Last week, the Office of Gas and Electricity Markets (Ofgem) announced an increase of 54% in the price cap which will take effect from 1 April 2022. The increase means that people on default tariffs paying by direct debit will see a rise of £693 from £1,277 to £1,971 per year. Prepayment customers will see a rise of £708 from £1,309 to £2,017.

The price cap is put in place in order to stop energy companies from making excessive profits as well as ensuring that customers pay no more than a fair price for their energy. The increase is driven by a record rise in global gas prices over the last six months, especially as wholesale prices have quadrupled within the last year. In April, energy companies will be able to pass on these higher costs onto customers as they cannot afford to supply electricity and gas to customers for less than they have paid for it.

Sara Williams, CEO of Staffordshire Chambers of Commerce said: “The lack of support announced for businesses who will be struggling to keep up with the rising costs of energy prices, inflation and cost of raw materials is disappointing. Smaller firms don’t have the protections or financial support which has been provided to households, nor do they have the negotiating power of larger businesses.

“Businesses will be left with no choice but to pass these costs onto their customers in the form of price rises which will further fuel the cost-of-living crisis as well as drive surging inflationary pressure. Chambers across the network have urged the government to provide the necessary measures to support businesses which will, in turn, support the economic growth of the economy.”

It is now crucial that the government uses the Chancellors rebate and clawback scheme for small firms as well as delay the impending rise in national insurance in order to support businesses who are facing extreme pressure.

If you are facing any challenges due to the energy crisis or would like further information or advice, get in touch with rhouda.elalfy@staffordshirechambers.co.uk.

The government must now push its low-carbon energy strategy by supporting the economy on issues such as energy efficiency and securing suitable energy storage which will stabilize energy prices in the future. The strategy aims to reduce energy demand and prioritises choosing low carbon solutions in order to minimise the impacts of climate change and to reduce operating costs.

Reducing carbon emissions can often help businesses save time and money as well as help them to play their part in creating a greener and healthier world. Staffordshire Business and Environment Network (SBEN) have created a carbon tracker tool to help assist businesses with tracking and implementing actions to reduce carbon emissions. You can find out more by clicking here.

Businesses can now also apply to take part in SBENs Carbon Literacy Training by clicking here.

For further information on carbon literacy and creating a low-carbon energy strategy for your business, get in touch with alison.landon-gallimore@staffordshirechambers.co.uk.

As tensions continue to rise between Russia and Ukraine, there has been increased fears over Europe’s gas supply crisis becoming much worse. Russia is Europe’s largest supplier of gas, with one third flowing through Ukraine’s pipeline to countries across the continent, therefore, a Russian invasion of Ukraine would mean that there is a high chance of gas exports being cut.

The last few months have seen gas market prices increase significantly, surpassing record highs and threatening both domestic and business use. The rise in energy costs alongside the list of other pressures that businesses are currently facing has created fear amongst many firms.

In a letter to Rishi Sunak, the heads of CBI, the British Chambers of Commerce, the Institute of Directors, Make UK, and the Federation of Small Businesses said that the surge in domestic and business bills would negatively impact the economic recovery of the UK. All five businesses have demanded that the government act urgently and decisively in order to support consumers with their spiralling bills. It is essential that businesses are supported whilst managing their cashflow due to the increase in inflation and raw material cost.

Sara Williams, CEO of Staffordshire Chambers of Commerce said: “The pressures that firms are currently facing are insurmountable. Businesses need to be relieved of the overwhelming financial demands, especially as restrictions have now been removed. By securing a stable supply of energy and gas, businesses and consumers will be relieved of the increase in living costs that they are currently facing.

“The scale of this crisis is leaving firms with little protection as they deal with inflation, a surge in the cost of raw materials and tax increases. Many firms in the manufacturing and ceramics sectors have explained to us that they have little choice but to pass these cost increases onto their customers, which is adding further inflationary pressures.”

Staffordshire Chambers of Commerce is prioritizing supporting businesses towards decarbonising in order to achieve the government’s target of reaching net zero by 2050. Businesses can continue to compete in the global market by improving their environmental and social performance. Affordable and low-carbon energy options are crucial in order to support businesses in reducing their carbon footprint. In addition to this, cutting costs and carbon through improved energy practice can also support firms through the energy crisis.

Post-Brexit Trade:
The last six months have demonstrated that there are significantly lower EU imports to the UK compared to three years ago, with a smaller reduction in exports to the EU. The British Chambers of Commerce has reported that exporters are uniquely facing a wide range of issues, from unprecedented inflationary pressures as well as a global supply chain crisis and a range of new requirements following the EU trade deal.

23% of firms surveyed said that finding a businesses partner or distributor overseas would encourage them to start exporting or to export more. 16% of firms have explained that they require support with trade documentation would encourage them to increase the amount of business they do overseas.

The British Chambers of Commerce have released their new Trade Manifesto which aims to expand and diversify the number of exports from the UK across the world. You can find out more information by clicking here.

Last week, Prime Minister Boris Johnson announced that from Thursday 27 January, England was reverting to “Plan A” due to the success of booster vaccinations and how well people had followed Plan B measures.

The removal of Plan B restrictions means that the government has dropped its advice for people to work from home as well as ended the mandatory requirement to wear face masks in public places.

This announcement will come as a relief to many firms across the UK who have been unable to maintain normal operations with staff working from home. It is also anticipated that news of the easing of restrictions will encourage more people to go out again, ultimately supporting businesses in the retail and hospitality sectors.

Despite this news, it will come as no surprise that many firms have adjusted to the new working conditions with staff working from home or establishing a hybrid working system. Arguably a new normal has been created due to the pandemic with most firms offering remote working options for staff members regardless of whether restrictions are in place or not.

Sara Williams, CEO of Staffordshire Chambers of Commerce, said: “The Prime Ministers’ announcement has indicated a light at the end of the tunnel for many firms across the nation. However, it is now more important than ever that businesses remain vigilant and play their part in containing the spread of the virus. The last two years have shown us repeatedly how unpredictable the virus is, causing the situation to change drastically with very little notice.

“We would urge businesses to continue to maintain safety measures around the workplace as well as encourage staff to take lateral flow tests regularly and to allow staff members to work remotely whenever possible.”

It is essential that the government continues to support businesses through this period in order to help sustain the UK’s economic recovery as well as contain the spread of the variant. Measures should include reintroducing free testing kits for businesses and implementing enhanced financial support for businesses impacted by Covid-19 as well as maintaining the VAT reduction beyond March 2022 in order to help support firms in the hospitality and retail sectors.

As the government moves towards a more hopeful long-term strategy, it is crucial that businesses are provided with the right kind of support allowing them to aid in the UK’s return to economic prosperity.

Stoke-on-Trent City Council Reveal Levelling-Up Prospectus

In other promising news, Stoke-on-Trent City Council has revealed its Levelling-up Prospectus, which is the city’s biggest investment prospectus to date. After securing £56m in Levelling Up funding in October, the prospectus highlights multiple key investment and development opportunities which are available in the city.
The upcoming infrastructure projects are expected to unleash Stoke-on-Trent’s full economic potential bringing in potential investors and developers from across the globe.

The city’s major projects include the Etruscan Square development into a leisure-led, mixed-use regeneration site, The Goods Yard, creating a vibrant micro-neighbourhood and Etruria Valley Link Road.

You can find out more about the Levelling-Up Prospectus in our Local Economy Round-table Rotation Session on Thursday.

If you require any business support or advice, get in touch with Staffordshire Chambers of commerce on 01782 202222 or email info@staffordshirechambers.co.uk.

There is a lot of talk now of climate change, wellbeing, and mental health as strategic imperatives for business. And, as you would expect, we are committed to supporting local businesses to achieve and deliver this. We believe that the United Nations Sustainable Development Goals (SDGs) – as many others do – are the basis and foundation for building this strategy and seeing, monitoring, and reporting on, the difference that your business can make.

The SDGs are 17 interlinked global goals designed to be a blueprint to achieve a more sustainable future for all. In 2020, the UN named the next ten-year periods as the ‘Decade of Action’ – with the goals intended to be achieved by 2030. This links to the scientific targets for climate change too, hence the recurrence of the date – which is only 8 years away…….

Staffordshire Chambers signed a commitment to the UN Global Compact at the instigation of our patrons and our board. We realised that the UN SDGs 17 goals, established by governments, civil society and business, provide a framework to save the planet and make the world a better and more sustainable place.

The Board and Council felt that this was something the Chamber should lead on, and I am proud to say that we have done an enormous amount of work internally to develop our own views about the SDGs and how we can use them as a business development tool.

We are now keen to share this with all Staffordshire businesses and highlight what Chamber Members are doing too – and so over the next year, each month, we will be highlighting one or two SDGs with focussed events, blogs, and engagement with business.

We hope that at the end of this programme we will have a set of tools, activities, a documented resource, and videos that businesses across Staffordshire will be able to use to highlight how they are contributing to the SDGs and how they want to work towards doing more to maximise their impact for people, profit, and planet. This is part of our commitment to you as part of SDG17 – Partnerships for the goals.

The UN SDGs encompass 17 clear topics on which businesses can build a strong business case and it is the Chambers belief that they are important because they will enable businesses to attract talent, attract investment and importantly will become what customers and suppliers expect from go-ahead and dynamic businesses.

The 17 SDGs are:

1. No hunger
2. Zero hunger
3. Good health and wellbeing
4. Quality education
5. Gender equality
6. Clean water and sanitation
7. Affordable and clean energy
8. Decent work and economic growth
9. Industry, innovation, and infrastructure
10. Reduced inequalities
11. Sustainable cities and communities
12. Responsible consumption and production
13. Climate action
14. Life below water
15. Life on land
16. Peace, justice, and strong institutions
17. Partnership for the goals

The Chambers’ SDG calendar for 2022 is:

January – SDG 17
February – SDGs 16 & 2
March – SDGs 10 & 5
April – SDG 13
May – SDGs 1 &3
June – SDG 12
July – SDGs 7 & 11
August – SDGs 6 & 14
September – SDG 4
October – SDG 8
November – SDGs 5, 3 & 15
December – SDG 9

I know that many businesses are already working toward the SDGs, and the programme will also help businesses to start and develop their journey to become effective in delivering the sustainable development goals as business objectives.

We will be publicising our SDGs programme through our usual channels and have a dedicated resource on our website. To offer to tell us what you are doing and contribute to the debate or to find out more email: sdg@staffordshirechambers.co.uk

You can view the UN SDG website here. We encourage as many businesses as possible to sign up to the UN Global Compact – specifically designed for businesses.

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

The last few weeks of 2021 saw great uncertainty amongst the British public as Omicron cases surged and further restrictions were being considered. Businesses on the road to recovery faced fears of being closed down again as well as increased staff shortages. Chambers across the network were joined by their members to urge the government to provide financial support and clarification of likely upcoming changes in business operation.

One of the most impacted sectors throughout the pandemic has been the travel industry, as testing rules constantly change people fear travelling and spending extra money on multiple PCR tests.

Last week, Prime Minister Boris Johnson announced a change in testing regulations which is expected to help boost the travel industry. The easing of rules for people travelling to England will make it easier for people to book holidays and will ultimately reduce the costs of travelling. The changes implemented will mean that people travelling to England will no longer have to take a test two days before travelling from countries outside of the UK and the Common Travel Area. Travellers arriving to the UK will only be required to take a lateral flow test instead of a PCR test on day two of being in the UK. This however will need to be a private test, rather than a free NHS test.

Passengers who are unvaccinated must still take a pre-departure PCR test, PCR test on day two and day eight, as well as self-isolation for 10 days.

Sara Williams, CEO of Staffordshire Chambers of Commerce, said: “The latest government announcement is promising news for many firms in the travel industry and should act as a timely boost after r a period of great uncertainty. The extortionate cost of travelling was suppressing customer demand and preventing a full recovery in the sector.

“Whilst the Chambers recognises the importance of controlling and minimising the spread of the virus, recent evidence has suggested that, despite the rapid spread of the variant, hospital cases are much lower than they were at the start of the pandemic. It is essential that cases continue to be monitored and appropriate restrictions are put in place when needed.”

As spring approaches, it is essential that the government sets out a strategy that will allow us to prepare for any further changes or limitations placed on business operations.

It’s pleasing to see that all eligible businesses in the hospitality, leisure and accommodation sectors are now able to apply for funding from the government’s multimillion-pound support package from their local councils.

As the spread of the Omicron variant continues to increase across the UK consumer confidence has taken a massive hit as a result of the restrictions introduced as part of plan B. Therefore, it is essential that the rollout of the funding takes place as quickly as possible to the businesses that need it the most. We urge all firms to apply in the coming weeks and to make the most of the grants and support that is available to them.

If you require any business support or advice, get in touch with Staffordshire Chambers of commerce on 01782 202222 or email info@staffordshirechambers.co.uk.

Happy New Year!

I hope you all had a chance to relax with those people most important to you and to recharge ready for the fresh challenges and opportunities in the coming year. 2022 begins with uncertainty as we struggle with increasing rates of Omicron virus infection and Government guidance is urging us to work from home as we deal with schools reopening and the aftereffects on infection of socialising and gatherings over the festive period.

At least we are all used to it now and although many want to return to the workplace as soon as possible, the PM’s stance seems to be that we will carry on with Plan B and ride out the current wave of infection with no further curbs.

I am pleased to say that its business as usual from the Chambers with our usual level of support and services. We will obviously adapt our events programme to reflect the risk of infection and maintain a full programme of networking, seminars, meetings either online or face-to-face when and where possible.

There is something on offer for everyone, including business support, networking, forums, exclusive experience days and more. Whether you want to make new contacts via networking or sharpen your business acumen, take a look at the events calendar for the next three months, here.

Sobering news this week as the British Chamber of Commerce (BCC) Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – has shown the recovery stalled in the fourth quarter, with firms facing unprecedented inflationary pressures.

The survey of almost 5,500 firms showed that some indicators also revealed a continued stagnation in the proportion of firms reporting improved cashflow and increased investment. Inflation is the top issue for firms, while a rise in the interest rate was also a cause for concern for many.

The number of respondents reporting increased domestic sales was down slightly from 47 percent in Q3 to 45 percent. 16 percent reported a decrease, unchanged from Q3.

58 percent of firms expect their prices to increase in the next three months, due to inflationary pressures, the highest on record. Firms cited rises in the price of raw materials, pay settlements, finance costs and other overheads as factors leading to increased prices.

When asked what was more of a concern to their business than three months ago, 66 percent of firms cited inflation (compared to 52 percent in Q3 and 25 percent in Q4 2020), again the highest on record. For production and manufacturing firms, this rises to 75 percent. There are also growing concerns about cashflow, indebtedness and how all of these pressures can be passed onto customers and consumers, whilst energy and cost of living rises hit us all.

The survey goes on to cite concerns over interest rates rising, no recovery in cash flow and lack of investment. A challenging picture for the UK economy as we start 2022. Many businesses were facing a struggle to improve their cashflow and raise investment even before the Omicron variant surged and Plan B was imposed.

Supply chain disruption is continuing to persist, inflation is soaring, and rising energy costs are presenting firms with a huge headache. With companies now having to grapple with the impact of Omicron and further changes to the rules on imports and exports of goods to the EU, there are significant hurdles for businesses in the months ahead.

The Government has listened to our previous calls for support and it must do all it can to steady the ship and steer the economy through these uncertain times. If the current restrictions persist or are tightened further then a more comprehensive support package that matches the scale of any new measures, will need to be put in place.

The focus must be on creating the best possible environment for businesses to grow and thrive. By supporting firms, they can begin to generate wealth, create jobs, and support communities. That is by far the best way to sustainably deliver the tax revenue that the government needs to support public services and the wider economy. You can view the full article here.

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

According to the British Chambers of Commerce’s latest economic forecast, the UK’s economy is expected to grow at a slower pace and trade is set to lag significantly behind the wider recovery. The expectations for UK GDP growth have dropped from 7.1% to 6.8%.

GDP growth in Quarter 3 was recorded at 1.3%, however there were expectations for GDP growth in quarter 4 to slow down to 0.5% due to staff shortages, supply chain disruption and rising inflation. The increasing concern over the fast spread of the Omicron variant has also impacted GDP growth throughout this quarter.

Sara Williams, CEO of Staffordshire Chambers of Commerce, said: “BCC’s latest economic forecast has demonstrated the struggles that businesses have endured throughout this last quarter in 2021. Staff shortages and supply chain disruptions have already affected the way that firms have been able to operate but with the additional fears over the Omicron Variant public behaviour has completely changed and this has put firms under even greater pressure.

“The last weekend before Christmas is notoriously known for heavy footfall across all retail and hospitality sectors, yet this weekend large numbers of consumers opted to isolate at home ahead of the holiday. The number of people on high streets fell by 5.9% on Sunday and this is likely to have a huge impact on these firms, majority of which were counting on the week before Christmas to bring up their sales.”

It is clear that the spread of the new Covid-19 Variant has greatly hit customer confidence and despite an official lockdown not yet being announced, customers fear being kept away from loved ones this year and have decided to cancel many upcoming outings.

Firms in the hospitality sector have asked the government for an extension on the discounted VAT rate as well as for business rates which were due in the first quarter of 2022 to be deferred. Chambers across the network urge the government to listen to businesses in sectors that are most affected by the restrictions. It is essential that the right support is offered to businesses as this will help the UK get through a challenging winter without serious damage to our economic recovery.

If you require any business support or advice, get in touch with Staffordshire Chambers of commerce on 01782 202222 or email info@staffordshirechambers.co.uk.