Chamber News

The latest Quarterly Recruitment Outlook from the British Chambers of Commerce, in partnership with Totaljobs, finds that recruitment intentions strengthened in the second quarter of 2019, while difficulties finding suitable staff eased, but remain high by historic standards.

• 60% of UK businesses attempted to recruit new hires in the previous three months, an increase from 53% in Q1.
• 64% of businesses struggled to find the right people when recruiting in Q2 – a drop from 73% in Q1.
• 30% of employers expect to increase their workforce in the next three months, showing intentions to hire remain strong.

Based on the responses of over 6,500 businesses of all sizes and sectors, including those from Norfolk, the report indicates that demand for labour remained strong in the second quarter, despite a subdued economy. The proportion of UK firms attempting to recruit in the second quarter of the year rose from 53% to 60%. 

The percentage of firms reporting difficulties hiring the right staff fell from 73% to 64%, although the figure remains high by historic standards and stands at critical levels in a number of sectors such as construction (77%) and hotels and catering (74%). 

The results show 79% of hotel and catering respondents had attempted to recruit in quarter, reflecting seasonal demand (up from 60% in Q1), although the vast majority of those (77%) were for part-time roles. The transport and distribution firms (72%) also recorded a strong appetite for labour, while ongoing issues in the retail sector were indicated in more subdued recruitment numbers (50%).

Totaljobs data shows that 147,000 applications were made to hospitality roles in Q2, and a further 1.7 million made to transport and distribution vacancies on the platform. In all, 780,000 jobs were advertised on Totaljobs in Q2 2019, with an average of 17 applications for each role advertised.

Looking ahead, 30% of UK firms say they plan to increase their workforce in the next three months, with the construction industry reporting the highest proportion of firms (38%) looking to grow their staff. 

As the report indicates, the jobs market is showing its resilience, despite sluggish economic growth and ongoing uncertainty. However, the current scale of labour shortages can’t be sustained in the long-term. The fall in hiring difficulties this quarter is encouraging, but to achieve a prolonged decrease, the new government must put reform of the skills and training system at the top its agenda. BCC wants to see a coherent and long-term plan to stabilise the skills system, and for those struggling to hire locally, an efficient and cost-effective route to recruiting overseas workers at all skills levels.

Claire Walker, Co-Executive director at the British Chambers of Commerce (BCC), said:

“In the face of sluggish growth and political uncertainty, the jobs market has been a positive for the UK economy. The quarter saw a pick-up in attempts to recruit and an easing of recruitment difficulties, although levels are high by historic standards and remain a cause for concern.

“Demand for seasonal workers, many of whom have traditionally come from the European Union, highlights the importance of the new government quickly setting out a sensible post-Brexit immigration policy, that reflects the needs of different sectors and regions in the UK.

“The solution to plugging the UK’s skills gap in the long-term includes reforming the skills education and training system, and giving it time to bed-in. We look forward to working with the new administration to get the system working better for everyone and ensuring firms can access the skills they need to improve growth and productivity.

“To sustain the strength of the labour market, businesses also need clarity on how they will be able to manage their future workforce requirements in the years to come and broader certainty on economic conditions after October 31st.”

Patrick Wehrmann, CEO of Totaljobs, said:

“The labour market continues to weather economic uncertainty, with the vast majority of businesses showing a continued commitment to maintaining or increasing staff headcount. In fact, just 7% of employers expect their workforce to decrease as we head into Q3.

“Notably, while the figure remains high, the proportion of firms reporting a skills shortage has decreased – falling from 73% to 64% in just three months. However, with almost two-thirds of employers still struggling to find the talent their business needs to thrive, this thawing should not be considered as mission accomplished, but rather an opportunity to build upon.

“As a consequence of not only an increasing national living and minimum wage, but also a continued challenge to recruit, it is telling that Q2 2019 saw the fastest rise in real-wage growth in over three years, outpacing inflation and expert predictions. As employers look to attract their next hire, there is an opportunity for people possessing in-demand skills to make significant progress in their career and begin to realise their earning potential.

“In light of this, employers should be mindful of their employer value proposition, and ensure that while salaries remain competitive, they consider more than just pay as a solution to overcoming skills shortages.”

Norfolk County Council have released their latest economic intelligence report for quarter 2, April to June 2019.

The report highlighted:

• Norfolk’s labour market remained at healthy levels, with unemployment levels remaining below the national average
• Average house prices in Norfolk rose by 6% in 2018, but this remains below the national average
• Invest East programme opens for another round of funding applications in September 2019
• The Greater Norwich Infrastructure Plan was published

For full details of the latest economic intelligence report click here.

Norfolk Day was on Saturday 27th July, giving us all the chance to celebrate our great county with friends and family over the weekend. Plus, it was also Pride Day, and the start of the school holidays too- a triple celebration! With over 150 events being held over the county, and some companies launching new products and discounts, it was set to be busy weekend.

Our member, Indigo Swan, highlighted the ways they supported Pride which you can read about here.

We were also busy collecting our members’ voices and views on doing business and living in Norfolk.  This was a great chance to shine a brighter light on our county you can check out our short audio clips here.

A very big thanks to our members Alex Wiseman – Indigo Swan, Russell Evans- Bullards Spirits, Chris Starkie – New Anglia LEP, and Fiona Burrage from Nor-Folk, who all lent their voices as well as Rob Lawrence who edited these super podcasts. 

Despite Norfolk Day being on a Saturday lots of members were out celebrating our beautiful County and supporting local events.

Flagship Group sponsored a 24 Hour Boxathon, which  you can read about here, as well as combining joint sponsorship with M+A Partners for a picnic and party hosted by Friends in Deed. The idea behind the picnic was to show off the kindness and intergenerational friendships that our county boasts. Full article here

If you have anything you would like to share for Norfolk Day festivities, please contact us on hello@norfolkchamber.co.uk

Today the British Chambers of Commerce (BCC) – which represents 75,000 firms, including those in Norfolk, of all sizes and sectors, employing 6 million people across the UK – has written to incoming Prime Minister, Rt. Hon. Boris Johnson setting out 15 urgent, immediate steps that the PM must address on arrival in Downing Street to boost business confidence and stimulate the UK economy.

From the critical need to avoid a messy and disorderly Brexit on the 31st of October, to fast action to fix roads and stop endless increases in business costs, the leading business organisation sets out proposals that would make a tangible difference to businesses of all sectors and sizes in the current climate of uncertainty and change.

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

“The need for a new Prime Minister to get down to business has never been greater.

“Boris Johnson’s first job upon arrival in Downing Street must be to go beyond warm words and take immediate, tangible steps to boost the confidence of UK businesses and consumers.

“He must demonstrate he will go all-out to avoid a messy and disorderly Brexit on the 31st of October, which would be hugely damaging and disruptive for many businesses and communities.

“Boris Johnson must move swiftly and decisively to tackle some of the longstanding domestic issues holding businesses back here at home.

“Many of the things Norfolk businesses have been calling out for can be implemented at speed, and would send the strongest possible signals to companies and investors grappling with ongoing uncertainty and change.

“The women and men who create prosperity and opportunity in our county need an incoming Prime Minister and government to demonstrate their unequivocal backing for enterprise and growth.”

The BCC’s Key Recommendations:

BREXIT AND TRADE 

• Avoid a messy and disorderly Brexit
• Step up government planning and enable businesses to plan for all scenarios
• Automatic registration for key trade simplifications
• Ensure continuity of trading conditions with third countries,
• Clarify intentions on the UK Shared Prosperity Fund

BUSINESS INVESTMENT

• A one-year moratorium on all policy measures that increase business costs
• Ensure all businesses benefit from rates holidays on new property builds and improvements
• Launch a root and brand review of current business rates system  

PEOPLE

• Protect funding for education and training
• Reform apprenticeship funding and standards
• Deliver a light-touch, streamlined immigration system that works for business

INFRASTRUCTURE

• Reaffirm commitment to major projects including the expansion of Heathrow Airport
• Commit to clear UK energy strategy
• Back industry proposals to eliminate mobile not spots
• Funding to clear backlog of local road improvements

Commenting on the announcement that Rt Hon Boris Johnson MP has won the Conservative leadership contest and will be the next Prime Minister, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“The message to Boris Johnson from the Norfolk business community couldn’t be simpler: the time for campaigning is over – and we need you to get down to business. 

“Companies need to know, in concrete terms, what your government will do to avoid a messy, disorderly Brexit on the 31st of October – which would bring pain to our Norfolk business community and disruption to our ability trade around the world. 

“We need to see swift action on practical, real-world issues here at home that hold businesses and communities back. 

“Tomorrow the British Chambers of Chambers of Commerce, on behalf of the UK Chamber network, will be sending you 15 specific steps you can take – right now – to rebuild business confidence swiftly over the coming days.

“We will work with you wherever we can to make these proposals a reality, but we will also hold you and your government to account for delivery.”

We had an absolutely fantastic time at the Norwich Theatre Royal this morning on our second Phizz Whizzing Backstage Tour with the witty Jason Raper, our guide.

The tour began front of stage where all the current props and scenery were setup for the show – the set is incredible and the work that goes on behind the scenes was a privilege to see!

Jason was extremely informative and very entertaining, his depth of knowledge and passion for the Theatre shines out.

Backstage we encountered an array of exciting props, costumes and discovered the labyrinth beneath. 

After the tour we enjoyed a wonderful breakfast in the recently refurbished Prelude Restaurant.  The breakfast was a great opportunity to sit and chat in the beautiful sunshine with fellow members, and start our Tuesday in a most fantastic and interesting way!

If you missed either of these tours, we are looking at future productions and will keep you posted!

Norfolk Day is just around the corner! This year see’s Norfolk Day on Saturday 27th July, giving us all the chance to celebrate our great county with friends and family over the weekend. Plus, it is also Pride Day, and start of school holiday too- a triple celebration. With over 150 events being held over the county, and some companies launching new products, and discounts, it will be a busy weekend. So, what is your plan? We would love to hear about how you and your businesses are celebrating Norfolk Day this year. Whatever you are planning, we want to hear about how you and your staff members will be celebrating. Maybe you are planning something big or small to mark this day? This year the Chambers for Norfolk Day are doing something different to celebrate our fantastic members, and their innovative businesses. We have been busy collecting our members voices and views on doing business and living in Norfolk.  This is a great chance to shine a brighter light on the county.  Check out our short audio clips. A very big thanks to our members Alex Wiseman – Indigo Swan, Russell Evans- Bullards Spirits, Chris Starkie – New Anglia LEP, and Fiona Burrage from Nor-Folk, who all lent their voices and Rob Lawrence who edited these super podcasts.  Do get in touch with us at the Chambers dominique@norfolkchamber.co.uk and the EDP are really keen to hear about what you have got planned too norfolkday@archant.co.uk so we can all spread the word! Remember you can always use #NorfolkDay share your stories and spread the word too.

British companies reminded to check packaging compliance in Germany

The German-British Chamber of Industry & Commerce warns that the newly created German Packaging Register (ZSVR) has passed on some 2,000 discrepancies in reported packaging data to the relevant German authorities for legal enforcement. Affected companies can expect severe financial penalties for the breaches. The Chamber therefore advises British companies to check their German packaging obligations and license their packaging if necessary.

The new Register has been operating since January this year and since then companies have been legally obliged to report their packaging data to both their chosen recycling scheme and the Register. The Register analyses this data and passes on discrepancies for legal enforcement.

Germany’s packaging law covers sales, product, shipping and service packaging. It differs from UK regulations in a variety of ways:

• As of this year there are no more minimum thresholds – meaning internet sellers sending one parcel are also covered by the law.
• The first one to introduce sales packaging to the German market commercially is responsible for licensing it – it is not necessary to have a German business presence and it doesn’t matter if the goods are sold via distributors, retailers or directly to end-users.
• End-users can be private households but also businesses and institutions. Ultimately, if the packaging is included in the Register’s catalogue of packaging that is ‘typically discarded by the end-user’, it needs to be licensed.

To be legally compliant, British companies need to sign up with the Register https://lucid.verpackungsregister.org/ and join a German recycling scheme, which will license the packaging for a fee.

The German-British Chamber offers a Recycling Consultancy Service which helps British companies fulfil their legal obligations under the Packaging Law.

For more information on this service and about recycling obligations in Germany, please contact Jana Toon, Tel: +44 (0)20 7976 4188 or email: recycling@ahk-london.co.uk.

Is your business prepared for Brexit? Do you a contingency plan to mitigate the impact of possible changes? Are you a customs agent? Or does your company use customs agents and intermediaries to help you trade with the EU?

If so, you need to know how to meet customs requirements fast and efficiently after the UK leaves the EU. There will be new processes to follow and new forms to complete. We can help. Our training will highlight what you need to know to be able to accurately complete a simple customs declaration. Norfolk Chambers of Commerce have launched new dates for training courses on Customs Declaration to help businesses understand the procedure ahead of Brexit. Take action to be prepared for any possible scenario. Who should attend? Anyone who needs an understanding of Customs regimes and how to complete a Customs declaration form. There are no pre-requisites for this course. Dates: Tuesday, 19 November, 2019 & Tuesday, 14 January, 2020 Time: 09:00 to 16:30 Venue: Norfolk Chamber of Commerce, 9 Norwich Business Park, Whiting Road, Norwich, NR4 6DJ Prices Member Rate: £280 + VAT Non-Member Rate: £350 + VAT

You may be eligible to claim up to 100% of the training course cost back from HMRC. You can find out more if your business is eligible, how to register and submit an application at www.customsintermediarygrant.co.uk

To book your place on either course click on dates linked above 

For any further information please contact Edgar Bracho on 01603 729716 or email export@norfolkchamber.co.uk  

Commenting on the inflation statistics for June 2019, published today by the Office for National Statistics, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“Inflation held steady in June, as the upward pressures from clothing and food were offset by weaker outturns in several price categories including fuel prices and accommodation services. Modest inflation alongside rising pay growth is providing some welcome relief to financially stretched households. However, any boost to consumer spending is likely to be tempered somewhat by weakening consumer confidence.

“While the recent downward pressure on sterling’s value amid growing anxiety at the prospect of a no-deal exit may drive consumer prices higher over the near term, a stalling economy is likely to keep price growth broadly in line with Bank of England’s 2% target.

“With inflation relatively subdued, the MPC’s focus should be on providing monetary stability to avoid further exacerbating the damage that’s already been done to consumer and business confidence by the continued Brexit impasse.

“It is crucial that the next Prime Minister works with parliament to avoid a messy and disorderly Brexit, as such an outcome would probably trigger a significant decline in the value of sterling, pushing inflation materially higher and increasing the financial squeeze on businesses and households.”

The Norfolk Business Awards are now open for entries, with 11 categories to enter, its time to showcase your great business. There is no limit on the scale or size of the business who can enter – these awards are open to all, which is great news, they want to hear from all businesses across the board, which is a great opportunity. With just under a month to go until the deadline, it is time to get your application underway, the deadline is Friday 9 August 2019. This year’s the theme for the awards is ‘changing lives.’ With our member Norwich Research Park as the headline sponsor for the awards. The Research Park is a forward-thinking and cutting-edge centre for a number of local and global businesses. For the full details on the awards check out the Norfolk Business Awards site. Outstanding Achievements- Sponsored by Norwich Research Park Best Employer- Sponsored by Pure and Birketts Breaking boundaries- Sponsored by Lovewell Blake Business of the year- Sponsored by Barclays Customer Care- Sponsored by Greater Anglia Director of the Year- Sponsored by Dipples Investing in future Growth- Sponsored by Lovell Knowledge Pioneer- Sponsored by UEA Large Business- Sponsored by City College Norwich SME (Small or medium enterprise/business) of the year Tech Innovator- Sponsored by Computer Service Centre Once your application is all submitted the next date for your diary is the Awards Dinner on Thursday 21 November, this will be held at the Norfolk Showground Arena and hosted by the well known British actor, James Nesbitt.

As Parliament comes towards the summer recess period – we thought we would give Norfolk businesses a quick update on Brexit and the current political situation.

Everyone is now very aware that we will shortly have a new Conservative Party leader, and in turn, the next UK Prime Minister – the result of which will be announced on 23 July.  The House of Commons will then go into the summer recess on 25 July.  But what are the positions of the PM candidates regarding Brexit?

Boris Johnson has said that he would ensure that the UK leaves the EU on 31 October with or without an exit deal. While he has said that leaving without a deal is not his preferred option, he has not ruled this out.

Jeremy Hunt has said that – in extremis – he would be prepared to leave the EU without an exit deal. If there is the prospect of achieving a deal, however, he would prefer a further extension. Should it not be possible to secure a new deal, he would back a no deal exit ‘with a heavy heart’.

Regardless of the position of the incoming Prime Minister, it will ultimately be Parliament that decides what happens next on Brexit.

In the meantime, the Labour have a new position on Brexit.  They have suggested that they will back a confirmatory referendum on any Brexit deal before it is implemented. It would depend on the content of the deal as to whether they would back the exit deal or remaining in the European Union in this ballot. This position may be subject to change when the Labour Party sets its policy at its annual conference in September.

Attempts to prevent no deal

There continues to be attempts from Parliamentarians to prevent a no-deal exit on 31 October. There are reports that a number of Conservative MPs will back an attempt from Philip Hammond, the current Chancellor, to prevent a no deal exit.

This week an amendment passed to the Northern Ireland (Executive Formation) Bill that requires UK government to update the House of Commons on progress made in the formation of an executive in Northern Ireland. This requires the House to be sitting to debate the government update and is designed to make it harder for a new Prime Minister to prorogue the House of Commons to ensure a 31 October exit. Proroguing Parliament means that the parliamentary session would end, and no further business could be debated or voted on in either House until the Prime Minister chose to convene the House for the Queens Speech and the next session of Parliament would then begin.

Commenting on the current state of play, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“The Norfolk business community has to continue to assume that leaving the EU without a deal is a very real prospect and we would encourage all firms to think through the implications for their business, if they have not already done so.”

“We are working with the British Chambers of Commerce and continue to lobby in Westminster with the various government departments to try to get clarity for business.  They have recently updated their Brexit Risk Register and the Brexit Checklist. – please have a look as these are good tools to consider some of the most frequently asked questions and decide what your organisation needs to do.”

Also helping to support local businesses, New Anglia Growth Hub are running a free to attend Brexit event at the Forum in Norwich on Wednesday 25 July 2019 – book your place now.

If you have any further questions or need some specific advice, please do not hesitate to get in touch with nova Fairbank on email: nova.fairbank@norfolkchamber.co.uk