Tariffs imposed by President Trump’s administration on global steel and aluminium imports could lead to yearly export losses of £125 million for the UK, but it will be by no means the hardest hit country.
According to leading trade credit insurer Euler Hermes, global export losses caused by the US decision will reach £5.57 billion with the highest losses being suffered by Canada, Brazil, Russia, China and South Korea.
Canada looks likely to be the biggest single loser, Euler Hermes has calculated, suffering a £1.5 billion loss. In Europe, Germany could be the biggest loser with £300 million in lost exports, while the EU as a whole will lose around £800 million.
Despite these figures, Ludovic Subran, Chief Economist at Euler Hermes, still believes that the risk of a fully-fledged trade war – characterised by a doubling or tripling of the average US tariffs and severe retaliation from the EU, Canada and Mexico – still seems unlikely.
However, he warned, the uncertainty caused by the latest wave of measures combined with tit-for-tat tariffs from other countries threatens the status quo of rules built up over the past 25 years.
The most frustrating aspect of the current disputes is that they are taking place in the context of reasonably healthy global trade figures.
“Encouragingly, global trade is actually doing quite well and rose by around 5% last year,” Mr Subran pointed out. “For the moment, it is outweighing the dampening effects of protectionism measures.”
The nascent Customs Declaration Service (CDS) faces significant challenges and there is a risk that it will be unable to fully replace the existing Customs Handling of Import and Export Freight (CHIEF) system by January 2019.
Indeed, HM Revenue & Customs (HMRC) will not know whether CDS works in live service until all of its functionality has been implemented this December, the National Audit Office (NAO) has warned.
In its latest report on the CDS, the NAO says that the late release of functionality and migration of users increases the risk that HMRC will not have sufficient time to resolve any issues that the last release might highlight and that some traders will therefore have to continue using the existing CHIEF system.
Although HMRC intends to migrate users to the CDS beginning in August, and aims to complete the process by January next year, the migration of all users from the current (CHIEF) to the new (CDS) system by then seems, as the NAO puts it, “unlikely”.
However, if the CDS is not ready, does not perform as planned, if traders have not migrated to it in time, or there is no deal on Brexit, then HMRC now has more robust contingency plans in place, the NAO agrees (something it welcomes given that its previous report of July 2017 criticised HMRC for a lack of planning).
For the British Chambers of Commerce, Anastassia Beliakova noted that, until the Government has decided which customs option it wishes to pursue with the EU post-Brexit, the 145,000 UK businesses that are only trading with the EU are left in the dark as to the future costs and administration they have to factor in.
The NAO report, The Customs Declaration Service: A Progress Update, can be found here.
• 24% of firms have never heard of Making Tax Digital, which comes into effect next April for VAT
• Only 10% of firms know ‘a lot of details’ about the switch to the digitised tax system
Ten months ahead of its planned introduction, an alarmingly high proportion of UK businesses have little or no awareness of HM Revenue and Customs’ flagship Making Tax Digital project, according to new research released today (Tuesday) by the British Chambers of Commerce, in partnership with Avalara.
Based on the responses of over 1,100 firms, with less than a year to go until the government plans to roll out Making Tax Digital (MTD), there is a widespread lack of awareness among business communities about the switch to a digitised tax system. A quarter (24%) of firms have never heard of it, and two-thirds (66%) know it only by name or some details about it.
All VAT registered businesses will have to maintain digital records for VAT and submit their returns digitally from April 2019 – just days after the UK leaves the EU. Of those that are aware of the change, a quarter (25%) have made no preparations at all. This is a concern as MTD will require VAT registered firms to have MTD compatible software in place that can create a VAT return and connect to HMRC systems via an Application Programming Interface (API). This is a much more complex process for businesses than the current online process of manual completion of VAT returns.
As the government prepares to roll out this flagship policy, businesses are reporting low levels of satisfaction and support from HMRC. Asked to rate the overall level of service, help and support received from HMRC on a scale of one to five, 60% of firms gave the tax authority a rating of 3 or less. Levels of direct engagement with HMRC remain low. Of those firms that are aware of MTD, just 6% of businesses have contacted HMRC for advice (including online services, webinars, or via their telephone services), compared to 51% who have spoken to an accountant.
The BCC is therefore calling for the introduction of Making Tax Digital to be delayed for all businesses until the start of the 2020/21 financial year. This would give HMRC the breathing space to engage effectively with businesses, ensure that the necessary software is in place, and raise levels of awareness about the impending changes. While steps have been taken to free-up capacity, businesses remain concerned that HMRC may still lack the resources to deliver MTD at the same time as supporting firms through the Brexit process (particularly given the level of uncertainty over the final customs arrangement), as well as day-to-day compliance issues. The delay to this initiative would also provide HMRC with the extra headroom that maybe needed to support business on these vital issues.
Mike Spicer, Director of Economics and Research at the British Chambers of Commerce (BCC), said:
“The government’s aim to modernise the UK’s tax system is admirable, but in view of low business awareness and the impending challenges of Brexit, it would make sense for HMRC to delay the implementation of Making Tax Digital in order to get this change right.
“We are concerned that far too many firms still aren’t clear on what Making Tax Digital is, or what it means for their operations. With just months to go before the deadline, these knowledge gaps could make the timeline for change unworkable for many firms.
“Ministers must face up to the reality of the pressures facing HMRC and delay the introduction of Making Tax Digital for all businesses for the next financial year. This would allow the Revenue to focus its immediate attention on supporting businesses through the Brexit process, which must be a key priority.
“When Making Tax Digital is implemented, the acid test will be whether it ultimately creates a simpler and more efficient tax system, or yet more onerous administrative burdens that stifle the growth of UK firms.”
Richard Asquith, VP of Global Indirect Tax at Avalara, said:
“Making Tax Digital will affect 2.6 million businesses. It is the biggest overhaul in VAT obligations in decades. Approximately 25% of businesses are still using manual or spreadsheet record keeping, which falls foul of HRMC’s new requirements. It is still not clear how they can become compliant without more education plus investment in compliance accounting packages. To date, HMRC have remained confident that they can cope with MTD and Brexit; although 29 other efficiency projects have had to be cancelled or delayed in preparation of the UK leaving the EU in March 2019.
“HMRC will be clarifying their Making Tax Digital program at our free Tax Summit in London on the 3rd October. This will be a great chance for businesses to have some of their concerns addresses by HMRC directly.”
Commenting on the release of the UK government’s long-awaited White Paper on the future UK-EU relationship, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:
“At last, businesses have a more comprehensive understanding of the Government’s aspirations for the UK’s future relationship with the European Union.
“This vision should not have taken two years and three weeks to emerge, but it is nevertheless a welcome starting point for businesses.
“Momentum and pace are now needed to translate ambition into answers to the real-world, practical questions that businesses face. Even with the welcome direction of travel in the White Paper, companies still don’t know how they’ll be paying VAT, how they can move people between offices, or whether goods will get across borders with a minimum of fuss. It is incumbent on the two sides to work pragmatically and productively on the nuts-and-bolts detail of the future relationship over the coming weeks, drawing on business experience and expertise.
“Time is short – and for businesses, it’s results that count.”
Following publication of the White Paper, the leading business organisation maintained 22 ‘red-rated’ and 2 ‘amber-rated’ issues on its Business Brexit Risk Register, which brings together the 24 top questions being asked by businesses across the UK. On this, Marshall added:
“Businesses still need clear and detailed answers on many of the practical, real-world questions they face. Many of these answers can only emerge through negotiations – so it’s time for the two sides to crack on and get to a deal. And we have said many times, and will say again, that the UK government must deliver clarity wherever the answers to business questions are entirely within the UK’s own control.”
The British Chambers of Commerce also urged the UK Government to step up preparations for all eventualities – including ‘no deal’ scenarios — to ensure that businesses have clarity on how the UK would operate its borders, immigration system and regulations in the event of a breakdown in negotiations. Adam Marshall said:
“Firms need clear guidance from the UK government on preparations for all eventualities, so that they know how critical systems and borders would operate in the unwelcome scenario where a comprehensive deal cannot be reached.”
Norwich City Council have released their latest economic barometer. The report highlighted:
Locally
Business activity picked up sharply in May, helped by an increase in new orders and demand. However this has subsequently slowed due to political and economic uncertainty
Unite is warning that the Constructionarium Project, which gives undergraduates construction experience, is at risk of closure as a result of the Construction Industry Training Board’s plans to close its HQ at Bircham Newton
More than 200 homes could be built in Norwich City centre on part of the former Jarrold printworks site. Plans also include a 60 bedroom hotel and offices.
Nationally
Mild improvements in both the UK manufacturing sector and the construction sector according to PMI data
UK wage growth fell short of expectations – slipping to 2.8% from 2.9%, raising further doubts about whether the Bank of England will raise interest rates in the summer
Tight labour market conditions have placed upward pressure on staff wages and are causing recruitment difficulties.
For the first time Norfolk Chamber has decided to enter the Grand Norwich Duck Race, in support of charity member Break. The Grand Norwich Duck Race will be held on Sunday 26th August where corporate and community groups will bring their decorated ducks to race from St George’s Bridge to St Fye’s Bridge, outside the Ribs of Beef Public House. After much deliberation and duck puns around the office, we are excited to reveal the name of our duck: Harry Quacker & the Chamber of Commerce! Harry Quacker was designed and hand-painted by our very own Sam Brown. You can keep up-to-date with Harry Quacker through Twitter – @HarryQuacker. Break support young people in care and moving on; children and young people with disabilities, families in need of support and children at risk, across East Anglia. Throughout 2018 Break are also celebrating 50 years changing the lives of vulnerable children and young people. Activities will begin from 11am including a cake stall, ice creams, face painting, Archers Butcher’s sausage stall, little duck stall, games and other activities. The main events are: 2.00pm – Individual Duck Race – 3,000 little ducks will take to the water to swim their way to the finish line 2.30pm – Large Painted Duck Race – large decorated ducks take to the water to compete to win the Grand Norwich Duck Race trophy Come along and support Harry Quacker & the Chamber of Commerce on Sunday 26th August as he magic’s his way to victory! Find our more about the Grand Norwich Duck Race: click here
The sun is out and temperatures are rising, which can only mean one thing – Lunch on the Green!
For the first time Norfolk Chamber of Commerce are taking an exhibition stand at the coolest summer networking event in Norwich – Lunch on the Green 2018.
Mix, mingle, and soak up the sun at Clapham & Collinge’s annual summer networking and fundraising event in support of Break Charity on Wednesday 11th July. With plenty of local businesses exhibiting across all sectors, many offering special deals and delights, this fabulous fundraising event is a great opportunity to network with the Norfolk business community whilst supporting Break Charity, during their 50th anniversary.
This year’s event will feature many summer-themed activities and attractions including garden games, a selection of wines from TFW Fine Wines, delicious canapés from The Feed, summer mocktails from 7 Surrey Street, wine tasting with Eastern Financial Consultants, roulette with Kings & Queens Fun Casinos, beautiful floral displays from Libby Ferris Flowers and live music acts including Bill Downs, Lydia Lee and the Manhattan Husk Duo.
Click here to download a full list of our exhibitors.
Advanced tickets cost £10+VAT (includes a glass of wine and a buffet lunch). Click here to purchase your ticket.
We’re only a few days away from The Royal Norfolk Show, and we want to make our marquee the place to business at the biggest county show in the region!
Norfolk Chamber are returning to The Royal Norfolk Show on stand 74 with a range of activities to show you what your Chamber is all about. We have a dedicated business lounge serving refreshments throughout both days of the show. Invite your clients and business relations to meet you at stand 74 for a catch up, or come along to see what new business contacts are around. Enjoy a break from the madness of the show and see what new connections you can make.
At 3pm on the Wednesday we’ll be holding Gin O’clock with St.Giles Gin! Enjoy one of their speciality gin cocktails as you network in our lounge. Want to come along? Email hello@norfolkchamber.co.uk to let us know!
Throughout the show you’ll be able to come and meet our team to find out how we can support you; from networking to exporting abroad. We also want to know how we can better help your business with our ‘What do you need’ boards. Come and tell us what you need to help continue grow your business in Norfolk. We’ll also be highlighting two of our key campaigns with activity boards at the show; Not More Not-Spots and Just Dual It.
You can find out more about what we’re doing at the show here.
Norfolk Chamber members can get a 10% discount on Norfolk Show tickets using code RNS45 when booking tickets on The Royal Norfolk Show website.
As Norfolk Day approaches we launch details of our #15SecBiz video premier, to be held at Norwich Cathedral on Friday 27 July.
Join us as we screen all of the #15SecBiz videos we’ve been recieving over the last few weeks. We’ll also be giving out our special ‘Norfolk Day Oscar’ to the best #15SecBiz video that really gives the ‘wow’ factor and shows how great Norfolk really is for businesses.
Network with fellow Norfolk businesses and hear from our CEO Chris Sargisson about why Norfolk is such a great place to do business, whilst enjoying a light buffet from Norwich Cathedral. See the full agenda below:
Agenda: 12:00 Arrival for light refreshments 12:15 Presentation from our CEO, Chris Sargisson #15SecBiz video showreel Light lunch 13:30 Oscar voting closes & prize giving 14:00 Event close Don’t worry if you haven’t made your #15secbiz video yet, there is still time to get your video to us and be in with the chance of winning the award. Visit our webpage for more information. Click here! Find out more about the event: click here!
As Britain’s heatwave continues across the county, businesses from across Norfolk, and even some from Cambridgeshire, came together for a networking breakfast at Knights Hill Hotel in King’s Lynn.
Delegates arrived early to enjoy the early morning sun and to make new connections. Not only was the room filled with Norfolk business, but our friends at Cambridgeshire Chamber of Commerce brought some delegates along to meet businesses across the border.
Welcomed by our West Norfolk Chamber President Michael Baldwin of Bank House Hotel, attendees started the event by taking part in our networking activity, in which they had to identify global cities by their ‘Street Map’ view. One table came close to full marks with 8 out of a possible 10.
Following this was breakfast served by Knights Hill Hotel, where delegates were able to continue conversations whilst tucking in. Once the plates were cleared we mixed the room up in our classic ‘Safari Network’ where attendees move tables to meet more businesses.
Next came our guest speakers. Elizabeth kicked things off giving an overview of how successful tourism has been in West Norfolk in recent years. This is shown by the fact that 18% of employment in West Norfolk supports tourism, and this percentage rises during peak seasons. Elizabeth also gave an overview of the new mobile apps in West Norfolk, including the ‘Visit West Norfolk‘ app which she encouraged businesses to get involved in.
After Elizabeth’s talk was Kate who kindly gave us her time despite being so close to the King’s Lynn Festival. Kate highlighted how the King’s Lynn Festival is one of the longest running art festivals in the UK. The festival takes place in venues across King’s Lynn including St.George’s Guildhall, which is the largest and best preserved medieval guildhall’s in the UK.
After some great question and answer time with businesses focusing on how they could get involved with the King’s Lynn Festival and the Council’s apps, the event drew to a close with the networking continuing.
The Department for International Trade (DIT) is looking for sponsors and partners to help deliver the UK Pavilion at World Expo 2020 Dubai. This major event will run from 20 October 2020 to 10 April 2021.
DIT explains: “Working with us to establish a presence at the largest business, economic and cultural event in the world will give you a global platform to gain significant commercial exposure and help the UK create a truly spectacular presence at the Expo.”
The theme of Expo 2020 Dubai is Connecting Minds, Creating the Future.
According to DIT, it signals the global need to work together to inspire future generations and to develop partnerships across sectors, organisations and geographies to address the many needs of a fast-changing world.
The UK’s theme for the Expo is “The UK – innovating for a shared future”. It will have a self-build pavilion located in the Opportunity district of the Dubai site. The three sub-themes of the Expo are opportunity, mobility and sustainability.
Aiming to drive significant trade and inward investment for the UK, DIT will use the Expo to highlight a number of key sectors, including infrastructure and finance, technology, healthcare, consumer goods, catering and food and drink.
Any company wanting to register an expression of interest, in either cash or value in kind sponsorship, should contact the Sponsorship and Partnerships team at DIT by 31 July 2018.
Contacts include Fay Wiltshire (fay.wiltshire@trade.gov.uk) and Rebekah O’Connor (rebekah.oconnor@trade.gov.uk).
Following the successful launch of two new job initiatives, Breckland for Jobs and West Norfolk for Jobs in April this year, local employers are continuing the good work for Norfolk Day.
Norfolk Day is on Friday 27 July 2017 and is celebrating all that is great about Norfolk, from its people; its places; its culture; and its local business communities. In celebration, we already have fifteen Breckland and West Norfolk for Jobs employers in King’s Lynn, Dereham and Thetford, who have agreed to open their doors for job seekers to visit them on Friday 27 July 2018.
For more information and timings on the employers taking part – please see the attached PDFs.
For more information about West Norfolk and Breckland for Jobs , please contact Nikki David, Strategic Coordinators – Breckland & West Norfolk for Jobs on email: nikki.david@dwp.gsi.gov.uk