any depot, station or train stabling point on the Greater Anglia network. They can also be used, if necessary, in waiting rooms, offices, mess rooms or in other railway buildings.  

As we have been doing throughout the lockdown period, we will be monitoring customer numbers and the operation of the revised timetable, to see if we need to make any adjustments.” 

The Chambers Quarterly Economic Survey (QES), the UK’s largest independent business survey, is open today (Monday 18 May) for three weeks.

Last week, the Chancellor, Rishi Sunak, announced that the UK was officially in recession and the Bank of England advised that it believes that this will be the sharpest recession on record. 

It is therefore more important than ever that both the Chancellor and the Bank of England hear from businesses just like yours.   How has your business performed in the last quarter, what do you see as the challenges and opportunities going forwards?  How confident are you about your financial position, your workforce and your future orderbook?

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

Take Part Now.

A project that would help complete a dual carriageway orbital route around Norwich and relieve traffic congestion on local roads has been approved by the Department for Transport (DfT) late last week to continue through the next stages of its development.

The Norwich Western Link is a new 3.8 mile dual carriageway road that would connect the western end of Broadland Northway (formerly the NDR) to the A47 trunk road. Norfolk County Council submitted a strategic outline business case for the project last year, which set out why a Norwich Western Link is needed and evidenced the strong support that exists for the link road to be created.

This business case has now been approved by central government, meaning the Norwich Western Link has been given conditional entry into DfT’s ‘Large Local Majors’ project funding programme. As well as providing more than £1 million of development funding for the project in the 2020/21 financial year, today’s announcement gives the council the green light to proceed to the next stage of the national process. This will see a further, more detailed business case submitted for consideration which, if approved, would unlock up to 85% of the total estimated £153 million cost of the project.

Cllr Martin Wilby, Cabinet Member for Highways and Infrastructure at Norfolk County Council, said:

“This announcement and funding commitment is really positive news from the Department of Transport. Investing in infrastructure improvements will be a vital part of supporting Norfolk’s economy to recover from the effects of the coronavirus pandemic, with the provision of good transport links critical to many of our major industries such as tourism, agriculture and manufacturing and engineering. So this news is particularly welcome right now.”  

As part of the Norwich Western Link project, the council is committed to supporting people to walk, cycle and use public transport in the local area. Taking vehicles off small rural roads and in residential areas will help with this, but a range of complementary transport measures is also being developed with input from local parish councils, walking and cycling groups, bus companies and others.

The County Council is also currently finalising proposals to secure a multimillion-pound package of funding from DfT’s Transforming Cities Fund for Norwich. As a result, work would get underway later this year on a programme of works which aims to support people to access areas of employment and education via a range of transport options. Work is also underway to ensure Norfolk can make effective use of its yet-to-be-confirmed share of the £2 billion of funding announced by central government last weekend to install short-term measures to help people to travel on foot or by bike while social distancing restrictions remain in place.

Subject to securing funding and completing necessary statutory processes, the Norwich Western Link is scheduled to open to traffic in 2025. Together with the Highways England A47 dualling between North Tuddenham and Easton, due to get underway in early 2022, this would create a fully dual carriageway orbital route around Norwich.

Commenting on the DfT approval, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“Norfolk Chambers are really pleased that Norwich Western Link has received government backing.  This is the final piece of the puzzle to ensure that Norfolk has infrastructure that will meet our growth ambitions.  It will create stronger and more effective links to the Midlands and the North and will help Norfolk businesses to thrive and deliver greater economic growth and jobs.

“The Norwich Western Link will facilitate easier access to both Norwich airport and Great Yarmouth port.  It will further help to improve journeys into and around the west of the city, support potential housing and jobs growth; provide the infrastructure to manage the additional traffic this will create, and improve quality of life for people living in the area.”