Every three months, all Chambers of Commerce across the UK ask businesses in their respective areas to complete a Quarterly Economic Survey, or QES.

QES is the UK’s longest-running independent business survey and is widely acknowledged by the likes of The Bank of England as being a very useful barometer of business confidence and economic performance. 

Results from QES Q1, 2024  have just been published and these are the headlines from QES:

• Manufacturing – 15%; Services – 85%.
• 21% of respondents are exporters.
• 89% of respondents are small to medium-sized enterprise (SME) businesses.
• QES fieldwork took place between Monday 12^th February 2024 and Friday 8^th March 2024.

Domestic sales

Overall, 42% of Staffordshire respondents reported an increase to domestic sales in the last three months, while 11% reported a decrease.   At a national level, 36% of respondents reported an increase to domestic sales in the last three months, while 22% reported a decrease.

Investment

Overall, 11% of Staffordshire respondents reported an increase to plant/equipment investment in the past three months, while 82% reported no change, and 7% reported a decrease.  At a national level, 24% of respondents reported an increase to plant/equipment investment in the last three months, while 16% reported a decrease.

Prices

The percentage of Staffordshire firms expecting their prices to rise stands at 31%, compared to a national response of 46%.  This has halted a downward trend, seen since Q2, 2022.

External factors

Energy prices are the top external factor of concern for the majority of respondents (26%), along with changes to National Living Wage (19%).

Headline trends across national QES results from Q1, 2024:

• No overall improvement in business conditions in Q1 2024 as measured by investment, sales and cashflow. 

• Levels of business confidence remain unchanged, with 56% of UK businesses expecting an increase in turnover in the next twelve months. 

• Almost half of firms are expecting the price of their goods or services to rise. 

• Interest rates continue to slowly decline as a concern for businesses.  

• Hospitality sector continues to struggle disproportionately, with 39% of these firms reporting a decrease in their cash flow, compared with 28% of respondents overall. 

We’ve had some mixed business news this week….. 

Inflation rate fell to 3.2% in March 2024 but national QES results (above), indicate that almost half of firms expect their prices to rise over the next three months. Labour costs are seen as the main driver but increasing political and global uncertainty is becoming a key factor.  Businesses are waiting to see how this data translates into changes on interest rate policy.

The number of job vacancies continues to fall, and with unemployment on the rise, there are further signs that the labour market is cooling.  Too many firms are still struggling to find the people and skills they need to fill job vacancies.

Our next QES will run from Monday 13^th May to Friday 8^th June and I’ll be sharing the survey link in my blog of Monday 13^th May.  Please take the 60 seconds needed to complete a QES and tell us about your levels of business confidence.

I was fortunate enough to join one of the first “Teapot Tours” organised by Simon Davies, MD of Protectapet, which have now boomed in popularity as Simon continues his mission to share his passion for the Potteries through the means of a heritage walk.

When I joined Simon for the tour last year, we started at Commerce House office and walked toward the towpath of the Trent & Mersey Canal.  It marked the start of a walk from Etruria to Middleport.  Every so often, we would pause for a short stop off at various heritage landmarks. 

The Trent & Mersey Canal was engineered by James Brindley and opened in 1777.  At the time, it was the country’s very first long-distance canal.  The towpath creates a green corridor for both walkers and cyclists and acts as the lungs of our city.

Our walk took in the Etruria Industrial Museum, which is the only surviving section of Josiah Wedgwood’s original factory (the Roundhouse close to the canal), atmospheric potbank wharves and the site of the former Shelton Bar steel works and much more. We headed north and in no time found ourselves admiring the stunning Middleport Pottery potbank.   The Grade II listed pottery stands proud after 130 years and remains home to the famous Burleigh pottery.

We finished off our tour with refreshments at Middleport Matters and listened to local poet, Nick Degg, who wrote the poem, ‘I come from a town’.   In the space of a few hours, I started to get a sense of just how much heritage there is in our local area.  Just take a look around!

Simon continues to share his passion and has since guided businesses on a Teapot Boat Ride, through the 1.6 mile long Harecastle Tunnel. 

I’m delighted to confirm that Simon will be the guest speaker at our next Planning & Infrastructure forum meeting.  Simon will discuss the need for more entrepreneurial and private sector driven regeneration initiatives in our area.

If you have an interest in heritage or would like to hear more about how this can drive regeneration of our county, join our next Planning & Infrastructure forum meeting on Tuesday 23^rd April, to find out more.

Our Planning & Infrastructure forum is one of eleven Chamber policy forums.  This particular forum is tasked with exchanging information on planning policy, construction and regeneration.  The forum is open to any Chamber member business and places can be booked through the link:

Planning & Infrastructure Forum – Staffordshire Chambers

Manifesto

I’m in the final stages of updating our Chamber Business Manifesto.  We know that a General Election has to take place before the end of January 2025 and that’s why we need to have a Manifesto in place, which will provide a summary of the key issues facing our local businesses.   Watch this space for further details!!!

The start of April, a new financial year and the chance to review our role as ‘the voice of business’ in Staffordshire. 

It’s been a hectic start to 2024 but here’s a flavour of the policy and lobbying work we have developed since the beginning of January:

Political Meetings

We hosted a meeting with the Shadow Minister for Business & Trade (Jonathan Reynolds, MP), on Thursday 21st March.  Following on from an opening session with more than 50 businesses, we joined Mr Reynolds on a brief tour of Synectics Solutions, before returning to Vale Park for a round table discussion with Chamber Patrons.  Key topics of discussion included cutting export red tape, skills, the green economy, energy costs, land value capture and National Insurance and tax.

Other Activity

We wrote to Metro Mayors Andy Burnham (Greater Manchester Combined Authority) and Andy Street (West Midlands Combined Authority) regarding their proposals to improve rail connectivity between Manchester and the West Midlands.  On 27.3.24., I joined members of our Transport forum to discuss this in more detail with Transport for West Midlands.  A detailed publication on the proposals will be unveiled in May 2024.

On Wednesday 20^th March, we delivered the first of three Big Business Breakfast events, focusing on the theme of innovative skills solutions.  Guest speakers included James Timpson, OBE and Adam Whitehouse of TMT First.   Future events will look at the economy and planning/infrastructure.  Feedback from those who attended was extremely positive.

Our Digital forum is one of eleven Chamber Policy forums and is tasked with driving the growing digital sector in Staffordshire, enabling businesses to freely exchange information, share best practise and discuss exploiting digital, collaboration, skills and digital inclusion.

We have developed two working groups (Digital Divide Working Group (DDWG) and Digital Skills Working Group (DSWG)).  DSWG is looking at how to create a local view of a digital skills pathway, to enable learners (and where appropriate their families), to have signposting to technology specific learning opportunities and how these available courses can support a professional career development within the digital sector (and beyond).  

A brand-new community interest company (CIC) has now been formed, called ‘Re-boot IT for all.’  The CIC has been formed with the support of TMT First, based in Newcastle under Lyme and a provider of technology lifecycle services and innovative solutions for the circular economy.  The CIC will offer hardware repurposing, with securely wiped and clean items of hardware being offered to community groups or “trusted referrers”, who in turn can distribute to members of the community experiencing digital poverty. 

Campaigns

Clean Air Zone

Measures to improve air quality at “specific areas of exceedance” across North Staffordshire are required by Government.

• A Clean Air Zone (CAZ) – Category C will extend across a defined area of Stoke-on-Trent stretching from Fenton to Joiners Square and Hanley.  Buses, coaches, lorries and vans entering the CAZ which do not meet emissions standards will be forced to pay a charge.
• We are deeply concerned by the impact on businesses who may need to upgrade their fleets of vans and lorries, or who may be forced to pay the CAZ charge in order to receive deliveries from non-compliant lorries and vans.
• A bus gate will be introduced to limit westbound traffic at peak times of the working week, on the A53 (Etruria Road) from its junction with the A500.  Electric vehicles, buses and emergency service vehicles will be allowed to join Etruria Road, but all other vehicles will be forced to find another route.
• We are concerned that the issue of poor air quality will be displaced rather than be reduced.  We feel that the bus gate will lead to higher congestion on the approaches to the A500/A53 junction and will become an issue for staff recruitment and retention for businesses based along Etruria Road, as well as the wider area which extends to Festival Park and Hanley.

We were delighted by the recent announcement that Stoke-on-Trent City Council is developing a revised plan for the Clean Air Zone (CAZ), which will cut NO2 and which could see changes made to junctions to reduce congestion, as well as upgrading pedestrian and cycle routes.  This is welcome news for the business community   Whilst we recognise the need to improve air quality for our residents, the implementation of the CAZ would have a detrimental impact on local businesses. 

The news about a review of the CAZ proposal is welcome but we are still extremely concerned by the potential impact of a bus gate, which will prevent any non-compliant vehicles from driving in a westbound direction along Etruria Road (Basford Bank), at peak times of the working week and we call for a similar pragmatic approach to look again at the hugely negative impact of imposing a bus gate at Basford Bank.  We note that the local authorities (Stoke on Trent City Council, Newcastle under Lyme Borough Council and Staffordshire County Council) continue to develop the full business case for a solution to the NO2 pollution exceedance on Basford Bank.  All three local authorities involved in the project continue to express their concerns to Government about the impacts the peak period bus gate will have, for example on routes where traffic is diverted.  

Stoke-on-Trent City Council is planning to limit traffic access to Station Road at the front of Stoke on Trent Station, creating a new transport hub.  This will follow on the back of the launch of a new camera-controlled section on nearby College Road, with offending motorists who drive along this stretch, being fined.  We understand that this is scheme is due to progress and we’ll continue to monitor developments.

Etruria Valley Station

Etruria Valley Station was closed to passenger services in 2005. Jo Gideon MP submitted a bid to re-open this station, under the Restoring Your Railways Fund (RYRF).  The bid was rejected but we feel that a far better alternative would be to open a new station at Etruria Valley, approximately 1 mile north of the former Etruria Station and close to the site of the new Etruria Valley Link Road.

Back in November, we invited businesses to join us for a round table discussion and we have asked local businesses to make a financial commitment towards the cost of developing a business case.  This will cost an estimated £15,000.  We continue to seek support for the development of a business case.   In the early part of this year, we have held constructive meetings with both Stoke on Trent City Council and Staffordshire County Council. 

Letters & Consultation Responses

• We wrote to Newcastle under Lyme Borough Council to query business rates billing to a member business, who was unable to get a detailed response.  We have since received an update from Newcastle under Lyme Borough Council and this has been shared with the member business.
• We wrote to Staffordshire Moorlands District Council (SMDC) on behalf of a member business to query the guidelines on getting three quotes for a UK Shared Prosperity Fund (UKSPF) grant application.   Our member also pointed out that innovation is not necessarily linked to job creation.  There could be efficiencies which could mean that staff can be utilised in other areas of the business.   Innovation can, of course, also bring about a reversal of jobs created/safeguarded.  This could be down to a new process or use of machinery.  SMDC called the member directly with a response but acknowledged the need to review guidelines.  The issue was also escalated to the British Chambers’ of Commerce (BCC) who in turn, have lobbied Department for Levelling Up Housing and Communities (DLUHC).  Feedback from DLUHC has acknowledged the need for a strategic initiative to streamline and simplify funding, helping stakeholders navigate the local funding landscape.
• We wrote to Chancellor of the Exchequer on 28.2.24. to call for a number of business ‘asks’ in the Spring Budget.  We were pleased to see that our call to raise the registration threshold for VAT has been approved and this has risen from £85,000 to £90,000.  It really does help small business as the administrative burden often sits disproportionately heavily on them because they don’t have the financial and operational resources at their disposal to deal with the paperwork required. 
• We wrote to Staffordshire County Council and Stoke-on-Trent City Council, calling for a joined-up transport strategy for North Staffordshire, following on from the government announcement of £4 billion for transport improvements across the country.
• We submitted a response to the government’s consultation on strengthening policy on brownfield land development.
• Copies of all letters can be obtained from declan.riddell@staffordshirechambers.co.uk. 

Policy forums

Our eleven policy forums continue to underpin our policy and lobbying work.  Our forums are composed of Chamber member businesses from across a diverse range of business sectors.   We invite guest speakers to join our forums and deliver informative updates to the business community.  Our policy forums are a great way to keep updated and to join the conversations in shaping the work we do.  Updates from our policy forums in Q1…..

Coming up

We will be launching our new Staffordshire Chambers’ of Commerce Manifesto in the coming weeks.  With a General Election due to take place in the next nine months, now is a good time to update our Manifesto, ready to share with politicians of all parties.   The Manifesto will be based around a number of themes:

• Connected Staffordshire
• Digital Staffordshire
• Global Staffordshire
• Green Staffordshire
• Skilled Staffordshire

We will be outlining a number of pledges linked to these themes and we will also be calling on commitments from stakeholders and partners.  Watch this space for further details!

If you would like to join our policy forums or if you have any questions about our policy and lobbying work, feel free to get in touch:

declan.riddell@staffordshirechambers.co.uk