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The British Chambers of Commerce’s quarterly economic survey – the UK’s largest private sector survey of business sentiment and a leading indicator of UK GDP growth – finds that the UK and Norfolk economy ended 2018 stuck in a weak holding pattern, with stagnating levels of growth and business confidence as a result of heightened Brexit uncertainty and other economic pressures.

Key findings:

• Percentage of Norfolk manufacturing firms reporting an increase in domestic sales and orders fell drastically
• Percentage of Norfolk service companies reporting an increase in export orders and sales fell into minus figures
• Norfolk recruitment difficulties in manufacturing fell in comparison to the national average, but still remain at high levels
• Price pressures rise further for businesses, particularly manufacturers

The results of the survey of 6,000 firms, including those from Norfolk, – employing over one million people across the UK – underline the impact that the current levels of uncertainty are having on a stalling economy as growth in domestic sales and orders reduced, considerable recruitment difficulties are still being faced and price pressures persist.

In the services sector, a key driver of UK economic growth, the percentage of firms reporting an increase in domestic sales and orders weakened. Domestic activity among UK manufacturers fell drastically in the quarter.  

The findings highlight the continued labour shortages in Norfolk as nearly four-fifths (79%) of manufacturers that tried to recruit report difficulties in finding the right staff, whilst in the Norfolk services sector, 74% reported that they were struggling to recruit

The survey results indicate an increase in price pressures facing firms. The percentage of manufacturers expecting to raise prices is at its highest in a year (53%) and higher than the national result of 43%.  Cashflow continues to be a concern for both sectors, with the balance of firms reporting improved cash flow remaining weak.

As Westminster prepares to return from recess, the Chamber network is calling on all political parties to find a way forward and ensure that the UK does not face a messy and disorderly exit from the EU. Avoiding a chaotic Brexit would bolster business confidence and investment, and give businesses some much-need clarity on trading conditions in the near-term. 

Nova Fairbank, Head of Policy, Governance & Public Affairs for Norfolk Chamber of Comemrce said:

“The latest survey suggests that the Norfolk and the UK economic conditions were worryingly subdued in the final quarter of 2018, with a number of key indicators continuing to weaken under the weight of persistent Brexit uncertainty and rising cost pressures.

“Domestic activity in the dominant Norfolk services sector weakened for the second successive quarter, with consumer-facing firms particularly downbeat amid subdued household spending levels and tightening cashflow. Our manufacturing sector had an underwhelming three months, with significant cost pressures and moderating global demand weighing on activity in the sector.”

Suren Thiru, Head of Economics at the British Chambers of Commerce, said:

“The marked increase in cost pressures for businesses in the quarter suggests that inflation will be higher over the near term, with the continued weakness in sterling maintaining the upward trend on the cost of imported raw materials. However, with our results also showing that price pressures from wage settlements remain relatively muted, there continues to be sufficient scope to keep interest rates on hold in 2019, particularly given the significant economic and political turbulence.”   

Responding to the results, Dr Adam Marshall, Director General of the British Chambers of Commerce, said:

“The UK economy is in stasis. While it’s not contracting, it’s not growing robustly either. Throughout much of 2018, UK businesses were subjected to a barrage of political noise and drama, so it’s no surprise to see firms report muted domestic demand and investment. In this new year, the government must demonstrate that it is ready to act to turbo-charge business confidence.

“With little clarity on the trading conditions they’ll face in just two months’ time, companies are understandably holding back on spending and making big decisions about their futures. The government’s absolute priority now must be to provide clarity on conditions in the near term and avoid a messy and disorderly Brexit. Business communities won’t forgive politicians who allow this to happen, by default or otherwise.

“Brexit is hoovering up all of government’s attention and resources, but it’s far from the only cause of uncertainty. Given the magnitude of the recruitment difficulties faced by firms clear across the UK, business concerns about the government’s recent blueprint for future immigration rules must be taken seriously – and companies must be able to access skills at all levels without heavy costs or bureaucracy.”

Key findings in the Q4 2018 survey:

Norfolk Manufacturing sector:

• The balance of firms reporting increased domestic sales drastically fell thirty five points from +35 to 0 and those reporting improved domestic orders also fell from +30 to 0
• The balance of firms reporting improved export sales rose several points from +38 to +43, while the balance of those reporting improved export orders rose from +27 to +43
• The balance of firms expecting to raise prices in the next three months stands at +53, up from +40 in Q3
• The percentage of firms citing the cost of raw materials as the source of cost pressures continued its upwards trend from the last quarter, now at 94%, the highest since Q2 2013
• The percentage of firms attempting to recruit remained fairly static – moving upwards by only one point to 74%. Of those, 79% reported recruitment difficulties
• The balance of firms increasing investment in plant/machinery fell considerably in the quarter from +30 to +16, however investment in training rose from +30 and +42
• The balance of firms confident that turnover and profitability to increase in the next 12 months fell, from +44 to +32 for turnover and +55 to +11 for profitability

Norfolk Services sector:

• The balance of firms reporting increased domestic sales rose from +17 to +21.  Those reporting improved domestic orders also rose slightly from +12 to +15.
• The balance of firms reporting improved export sales fell drastically from the previous quarter of +14 to -5, while those reporting improved export orders also fell from +10 to -9
• The balance of firms expecting to increase prices in the next three months stands at +38, down slightly from +42 in Q3
• The percentage of firms looking to recruit dipped from +73 to +70.Of those, 76% had recruitment difficulties, down slightly from a high of 84% in the previous quarter
• Cashflow remains a concern, with a balance of just +8 reporting improved cashflow
• The balance of firms looking to increase investment fell from +25 to just +9 in plant and machinery, but remained static at +21 to +20 in training
• The balance of firms confident that turnover and profitability will improve over the next year rose slightly, from +34 to +39 for turnover and +16 to +24 in profitability

There is only a short period of time left for you to have your say on the Norwich Western Link shortlisted options. 

Norfolk County Council have published four shortlisted road options for a Norwich Western Link. The options are designed to improve travel between the A47 and the western end of Broadland Northway and tackle transport problems in this area.

You can look through all the information available as part of the consultation and respond online.  You can also respond in person and talk to staff involved in the project at a series of consultation events.  The consultation will close at midnight on Friday 18 January 2019, so make sure you submit your response before this date.

Consultation events

Consultation events have been running since December.  Below are the remaining consultation events.  All consultation events will run from 2-8pm unless otherwise stated.

• Thursday 10 January at Diamond Jubilee Lodge, Hellesdon
• Friday 11 January at Great Witchingham Village Hall
• Monday 14 January at The Costessey Centre
• Tuesday 15 January at Dereham Memorial Hall
• Wednesday 16 January at Honingham Village Hall

For more information and to have your say online – click here.

2018 was a year of change for Norfolk Chamber and 2019 will certainly be no different! We are in preparation to launch a new and exciting events programme designed to get you making even more connections. Our events are here to support local businesses, and in the first few months of the New Year we have plenty to offer.   Norfolk Chamber runs successful networking breakfasts in Norwich, Great Yarmouth, West Norfolk and South Norfolk with guest speakers, networking activities and a delicious breakfast. If early mornings aren’t your thing, why not try one of our social evening events such as Super Bowl 2019 or Wine Tasting with Harper Wells.  Our annual high-profile policy event, The MPs Event, is now known as The Big Debate. Join us as we bring together Norfolk MPs, business leaders, County Council and the LEP to debate and discuss key issues affecting the region.  More interested in content than making connections? Why not join us for some valuable business training on social media, finances or marketing. Find out more.  We’re also launching new partnerships this new year, including Making Tax Digital with NatWest, Culture Shock with UEA and Fountain Partnership, Business Rates Consultation with Norfolk County Council and Our Region: Post Brexit with New Anglia LEP and Great Yarmouth Borough Council. The date for this year’s premier business to business exhibition is Thursday 17 October 2019. The B2B Exhibition will have it’s first year in its new home in 2019, so mark the date in your calendar and check back for more information!  Keep an eye on our events programme for new events coming this Spring; or sign up to our mailing to get updates straight to your inbox!  We look forward to welcoming you to an event soon.

A highlight event in our region’s business calendar, Norfolk Chamber’s successful MPs Event returns for its seventh year, with a new name and a new programme. Continuing our mission to connect, support and give voice to every business in Norfolk.  ‘The Big Debate’ will not only, as in previous years, bring together our Norfolk MPs, but will also open the floor to hear from some of Norfolk’s top business leaders, the County Council and other key influencers in the region. As always, our format will debate the current ‘hot’ topics, that we feel are the most important to the local business community.  The proposed discussion topics are:

• Place/Perception: What is the perception of Norfolk to those on the outside?  What steps must we take to make Norfolk stand out from the crowd?  How can we all promote the exciting and innovative opportunities available in this region?  
• Diversity: How diverse is your workforce and does your board represent equality?  Would your business benefit from greater diversity and how about the gender pay gap?
• Skills: Does your business struggle to recruit skilled staff and what do you think are the barriers to accessing them?  What can we do to create the future workforce?
• Brexit: With less than 80 days to Brexit, how prepared is your business?  What are the opportunities and what are the key concerns?  What do you want to tell our MPs and what do we all need to know before 29 March 2019?

‘The Big Debate’ gives you the opportunity to highlight business opinion and put your questions on the above topics direct to the people who can influence change on your behalf. Help us to make the debates as effective and as relevant as possible by completing our pre-event survey! It will only take a few minutes of your time and will shape the conversation at the event to highlight what’s important to you right now. Complete the survey now. This high profile, annual policy event is a key date in the commercial calendar for the start of 2019, giving you the opportunity to engage with Norfolk MPs, as well as local businesses.  Find out more about the event, as well as our confirmed speaker line-up, and book tickets here: The Big Debate 2019.   This event is sponsored by Greater Anglia.

Great Yarmouth Borough Council has launched a procurement tender to identify a commercial operator or investor to support a bid for funding to restore the iconic Winter Gardens on Great Yarmouth’s seafront.

This procurement is to identify a commercial operator with a thorough business plan, to work with the Council applying for restoration funding and to deliver a commercial operation from the finished asset.

Interested parties may apply through the ProContract portal by clicking here.

Site viewings are by appointment only and can be arrange by contacting the Project Support Officer via stacy.cosham@great-yarmouth.gov.uk

The holy month of Ramadan will begin on the 16th May 2018 and end on or around 14th – 15th June 2018

During this period the Arab British Chamber of Commerce will adopt, as in previous years, shorter working hours, Monday to Friday (10.00am – 3.00pm).

Equally, all Arab Embassies will also have shorter working hours, therefore, delays in documentation turnaround may be experience.

Furthermore, please note that at the end of the holy month of Ramadan the Embassies will close for several days. 

Please do ensure that documents are presented in good time, so as to avoid disappointments.