Chamber

The London 2012 Olympics may well be a once in a lifetime opportunity (the last time the Olympics were held in London was 1948) for many of us to experience the Olympics first hand. This has the potential if not handled correctly to cause friction between employees (who wish to attend or volunteer at the Games) and employers (who have businesses to run and staffing levels to maintain.

ACAS have issued some guidance for both employers and employees, which include an informative Q & A section.

The link is attached here

The AGE 16 to 24 year olds is aimed at helping eligible employers to offer young people employment through the Apprenticeship programme, by providing wage grants to assist employers in recruiting their first apprentice.

The National Apprenticeship Service will provide up to 40,000 Apprenticeship grants to small medium sized employers recruiting 16 to 24 year olds with a value of £1,500 to encourage new employers to take on new apprentices.

The £1,500 is in addition to the training costs of the Apprenticeship framework which are met in full for young people aged 16 to 18 and 50% for those aged 19 to 24.

Priority will be given to small-medium sized employers with less than 250 employees and we expect to support at least 40,000 of these employers to recruit an apprentice for the first time.

Large employers (more than 250 employees) are not eligible for support through this initiative. But we do want to encourage take up within their small-medium enterprises (SME) supply chain.

It is expected that most employers will want to access AGE 16 to 24 to support the recruitment of one apprentice. However subject to budget availability and the employer’s commitment to support the apprentice to the end of their programme, up to 3 grants can be made to any one employer. However, the employer must commit to the total number of apprentices they wish to take on through the grant at the upfront agreement stage.

To check if you are eligible and to apply for AGE 16 to 24 you can:

• Complete the online web enquiry form
• Call the National Apprenticeship Service on 08000 150 600
• An adviser from the National Apprenticeship Service will contact you to discuss the support available in more detail
• Or contact your local Training Provider direct.

Further information View/download our fact sheet and presentation for further information on the Apprenticeship Grant for Employers of 16 to 24 year olds.

• View/download the latest fact sheet (PDF)
• View/dowload the PowerPoint presentation (Ppt)

Commenting on today’s Monetary Policy Committee (MPC) decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“Following the February increase in Quantitative Easing (QE), the decision to keep interest rates and the QE programme on hold was widely expected. With QE still being implemented, and given the MPC’s self-imposed practice of only buying gilts, this was the right decision. However, last month two MPC members voted for an increase in QE to £350bn. While support for this may be strengthening, we believe that adding to QE would be unnecessary.

“We supported past increases in QE because they eased pressures on the banking system and helped to underpin financial stability. However, this has not led to meaningful increases in lending to small businesses, and the benefits to the real economy have been limited. Increasing QE now would only have a marginal effect. There is ample liquidity in the financial system and there is no need to drive down yields on government bonds further.

“The main policy aim must be boosting the unduly low rate of economic growth by increasing lending to viable businesses. To achieve this, it is vital to make the new credit-easing scheme more substantial. But the MPC also has a part to play. The committee should reconsider its reluctance to include assets other than gilts in the QE programme, such as securitised SME loans. This will make the banks less risk averse, and will help to improve the flow of lending to credit-worthy firms.”

Grants of between £25,000 and around £1 million are available to enable “significant game-changing, transformational performance in farm, forestry, tourism, agri-food and micro businesses in rural areas.” Grants will be a maximum of 40% of project costs and must be matched by private funds. Outline applications need to be submitted by 30 April and applications in upland and Rural Growth Network areas will be prioritised.

https://rdpenetwork.defra.gov.uk/funding-sources/rural-economy-grant

Commenting ahead of the MPC decision tomorrow (Thursday), David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The financial markets are almost unanimous in expecting no change at the MPC meeting, with interest rates being kept at 0.5% and the Quantitative Easing (QE) programme at £325bn. However, two committee members voted at the last meeting for an increase in QE to £350bn, and we’ll be interested to see whether support for such a move would gather momentum. Although we have supported previous increases in QE, we feel that a further £25bn would be unnecessary as it would only have a marginal effect. There is ample liquidity in the financial system and there is no need to drive down yields on government bonds further.

“The main aim should be supporting real economic growth, by encouraging increased lending to viable businesses and making the new credit easing scheme more substantial. But the MPC should also reconsider its reluctance to include assets other than gilts, such as securitised SME loans, in the QE programme. This will make the banks less risk averse, and will help improve the flow of lending to credit-worthy firms.”

• BCC’s Quarterly Economic Survey for Q1 2012 shows encouraging signs of growth, but the pace of recovery is still too slow
• Caroline Williams, CEO Norfolk Chamber of Commerce: “Norfolk and the rest of the UK has the potential to recover, but to achieve that the government has to set businesses free to grow”

The British Chambers of Commerce’s new Quarterly Economic Survey (QES) released today (Tuesday) shows encouraging results for Q1 2012, with most balances recording increases on the last quarter. The new survey, comprising almost 8,000 responses from businesses across the UK, shows a welcome improvement on the results of Q4 2011 which pointed towards stagnation.

While the results are more encouraging than the previous quarter, they show that growth in Norfolk and the rest of the UK is still too weak, with the balances still below those seen in 2007 before the recession. Many manufacturing balances are now at a satisfactory level, but the service sector balances are sluggish.

Balances measuring domestic and export activity across firms showed welcome increases, and more businesses are looking to invest in employing more staff, training, and plant and machinery. However, cashflow is still a real problem, and despite concerns about inflation decreasing, recent increases in oil and food prices may alter this over the next few months.

Domestic orders The Norfolk manufacturing sector saw an increase in domestic sales and orders from the last quarter. This is also reflected across the rest of the East of England and at a national level. However Norfolk’s service sector saw a reduction in both sales and orders from the previous quarter. Nationally the service sector showed a small measure of improvement:

• Norfolk manufacturing home delivery results went up 20 points to +32%, and home orders rose 13 points to +19%. However in the Norfolk service sector, the home deliveries balance dipped slightly from 18% to 15% and the home orders balance dropped from 9% to 6%

Exports Export sales and orders in both the manufacturing and the service sectors continue to improve with Norfolk, East of England and the national results all showing increases from 2011:

• Balances recording exporting activity for Norfolk manufacturers strengthened in Q1 2012 and rose by 16 points to +37% – a level not seen since Q3 2010. The Norfolk service sector, whilst improving its orders, showed a slow down on actual deliveries in the last 3 months
• Though stronger than domestic orders, Norfolk exports are still below levels seen in the BCC’s Quarterly Economic Surveys prior to the recession

Employment Figures for the last 3 months continue to show a downwards trend in both the Norfolk service sector and the manufacturing sector. However Norfolk employers are still showing some optimism for improvement in these figures, with both sectors recording increases:

• The manufacturing employment balance is stronger at +14%, than the service sector balance, which is still weak at 3%
• Firms in both sectors are more optimistic about future recruitment than during Q4 2011. The balance of Norfolk manufacturing firms looking to increase workforces increased by 7 points to +19%, a level not seen since Q3 2011. In the Norfolk service sector, figures surged by 15 points to +25% – a level last seen in Q1 2011

Business confidence & investment Confidence across both sectors improved in the last 3 months. Norfolk businesses are showing optimism in both turnover and their expected profitability for the next quarter. Both sectors are also advising that investments in plant, machinery and training are also increasing:

• The balance measuring Norfolk manufacturers’ expectations for increasing turnover and profitably jumped to levels last seen in Q4 2010. Among the service sector, turnover confidence increased to +54% (last seen in Q4 2010), and profitability confidence rose to 50% (back to levels in Q4 2010)
• More Norfolk firms are looking to increase investment. Plans by Norfolk manufacturers to invest in plant and machinery increased to +27% (the strongest level since Q4 2010), and intentions to invest in training increased by 10 points to +31%. For the service sector in Norfolk, the results were mixed with the balance measuring investment in plant and machinery dipping by 2 points to +9%, whilst the training balance rose 2 points to +25%

Cashflow Balances measuring cashflow (the movement of cash in an out of a business) remain weak, and are now in negative territory for both the manufacturing and the service sector in Norfolk. Overall both the Norfolk manufacturing sector and the service sectors have advised that they expect to have to increase prices over the next 3 months. This is reflected at a regional and national level as well. Norfolk manufacturers in particular, have advised that price increases were expected due to raw material costs rising:

• The manufacturing cashflow balance fell heavily by 25 points, to -22%. The services cashflow balance also dropped by 13 points, to -16%
• Both the sectors reported a decrease in their operating capacity, with only 27% of Norfolk manufacturers and 36% of the Norfolk service sector operating at full capacity

Commenting on the results, Caroline Williams, CEO of Norfolk Chamber of Commerce, said: “It is encouraging to see that businesses are feeling more confidence at the start of 2012 than they were at the end of 2012. Norfolk businesses are showing optimism in both turnover and their expected profitability for the next quarter. Both sectors are advising that investments in plant, machinery and training are also expected to increase. However, the Norfolk economy is still facing huge challenges and the recovery is still too slow.

The results of the Quarterly Economic Survey point to a welcome but modest improvement in the Norfolk economic situation. The UK economy will likely avoid a recession, though the erratic construction figures may distort the ONS estimate. On the basis of this survey, the British Chambers of Commerce are now predicting quarterly GDP growth of 0.3% in Q1 2012, in line with the OBR’s recent forecasts. However, growth is likely to remain low for some time, and a return to a more normal pace is unlikely until 2013.

The BCC forecast for 2012 GDP is 0.6%. Their prediction is lower than that of the OBR* for two reasons. Firstly, we are still concerned that the unresolved problems in the eurozone may trigger new upheavals later this year. Secondly, in view of the increases in oil and food prices since January, our current forecast is that the fall in UK inflation over the next 12-18 months will be slower than first expected.

“With domestic demand in Norfolk remaining weak and unemployment likely to increase over the next year, every effort must be made to boost growth and empower the private sector to create jobs. While the government perseveres with efforts to cut the deficit, it must reallocate priorities, within the spending envelope, towards growth enhancing policies. Red tape must be cut more aggressively, the credit easing programme must be made more effective, and the MPC must do more to ensure that the huge QE programme encourages increased lending to viable SMEs.”

Commenting on the launch of the Youth Contract today, Caroline Williams CEO Norfolk Chamber of Commerce, said: “For too many businesses, economic uncertainty has made it tough to hire more young people over recent months. Norfolk companies are concerned that many lack basic skills or past work experience. That translates into higher training costs and greater risks for employers.

“The Youth Contract will significantly reduce those risks, and give employers more confidence to invest in young people. We are pleased that the government has listened to our concerns about administration and about the need for up-front payments, particularly for smaller businesses that are keen on taking up the scheme but worried about delays.

“Business isn’t just good for Britain, it’s good for young people, too. Companies are ready to play their part to support the next generation into work, since younger workers are vital to future business success. Assuming the Youth Contract proves successful and popular with our employers, we will continue to push for it to be extended even further.”

Commenting on the threat of a strike by fuel tanker drivers, Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:

Norfolk is a rural county and relies heavily on access to fuel, add in the fact that Norfolk has a high percentage of small to medium size businesses and it shows that a fuel strike could be very detrimental to businesses large and small. – Caroline Williams

“Norfolk employers are working flat out to keep their businesses afloat and deliver growth during challenging economic times. The last thing they need to contend with is a fuel strike, which could have a damaging effect on their businesses. Norfolk is a rural county and relies heavily on access to fuel, add in the fact that Norfolk has a high percentage of small to medium size businesses and it shows that a fuel strike could be very detrimental to businesses large and small.

Not only will firms struggle to access the goods they need to run their business, staff won’t be able to get to work, and smaller companies will be forced to shut down and lose takings. Public services could end up being affected, and parents who can’t get childcare will have to take time off and lose pay. Furthermore, many Norfolk jobs depend on sending goods to ports and markets overseas.

“People have already started panic buying, which will lead to further shortages and make the problem even worse. For this strike to go ahead would be totally reckless. With the Queen’s Jubilee and the Olympic Games only months away, the world’s eyes are watching the UK and any decisions to strike will only tarnish our reputation to global investors.”

• UK GDP in Q4 2011 fell 0.3% on the quarter; revised down from previous estimate of 0.2% fall

Commenting on the revised GDP figure for the fourth quarter of 2011, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The revised GDP figure for the fourth quarter is disappointing, with most analysts expecting the ONS to confirm its previous estimate of a 0.2% fall. The downward revision is largely due to the new estimate that the service sector fell by 0.1% on the quarter, with the ONS previously suggesting that services were unchanged. Although the fall in investment was much smaller than expected, the improvement in net exports was not as strong as we had hoped.

“The UK economy faces huge challenges, but we still believe that GDP has returned to positive growth in the first quarter of 2012 and there will be no new recession. But the austerity measures and unresolved problems in the eurozone will continue to put pressure on the economy, so it is crucial that policies to support growth are put at the top of the agenda.

“The recent Budget has not done enough to benefit small- and medium-sized businesses. More must be done as a matter of urgency to help firms create jobs, export and invest. While the government perseveres with measures to reduce the deficit, priorities must be reallocated within the overall spending envelope. The credit easing programme needs to be made more substantial, and the MPC must ensure that the QE programme encourages increased lending for smaller firms. Ministers must also look seriously at prospects for the creation of an SME bank.”

Commenting on the government’s decision to move ahead with crucial reforms to planning laws, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“This country’s impossible planning regime has for too long prevented our development and growth. We have said that without reform, businesses will shelve development projects, and our economy will lose out on crucial inward investment from overseas.

“Business will warmly welcome the government’s decision to push ahead with planning reform. If implemented properly, the new National Planning Policy Framework could give companies greater clarity and certainty when looking to expand. It will also allow planning to be restored to a positive tool, rather than a weapon used to fight reactionary battles against change, growth and jobs. Ministers must ensure that the new system works for companies of all sizes, whether in urban centers or rural idylls, North and South.

“The opponents of planning reform have been voluble in recent months. They have said there’s no need to change the planning system – but the evidence from good businesses trying to expand proves them wrong. The BCC’s own research shows that the complexity, cost and inconsistency of the current system discourage demand from companies that want to grow. That in turn limits economic growth. So a failure to reform the planning system would not just be a blow to business’s bottom line. It would also undermine Britain’s ability to pay for the public services we all want to see.

“No one in business wants to concrete over the countryside, damage the environment, or allow reckless and poor development. Businesses understand the need for planning to promote sustainable and responsible growth. But in its current form, that system limits even the most modest expansion, tying companies up in red tape, heaping costs upon owners and discouraging firms from applying in the first place.”

On the ‘presumption in favour of sustainable development’:

“We welcome the government’s decision to maintain a presumption in favour of sustainable development at the heart of the new system. This presumption will encourage growth while retaining the environmental safeguards that have long been part of the British planning system. It will also provide a powerful incentive for local authorities to complete their local plans to guide growth if they do not already have one in place.”

On the use of brownfield land first:

“The reinstatement of a ‘brownfield-first’ approach clarifies the government’s original intention in the draft. While we broadly support this change, local authorities must work to ensure this supports future business growth. An adequate supply of commercial land must be maintained.”

On the greenbelt:

“Local authorities must be careful not to score an own goal by putting too much protection around greenbelt land, some of which has little amenity value and could be better used to provide jobs and homes. Our cities require an adequate supply of land for commercial development, and in some cases this may require making the tough choice to use close-by greenbelt areas, rather than see environmentally-unsustainable development many miles away.”

On implementing the policy:

“We welcome the additional detail on how the changes will be implemented. But government and local authorities must work hard to provide certainty and consistency for businesses looking to expand over the 12-month transition period.”

BCC research shows:

• 70% of applicants had to pay for planning support during the application process, demonstrating the system’s complexity and cost
• 21% of businesses that needed planning permission but did not submit an application said it was because of negative perceptions of the planning process, demonstrating discouraged demand
• Of those that considered applying but did not, 44% said their decision damaged their plans for growth or constrained output, demonstrating negative economic impact
• 65% of those who had applied for planning permission in different parts of the country said that they received different advice across local authorities, demonstrating inconsistency and complexity
• Over half (53%) of applicants said that when a decision on an application is finally reached, it runs contrary to the advice of expert planning officers. This shows that under the current system politics too often trumps the need for growth.

World-leading sustainability expert Gunter Pauli will be one of the speakers at Norfolk and Suffolk Chambers’ Sustainability 2012 Conference on 10 May at the John Innes Centre, Norwich.

Gunter Pauli is an entrepreneur, lecturer, author and commentator on culture, science, politics, sustainability and the environment. His presentation at the event is entitled ‘Redefining competitiveness by changing the rules of the game’.

Gunter Pauli said: “I am delighted to be speaking at Sustainability 2012, because it’s established as the largest show of its kind in East Anglia and therefore plays a vital role in keeping the region up to date with sustainability issues.

“I hope my presentation will get delegates thinking. The main challenge of the ‘Green Economy’ is that it requires companies to invest more and consumers to pay more. This is justified when the world economy is expanding and unemployment is decreasing, but is a more difficult strategy when demand drops, consumer confidence dwindles and people know their jobs are in jeopardy.

“The aim of The ‘Blue Economy’ is to stimulate entrepreneurs to bring innovations to the market that has been inspired by the way ecosystems work; moving from the core business competencies to the search for a bundle of activities where the best is cheap, social capital is built and everyone aims to meet the basic needs of everyone else.”

Gunter Pauli also writes children’s fables. To date, he has written 36 which have been translated into more than 100 different languages. They are special because of the unique way they stimulate children to think and ask the kind of questions parents usually do not know how to answer.

Gunter says: “These are exactly the kind of questions that inspire children to be innovative and, for sure, we need more innovators as there is little doubt that we are creating a world where our children will have to find ways to solve the problems our generation has created, and, sadly, is still creating.”

The Government of China has recognised this, and has recently approved Gunter’s fables as the staple of all schools across China. So pleased are they with his fables that they have asked Gunter to write one fable for every day of the year. In true Gunter spirit, as if taking on that challenge is not enough, has started talks with TATA, India’s largest integrated power utility, as well.

Caroline Williams, CEO of Norfolk Chamber of Commerce, commented: “We are delighted to that Gunter Pauli has agreed to speak at the Sustainability 2012 conference. He is a very distinguished spokesman on the key issues which we need to address at the conference and we know that he will raise some thought-provoking issues. Securing Gunter, plus a host of other industry-leading speakers, shows how important this event has become for tackling sustainability issues.”

There will also be other expert speakers at Sustainability 2012, including George Padelopoulos, Sustainability Manager, Ethical Trade, B&Q; Tom McGarry, from EDF Energy: and Mark Pendlington, from Anglian Water.

Now in its third year, the Sustainability 2012 conference will focus on Low Carbon Technologies and Built Environment Innovation. The aim of the event is to highlight the clear distinction between how small and large companies need to react and plan for a range of new initiative.

Delegates will be offered a global insight into the need for sustainable developments, the UK-based regional perspectives, as well as county-based opportunities. The conference will also offer a wide choice of learning and interactive workshops and include an exhibition to showcase new products and innovations.

Caroline Williams added: “This conference is a must-attend for regional businesses of all sizes because it clearly sets out the opportunities that are available in the short and long term and the benefits of getting involved.”

For more information, to book a place on the conference, or to book a stand, go to www.sustainability2012.com or call 01603 625977.