Commenting following Prime Minister Theresa May’s meeting with European Commission President Jean-Claude Juncker, and wider developments in the Brexit negotiations, Dr Adam Marshall, Director General of the British Chambers of Commerce, said:
“Business communities on both sides of the Channel have long been urging negotiators to reach a pragmatic agreement on withdrawal issues, so that we can move on swiftly to transition and trade talks.
“Yesterday’s statements enhance the prospects of finally securing a much-needed transition deal and moving on to the issues that are most important to business, investment and economic well-being on all sides.
“It is imperative to keep up the momentum, as it’s high time to answer the huge practical questions on regulation, customs, standards, tariffs and taxes that lie at the heart of what businesses need to know in order to plan for the future.”
The survey of over 1,300 businesses, including those in Norfolk, found that 63% of businesses expect their costs to increase in the next 12 months as a result of the devaluation in sterling, including a quarter (24%) who expect costs to rise significantly. In comparison, only 6% of firms expect their costs to decrease.
Over 70% of manufacturers (73%) and business-to-consumer firms (71%) anticipate costs increases, compared to 55% of business-to-business firms, according to the results.
The survey also found that many businesses trading abroad are leaving themselves exposed to currency fluctuations, with nearly half (46%) of UK firms not taking proactive steps to manage currency risk. Smaller firms are less likely than their larger counterparts to be managing risk (44% of firms with 1-9 employees, compared to 70% of those with 50-249). Manufacturers have the highest proportion of businesses managing currency risk (76%), compared to B2C (57%) and B2B (39%).
The findings of the survey highlight the extent to which the depreciation in sterling is expected to compound the price pressures on Norfolk firms, underlining the need to ease the domestic cost of doing business. There is also a clear need for more support and information for exporting businesses on the importance of managing currency risk.
Other key findings in the survey are:
The most common forms of managing currency risk are invoicing in sterling (27%), opening foreign currency accounts (15%), and waiting for an advantageous rate and buying using the spot market (15%)
Less than a quarter (24%) of businesses say they have a complete understanding of the types of international payment methods available, with 23% saying somewhat and 13% none at all
The biggest challenges businesses face in making or receiving international payments are delays (21%), bad or misleading exchange rates (16%) and hidden fees (16%)
Julie Austin, International Trade Manager for Norfolk Chamber of Commerce said:
“Weak sterling reflects the current climate of political uncertainty and lack of clarity on the Brexit process. A clear and firm strategy from government about the nature of the UK’s future trading relationship with the EU would go a long way to reassure and stabilise markets.
“While businesses await answers on Brexit, and a return to a stronger currency, they must take the necessary steps to prepare for potential risks. It’s concerning to see the proportion of Norfolk companies not actively managing currency risk. For those trading internationally, it makes good business sense to explore the options available to insure against currency fluctuations.
“Norfolk companies are clearly feeling price pressure from the depreciation in sterling. The government made a crucial first step in the Budget with action on business rates, but further steps need to be taken on the upfront cost of doing business, so that firms can mitigate currency pressures and grow their business.”
Karen Penney, Vice President & General Manager, Global Commercial Payments and Small Business Services UK, said:
“Whilst managing currency fluctuations can seem daunting, technology is rapidly lowering these barriers, helping to streamline the payment process and granting added layers of security to businesses. At American Express we know that simple currency tools such as forward contracts can effectively protect a business from exchange rate volatility by guaranteeing a fixed rate. Not only will this protect margins, it will enable more accurate forecasting and budgeting. With the right tools and resources, businesses can unlock growth opportunities both at home and abroad.”
The Rt. Hon John Hayes MP, the Minister of state for Skills, Further Education & Lifelong Learning, delivered an inspirational speech at the Norfolk Chamber’s High Five Lunch held on Friday 18 May.
The Minister provided an insightful review of his hard work and successes since coming into office in 2010. He has rejuvenated the apprenticeship system and put employers back in the driving seat. There are now almost 500,000 apprenticeship starts a year and the number of apprenticeships have increased across all sectors, in all age categories and in every region in Britain since 2010. The Minister advised that the key was to make the system more demand based, and to highlight how the Apprenticeship system could provide businesses with what they need.
Speaking to an audience of West Norfolk businesses at the High Five Lunch, held in King’s Lynn Town Hall, the Minister highlighted the importance of apprenticeships to Norfolk;
“Apprenticeships should be the vehicle of choice to up-skill the existing workforce in Norfolk and 88% of businesses that take on an apprentice said that they added value to their business. I see working with the Norfolk Chamber of Commerce as a way to increase the profile and the take up of apprenticeships, so that we can create the skilled workforce needed to ensure that the Norfolk economy grows and prospers”.
The Minister was introduced to the delegates attending the lunch by Henry Bellingham MP, who highlighted that “The local economy is remarkably resilient, but the whole skills agenda is absolutely pivotal to its future. That is why today’s event is so important. It will allow the Minister to see what we are doing in West Norfolk, together with the Norfolk Chamber, to ensure that we have the right skills in place for when the economy picks up”.
The High Five Lunch is a successful series of business networking events based in West Norfolk. The event was sponsored by Lloyds TSB Commercial and the National Apprenticeship Service. The next event in the series will take place on Thursday 5 July.
The British Chambers of Commerce, CBI, TUC, FSB and EEF have made a joint plea to guarantee the rights of EU and UK citizens before Christmas.
Four million EU and UK citizens face a second Christmas of uncertainty about their right to remain in the countries they now call home. Despite signs that negotiators have made progress on this issue, they are being treated as bargaining chips and are left unsure of their position, especially if there is no deal between the UK and the EU.
Trade unions and businesses are deeply concerned that our friends, colleagues and workers continue to be in limbo. They deserve better treatment, given their vital contribution to our communities, businesses and public services.
The right to remain of the four million must be resolved. There must be certainty whatever the outcome of the Brexit negotiations. The UK government and EU27 should unilaterally guarantee their status and future rights before Christmas. Neither side need wait for the other to do this. If many who go home for holidays simply do not come back, this would have a damaging impact on critical public services and growth.
Adam Marshall, Director General – British Chambers of Commerce
Carolyn Fairbairn, Director General – CBI
Frances O’Grady, General Secretary – TUC
Mike Cherry, National Chairman – Federation of Small Businesses
The UK has had a relatively easy time in the EU, with English being the organisation’s lingua franca, but what will happen after Brexit when its traders will be expected to go out into the wider world?
The British Council has identified the languages that it claims British citizens should learn if the country is to prosper in a post-Brexit world.
It seems that it will not be leaving Europe totally behind as the top five languages listed by the Council in its report Languages for the Future are Spanish, Mandarin Chinese, French, Arabic and German.
Available at www.britishcouncil.org, this explains that the languages were selected on the basis of extensive analysis of economic, geopolitical, cultural and educational factors, including the needs of UK businesses, the UK’s overseas trade targets, diplomatic and security priorities, and prevalence on the internet.
The top five languages listed were found to be significantly ahead of the next five, which were Italian, Dutch, Portuguese, Japanese and Russian.
For the UK to succeed after Brexit, international awareness and skills – such as the ability to connect with people who do not necessarily speak English – will be more vital than ever, the report argues.
However, the UK is currently facing a languages deficit, with a worryingly low proportion of those aged 18-34 able to hold a basic conversation in the top five languages: French (14%); German (8%); Spanish (7%); Mandarin (2%) and Arabic (2%).
That lack of language skills is estimated to be holding back the country’s international trade performance at a cost of almost £50 billion a year, the report claims.
It is therefore necessary, the British Council concludes, to initiate a bold new cross-government, cross-party initiative aimed at sustaining improvement in language capacity over the medium to long term.
If you have any documents which may require translation, check out or translation service. All of our translators are fully qualified linguists and specialise in particular sectors. For more information please contact us on export@norfolkchamber.co.uk or call 01603 729712.
The International Trade Department will be operating slightly differently over the festive season. To ensure you get your export documents returned before our closure, see our opening hours below.
Monday 18 December – Last day for Carnets, otherwise normal service Tuesday 19 December – Normal service Wednesday 20 December – Normal service Thursday 21 December – Normal service Friday 22 December – Standard e-zCerts until 11:30am. Xpress e-zCerts until 12 noon.
We will be closed from Monday 25 December 2017 to Monday 1 January 2018, reopening on Tuesday 2 January where our normal service will resume.
Our documentation prices are changing from 1st January 2018. See our 2018 price list here.
This December, the Chamber have delivered Christmas breakfasts across Norfolk, offering members a chance to attend a festive networking event at a venue nearest to them. We hosted the business breakfasts with a festive spin at venues in Great Yarmouth and Norwich, with the West Norfolk breakfast taking place Wednesday 13th.
First up we had the Great Yarmouth breakfast which took place at the Town Hall where 40 members came to meet new businesses. The morning was hosted by East Coast Hospice, who guided guests through a morning of breakfast and festive networking activities, including a ‘guess the intro’ Christmas music game.
Next up, was the Norwich edition. Over 140 guests came to The Holiday Inn for a morning hosted by The Big C who encouraged the room full of chamber members, dressed up in their finest festive attire, to take part in activities such as Christmas Pictionary!
To round up the Christmas breakfasts, members from West Norfolk will come to network at Knight’s Hill Hotel in King’s Lynn. The morning will be hosted by East Anglia Children’s Hospice, who will be bringing some festive fun to the room and informing delegates about the work they are doing for young people with life-threatening conditions.
Across the breakfasts so far, guests were extremely generous and brought along gift donations for each of the charities involved with the breakfasts in order to support their causes. This is sure to continue at the last instalment in West Norfolk.
If you are interested in attending the last breakfast in the series in Kings Lynn, email events@norfolkchamber.co.uk or visit our website – https://norfolkchamber.co.uk/events.
Profit Hunter Freddie Bennett, and The Sober Exec Chris Anthony both spoke openly to James and Mark on what you consume impacts how successful you can be in business. They reflect on both their personal and professional experiences with the impacts of the corporate party culture and how it can be combated for the better of profits, and our mental health.
Ahead of the festive season, this is a great insight into the full value these guests have to offer team leaders in spotting signs of issues both within their team and themselves.
The Eastern Daily Press want to hear from Norfolk businesses about how they fared in 2017 and what their predictions for the coming year.
2017 has been a year of political and economic uncertainty, yet Norfolk businesses are known for their resilience, which sectors have flourished and which are facing tough times?
The latest edition of a newsletter on Mutual Recognition Agreements (MRAs), concluded between the European Union and non-EU countries, has been published.
It provides information on the current status of MRAs with the USA, Canada, Japan, Switzerland, Australia and New Zealand, as well as on the Agreement on chemical Good Laboratory Practice with Israel.
This has been compiled from a trade perspective and also includes an overview of the Agreements on Conformity Assessment and Acceptance of Industrial Products (ACAAs) currently agreed and under consideration with countries in the European neighbourhood.
The latter covers 16 partners to the east and south of the EU’s borders, namely Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, the occupied Palestinian territory, Syria, Tunisia and Ukraine.
Traditional MRAs enable Conformity Assessment Bodies (CABs) nominated by one Party to certify products for access to the other Party’s market, according to the other Party’s technical legislation.
They provide for the mutual recognition between trading partners of mandatory test results and certificates for certain industrial products.
No regulatory convergence is implied by a traditional MRA. In other words, there is no implication that the regulations imposed on products by the Parties are to be brought into alignment at any stage.
As far as the EU is concerned, no further traditional MRAs are foreseen, but there is a certain amount of evolution in their operation, for example, as amendments to their scope are considered and as mandatory certification gives way to reliance on suppliers’ declarations of conformity.
Accordingly, it is intended that this newsletter will be issued from time to time to reflect the evolution of the current position.