Chamber News

The British Chambers of Commerce’s Quarterly Economic Survey reveals that the UK ended 2019 in stagnation, amid long-term uncertainty, rising business costs and a slowing global economy. 

The latest results of the survey – which is the largest of its kind in the UK and a leading indicator of GDP growth – found protracted weakness across most indicators of economic health in the final quarter of 2019.

• Norfolk’s service sector indicators worsen and remain well below their historic average
• Norfolk indicators for manufacturing cashflow, home orders, and investment continue to worsen and are firmly in negative territory

The service sector, which accounts for almost 80% of UK economic output, saw a large majority of its key indicators worsen compared to Q3 2019. These indicators remain well below their historic average. 

The balance of manufacturers reporting a rise in domestic and export sales fell drastically. However, the balance of manufacturers reporting increased export orders rose from the previous negative position in Q3.

Investment intentions remain weak by historic standards – the balance of local firms in the manufacturing sector that plan to increase investment in plant and machinery dropped back to a negative position – whilst the fall was not as great, both the National and the East of England results also fell.

Cashflow – a key indicator of the health of businesses – Nationally showed a slightly improved result, but remained very weak across both manufacturing and service sectors.  Locally, both the Norfolk and the East of England service and manufacturing sectors reported decreased cashflow (-6 and -10 respectively in Norfolk and -10 and -4 in the East of England).

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

“The UK economy limped through the final quarter of 2019.

“The fourth quarter was characterised by a broad-based slowdown in the dominant services sector with all key indicators weakening in the quarter, amid sluggish household expenditure and crippling cost pressures. 

“Despite some improvements, indicators in the manufacturing sector remain very weak by historic standards, and with indicators for domestic and export orders continuing to contract, the near-term outlook for the sector remains challenging.

“A faltering service sector together with listless manufacturing activity points to a downbeat outturn for UK GDP growth in the fourth quarter of 2019”.

Responding to the findings, Nova Fairbank, head of Policy for Norfolk Chambers of Commerce said: 

“The end of political deadlock at Westminster must also bring action to renew business confidence and tackle the prolonged stagnation that’s affecting so much of the UK economy. The government must use its newfound majority to take big decisions to stimulate growth. 

“We would like to see ministers take action to reduce up-front costs, move key infrastructure projects forward, and to help businesses on training, they’ll be rewarded with increased investment.

“However, they also must move quickly over the coming weeks to ensure that Brexit is done right. A clear future trading relationship with the EU is also crucial to many firms’ future investment and growth prospects.”

Key Norfolk findings in the Q4 2019 survey:

Services sector:

• The balance of firms reporting increased domestic sales fell from +8 in Q3 2019 to -7. Those reporting increased domestic orders fell from 0 to -12.
• The balance of firms reporting improved export sales dropped from -5 to -12. Those reporting increased export orders fell from -5 to -31, and all-time low.
• The balance of firms reporting improved cashflow fell from +2 to -6
• The balance of firms looking to increase investment in plant and machinery remained at -14 but rose slightly from +7 to +9 for training
• The balance of firms confident that turnover and profitability will improve over the next year increased from +10 to +26 for turnover and from -5 to -4 for profitability.  Despite these slight improvements, the figures still remain weak.

Manufacturing sector:

• The balance of firms reporting increased domestic sales fell from 0 in Q3 2019, to -20
• While those reporting increased domestic orders continued to fall from -11 to -20
• The balance of firms reporting improved export sales rose from -6 to +11
• The balance of firms reporting increased export orders improved considerably from -24 to 0
• The balance of firms reporting improved cashflow fell deeper into negative territory from -5 in Q3 to -20 in Q4
• The balance of firms increasing investment in plant/machinery fell from +10 to -10 and investment in training rose from +10 to +30
• The balance of firms confident that turnover and profitability will increase in the next 12 months fell from +38 to +10 for turnover and from +14 to 0 for profitability. This is still much lower than the post-recession average.

Commenting on the Queen’s Speech today, Dr Adam Marshall, Director General of the British Chambers of Commerce, said: “The government’s legislative plans will give businesses some encouragement that Westminster is finally starting to think about growth and investment again, but the real test will be in the detail that follows.  “From now on, soundbites can be no substitute for the daily grind of good government. Attention must return to the details that matter, and the government must work hand-in-glove with our business communities if it wants to translate electoral success into economic success.” On Brexit “Campaign slogans need to give way to real detail on our future relationship with our largest and nearest trading partner.  Companies across the UK want clear answers to their many unanswered questions, and a guarantee that costly ‘cliff edges’ will be avoided. On trade “The forthcoming Trade Bill must deliver an ambitious international trading framework that supports prosperity post-Brexit. “Businesses need clarity on global trading relationships and the time to implement the practical changes necessary to thrive under an independent trading policy. “We need to see substantial investment in trade promotion activity that connects businesses with new markets to drive export growth. This will help kickstart a sluggish economy and boost business confidence.” On people and skills “At a time of critical recruitment shortages, an Immigration Bill that allows businesses throughout the UK to recruit staff at all skill levels cannot be delivered soon enough.  Government should waste no time in providing detail on the proposed points-based system, and must not lumber firms with costly delays or red tape. “As the world of work continues to change it is encouraging to hear the government championing flexible working. Any legal changes should only come after extensive consultation with firms of all sizes to ensure new measures work for employers and employees alike.” On infrastructure “Businesses want to see a fully integrated and modern infrastructure network. The government now needs to get on and deliver. This must include completing all phases of HS2, Northern Powerhouse Rail and the Lower Thames Crossing as well as ensuring local areas have the funding they need to address their priorities.” On business investments and costs “UK business investment has fallen for the longest period in almost two decades. Many will welcome the short-term relief provided by further discounts to business rates, but the government should waste no time in setting up a comprehensive review of this outdated system.  “Looking ahead to the Budget, businesses of all sizes need to see a package of fiscal measures to alleviate the burden of high up-front costs and stimulate investment. This should be accompanied by a moratorium on all new up-front costs for businesses for the duration of this Parliament.” On the environment “Together with business communities, the government and devolved administrations should build a plan for how we will work across the four nations to reach net-zero by 2050, while also maintaining security of energy supply and stable prices for businesses and consumers.” Ends  

We will be closed from 5pm on Monday 23rd December 2019 and will open again at 8:30am on Thursday 2nd January 2020.

We wish you all a very Merry Christmas and a Happy New Year and we will see you in 2020 to continue on our mission of connecting, supporting and giving voice to every business in Norfolk!

Thank you to all of our members for making 2019 such a brilliant year for us, and for Norfolk business! There have been so many exciting things going on this year – here are a few of our highlights:

Launch of The Big Debate 2019

Royal Norfolk Show 2019

Talking Tech 2019

The B2B Exhibition 2019 debuts at the Norfolk Showground

Chambers members take home gold at the Norfolk Business Awards 2019

Norfolk represented at the national Chamber Business Awards

Here’s to 2020 and a brand new decade!

Congratulating the Prime Minister on his election victory, as reported at 7.00am, Nova Fairbank, Head of Policy for Norfolk Chambers said:

“Restoring business, investor and consumer confidence – and firing up the economy – must now be the Prime Minister’s top priority.  

“Campaign slogans must give way to a renewed focus on the details that matter. The Norfolk business community needs to see swift, decisive action to avoid a messy and disorderly exit from the EU and to tackle the barriers holding back investment and growth here in Norfolk and the rest of the UK.” 

Businesses’ priorities for the new government include:

• Avoiding a no-deal exit from the EU and delivering a smooth transition giving firms time to prepare.
• Acting rapidly to reform business rates and replace them with a fairer system.
• Pressing ahead with improvements to transport infrastructure including A47 improvements, and rail infrastructure improvements, as well as additional capacity at Heathrow with regional connectivity.
• Investing in our skills base and reforming the Apprenticeships Levy so that more small firms can access high-quality training locally, at affordable cost.
• Delivering a sensible immigration system that gives firms access to essential overseas talent at all levels. 

2020 AND BEYOND

We’re pleased to announce that the British Chambers of Commerce Annual Conference 2020 will take place on Thursday 5 March 2020 at the QEII Conference Centre in London.

The conference will bring together the UK Chamber Network and the wider business community for a day of inspiring keynote speeches and stimulating panel debates, focussing on the issues most relevant to UK businesses.

Join a high-level audience of senior politicians, decision-makers, policy makers and the Chamber Network to discuss some of the key issues affecting Britain’s business community, with key themes including:

•  People – Creating workplaces for the future
•  Infrastructure – Meeting the infrastructure challenges of tomorrow
•  Trade – Keeping Britain open for business

https://www.britishchambers.org.uk/events/annual-conference

Notre Dame High School are looking for volunteers to talk to all year groups about their career paths.

How a subject led to my career involves the employer talking about how subjects they studied at school are now used in their everyday working life. There are slots available all week from Monday 2nd to Friday 6th March to inspire the next generation.

For more information contact Madeleine Matthews – madeleine.matthews@newanglia.co.uk

Are you available Tuesday 10th March 13:00 – 15:00 for a Speed Interview Workshop?

This is a short ‘speed dating’ exercise where Year 10 and 11 students chat to employers for 5mins at a time about their role, industry, skills etc. 

Hooper Lane Short Stay School are looking for employer volunteers from various industries and backgrounds to come along and chat to students. 

If you’d like to be involved please contact Denise Anderson – denise.anderson@sssfn.org.uk for more information.

Are you available Tuesday 10th March 08:30 – 12:30 for a Speed Interview Workshop?

This is a short ‘speed dating’ exercise where Year 10 and 11 students chat to employers for 5mins at a time about their role, industry, skills etc. 

Locklsey Short Stay School are looking for employer volunteers from various industries and backgrounds to come along and chat to students. 

If you’d like to be involved please contact Denise Anderson – denise.anderson@sssfn.org.uk for more information.

Locksley Short Stay School are looking for volunteers to get involved with their Careers Carousel Friday 6th March, 08:30 – 12:30.

We are looking for 4-5 employer volunteers to have a ‘stand’ at Locksley Short Stay Schools’ Careers Carousel morning. You will be demonstrating a practical element of your job role (previously this has included hairdressers, waiters, engineers, graphic designers etc.) to Year 10 and 11 students.

If you’d like to be involved please contact Denise Anderson – denise.anderson@sssfn.org.uk

Tuesday 3rd February, All Day, Sewell Park Academy

Sewell Park Academy would like to invite media and journalism professionals to their Enterprise Morning BBC Schools Report.

Year 7 students will be working in small teams in the ‘newsroom’ writing a news article, blog, or recording a radio news report. Teams will then attend a press meeting where staff will have a debate on the subjects raised by the students.

We are looking for businesses that are connected to media and journalism to support the event and provide ‘real’ world experience. 

To get involved contact Natalie Davies – n.davies@sewellpark.org

On Tuesday 3rd March City Academy are holding an employer “hot seat” activity and would love for you to be involved.

This is a great  exercise where Year 9 students chat to employers for 5 mins at a time about their role, industry, skills, and career journey. We’re looking for employer volunteers from various industries and backgrounds to come along and take to the hot seat!

If you’d like to be involved please contact Madeleine Matthews – madeleine.matthews@newanglia.co.uk

Monday 24th – Friday 28th February.

Can you offer a week’s work experience to a Year 10 student to help them gain the skills they need to be work ready?

Having someone for work experience is a great opportunity to show them what it’s really like to have a job in your sector, City Academy are looking for placements to start Monday 24th February.

if you’d like to find out more about the process please get in touch with Madeleine Matthews – madeleine.matthews@newanglia.co.uk