Policy Spotlight with Rhouda: Quarterly Economic Survey, quarter two results
The British Chambers of Commerce’s Quarterly Economic Survey (QES) is the UK’s largest independent survey of business sentiment, that also highlights UK GDP growth and the latest economic indicators across the nation. The information provided by businesses is invaluable to decision-makers, helping them to assess what support is needed both locally and regionally, and ensuring that business productivity and investment is maintained.
The latest QES for quarter two of 2022 saw over 5,700 businesses take part, with many firms revealing a weakening in domestic sales, investment intentions and longer-term turnover confidence.
Further to this, 82% of firms who were surveyed cited inflation as a growing concern for their business, with 65% of firms expecting to raise prices with no sign that this will level off.
Compared to quarter one of 2022, indicators for turnover and profitability confidence and investment have all worsened. Firms that are expecting an increase in turnover in the next twelve months has dropped from 63% to 54%, which is the lowest figure since quarter four in 2020.
65% of firms now expect to raise their prices in the next three months, a record high and a 23% rise on a year ago today. When firms were asked which factors were driving price rises, 67% cited utility bills, 66% labour costs, 56% fuel and 53% raw materials. The sectors which are worse affected by these high costs are retail and wholesale, construction and engineering, manufacturing and production.
Despite the current downward trend in domestic sales, business activity still remains buoyant. 41% of respondents reported an increase in domestic sales, down from 42% in Q1. In the services sector, firms reporting increased domestic sales stood at 24%, compared to 21% in Q1. However, in the manufacturing sector, firms reporting increased domestic sales fell to 19%, which is the lowest level since Q1 2021.
Sara Williams, CEO of Staffordshire Chambers of Commerce, said: “The declining confidence in business performance has affected many firms’ plans to increase their investment. This of course comes as no surprise as businesses deal with cost pressures from all directions. The rise in inflation has had a detrimental impact on firms’ abilities to invest in their staff, their business and their raw materials, causing a further disruption to business productivity and growth.
“It is now essential that the Government take serious action to help businesses through these challenging times in order to help stabilise the UK’s economy.
“Chambers across the network have echoed the BCC’s call for a 5% cut in VAT for energy bills and to relieve the tax burden on firms which will ultimately encourage further investment. It is now also critical that the Government addresses the labour shortages by implementing a long-term strategy that will help businesses to recruit the right people with the necessary skills for the role.”
In order for confidence to be restored, the Government must quickly demonstrate that it is on the side of business, allowing more firms to invest and return some momentum to the economy.
If you would like to discuss the latest QES results or if you have any business concerns or issues, please get in touch by emailing rhouda.elalfy@staffordshirechambers.co.uk.
- Published in News, Uncategorized
Sara’s Blog: British Chambers of Commerce Annual Global Conference
On Thursday this week I attended the British Chambers of Commerce (BCC) Global Annual Conference in London with five of our patrons; LilaConnect; RSM; Staffordshire University; JPR Group and Newcastle & Stafford College Group.
After a turbulent few years, the conference was an opportunity for business leaders from the UK and around the world to come together and look to a more sustainable and responsible future.
There was a feel at the conference that none of us were here for platitudes and bland statements. We were to challenge and get frank answers on how business and government can work together to achieve stability, growth, and competitiveness.
Through thought-provoking discussions, talks and peer-to-peer sessions and networking, delegates were able to explore and debate how we can individually and collectively rise to the challenges ahead, with a particular focus on:
- PEOPLE – Developing talent now and for the future
- PLANET – Boosting a green global economy
- PROGRESS – Seizing new opportunities
Away from the sessions there was networking time for delegates and a showcase BCC’s dynamic network of UK and overseas Chambers and strategic partners.
In the opening keynote, BCC Director General Shevaun Haviland was in conversation with Chancellor of the Exchequer Rishi Sunak. Shevaun pressed Mr Sunak on how the government can improve support for businesses in these testing times. Lower taxes and less bureaucratic burden being priorities as well as keeping costs down to maintain competitiveness in a global market.
Shevaun Haviland spoke about the missed opportunity of the Chancellor’s Spring Statement. We saw some support for business, but the lack of a clear strategic direction meant it did not give clarity or confidence.
This must change as we are on limited time. The Government has until the autumn budget to reset, rethink, and get their house in order.
We all know that businesses are facing unprecedented challenges, exacerbated by the conflict in Europe, which follows a once-in-a-lifetime pandemic that literally brought life as we know it to a halt. Increasing cost of raw materials over last summer, supply chain and shipping issues, problems in recruiting people, and by this March spiralling energy prices.
Inflation is at a 40-year high, at over 9 percent and interest rates are climbing, dampening business confidence and retail sales are continuing their downward trend
This will all lead to an overall contraction in the economy over the next six months, with just 0.6% growth expected for the whole of 2023.
Next week the BCC will be publishing the findings from their Quarterly Economic Survey from the second quarter of this year. Early signs are that data is telling a bleak story. Less than half – only 43percent of firms, are expecting an increase in profitability in the next 12 months.
However, there is another side to this story that is often under-reported – business resilience. Business owners got through the pandemic using their ingenuity, taking tough decisions, and holding their nerve.
Now, again, in the face of difficult economic conditions, business leaders are showing entrepreneurial spirit – innovating, finding solutions, looking forward, and always holding on to an unfailing belief in their own business, even if they are losing faith in the environment around them.
The Chamber Network of which we are an integral part, exist to support our businesses, to keep speaking to Government and to keep working together to create the conditions for these businesses – your businesses – to thrive.
We have heard some inspiring speeches, and lively debate, unfortunately I don’t have space to list everyone, but Solange Chamberlain, COO of NatWest, former Irish President, Mary Robinson, international Trade Minister, Anne Marie Trevelyan, maths teacher and broadcaster Bobby Seagull, Andy Burnham, Mayor of Greater Manchester, and Mary Portas are a small sample who illustrate the depth of talent and knowledge at the conference.
One of the best takeaways was the views of year 10 students on the way they see the future. As the saying goes: “If you want to shape the future, ask the next generation about the present!”
After all, they will be running many of the businesses here today as well as the new businesses they will create.
And, as always, we need your views on any of the issues here so we can shape our ongoing representation to government. Please get in touch via the contact methods below.
If you want to talk to us about any business issues, including funding, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002 or email: info@staffordshirechambers.co.uk
- Published in Uncategorized
Staffordshire Chambers commits to Fostering Friendly employers scheme
Staffordshire Chambers of Commerce is proud to have committed our support to the Fostering Friendly employers scheme.
Organised by The Fostering Network, the scheme offers businesses of any size a chance to make a difference for foster carers and the children they care for in their local communities, while simultanously improving the support for their own employees.
Nearly 40 per cent of foster carers combine fostering with other work. Those who do say that a supportive employer can make all the difference, enabling them to balance employment with looking after children.
Sara Williams, Staffordshire Chambers CEO, said: “The Chamber has committed our full support to this initiative and is proud to become a Fostering Friendly employer.
“Becoming a foster parent is an amazing opportunity to give a child or young person the fresh start that they need – and we will do everything that we can to support our employees through this process.
“There is a shortage of foster carers in Stoke-on-Trent and Staffordshire, and schemes like this are invaluable in getting people to think about fostering.”
Find out more about the scheme, here.
- Published in News
SDG 12 Responsible Consumption and Production with Water Plus
SDG 12, Responsible Consumption and Production, encourages both individuals and businesses to look at how they can use and produce in sustainable ways that will help us reverse the harm already done to the planet.
Chamber Members, Water Plus, have written a guest blog outlining three useful tips that can help you to reduce your water consumption, lower your running costs and help our planet.
“Take a moment for your water as it can be an untapped source for savings – and can cut carbon emissions linked to your business, charity or public sector site.
- Do you need to use all the tap water you currently do? Not everything needs tap water – for example rainwater can be used for watering plants and shrubs in your grounds, as well as used to wash down hard areas at sites (and water butts to collect it are very low cost). Fill up dishwashers and use eco settings – so less water is used.
- Explore where water can help you lower your future utility costs: Low-cost push taps and aerators can cut flow rates by 16 litres a minute, so less hot water use means lower energy costs. Showers can be reduced to 6 litres a minute – making a big difference for workplaces, gyms, spas and leisure facilities. Less water heated helps the environment too.
- Do you know where your waste – including your wastewater – goes? Checking your pipes and your site/s regularly, including noting monthly meter readings, if it’s safe to access, will mean you can react quickly to leaks and issues – not only cutting water waste but also limiting increases in additional costs. A leaky loo can waste up to 400 litres of water a day – that’s equal to 5 full bath-tubs.
Plus, there’s carbon emissions linked to the wastewater from your site which is taken away and treated once you’ve used it – and carbon emissions linked to the water that you get through your taps – so reducing either of these, along with any water waste, helps you towards Net Zero and beyond!
You can read more about what you can do with water, here.
- Published in News
Refugee Week 2022: Naheed’s Story
It’s been three years since Naheed left her home in Pakistan and arrived in the UK with a dream of launching her own business, but little idea of how to do so.
After being issued refugee status, Naheed joined the Positive Pathways programme at Staffordshire Chambers – a business start-up and employability skills programme specifically designed to support refugees across Stoke-on-Trent and Staffordshire with employability skills and business start-up advice.
Naheed explained: “As we were new in the country, we didn’t know how business works here, or how to set one up. We had a lot of questions and didn’t have any answers.
“It was a big challenge to start a business from scratch but the Chambers provided us with step-by-step clarity, guiding us through business structure, how to choose a premises, market research, dealing with cash flow forecasts and much more.
“I gained a lot of confidence and peace of mind through the Positive Pathways programme.
Positive Pathways, as its name says, really puts you on a pathway to starting a successful business. We were given a grant to help start the business and we really felt like somebody was there to care and help us.”
Naheed has now secured her premises in the city and hopes to start trading as ‘Naheed’s Salon’ during July.
- Published in News
Sara’s Blog: Armed Forces Week and Refugee Week
This week is both Armed Forces Week and Refugee Week with events up and down the country marking the contribution and sacrifices our armed forces make on our behalf and raising awareness of refugees, their plight and what a positive contribution they can make to society with our help.
Armed Forces Week is an opportunity to show our support for the men and women who make up the armed forces community from currently serving troops to service families, veterans, and cadets and the role they play protecting the UK both at home and overseas.
So much has changed since Armed Forces Week last year. Who could have imagined that we would have a war on European soil, and that in Ukraine, a country looking increasingly to Europe and its values of democracy and freedom, we would be witness to so many lives lost, cities reduced to dust, and millions forced to flee their homes, loved ones and everything they held dear?
This needless war has brought the role of our armed forces sharply back into focus, from how we can aid an ally such as Ukraine, defend our soil and contribute to a newly reinvigorated NATO force.
Therefore on Monday it was a privilege to welcome Col Paul ‘Shove’ Gilby OBE to Commerce House for our Armed Forces Week networking lunch – raising money for ABF The Soldiers’ Charity.
It was fascinating to hear about his 15 operational tours including Northern Ireland, Bosnia, Kosovo, Afghanistan and Cyprus and how he is now leading the Army’s operation to help deliver the Commonwealth Games in Birmingham next month.
Staffordshire Chambers of Commerce have always had strong links with the armed forces, and we know that many local employers and employees play a vital role in their support of our reserve forces.
We have our very own Honorary Colonel of the British Army, in ex-Chamber President Mike Frewer, and we are also extremely proud to have West Midlands Reserve Forces & Cadet Association (WMRFCA) as patrons and very pleased that the Chambers support to our armed forces has been recognised through our Silver Award and by being a signatory to, the Armed Forces Covenant – a promise to ensure that those who serve or who have served in the armed forces, and their families, are treated fairly.
Four of our local organisations also signed up to the Covenant on Monday. They were ELM Group, Staffordshire Fire & Rescue Service, Synectics Solutions and Port Vale FC.
You can find more about the Armed Forces Covenant here: Armed Forces Covenant: guidance and support – GOV.UK (www.gov.uk)
We are also supporting Refugee Week 2022 by highlighting our Positive Pathways project and the way in which it helps refugees in the Stoke on Trent and Staffordshire to become employment ready and enabled to contribute to the local labour market.
Refugee Week is a UK-wide festival celebrating the contributions, creativity and resilience of refugees and people seeking sanctuary held every year around World Refugee Day on the 20 June.
Refugee Week’s vision is for refugees and asylum seekers to be able to live safely within inclusive and resilient communities, where they can continue to make a valuable contribution.
Positive Pathways is a business start-up and employability skills programme specifically designed to support refugees across Stoke-on-Trent and Staffordshire. Participants can access training in starting a business or employability skills such as CV writing and interview skills.
We are currently working with many refugees who want to work and make a valuable contribution to their host community. They are often highly skilled, and capable individuals who hold qualifications and practical experience across so many areas of work.
With an increasingly tight labour market it has become much harder for employers to fill job vacancies. The knock-on effect is impacting on firms’ ability to operate normally and retain skills in the business. We have contact with refugees locally with the skillsets that local employers are struggling to find.
We have seen several refugees arriving in Staffordshire from Ukraine since the start of the war in February. Many are highly skilled and desperate to work and give something back in return for the welcome and hospitality they have received.
We are looking to engage with employers who would consider taking on a refugee in a position you may be finding difficult to fill.
If you would like to find out more about how positive pathways could benefit your, please contact Julie Priestnall: julie.priestnall@staffordshirechambers.co.uk
If you want to talk to us about any business issues, including funding, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002 or email: info@staffordshirechambers.co.uk
- Published in News
Former banker spices up career by launching Indian food business with help of Chambers
Giving birth to triplets in 2002 was life-changing for Nicki Kainth from Penkridge.
She had worked in banking for seven years but becoming a mum of three girls led her to quickly reassess her priorities.
Nicki said: “As soon as I became a mum and saw these three gorgeous girls, I knew that I wanted to be with them every step of their journey through life. The girls are now 19 and at university.
“When they were 10, I started making cakes. I knew the basics and I’m quite artistic, so I taught myself more advanced techniques with a lot of help of YouTube. This led to me setting up my own cake business.
“During the first lockdown in 2020 I had an idea to start my ‘East meets West’ afternoon teas with an Indian twist of adding samosas and pakoras. This really took off and people loved it as it was something different.
“Positive feedback and readiness for a new challenge led me to start a new Indian food home delivery business, ‘The Indian Foodiva’. This was during the second lockdown; it was an instant hit, and I was fully booked within the first week. I had to turn people away and politely ask them to book early for the following week.
“I tried to offer something a little different by adding a delicious dessert to my starter and main course options. The reviews were amazing, and I got so many comments about the quality, freshness and taste of the food and the addition of desserts with a takeaway.
“However, as lockdown ended and the restaurants reopened, I saw a tail off in business. This is when I got in touch with the Staffordshire Chambers of Commerce for some help.
“I want to take my business to the next level and wasn’t entirely sure how to do this. I had great advice from start-up advisor Aly Davidson. Her advice was invaluable, as not only had she provided me with insight and knowledge to take my business forward but also, her encouragement and faith in me was so positive it made me realise that if I’ve done it once, I can do it again!
“The next exciting stage in the development of my business is to add party and corporate lunches to my offer whilst still continuing with my regular deliveries and my cake business, Adoracake.
“Going forwards I will be attending lots of Chamber meetings I have signed up to their Boosting Women in Business course. I aim to take every bit of help that’s offered and utilise the networking to build up my circle of contacts.
“I am incredibly grateful to Aly and the Chambers for this opportunity and for helping me on my new journey. The help may be free, but its value is immense as I would have struggled to learn so much and make so many wonderful contacts in a relatively short time.”
Aly Davidson added: “Nicki has a fabulous business and a great work ethic. I was impressed that she has quickly recognised that circumstances change, and you can’t stand still. That’s what we are here for, to give people the knowledge and tools to develop and grow their business. It’s a pleasure working with Nicki, and I have no doubt she will continue to build on her success.”
If you are thinking of starting a business and would like to discuss your plans, contact start@staffordshirechambers.co.uk or call 01782 202222.
- Published in News
Policy Spotlight with Rhouda: Rise in interest rates and what this means for businesses?
Last week, the Bank of England raised interest rates to 1.25%, meaning that the rate is now at a 13-year high. Whilst the increase signals the Bank’s intention to tackle inflation, it is likely that the rise will significantly impact smaller firms who are struggling to cope with the spiralling costs of raw materials.
Since the rise in interest rates, the Bank has also predicted that inflation will soar to 11% this autumn and that UK GDP will shrink by 0.3% in quarter three.
Sara Williams, CEO of Staffordshire Chambers of Commerce, said: “The decision to increase interest rates will impact business confidence which is already at an all-time low due to the current economic instability and tight labour market. Smaller firms who are reliant on banking and overdraft facilities, especially those who are buying raw materials in bulk to offset shortages in the materials, will be largely squeezed as the cost of borrowing will increase.”
Businesses across the region and nationwide have reported concerns regarding the impact of inflation and the surge in the cost of doing business which has come at a time when consumer confidence is also low. Firms are now likely to face further cashflow challenges due to mounting financial pressures.
Chambers across the network will continue to urge the Government to act with pace with regards to the cost of doing business to help ease the pressures on businesses in order to rebuild and strengthen the UK’s economy.
Staffordshire Chambers of Commerce is also lobbying government to find ways to bring people back into the UK labour market to support business productivity.
The next Chamber policy Forum will be taking place on Friday 24th June. Members in the financial or professional services sector are invited to attend the Money Matters Forum which will cover UK GDP, the latest UK economic outlook, the Bank of England’s Monetary Policy Report, and the cost of doing business.
If you are interested to attend, please email rhouda.elalfy@staffordshirechambers.co.uk.
- Published in News
Finalists for the 2022 #StaffsBizAwards to be revealed on Monday
Join us in our Virtual Members’ Lounge on Monday afternoon as we reveal which businesses have been shortlisted in our 2022 Staffordshire Chambers Business Awards.
Awards host, Dave Bryon, will be announcing which three applicants have been successful from each award category as chosen by our team of award sponsors.
Timings for each category announcement are as follows:
1:00pm – Young Employee/Apprentice of the Year
1:15pm – Employee/Charity Employee of the Year
1:30pm – Employer of the Year
1:45pm – Most Promising New Start-Up Business
2:00pm – Small Business of the Year
2:15pm – Medium/Large Business of the Year
2:30pm – Sustainability and Environment Award
2:45pm – Online Business of the Year
3:00pm – Science, Technology and Innovation Award
3:15pm – Entrepreneur of the Year
3:30pm – Professional Services of the Year
3:45pm – Manufacturer of the Year
4:00pm – International Trade Award
4:15pm – Digital Transformation Award
4:30pm – Student of the Year
The finalists will be revealed to non-members on our social media channels 15 minutes after the timings above.
Congratulations to everyone who’s been nominated. We’ll see you at DoubleTree by Hilton on 14 July – now less than one month away!
If you are a member of the Chamber and have not yet signed in to our exclusive member-only area, The Virtual Members’ Lounge, you can do so, here.
- Published in News
Sara’s Blog: Latest labour market statistics, interest rate rises again and Let’s Do Business
Earlier this week, the Office for National Statistics (ONS) released their latest latest labour market statistics.
The ONS Labour Force Survey estimates for February to April 2022 show that over the quarter there was an increase in the employment rate, while unemployment and economic inactivity rates decreased.
With an increasingly tight labour market, it has become much harder for employers to fill job vacancies. The knock-on effect is impacting on firms’ ability to operate normally and retain skills in the business.
The further rise in the employment rate coupled with a drop in the unemployment rate is good news, but they also reflect how little room for manoeuvre there is for unfilled vacancies on the ground.
With a new record set for the number of vacancies, and no easy way to fill them for many companies, labour shortages are likely to continue to damage the UK’s growth prospects.
Despite recruitment difficulties, the damage to firms’ finances from soaring inflation and rising national insurance will limit the extent to which wages can continue rising. A double-whammy as disposable income falls, and consumer spending decreases even further.
We need to find ways to bring people back into the UK labour market. Flexible working practices, rapid re-training opportunities and a focus on workplace health can support many economically inactive people to return to the workplace.
We will be directing much of our lobbying resource towards these crucial issues, not only for our area but through the British Chambers of Commerce who have a direct route to government ministers including the PM, the Chancellor and the Minister for Business, Innovation & Skills.
If these issues are affecting your business, we would like to hear from you. I would urge you to get in touch with our External Affairs and Communications Advisor, Rhouda Elalfy at the Chambers: rhouda.elalfy@staffordshirechambers.co.uk or 01782 202222.
You can view the full ONS report here: https://bit.ly/3mOJAeJ
The Bank of England Monetary Policy Committee raised interest rates to 1.25 percent this week – we now have the highest rate in 13 years.
Business and consumer confidence is likely to be further damaged, causing fewer firms to invest and grow their business, ultimately having a negative impact on the UK’s economic growth.
Despite the effect that this will have on UK companies, the Bank of England has stated that an increase in interest rates will help to stabilise exchanges rates and ease rampant inflation.
You can join our discussion about interest rates and its impact on business in our Virtual Member’s Lounge from Monday at: bit.ly/3mQqi8T
I am delighted to announce that Chamber members can now book a stand at Let’s Do Business, Staffordshire’s largest business show, set to take place at Uttoxeter Racecourse on Thursday 20th October.
Let’s Do Business will see over 1,000 delegates and local businesses come together to network, make new connections, showcase their services and ultimately, do business.
Each year, the very best Staffordshire companies come together to promote their products and services to decision makers from across the region. Let’s do Business is also a fantastic way to meet new customers and suppliers to help move your business to the next level.
Members can take advantage of our early bird offer to receive £50 off the cost of their stands.
Networking is still one of the most effective ways to promote and build business, and this event is a must-attend for any business looking to connect and share information with new and existing contacts.
Stands are allocated on a first-come, first-served basis and the sooner you book, the bigger your choice of stands.
You can reserve your stand here: Let’s Do Business – Staffordshire Chambers
If you want to talk to us about any business issues, including funding, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002 or email: info@staffordshirechambers.co.uk
- Published in News