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The Egyptian-British Chamber of Commerce has issued a summary of the latest changes taking place in Egypt regarding new regulations to export goods.

• In December 2015, the Customs Law has been amended by the Egyptian Ministry of Trade and Industry, and the following are now mandatory:
  • All shipments should be presented with a legalised Certificate of Origin and a certified commercial Invoice (we do recommend full legalisation by the Egyptian Consulate in London) ;
  • The invoice should comply with Article 8 of the Customs Law – name, address and phone of the producer are required.
• This was followed by the Decrees No. 991 & 992/2015 where registration of 24 products that are exported to Egypt for the retail market only have to be registered at the General Organisation for Export & Import Control. Full list of products and necessary documents is attached. The application can be submitted online MailGate warning: numerical links are often malicious: https://41.128.145.154/
• Central Bank of Egypt issued instructions to regulate the handling of export documentation in an attempt to reduce fraudulent valuation of invoices. Therefore the importation process whereby payment is via cash against documents can only be conducted by delivering the documents directly to the foreign bank (UK based), then the foreign bank delivers it directly to the local Egyptian bank. It is prohibited for any customer to him/herself directly receive delivered documents.
• Also, Central Bank of Egypt issued instructions that banks shall obtain a security deposit at the rate of 100% instead of 50% under the documentary credits opened for financing the import of commodities for account of the trading companies or governmental bodies. All exemptions from this practice can be found in the full version attached.
• On the 22nd of February Central Bank of Egypt amended the initial instructions (paragraphs C&D) to further exempt some companies and items related to Bank-to-Bank documents handling.

CBE’s instructions are not interfering in any way with the Ministry of Trade’s requirements of documents legalisation. Export documentation should still be submitted for certification and legalisation as in paragraph A.

For more information please see attached documents and hope these and the above clarify the current situation.

Westlegate is set to be closed as part of next phase of Transport for Norwich city centre improvement work. The second phase of the Transport for Norwich city centre improvement work is set to start on Monday 21 March 2016. The biggest change for motorists will be the permanent closure of Westlegate to all through traffic with Golden Ball Street opening as a two-way street.

The aim of the current proposal is to build upon other TfN projects, especially the changes implemented in St Stephens Street, Chapel Field North, and Rampant Horse Street in 2014, and to make the most of the benefits of the Norwich Northern Distributor Road, which should be completed in late 2017.

The £3.05m scheme is being carried out in phases to minimise disruption and will once complete:

• Give motorists easier access to car parks, including John Lewis, both Castle Mall car parks and the multi-storey under construction off Rose Lane
• Restore All Saints Green as an attractive traffic-free open space.
• Improve pedestrian and cycle connection with the rest of the city centre by removing traffic from Westlegate
• Simplify north-south vehicle access by making Golden Ball Street two-way

Thanks to the work already completed during phase 1 motorists already have easier access to the John Lewis car park, being able to turn in from either direction along Ber Street and on exiting with both left and right turns now allowed. And as Golden Ball Street becomes two way drivers approaching from the south will be able to take a simpler route to the Castle Mall car parks cutting out the former one way loop along Westlegate and Red Lion Street.

With Westlegate closed to general traffic work will start on the new pedestrian zone with a number of trees set to be planted over the next few months, and access for pedestrians and businesses will be retained at all times. And the section of Farmers Avenue from its junction with Red Lion Street to the entrance to the smaller Castle Mall car park will also be pedestrianised, this will be made possible by the rest of Farmers Avenue becoming two way. Red Lion Street will become available for buses, taxis and cycles only as is the case with St Stephens Street currently.

Cllr Steve Morphew, Chair of the Norwich Highways Agency Committee, said: “I’m really grateful for the help and patience of everyone during the current works. Thankfully there have been even fewer problems than anticipated. However the next phase could cause more delays so I ask everyone to bear with us while we carry out this work to build simpler faster routes for drivers and attractive spaces for everyone however they travel to the city.

“We are starting this next phase just before the Easter break which we know can be a busy time in the city so hopefully this will give people a few days to get used to the new road layouts before the bank holiday and plenty of time for the new system to settle down before schools go back after Easter. I ask people to please plan your journeys and allow extra time while the work is underway as everyone is having to adjust.”

The British Chambers of Commerce (BCC) has today (Friday) downgraded its UK GDP growth forecast, from 2.5% to 2.2% in 2016, and from 2.5% to 2.3% in 2017; for 2018, included for the first time in the forecast, GDP growth of 2.4% is predicted.

The downgrade is due to weaker than expected growth across most areas of the economy, reflecting a general global slowdown. Despite these issues, UK GDP is expected to expand at a moderate and relatively steady pace over the next three years.

Key points in the forecast:

• UK GDP growth forecasts downgraded: to 2.2% for 2016 and to 2.3% for 2017
• For 2018 – included for the first time – GDP growth of 2.4% is forecast
• Downgrade due to weaker than expected growth across most areas of the economy, mainly reflecting a general global slowdown.
• Lower than predicted actual growth in Q4 2015, and downward revisions of earlier ONS figures for the first three quarters of 2015, also contributed to the downgrade
• Services and consumer spending will remain the key growth drivers of the UK economy
• Quarterly UK GDP expected to grow by 0.5% in Q1 2016; thereafter, quarterly GDP growth is forecast to average slightly less than 0.6% per quarter from Q2 2016 onwards
• First expected increase in official interest rates, to 0.75% in Q4 2016 – one quarter later than predicted in the previous quarter

Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:

“In the face of a slowing economy which can be seen in both Norfolk and nationally, and with further potential risks on the horizon, there is a case for sustained Government action to improve prospects for Norfolk business.

“Wherever possible, given very real fiscal constraints, the Chancellor must use his forthcoming Budget to bring forward road, rail, and digital infrastructure projects that would help Norfolk companies do more business. He must also avoid adding further to the long list of new business costs and taxes introduced over recent months, which impact on firms before they turn over a single pound and undermine investment.”

Dr Adam Marshall, Acting Director General of the British Chambers of Commerce, said:

“Our forecast should stand as a wake-up call. The UK’s economic performance is reasonably good when measured against our main competitors, but it’s only mediocre when compared against long-term trends. Our trade deficit remains too high, and is not forecast to improve substantially over the next three years. In turbulent times, a consistent focus on improving infrastructure, sweeping away barriers to business investment, and supporting exporters would be a real recipe for success.”

David Kern, Chief Economist at the BCC, said: “Though we have downgraded our growth forecast, UK GDP is expected to expand at a stronger pace than in most other G7 economies, and broadly in line with our long term trend. Growth will benefit from higher disposable incomes, low inflation and a strong labour market. Though services and consumer spending will remain the key growth drivers of the UK economy, our forecast envisages slower growth in these areas than we predicted previously.

“Weaker growth than previously expected in most UK sectors reflects a general global slowdown, which is due to lower productivity, adverse demographic trends and geo-political uncertainties. The worse net UK trade position that we are now predicting is mostly due to weaker global growth, but we do need to do more to boost exports.

“Worsening global trends will present the main dangers for the UK economy over the next few years. Given the unacceptable size of the current account deficit, failure to achieve a meaningful improvement in net exports will make the UK vulnerable to speculative attacks, and our credit rating could be at risk.”

Other elements from within the forecast:

Main components of demand

• Annual average growth in household consumption is forecast to slow: from 3.0% in 2015 to 2.7% in 2016, 2.5% in 2017 and 2.4% in 2018.
• In calendar-year terms, UK business investment growth of 4.5% is predicted in 2016, 7.4% in 2017, and 7.4% in 2018
• In full-year terms, growth in real exports accelerated to 5.0% in 2015, but real exports fell in Q3 & Q4 2015. The new forecast is that real exports, in full-year terms, will grow by 2.3% in 2016, 3.0% in 2017, and 3.0% in 2018.
• The real net trade deficit, having risen to 3.3% of GDP in 2015, is forecast to rise further to 3.7% of GDP in 2016; it will then edge down marginally to 3.6% of GDP in both 2017 & 2018.

Main sectors of the economy

• Service sector output is forecast to grow by 2.6% in 2016, 2.7% in 2017 and 2.7% in 2018. The share of services in UK output is likely to rise further in the next few years and the sector will remain the biggest contributor to GDP growth.
• Manufacturing output is expected to grow more slowly than services, by 0.5% in 2016, 1.4% in 2017 and 1.4% in 2018.
• Total industrial output growth is forecast at 0.5% in 2016, 1.0% in 2017 and 1.0% in 2018.
• Construction output growth is forecast at 0.5% in 2016, 2.6% in 2016 & 2.6% in 2018.

Official interest rates

• The first increase in UK official interest rates to 0.75% is expected to occur in Q4 2016, one quarter later than previously predicted
• Further modest increases in official interest rates can then be expected, in small 0.25% steps, with official interest rates reaching 1.50% in Q4 2017

Unemployment and productivity

• The UK unemployment rate is forecast to fall from 5.1% in Q4 2015, to 4.9% in Q4 2016, 4.8% in Q4 2017 and 4.7% in Q7 2018.
• Net fall in total unemployment of 101,000 forecast over the next 3 years.
• Total youth unemployment (people aged 16 to 24) is expected to fall from 622,000 (a jobless rate of 13.6%) in Q4 2015, to 564,000 (a jobless rate of 12.1%) in Q4 2018, a net fall of 58,000.

Public finances

• UK public sector net borrowing is forecast to fall steadily over the next few years.
• But the official timetable for moving into budgetary surplus in 2019/20, outlined in the November 2015 Autumn Statement, is slightly too ambitious.
• The UK is likely to return to balance in 2019/20, but a move into surplus is only likely in 2020/21.

Inflation and earnings

• In annual average terms, annual CPI inflation is forecast at 0.9% in 2016, 1.8% in 2017 and 2.2% in 2018. In Q4 we predicted 1.1% in 2016 and 2.0% in 2017.

• Total earnings growth (total pay including bonuses) is predicted to average 2.6% in 2016, 3.5% in 2017 and 4.0% in 2018.
• The new forecasts for earnings growth are lower than those we made in Q4.

Norwich City Council have released their latest economic barometer. The report highlighted:

Nationally

• Bank of England unanimously vote to leave interest rates on hold
• ONS figures highlighted that the UK trade gap with the rest of the world widened by £1.9bn
• UK economy grew at its slowest rate since mid 2013
• The Markit/REC report highlighted a slight acceleration in growth of permanent staff placements

East of England

• Confidence in the region’s commercial property market remained strong and rents are expected to rise across all sectors
• UEA’s Low Carbon Innovation Fund (LCIF) invested more than £70m during the first round of funding. It has supported 45 SMEs across sectors including renewable energy, automotive, technology and creative industries
• The Association of Business Recovery Professionals R3 warned that delayed invoice payments were impacting on the region’s manufacturers. 27% suffered from late payment in 2015

Norwich

• NUA’s Ideas Factory Incubation Centre for digital creative businesses has now been officially opened. It offers specialist incubation environment which is designed for digital creative businesses.
• Norse Group has been shortlisted for one of the European Business Awards’ top accolades – Ruban d’Honneur status.
• A drug development business, Inspiralis, has expanded from the John Innes Centre to the Innovation Centre

For full details of the latest economic barometer click here.

Chambers of Commerce across the country, including Norfolk Chamber, are celebrating National Apprenticeship Week with a range of events, having already supported over 15,000 young people so far through Your Future Careers Fairs.

Norfolk Chamber has been involved with delivering Your Future events, which are designed to raise awareness of the career options available to young people, including apprenticeships, and more than 16,500 14-24 year olds have participated nationally so far.

Across the country, an extra 21 events are planned during National Apprenticeship Week, which are expected to attract around 8,000 students.

Chambers involved in the Your Future events include Black Country, Birmingham, Business West, Barnsley & Rotherham, Cornwall, Coventry & Warwickshire, Cumbria, Devon, Doncaster, East Midlands, East Lancashire, Greater Manchester, Hereford & Worcester, Hampshire, Hertfordshire, Hull & Humber, Isle of Wight, Kent Invicta, Lincolnshire, Liverpool and Sefton, North & Western Lancashire, Norfolk, St Helens Chamber, Sheffield, Shropshire, Somerset, Staffordshire, South Cheshire, Sussex, Suffolk, West and North Yorkshire and Wirral.

The scheme works with local businesses to help bridge the gap between the worlds of education and work, to highlight the options available to students, as well as the skills needed to enter the workplace. So far, around 500 national businesses have participated in the scheme through Chambers of Commerce.

Caroline Williams, Chief Executive of Norfolk Chamber said:

“The Your Future events help raise the profile of apprenticeships, which are of benefit to businesses, individuals and the whole UK economy.

“The recently highlighted challenge of promoting apprenticeships in schools is an issue that the Noroflk Chamber and other Chambers within the UK network are tackling, through the Your Future events and by working closely with the Skills Funding Agency, to highlight the breadth of career options available through apprenticeships.

“Through Chambers, local firms can link up with schools, highlight career opportunities, and dispel the myth that the only route to success is a university degree.

“We will continue to help local businesses connect with education and training providers, to raise the visibility of apprenticeships and address the skills gap across the country.”

From 8 April HMRC is going to introduce an exporter details facility on uktradeinfo.com.

Exporters can opt out of the searchable facility, but details cannot be removed retrospectively. Once the data has been made available, it cannot be removed. Exporters who apply immediately will not have their details shown. Otherwise, export data from 1 January 2016 will be made available.

The opt-out rules for Importers Details are also changing from 8 April to bring them into line with the exporter details rules. Anyone who applies for opt-out from Importer Details immediately will have their details excluded from 1 February 2016.

You can find out more about the new service here.

Giving her reaction to the Budget, Caroline Williams, Chief Executive of Norfolk Chamber said:

“Business wanted a steady, workmanlike Budget, and that’s what we got. The Chancellor listened to our calls to avoid higher business taxes and costs – and indeed moved to lower them in a number of areas. He has finally taken real action to lessen the crushing burden of business rates, and sharpened incentives for entrepreneurship and investment.

“While his commitments to key business infrastructure projects are positive, the Chancellor must ensure that they move from the drawing board to speedy construction on the ground. In a softening economy, the combination of sustained infrastructure investment and lower business taxes is important to maintaining the confidence of firms across the country.”

On business rates:

“Businesses will cheer measures to cut the burden of business rates, which hundreds of thousands of firms have to pay before they even turn over a single pound.

“More frequent revaluations will be welcomed, too, but only if a simpler system with fewer valuation errors can be delivered. We would also have liked to see plant and machinery investments excluded from business rates calculations, so we will be pressing for further action on this and other aspects of the system that discourage investment.

“All in all, the rates reforms are a significant step in the right direction, and we will work closely with the government to ensure that they result in real improvements for long-suffering businesses on the ground.”

On the Business Tax Roadmap, Corporation Tax, and Capital Gains Tax:

“The Business Tax Roadmap will help provide a greater degree of certainty as businesses look to plan for the future. Ultimately, the acid test for the roadmap will be whether it makes it easier for businesses to navigate the UK’s complex tax system.

“Cuts to corporation tax and capital gains tax show that the UK is very much open for business. The reduction in capital gains tax in particular will help to encourage entrepreneurial risk-taking in some of our most dynamic young firms.”

On additional investment in HMRC services:

“While businesses continue to express serious reservations about the quality of service provided by HMRC, the additional investment to make it quicker and easier for business people to deal with the Revenue is welcome. We will press for this investment to be geared towards supporting small and medium-sized businesses and making compliance easier.”

On fuel duty:

“We were expecting an increase in fuel duty, so the freeze is good news for businesses, particularly those at the smaller end of the spectrum. The freeze will help keep transport and distribution costs competitive.”

On infrastructure:

“Businesses will be pleased that the Chancellor is moving forward on key infrastructure projects. However, these projects remain at a very preliminary stage, and businesses won’t celebrate exploratory studies and plans that are never realized. Here in Norfolk we want to see our critical infrastructure projects, such as the improvements on the A47 and the Great Yarmouth third river crossing come to fruition are soon as possible.