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After securing the works contract last year, Vattenfall has made the decision to stop work on Norfolk Boreas Offshore Wind Farm.

The project has come to a halt due to rising costs caused by inflation, rendering the offshore wind farm project financially unviable, with two other sites: Vanguard East and Vanguard West also being reviewed.

Vattenfall is one of Europe’s largest producers and retailers of electricity and heat, operating 10 wind farms across the UK. Vattenfall planned to construct the Norfolk Boreas Offshore Wind Zone off the coast of Norfolk, providing power to more than 4 million homes in the UK.

Jack Weaver, Chief Operating Officer at the Norfolk Chambers, said:

“Like all businesses operating in Norfolk, Vattenfall are being squeezed by multiple macro-economic pressures. Stubbornly high inflation, rising interest rates, a very tight labour market and an increasingly uncertain policy environment are undeniable, but this decision will not have been taken likely. Nevertheless, it is unfortunate to see such a significant expansion of our offshore renewables offer hitting pause. This decision will not impact on the positive relationship Norfolk Chambers has with Vattenfall, and we will continue to engage positively with them to ensure Norfolk businesses still benefit from the win-win scenario of investment in the drive to Net Zero.”

Responding to the launch of a UK Government consultation on negotiations for an upgraded trade agreement with Turkey, BCC Head of Trade Policy William Bain said:

“It is good news to see this statement of intent to deepen UK trading terms with Turkey. It is our 18^th largest bilateral trading partner worth £23.5bn in total trade in 2022.

“Currently, three quarters of UK exports to Turkey are in goods, so a key aim of these negotiations must be to keep that secure while expanding scope for services exports.

“An upgraded free trade agreement must focus on being match-fit for the 21^st Century. This means negotiating new arrangements on services, business and labour mobility, green trade and digital trade. All areas we flagged in our new Trade Manifesto.

“Only 6% of UK VAT registered exporters trade goods and services with customers in Turkey – a refreshed agreement needs to work in practice to raise that share.”

The UK’s current trade agreement with Turkey was a roll-over deal reached a few days after the Trade and Co-operation Agreement (TCA) between the UK and the EU was made in late December 2020.

Turkey has a partial customs union and regulatory relationship with the EU which forms the background to what can be negotiated with the UK.

Mr Bain said: “Issues around rules of origin are being consistently raised by UK companies trading in the European neighbourhood. The BCC would like the UK to join the Pan-Euro Mediterranean (PEM) Convention which would offer greater flexibility for traders seeking to sell manufactured goods in the EU, Turkey, and the rest of the European neighbourhood within the Convention.

“There will also be an overlap therefore between trade issues we would want to agree bilaterally with Turkey, and the wider review of the operation of the TCA in 2025/6.

“As these negotiations look to get underway later this year, securing a future looking, upgraded set of trading terms with Turkey is a key part of achieving closer economic relations for UK businesses across the European neighbourhood in the coming years.”

The existing UK-Turkey continuity trade agreement can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/963851/CS_Turkey_1.2021_UK_Turkey_Free_Trade_Agreement.pdf

• Government must fix people problem to ease inflation and take pressure off interest rate rises

• 79% of businesses surveyed (92% of whom are SMEs) attempting to recruit have faced challenges, with hospitality and construction firms the most likely to report difficulties

• Three in five (60%) businesses attempted to recruit in the quarter 

The latest Quarterly Recruitment Outlook (QRO), a survey of 4,800 UK firms of all sectors and sizes by the British Chambers of Commerce (BCC) reveals there is still no easing in the record high difficulties in finding staff.

The second quarter results for 2023 show that the percentage of firms facing recruitment difficulties has fallen just three percentage points from the historical high of 82% in Q4 2022. This has now remained above 75% for the last two years.

Attempted recruitment in Q1 was virtually unchanged from the previous quarter, with 60% of those surveyed looking to find staff (59% in Q1 2023).

While recruitment difficulties are being experienced across the economy, the construction & engineering, and hospitality sectors were the most likely to report problems with 86% of firms reporting difficulties (up from 81% and 83% respectively in Q1). This is closely followed by manufacturing on 81% (83% Q1) and then professional services on 77% (79% Q1).

Of the firms in the construction & engineering sector facing recruitment difficulties, 76% faced difficulties in finding skilled manual/technical workers. However, for hospitality businesses that struggled to recruit, 69% faced difficulties in finding semi/unskilled workers.

Investment in training remains stubbornly low with just over a quarter of firms (27%) reporting an increase in their training investment plans over the last three months (the same as Q1), while 14% report a drop (also the same).

In terms of cost pressures, the data show that the main factor for increasing prices is now coming from wages rather than utility bills or raw materials.

With concern around utility costs dropping, 63% report these as an issue (74% in Q3 2022), the number of firms reporting labour costs as a source of pressure has risen to 68% (67% in Q1) and is now the lead cost pressure.   Although, overall, the percentage of firms expecting their prices to rise fell below 50% for the first time since Q3 in 2021.

Responding to the findings, Jack Weaver, Chief Operating Officer at Norfolk Chambers of Commerce said:

“The tight labour market continues to push up wage costs, fuelling inflation, and creating huge difficulties for businesses looking to recruit. In Norfolk, our already squeezed businesses also face the issue of a shrinking workforce as the working age population in our county declines in a way not seen in much of the rest of the country.

In our focus groups and engagement events with Norfolk businesses, recruitment difficulties are consistently cited by as a major barrier to growth, meaning firms cannot fulfil order books and are turning down new work.

Added to this, the national picture shows acute issues in hospitality, construction, health and social care and other sectors heavily reliant on labour from overseas. These are all sectors on which Norfolk’s economy is heavily dependent, so we need to see consistent and pragmatic immigration policy from government and the opposition to give our businesses confidence in the future.

Afghan industry leaders, small business owners and public sector representatives met earlier this month to explore provincial trade challenges and solutions that can feed into the ongoing design of the country’s National Export Strategy (NES).

The Strategy is intended to set out a blueprint for competitiveness and development of the country’s export sector and strengthen links between export development and socio-economic growth.

It will provide national and international development partners with an appropriate implementation plan for trade-related operations.

Jointly organised by Afghanistan’s Ministry of Commerce and Industries (MOCI) and the Afghanistan Chamber of Commerce and Industries (ACCI), the event follows the first NES stakeholders’ consultation held in Kabul in February 2017.

Deputy Minister for Commerce Mohammad Qurban Haqjo said: “The strong public and private sector dialogue that has taken place today on topics, such as quality management, skills development and market intelligence, will be invaluable in developing a sustainable and inclusive NES.”

The NES initiative falls under the auspices of the EU-funded “Advancing Afghanistan Trade” project, which aims to assist the country in improving the conditions to use trade as a lever for enhanced regional co-operation, economic and human development and poverty reduction.

Afghanistan acceded to the World Trade Organization (WTO) in July 2016 and has placed trade and regional economic co-operation at the heart of its development strategy.

Further information about the Advancing Afghan Trade project can be found here.

Skills was the primary focus at our recent Norfolk & Suffolk Local Skills Improvement Plan (LSIP) Co.llaboration event at Newmarket Racecourse.   The event showcased the extensive employer engagement across both counties and the collaborative work undertaken with many key stakeholders, including colleges, independent training providers, local authorities, the DWP, universities and many others around the region’s skills gaps and needs.

Through a series of interactive panel discussions, we heard the employer’s perspective, the provider perspective and the findings of four deep-dive pieces of work around the LSIP’s themes and cross-cutting themes: Agri-tech/Food Processing, Net Zero, Soft or Impact Skills and Digital Workforce Skills.

Opening the event, John Dugmore, Chief Executive of Suffolk Chamber of Commerce said:

“Skills development supports the local economy, but is also important for our social landscape – supporting young people coming in to work with the right attitudes is just as important as training up managers to effectively run the business.  The LSIP has been listening to employers, but it is also there to highlight that our partners in education establishments and the independent training providers are already doing great work in this space and whilst there is always more work that can be done to ensure that we exploit all the opportunities available to us, as we’ll see this afternoon, we start from a very strong position already.”

The LSIP Project Manager, Dean Pierpoint, facilitated the panel discussions and commented on the clear shared the passion, determination, and desire to support skills development to meet the future skills needs by all involved.

Key messages from the discussions:

• Apprenticeships are still a key focus within the region and this was demonstrated by Harry Harris of SWARM who shared his enthusiasm and willingness to support businesses with apprenticeships.
• There is a need for consistent language to be used in the skills landscape, at present employers are not understanding the skills language used by providers and the Department for Education.
• Encouragement of the coming together or private and FE training providers, to further support the local skills required for businesses to continue to grow in Norfolk and Suffolk
• Now is the time to keep the momentum going and to drive the skills agenda forward this can only be achieved with continuous ongoing engagement with both employer, providers and all relevant stakeholders.

Nova Fairbank, Chief Executive of Norfolk Chambers rounded the afternoon off by outlining the next steps for the LSIP, including how the LSIP will move forward into Phase II.  Commenting on the hard work done to date by the LSIP team she said:

“Investment in skills is a priority to support Norfolk and Suffolk businesses and the LSIP and all our partners and stakeholders are collaborating to achieve this.  The final LSIP Report will be submitted to the Secretary of State for Education by 31 May 2023.  However, the submission of the LSIP report is not the end – just the end of the beginning.  The LSIP report is not a document that will sit on a shelf gathering dust.  It becomes an ongoing, living, breathing, evolving document that is a template for business and skills engagement across Norfolk and Suffolk.  This can only be achieved by continued ongoing close collaboration with our wide range of stakeholders and businesses across Norfolk and Suffolk.”

For more information on how to get involved with the Norfolk and Suffolk LSIP, please email LSIP@norfolkchambers.co.uk.

To get involved with the LSIP’s work and to have your say, please visit the Norfolk and Suffolk LSIP LinkedIn Group: Stay connected with the latest research, surveys, events, news and discussions 🌟

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.

On the  26 April at Newmarket Racecourse we held the Norfolk and Suffolk LSIP Co.llaboration Event, which showcased the extensive employer engagement which has taken place, detailing the analysis and key findings in which businesses are communicating the regions skills gaps and needs.

We heard from businesses and stakeholders through panel discussions about the challenges being faced by employers, LSIP Theme Analysis Findings and Colleges & Provider Solutions to Skills Priorities. There were opportunities for the audience to put questions to the panels which created engaging conversation.

The conversations that took place are key in enabling us to develop the programme to suit the region’s needs.

It was clear all shared the passion, determination, and desire to support skills development to meet the future skills needs.

Key messages from the day:

• It was clear that apprenticeships are still a key focus for local providers within the region and this was demonstrated by Harry Harris of SWARM who shared his enthusiasm and willingness to support businesses with apprenticeships.
• There is a need for consistent language to be used in the skills landscape with clear definitions of where to access skills and funding our employer panel made up of local businesses of all sizes echoed these comments.
• Encouragement of the coming together or private and FE training providers, to further support the local skills required for businesses to continue to grow in Norfolk and Suffolk
• Nova Fairbank (Norfolk Chambers CEO) provided an update on next steps, which included many of the themes of the day – greater sharing of works well, encouragement of closing working relationships between business and the further education sector, aligned with national and local polices.

Now is the time to keep the momentum going and to drive the skills agenda forward in true LSIP Co.llaboration style.

A big thank you to our brilliant hosts John Dugmore – CEO of Suffolk Chambers of Commerce, Nova Fairbank CEO of Norfolk Chambers of Commerce and Dean Pierpoint, LSIP Project Manager of Norfolk Chambers of Commerce, along with our fantastic panellists, everyone who attended and to Newmarket Racecourse for providing such a great venue and service.

For more information on the programme, please email LSIP@norfolkchambers.co.uk

Norfolk and Suffolk LSIP LinkedIn Group: Stay connected with the latest research, surveys, events, news and discussions