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The planning system in England is more complex, costly and difficult for business than it was 5 years ago, according to a major report published today (Monday) by the British Chambers of Commerce.

The BCC report says that five years after the introduction of the National Planning Policy Framework (NPPF), which was designed to make the system less complex and more accessible, businesses are experiencing too many delays and barriers to investment. 

The report finds that the government’s focus on new homes is leading to increased pressure on the availability of employment land and premises. A BCC survey of over 900 businesses across the country revealed that one in five firms are struggling to find the land and premises they need. 

The report says the government’s pre-occupation with housing at the expense of other land uses is also leading to localised tensions. New homes are being build adjacent to long-established businesses in towns and cities and causing serious problems, both for new residents and businesses. 

The report urges the government to review the NPPF to ensure that the needs of business are on an equal footing with other stakeholders.

Key recommendations include:

• Employment land and uses should be given equal priority to housing, so that people can access jobs and businesses have the space they need to grow and compete. 
• Where shops and offices have been converted to homes, councils should ensure there is an alternative supply of quality commercial office space available elsewhere.
• Where there is high demand for new housing and jobs, there should be intelligent use of the green belt to ensure local communities benefit from the delivery of new homes and infrastructure. 

Jonathan Cage, President of Norfolk Chamber and Managing Director of Create Consulting Engineers said:

“Access to affordable employment land and premises is essential for business innovation, expansion, and long-term competitiveness. Too many firms are now unable to find the land and premises they need.  We risk creating big problems for the future if we don’t get the right balance of jobs and homes. 

“Firms still face too many barriers, costs and delays as they negotiate the planning system. We need to find a way to make it work better, to provide the strategic certainty for businesses to make their own investment decisions and the freedom and flexibility they need to innovate, grow and compete globally.

“Planning for jobs and homes, together with up-front government investment in modern infrastructure, will give people better access to employment opportunities.   It will help businesses access a skilled workforce and provide the platform to compete globally.  The planning system must be looked into as part of plans to make the UK Brexit-ready.”

Commenting on the draft energy bill, published today, Caroline Williams CEO Norfolk Chamber said:

“If the UK is going to attract the tens of billions of pounds of investment that is required to update the country’s ageing energy infrastructure, the electricity market must be predictable and stable for both businesses and investors. As the energy market moves towards a decarbonised future, we need to ensure that reforms don’t mean more costs piled on business. That’s why we’re encouraged to see proposed measures that will allow the government to consult with firms, and consider their needs in any changes.

“The UK needs a balanced energy mix to guarantee future security of supply. New nuclear plants have to be a key part of the mix, but plans for the next generation of nuclear power stations are behind schedule. We welcome incentives that would encourage investment in new nuclear, and urge the government to stick firmly to these proposals to avoid further delays. We need to see action to guarantee energy supply for the long-term, as a prerequisite for inward investment and growth.”

Draft bill: https://www.official-documents.gov.uk/document/cm83/8362/8362.pdf

Norfolk Chamber recently hosted a visit to Norwich by representatives from HM Treasury. 

Charles Roxburgh, Second Permanent Secretary, Clare Lombardelli, Director of Strategy, Planning and Budget, and Beth Russell, Director of Personal Tax, Welfare and Pensions met with a cross-section of businesses at the Chamber office. 

Among the topics discussed was consumer spending; the challenge of accessing a skilled workforce and delivering skills, including the impact of the apprenticeship levy on businesses.  As well as broadband difficulties in relation to online filing; the need to review the business rates system; and potential impact on customs tariffs from Brexit.  Members also aired their views on changes to personal tax/National Insurance for the self-employed. 

In addition, Norfolk Chamber arranged for HM Treasury to visit the premises of Start-Rite Shoes Ltd.

Businesses throughout the UK came together for the Chamber Business Awards to celebrate outstanding success in business and recognise the achievements of regional Chambers.

Returning for its 14th year, the annual award ceremony is a showcase event in the national business calendar that highlights ‘the role of business in delivering growth and prosperity for the UK and local communities’.

Norfolk based firm epos now were crowned regional winners in the East of England, receiving the ‘Commitment to People Development’ Award and were shortlisted as a finalist at the national awards ceremony.

Double winners AnyJunk received the coveted Business of the Year title and ‘Best Use of Technology’ award for their innovative use of technology to change the productivity and efficiency of the waste disposal industry.

Commenting on this year’s awards, Francis Martin, President of the British Chambers of Commerce (BCC), said:

“I never cease to be surprised by the innovation and ambition of UK companies, and the contribution firms of every size and sector make to their local communities.” 

The full list of winners were:

·         Best Use of Technology – AnyJunk, a London based bulk waste collector for business and homes, is using technology to change the productivity and efficiency of the waste disposal industry

·         Export Business of the Year – Linwoods, a bakers and health food business based in Armagh, has made excellent use of consumer and market research and sells its products to retailers in over 30 countries

·         High Growth Business of the Year – ICON Aerospace Technology Ltd, a world leader in highly engineered polymer-based products for aerospace and defence applications, has increased turnover by 30% and created 150 jobs in less than two years

·         Excellence in Customer Service – Stockport Homes, delivers affordable housing and accommodation solutions, and has driven customer satisfaction through the implementation of a Continuous Improvement Framework

·         Small Business of the Year – DNA Worldwide, providers of DNA, drug and alcohol testing, has used state of the art technology to develop a range of new services, and has ambitious plans to expand

·         Commitment to People Development – Manchester & Cheshire Construction Co. Ltd, has shown impressive commitment to the training and development of staff, participating in 252 training days last year

·         Business and Education Partnership – Ahead Partnership, based in Leeds, has worked to address the soft skills gap, and brings together teachers and employers to create bespoke programmes of learning

·         Best Use of Social Media – JC Social Media Limited, began trading from a spare bedroom in Birmingham in 2011, and use social media to help clients connect with new customers, gaining 28.9m impressions for over a four-month period for a client’s event

·         Health and Wellbeing – Flynn, a building and maintenance business based in Northern Ireland, developed a ‘Boost’ initiative to improve moral, mental wellbeing and communication

·         Chamber of the Year – Greater Manchester Chamber of Commerce, has grown by 11% in the last three years and worked closely with other chambers in the region to share best practice

·         Excellence in International Trade – Northamptonshire Chamber (incorporating Milton Keynes Chamber of Commerce) offers members a wide portfolio of services relating to trade, including International Trade Forums and regular workshops

·         Most Effective Campaigning – North & Western Lancashire Chamber of Commerce, has shown determination and a dedication to the local business community in its campaign for energy exploration in the county

·         Excellence in Membership Services – Staffordshire Chambers of Commerce has grown by 12% over the last two years, and an impressive 20% of Staffordshire’s workforce are in membership

The British Chambers of Commerce (BCC) today (Thursday) releases the results of its survey, in partnership with American Express, which finds the majority of businesses expect the fall in sterling to increase their costs.

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.”