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Chamber News

Norwich Western Link: Preferred route selected

Norfolk County Council’s Cabinet has agreed Option C as the preferred route for the Norwich Western Link.

Norfolk County Council (NCC) previously recommended Option C – a new dual carriageway route and a short section of dual carriageway upgrade of the A1067 – as the best overall solution and preferred route for the new link road between the A47 and Broadland Northway (formerly the NDR).  As it balances all of the issues the project needs to address. It limits environmental impacts, has a high cost-to-benefit ratio, reduces congestion and rat-running on existing roads, minimises the impact on communities and properties, and received considerable support through their recent consultation.

Commenting on the Cabinet’s preferred route option, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“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. 

“This final piece of the puzzle will 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.”

Confirming the preferred route option is a major milestone for the project and, while there is still much work to be done, having a preferred route brings them a step closer to starting work to construct the Norwich Western Link in late 2022 and opening the road to traffic in early 2025, subject to securing funding and completing necessary statutory processes.

Further surveys and design work will now be carried out to develop the preferred route. This will include the development of complementary measures to mitigate environmental impacts, encourage walking, cycling and public transport use, and limit the amount, speed and type of vehicles using the existing road network in the area where appropriate.

Alongside their work to identify a preferred route, they have also put together a Strategic Outline Business Case for the project which councillors on their Cabinet also approved today. They intend for this to be submitted to the Department for Transport by the end of the month, which will start the process required to secure funding for the Norwich Western Link from the government. NCC have an excellent case for the need for the road and strong support from the public, the business community, emergency services, local councils and MPs, so they’re very hopeful they will be successful.

NCC will continue to advise when there are significant updates about the project, and they will keep the Norwich Western Link pages of the County Council website updated, which you can find at www.norfolk.gov.uk/nwl. There will also be a further public consultation on the preferred route before they submit their planning application.

West Norfolk Word of Mouth

Word of Mouth

The Sunshine was pre-ordered for our West Norfolk Networking Lunch on Friday 12th July, and it didn’t disappoint.  There was a fantastic energy and buzz at The Ffolkes Coaching Inn last week from beginning to end, and it was clear from the smiling faces that our networking lunch was a great success. The staff and service at The Ffolkes Coaching Inn was exceptional, as always. 

With the success of the King’s Lynns Two Hour Tuesday’s events, it’s fantastic for us to give our members events that fit in with their busy schedules, and we are thrilled to continue with the lunch format from now on.

We were very pleased to welcome as our Feature Charity, The Norfolk Hospice and Senior Fundraising Manager, Tammy Green. It is truly inspiring to hear of the incredible work Tammy and her team do, and we are very proud to be able to support them on their exciting upcoming projects.

The conversations, connections and companies are pivotal to what we do.  Our Guest Speaker and founder of Little Piggy, Kathy Ennis talked to us very eloquently on this with her Six-Step Social Visibility Plan, on boosting engagement, and turning customers into your biggest fans to increase your word of ‘mouse’.

Kathy’s talk prompted lots of interesting questions from our members, and Michael Baldwin, President of The West Norfolk Chamber closed the event, and echoed our thoughts by welcoming so many new faces to the first of many West Norfolk Networking Lunches.

If you would like to join us on our next networking event, take a look at our upcoming events here.

The B2B Exhibition Welcomes Desira Group PLC as a Sponsor

We are pleased to announce that Desira Group PLC are sponsoring The B2B Exhibition 2019. They will be sponsoring the exhibition entrance with a fleet of vehicles on display to welcome visitors to the showcase.

Desira is a family owned motor group, founded by John Desira in 1972. The aim of the company has always been to provide exceptional service and offer fantastic value for money to both our loyal and new customers. With over 45 years of experience, Desira have continued to expand with Fiat, Nissan, Citroen, Peugeot, Suzuki, Jeep, Alfa Romeo, Abarth and SsangYong franchises in Norwich, Great Yarmouth, Lowestoft, Diss and Bury St Edmunds.

Desira Group PLC offer business and fleet solutions, contract hire, leasing or cash purchase options for your organisation, whether you are a sole trader, small to medium business, or large company looking for fleet vehicles.

Commenting on the sponsorship, our Conference and Events Manager Sam said:

“This is such a big year for The B2B Exhibition with the move to Norfolk Showground, so being able to work with Desira to offer visitors a truly spectacular welcome to the show with an outside display of vehicles is really going to get the day off to a great start. I can’t wait to see what they bring!”

Desira Group PLC will be joining fellow sponsors MIGSOLV, who are sponsoring the goody bags this year, and our media partners Archant.

The B2B Exhibition has now sold over 55 exhibition stands to businesses not only in Norfolk, but beyond the region. There are still exhibiting and sponsorship opportunities available. To find out more, please visit our B2B page by clicking here.  

Chambers comment on GDP and trade statistics

Commenting on the latest UK GDP and trade statistics, published today by the ONS, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“Although there was modest rally in GDP growth between April and May, the continued slowdown on the underlying three-month measure is further evidence that the UK economy is faltering under the weight of relentless Brexit uncertainty and tougher global economic conditions.

“Manufacturing activity picked-up in May as car production reopened, but the longer-term measures point to a sector under pressure from the running down of excess stock, tougher global trading conditions and rising upfront costs.

“There was a welcome narrowing in the UK’s trade deficit in May, largely reflecting both a decline in imports and a rise in export goods. However, Brexit uncertainty, the absence of clarity on fundamentals aspects of trade conditions after October 31st, and a slowing global economy are likely to increasingly weigh on the UK’s net trade position over the medium-term.

“Against this backdrop, it is vital that the next Prime Minister prioritises avoiding a messy and disorderly exit from the EU, as such a departure would likely trigger a marked deterioration in economic conditions. More must also be done to boost the UK’s growth trajectory by delivering the transformative infrastructure projects needed to secure the UK’s economic future.”

Cocktail Making at the very cool Erpingham House.

Our July 4th informal networking event was on a beautiful, sunny evening in Norwich’s historic Tombland. Our members gathered for prosecco on arrival and canapés and some informal networking before listening to our first speaker of the evening Russell Evans, Managing Director of Bullards Gin. Russell gave an inspiring talk on the ‘Start Up Journey’ and how he first came across the brand in 1985 during his first job from University.

We then moved on to the cocktail making! We had three different stations, the first for Epringham House signature ‘porn star martini’ made with fresh passion fruit. Our second station was Bullards Gin and Tonic made with edible flowers and strawberries. Lastly, the classic Expresso Martini made with freshly ground coffee! After everyone had the chance to make the cocktails and have some very delicious vegan alternative garlic dough balls and hoisin “duck” pancakes we moved on to the last speech of the evening.

Loui Blake, Managing Director at Erpingham House spoke passionately on his own ‘Start Up Journey’, and the best advice he gave us on starting out – “work for someone you love/admire for free, more than once” in exchange for knowledge and connections.

The audience left the evening feeling very encouraged, inspired and slightly wobbly!

Chambers and Indeed: Immigration proposals could exacerbate labour shortages

Over half of UK businesses with staff from outside the UK would be negatively impacted by government proposals for the UK’s future immigration system, according to new research released today (Tuesday) by the British Chambers of Commerce and global job site Indeed.

According to a survey of 380 businesses that currently employ non-UK nationals, 53% report they would be negatively impacted by proposals requiring all skilled migrant workers to earn a minimum annual salary of £30k once the UK leaves the EU.   

57% of employers say they would be adversely affected by plans to impose a 12-month work and residency limit on lower skilled migrants, requiring workers to leave the UK for at least a year once their visa had expired. 

Over a third of firms (34%) would be negatively impacted by an extension of the Immigration Skills Charge to EU nationals. The charge is currently paid by businesses for each migrant worker they recruit from outside the EU, adding to the upfront costs of employment. 

Businesses also report a need for access to foreign language skills. 23% of respondents say German and Mandarin Chinese will be important to their business in the next five years, and 20% say French and Spanish will be – highlighting both the importance of ensuring native speakers are available and improving language skills in the UK workforce.

At a time of record low unemployment, when businesses are reporting critical levels of recruitment difficulties, the proposals in the Immigration White Paper would add to the cost and barriers employers face in accessing the skills they need. The leading business group is calling for proposals that ensure firms in all regions and sectors can continue to access skills at every level, when they are unable to recruit locally. 

The ending of free movement will present significant costs and challenges for employers. The new Prime Minister must take a fresh look at the immigration restrictions and charges to ensure firms can access the workers they need without undue bureaucracy and costs.

Jane Gratton, Head of People Policy at the British Chambers of Commerce (BCC), said:

“When businesses are unable to recruit skills and labour at a local or national level, the UK’s new immigration system must allow them to access non-UK workers quickly and cost effectively. The survey results reflect the extent of business concerns about future restrictions, charges and thresholds, as these will exacerbate recruitment costs and barriers.

“While companies are investing more in homegrown skills, they will continue to need access to migrant skills, at all levels, for the foreseeable future in order to thrive. Salary thresholds and visa restrictions must reflect economic realities. It’s vital that the Migration Advisory Committee’s review into the salary threshold takes into account the needs of different sectors and regions.

“Business communities will be calling on the next Prime Minister to ensure the UK’s future immigration policy has the right balance of flexibility and controls to alleviate their concerns.”

Pawel Adrjan, UK economist at the global job site Indeed, said:

“Record high employment and declining interest of European jobseekers in British jobs mean businesses in many sectors are finding it increasingly difficult to hire workers with the right skills. Like in any open economy, migration flows are one way to release that pressure valve but as our survey found, new proposals do not appear to flex and breathe depending on employers’ needs. Nowhere in the UK labour market is this need for suppleness more pertinent than in healthcare and construction, which have a high dependency of non-UK workers.

“Communication at work remains essential and language skills in particular have become vital in a connected world in which more businesses than ever operate across borders. While research suggests fewer UK students are learning foreign languages, our data reveals the importance of learning new spoken skills. German recently overtook French as the most sought-after language by UK employers but demand for Chinese languages has rocketed over the past year as businesses consider future trading relations.” 

The Royal Norfolk Show 2019 – Highlights

Following a successful return to The Royal Norfolk Show in 2018, we were back for another year providing attendees with a business lounge to relax in, as well as a bunch of fun activities throughout the two day county show.    Taking place at Norfolk Showground on Wednesday 26th and Thursday 27th June, our marquee was well placed back on Third Drive close to the Dereham Gate entrance.    Our team arrived early on the Wednesday morning to kick off the first day with a business networking breakfast, with a delivery of breakfast rolls from Expresso Catering and tea and coffee from Coffee Quest, who joined us throughout the show to provide free refreshments to our guests.   Fast forward in the day to 2pm and we were lucky enough to be joined by the great team at Bullards Spirits, who served our guests gin cocktails for our gin hour! Our marquee quickly filled with visitors enjoying some relaxing networking over a tipple, with a choice of the classic Bullards London Dry Gin, and their Strawberry and Black Pepper flavour.   Following this, Dominique and Haze took some of our visitors off for a spot of ‘netwalking’ around the show! The group went for a guided walk around the show to visitor some of our Chambers members who were also exhibiting. They were lucky enough to go up to the Anglian Demolition watch tower to get a great view of show, and get a bar of Gnaw chocolate from UEA!    With the show now open later on the Wednesday evening, we decided to throw a celebration event at 6pm to welcome businesses who were both visiting and exhibiting at the show. Over 70 guests attended the celebration which saw Bullards Spirits return to serve up more cocktails, as well as delicious canapés from The Feed.    The following day we were pleased to welcome more visitors with another business breakfast and gin hour. Throughout the two days the Chambers team were delighted to see so many businesses in attendance, both members and non-members.   A big thanks goes to all those who supports and supplied to us for The Royal Norfolk Show 2019:   Supporters: Coffee Quest – provided free tea and coffee in our marquee Rural Broadband – provided free Wi-Fi in our marquee The Space – kindly allowed us to borrow furniture to use in our marquee   Suppliers: GGS – flags and front banner Expert Print Management – flyers for the show Image Display & Graphics – Norfolk’s Voice studio boards The Feed – food for our evening celebration Bullards Spirits – served gin at our gin hours and our evening celebration Expresso Catering – provided breakfast rolls for our breakfasts First Self Drive – van hire Victoria Marquees – marquee supplier   Prize Draw Donations: 101 – bottle of gin Gnaw Chocolate – chocolate goody bag Coleman Opticians – Superdry sunglasses and cleaning spray Tec Partners – bottle of gin Monroe Avenue – Chilly’s Water Bottle Iron Maidens/Abacus Bookkeeping – bottle of wine and candle burner

Norfolk Enterprise Festival Ticket Discount Plus a New App!

Norfolk Chambers of Commerce and proud to be supporting the Norfolk Enterprise Festival. Ahead of the 2019 festival, they have launched a new app! Are you a budding entrepreneur? Do you own a business in Norfolk? Do you wish to add your voice to the local enterprise community? Or do you just want a fun day out with the family? Attend the Norfolk Enterprise Festivals on Saturday 13th July at Hoveton Hall Gardens. The festival is one of the only enterprise festivals in the whole of the UK and invites the local business community (and their families) to connect through an immersive, fun and informative day of interactive talks, workshops and experiences. The programme spotlights Norfolk’s key innovations (including farming & agri-tech, green energy, tech & smart mobility) alongside inspirational insights from the grassroots entrepreneurial community. Sparking conversations that can, in turn, strengthen the enterprise ecosystem in meeting local ‘sustainability’ challenges …there’s even the chance to pitch for NEF Angels’ Den investment! By attending the NEF 2019 you can be part of the NEF’s living network of local entrepreneurs through their very own festival app! The app, acting as a ‘Norfolk based ‘linkedin’, provides a platform for attendees of the festival to secure lasting connections with potential investors, business partners and the local business community long after the festival takes place. You can download the app by purchasing a ticket for the NEF 2019, and by searching ‘Norfolk Enterprise Festival’ on your app store.

We are delighted to have partnered with Norfolk Enterprise Festival to offer Chamber Members a 20% discount on tickets! 

You can book your tickets today and don’t forget to use the code ‘norfolkchamber’ for 20% off all tickets! Book tickets now.

Chambers Quarterly Economic Survey Q2 2019: Business hits the brakes

The British Chambers of Commerce’s quarterly economic survey – the largest private sector survey of business sentiment and leading indicator of UK GDP growth – found that key indicators of UK economic health weakened considerably in the second quarter of 2019. 

  • The balance of UK services firms reporting a rise in export sales at its lowest level in a decade
  • The balance of UK firms reporting improved cashflow turned negative for the first time since 2012 – in Norfolk since 2017
  • Investment intentions in both Norfolk’s manufacturing and services sectors at lowest level since 2016

Against a backdrop of a slowing global economy, escalating Brexit uncertainty, and rises in business costs as the UK enters a new tax year, the latest results from the survey of over 7,000 businesses, including those in Norfolk – all collectively employing around one million people – reflect a deterioration in many gauges of the UK’s economic strength. 

In the services sector, the percentage balance of UK firms reporting an increase in export sales stood at zero, its weakest level since 2009 and the orders balance turned negative (more firms reporting that orders have decreased than those reporting an increase) for the first time in eight years. In Norfolk, the service sector balances remained weak, but with a small increase to take them out of negative territory (Export sales rose from -5 to +4 and orders from -9 to +7.   The balance of firms reporting improved domestic sales and orders also weakened significantly in the quarter.  However taking East of England as a whole, the service sector balances for both home and export sales and orders fell drastically – all into negative balances – much greater than the national balances.

Among Norfolk manufacturers, the results remained mixed.  The percentage of firms reporting an increase in domestic sales and orders rose but the results remained weaker than the previous two years of results.  Export sales fell, but orders, rose slightly but overall remained weak.  The East of England manufacturers saw both home and export orders and sales all fall considerably – to much lower levels than the national totals.

The balance of Norfolk firms reporting improved cashflow – a key indicator of business health – and which has been declining over recent years, has now gone into negative territory with the exception of Norfolk’s manufacturers, who reported a slight increase from +21 to +26. 

The lack of clarity over the UK’s future relationship with the EU is continuing to weigh on investment intentions in both the manufacturing and services sectors. The balance of Norfolk firms who looked to invest in either plant and machinery or training dropped in both sectors to their lowest level since 2016. Business confidence in profitability and turnover also deteriorated sharply in the quarter.

Norfolk Chambers has been calling for an end to the relentless uncertainty, which as the latest results from the long-standing business survey highlight, has damaged the confidence and investment plans of business communities. Westminster must ensure that a messy and disorderly exit is avoided and provide firms with certainty on future conditions to prevent further declines. To kickstart strong growth in the economy, government must return its attention and energy to removing barriers to growth in the domestic environment.

Ill-timed increases in business costs – including compliance with Making Tax Digital, higher business rates for some firms, increased employer pension contribution requirements, and more – are also raising costs pressures for companies across the UK at a time when government should be looking to reduce rather than increase burdens.

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

“The findings should serve as a clear warning that the ongoing impasse at Westminster is contributing to a sharp slowdown in the real economy across Norfolk. Business is hitting the brakes – hard.

“These are some of the weakest figures we’ve seen in nearly a decade, and that’s no coincidence. The prospect of a messy and disorderly exit from the EU is weighing heavily on our local economy, and must still be avoided. The unwanted prospect of a disorderly ‘no deal’ exit, and the serious damage and dislocation it would bring, is still just days away unless Parliament acts to avoid it.

“At the same time that firms are having to enact costly contingency plans, the cost of doing business here in the UK continues to rise. This week sees a new tax year with a number of changes adding to the upfront cost of doing business in the UK, including the introduction of Making Tax Digital and changes to auto-enrolment, leaving many firms facing more bureaucracy and new expenses. It beggars belief that ministers are piling on more and more costly obligations at a time that businesses are already having to cope with Brexit and uncertainty.

“For too long Brexit tunnel-vision has distracted government from fixing the fundamentals to support growth here in the UK. We need to see an increased focus on creating the conditions for business success here at home – including concerted efforts to plug growing labour shortages, delivering an immigration policy that works for business and speeding up physical and digital infrastructure projects.”

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

“Our latest survey suggests that UK growth nearly ground to a halt in the second quarter of 2019, with increasing anxiety over Brexit and weakening global economic conditions driving a significant deterioration in almost all the key indicators in the quarter.

“The services sector suffered the more substantial loss of momentum in the first quarter with both domestic and international activity slowing sharply in the quarter. The manufacturing sector continues to struggle amid tougher global and domestic trading conditions and rising cost pressures. The marked decline in the export indicators in both sectors suggests that net trade is likely to have been a drag on UK GDP growth in Q1. The deterioration in cash flow is concerning as it can leave firms more vulnerable to external shocks, including disruptions to supply chains.

“The forward-looking indicators are disappointingly downbeat with weakening orders, confidence and investment intentions pointing to precious little growth over the coming quarters, unless substantial action is taken.”

Key findings in the Q2 2019 survey:

Norfolk Manufacturing sector:

  • The balance of firms reporting increased domestic sales rose from 0 to +26, while those reporting improved domestic orders also rose from +0 to +41
  • The balance of firms reporting improved export sales fell from +43 to +31, and the balance of firms reporting improved export orders rose very slightly from +43 to +46
  • The balance of firms reporting improved cashflow remained weak, but rose from +21 to +26
  • The percentage of firms attempting to recruit fell from 74% to 57%, the weakest since Q4 2012. Of those, 92% reported recruitment difficulties, close to its record high
  • The balance of firms increasing investment in plant/machinery rose in the quarter from +16 to +18, while investment in training fell from +42 and +23
  • The balance of firms confident that turnover and profitability will increase in the next 12 months was mixed – falling from +32 to +30 for turnover and rising from +11 to +23 for profitability

Norfolk Services sector:

  • The balance of firms reporting increased domestic sales fell from +21 to +9, the weakest since Q3 2016. Those reporting improved domestic orders fell from +15 to -2
  • The balance of firms reporting improved export sales, whilst still weak, reported an increase from -5 to +4 and export orders rose from -9 to +7
  • The balance of firms reporting improved cashflow dropped in negative territory – falling from +8 to -10
  • The percentage of firms looking to recruit fell to 53%. Of those, 79% had recruitment difficulties – a little higher than the previous quarter
  • The balance of firms looking to increase investment in plant and machinery fell from +9 to +6 (weakest since Q4 2016), and from +20 to +16 in training
  • The balance of firms confident that turnover will improve over the next year remained static, whilst those who thought profitability would improve dropped from +24 to +14

New Members, Welcome – June

Help us give a warm welcome to the newest members of Norfolk Chamber of Commerce for the month of June

Visit their business to explore what they have to offer. Click on a business name below to view the full listing in our Member Directory.

All about the Message All About The Message’s ethos is simple – innovative, creative and friendly marketing which successfully connects companies to their audiences.

Business first solutions Business communications and security specialist. With over 20 years’ experience in the telecommunications industry we pride ourselves in providing best value and an excellent service

Construction Products Direct Construction Products Direct is a fast growing UK supplier and first choice of non-mechanical construction equipment including: access equipment, safety products, small tools, temporary fencing, barriers, excavation & Groundworks safety equipment and scaffolding products. 

Content Connective I’m Shaun Lowthorpe and I use my journalistic storytelling and know-how to shape your content marketing and communications and get your customer stories out there.

Creative Arts East Creative Arts East is an arts and community development charity committed to bringing the very best arts and cultural activities to rural and/or under-engaged audiences across Norfolk, Suffolk and the wider eastern region. 

Creative Exhibitions Ltd Creative Exhibitions Ltd work alongside businesses from a wide variety of sectors, we deliver professional, high impact exhibition stands that will make your business stand out, at even the most crowded of events.

EnerMech Globally our experts deliver a broad suite of services to the energy and infrastructure industries. We have a dedicated team of experienced and highly skilled specialists located throughout the world who strive to deliver the best quality services.

Go Cruise & TravelOffering a completely independent service and calling upon more than fifteen years experience in the industry, we are perfectly placed to tailor cruise packages to meet your requirements. 

Hughes Hughes are an independent electrical retailer, who started out in 1921 in Lowestoft.  Over the past nearly 100 years, we have spread to cover most of the UK through either retail stores, Trade (B2B) sites, rental offices, Commercial appliance hubs and smart home services.  We are still firmly local, with Norfolk, Suffolk, Essex and Cambridgeshire still out heart land. 

Kingfisher Norfolk Ltd We have over 25 years experience delivering business development support to businesses. Our services are tailored to meet your specific requirements, ensuring we add value to your current sales strategy.

Norfolk Merchant Solutions

Orange Heating Supplies We are an independent heating products merchant with a difference. With over 30 years’ experience in the plumbing and heating industry, we are knowledgeable about the products we sell. 

PONO Norwich We are a superfood bar inspired by Hawaiian culture, selling healthy, nutritious food without feeling like you’re making sacrifices. We use fresh ingredients in everything we serve, including our customisable salads, poké bowls, smoothie bowls and drinks.

TEC Partners Group TEC Partners is a specialist Technology Recruitment and Executive Search consultancy, and in late 2016 we further extended our reach and networks with the acquisition of a highly successful Digital & Technology consultancy, ABRS Ltd, who themselves have been recruiting in these markets for over 17 years.

The Light Aircraft Company (TLAC) Since the start of The Light Aircraft Company Ltd we have been committed to the design, development, manufacture and maintenance of light aircraft ensuring safety, quality, and innovation.

Willow Property Management The importance of gleaming offices cannot be overstated. The appearance of your premises says a lot about your business. Our customers rely on our experience to deliver a wide range of cleaning services.

Remove blockers in the skills system to alleviate recruitment struggles, says Chambers and Indeed

New research by the British Chambers of Commerce, in partnership with global job site Indeed, reveals the increasing time it’s taking businesses to recruit the skills they need, emphasising the importance of removing blockers in the training system to develop a pipeline of talent.

Today the BCC and Indeed also release The Hiring Handbook to help businesses find and recruit the best people. 

Half of UK businesses say it takes longer to recruit people compared with five years ago, with 21% reporting it now takes up to six months to fill a skilled role, according to a survey of over 1,100 businesses from across the country. 

The increase in recruitment difficulties reinforces the need for a simple, coherent and stable skills system that gives business the confidence to engage and invest in long-term workforce development. 

The new T levels, due to be introduced in 2020, promise to offer young people a new route into employment, providing a quality, technical alternative to A levels that employers have long called for. However, the results reveal a clear communication void with business ahead of their rollout, as three-quarters of firms say they’ve never heard of T levels or know only the name. Only 3% know a lot of details.

T levels will include a 45-day industry placement with an employer, so extensive engagement with business will be crucial to ensure that young people and employers in every region of the country get the skills they need. Yet, 41% of respondents say their business currently has no plans to offer a placement, suggesting that much more needs to be done to inform, incentivise and support firms, particularly SMEs. 

Similarly, the Apprenticeship reforms, introduced in 2017 with the intention of increasing the quality and quantity of training, are not yet meeting the needs of businesses. Firms reported barriers including the suitability or availability of apprenticeship standards, a lack of candidates applying for vacancies and difficulty managing off-the-job training requirements. Employers say relaxing funding restrictions, reducing complexity and improving flexibility in the system would help tackle crippling skills gaps.

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

“For too long the UK’s approach to training has been characterised by constant chopping and changing of policy. The new Apprenticeship Standards, and T levels, provide the opportunity to ramp up quality and choice in technical and vocational qualifications, but more needs to be done to remove the blockers in the skills system – and communicate the benefits of these reforms – to get it working better for our businesses. Once barriers have been resolved, we need period of stability to allow the changes to imbed.” 

Pawel Adrjan, UK economist at global job site Indeed, said:

“Today, more working age people are in employment than ever before and there continues to be strong demand from employers for staff. While these economic conditions have clear benefits, they also make hiring more difficult. Combined with uncertainty about future immigration policy, that means employers should consider training a workforce for the future. Yet what this survey shows is that employers are either unaware or apathetic about schemes like T Levels and the related placements.

“Raising awareness of these schemes and ensuring that they work for businesses is important at a time when many of the people who do not already have a job and are available for work may lack the skills or experience that employers need. Training and upskilling the workforce is one way employers can access the skills they need to be competitive.”

Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“Norfolk employers are very keen to support young people into the world of work.  However the constant policy changes, make it very difficult for some employers to easily understand their role in implementing the changes.  To make T levels truly successful, it’s important to get buy-in from industry from the start. There is clearly work to do in communicating the benefits and opportunities to companies. At the same time, more businesses need to recognise their responsibility to invest in young people and the wider workforce. Developing the skills we need now and for the future relies on close cooperation between business, education and government – and for each to play their part.”

UK Businesses say:

“The Apprenticeship Levy is effectively a tax. We are unable to access enough suitably accredited courses to use what we pay each year in levy. It has had zero impact on our approach to the number of apprentices we recruit and certainly does not encourage us to recruit more.”

Large manufacturing business, Manchester

“There’s a skills shortage developing, in that fewer young people with the appropriate skills are applying for vacancies in our sector.”

Engineering SME, Lincolnshire

“Can’t use Apprenticeship Levy for my existing training as the framework is too inflexible.”

A large transportation and storage business, Thames Valley

“The levy is a significant factor in the reduction of young people coming into the insurance industry. The Chartered Insurance Institute is the training and development career path for those working in insurance and was fully funded by most firms. It is ironic that the levy had meant less young people being able to come into our biggest industry and export at a time when we need to ensure succession planning…The levy has literally stolen our training investment into Chartered scheme.”

Large insurance business, London

Bank of England hears from Norfolk businesses

Today, Norfolk Chambers held a working lunch with the Bank of England at the Chambers offices in Norwich.  Patrick Campbell, East of England Agent for the Bank of England heard from a range of Norfolk businesses about their thoughts on the state of the Norfolk economy and the challenges being faced due to the continued uncertainty of Brexit.

Key amongst the Brexit challenges were those operating ‘just in time’ supply chains and the impact of delays in importing/exporting goods to meet it; the potential of future tariffs on raw materials; and European partners being unwilling to negotiate long term contracts.

Also up for discussion was the impact of economic uncertainty on the labour market and how the Living Wage increases and auto enrolment of pensions have affected salary levels in our region.  Other challenges noted were access to a skilled workforce.