News

The findings of the British Chambers of Commerce (BCC) quarterly economic survey for quarter three 2020, published late last week, made sobering reading with nearly half of firms reporting a decrease in sales as they endured a sustained squeeze on cash.

The survey of over 6000 firms from across the UK, including a healthy input from Staffordshire businesses, showed conditions for quarter three have remained weak despite much of the economy reopening.

Not surprisingly, business to consumer firms, including hospitality, fared worst in the wake of redundancy threats and a fall in the availability of disposable income.

Whilst Q3 has seen an improvement compared to the unprecedented percentage of firms reporting decreases in domestic and export sales in Q2, most firms continue to report decreases or no change in sales in Q3.

Cash flow, a key indicator of business health, continued to deteriorate for almost half of firms. In Q3, 21 percent of firms reported an improvement in cash flow, 34 percent reported no change and 45 percent reported a deterioration. Alarm bells rang in the micro firms’ sector with 51 percent reporting a deterioration.

The government’s Winter Economy Plan may provide a short-term shot in the arm, but the BCC is pushing ministers to be on standby with further measures, clearly articulated, to assist those businesses most at risk.

You can read the full QES report here: https://bit.ly/34ueuiM

Stoke on Trent and Staffordshire Growth Hub are offering grants of up to £1000 to help growth in SMEs.

Typical expenditure would include product and design development, specialist consultancy or consultancy costs to build or improve a website.

The £1000 grants must be matched by £667 of a businesses own funding and you need to have been trading for 12 months with 70 percent of your sales derived from business to busines (B2B) activity.

If you are interested in applying contact Angela Halls: angela.halls@stoke.gov.uk

If you want to talk to us about any business issues, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002.

It is now undisputed fact that the second wave of the coronavirus pandemic is here with infections, hospital cases and deaths all rising steadily.

Thankfully, the doomsday scenario of cases doubling every week, put forward last week by Professor Chris Whitty and Sir Patrick Valance, is not materialising yet but we know how quickly the situation can change. We are just at the start of the autumn and winter period when respiratory viruses circulate more, and the situation could easily unravel.

The UK, like other countries, is in a much stronger position than we were when we walked blind into the first wave. Better treatments are in place, social distancing has become routine and – despite the problems – there is much more testing available. The odds are certainly stacked in our favour more than they were six months ago.

It is in all our hands now to make sure we do not need to move to full lockdown and inflict more damage on our already fragile economy. Allowing employees the choice to work at home where possible, adhering to social distancing and sticking to a meticulous hygiene regime are easy steps for all businesses to enact to prevent a second national lockdown.

Finance concerns continue to be the number one issue for most firms. With this in mind, we are holding a webinar on Thursday 8 October with three Chamber members who are all experts in their field. The presenters are Rachel Buxton from Thompson Wright Accountants, Jed Eatough from LSGK Accountants and Matt Fludgate from Gatewood Commercial Finance.

Rachel, Jed, and Matt are all members of the Staffordshire Moorlands Chamber local area board and are all committed to sharing best practice and advice to benefit the local economy.

The webinar is a chance for a discussion around finance, funding, accountancy, and tax issues and gives you the opportunity to ask our experts questions online or privately.

Book your place online: https://bit.ly/2GjRScw

If you want to talk to us about any business issues, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002.

The board of Staffordshire Chambers of Commerce has given the green light to a freezing of its subscription fees.

Chambers CEO Sara Williams said: “The next few years are going to be incredibly challenging as business absorbs the full effect of the coronavirus pandemic. The board were unanimous in the decision to cap a membership fee increase until 2022 as a small gesture to help mitigate the financial pressure that many businesses face.

“As a business support organisation, we have never been busier than we were during lockdown, supporting businesses from sole traders up to the largest local employers with the challenges that the pandemic presented daily.

“Our services include business mentoring, legal and HR advice, funding and finance and international trade and we back this with a huge programme of webinars, online forums and networking groups.

“We have an amazing range of knowledge and experience through our members, volunteer mentors and staff and this has been our strength in dealing with the pandemic and its effects to date.

“We are all in this together and our aim is to make sure we all get through this together.”

The government has acted swiftly with a raft of measures to help business, following the PMs announcement on tightening of restrictions to curb the spread of Covid19, at a pivotal time for the UK economy.

Chancellor Rishi Sunak was quick to unveil his Winter Economic Plan, including measures to support businesses and the economy as the pandemic continues.

Chambers of Commerce have consistently called for a new generation of support to protect livelihoods and ease cash pressures faced by firms as the Job Retention Scheme winds down and we head into a challenging and uncertain winter.

The Chancellor has taken steps that will help preserve jobs. The new Jobs Support Scheme will help many companies hold on to valued, skilled employees.

The Chancellor has also listened to our consistent calls for an extension of business lending schemes, more flexible repayment terms for loans, and tax forbearance measures. With many firms reporting a shortage of cash reserves, this will lessen the immediate pressure and provide reassurance for many.

A summary of the main points of the Winter Economic Plan:

• A new Jobs Support Scheme will be launched for employees working at least a third of their normal hours, who are being paid for that as normal. The government and employers will jointly increase their wages to cover two-thirds of their lost pay and the employee will keep their job
• All small and medium-sized businesses are eligible, but larger businesses must show their turnover has fallen during the crisis. Employers can use it even if they have not previous used the furlough scheme it replaces
• It will run for six months from November
• The existing grant for self-employed people is being extended on similar terms to the Jobs Support Scheme
• A “pay as you grow” scheme was announced for businesses, allowing them to extend their bounce back loans from six to 10 years, reducing their payments
• Businesses can also move to interest-only payments or suspend repayments for six months if they are “in real trouble”. Credit ratings will be unaffected
• The government guarantee on Coronavirus Business Interruption Loans will be extended to 10 years and a new successor loan guarantee programme will be announced in January
• The temporary reduction of VAT from 20% to 5% for some sectors will remain in place until 31 March 2021

The British Chambers of Commerce (BCC) will continue to lobby the government to take additional action to support parts of the economy facing unprecedented challenges over the months ahead.

If you have any immediate concerns or issues you would like us to raise via BCC, please let us no by email to info@staffordshirechambers.co.uk

Finally, I just wanted to let you know that we are keeping our Members’ Lounge at Commerce House open for business. We have all the necessary hygiene and distancing measures in place. So, if you need somewhere safe to work or meet, we would be delighted to see you.  You can view the facilities here: https://bit.ly/2NL3Ooa

If you want to talk to us about any business issues, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002.

The British Chambers of Commerce has published a critical update of its Brexit guidance dashboard containing 26 key questions that remain unanswered with just 98 days to go until the end of the Brexit transition period.

The leading business group published the document alongside new research which suggests business preparation for the coming changes is low due to the unprecedented challenges facing them.

• 26 unanswered questions reflect fundamental aspects of business operations, including UK/EU customs checks and rules of origin
• Just 38% of firms have done a Brexit risk assessment in 2020, compared to 57% in 2019
• BCC seeks clarity for businesses and an immediate resumption immediate resumption of weekly business preparedness summits with senior ministers

Unanswered questions

The BCC’s Brexit guidance dashboard compiles 35 questions most frequently raised by businesses, many of which apply in a deal or no deal scenario. The BCC gives just 9 a green status, indicating there is sufficient information available to plan. 19 are amber, indicating some information is available, and seven are red, indicating there is inadequate actionable information.

Many of the unanswered questions reflect fundamental aspects of how companies operate. Among other things:

• firms do not know what rules of origin will apply after the transition period, preventing them and their customers from planning and potentially creating unprecedented new administration and costs;
• there is no clarity on how food and drink due to be sold in the EU and Northern Ireland is to be labelled;
• very limited guidance on the movement of goods from Great Britain to Northern Ireland; and
• no information on the UK Shared Prosperity Fund, key to ‘levelling up’ the regions and nations – despite years of calls for clarity.

Low levels of business preparedness

The lack of information for firms is compounded by new BCC research released today, which found that just 38% of firms had completed a Brexit risk assessment this year, compared to 57% in 2019 and 35% in 2018.

The research also found that more than half (51%) of firms surveyed had not taken any of the eight steps recommended by the government to prepare for changes in the movement of goods between the UK and the EU. This includes fundamentals of operation for trading businesses such as checking on the need for customs declarations and assessing the possible impact of changes on existing customers and suppliers.

The lack of information with which to plan and potential deadline fatigue presents further challenges to firms up and down the UK that have faced reduced demand, ongoing government restrictions and sustained cashflow challenges due to the Coronavirus crisis.

Demanding action

The leading business group – which represents 75,000 firms of all sizes and sectors across the UK employing nearly six million people, and works with over 30,000 companies that trade internationally each year – has written to Cabinet Office Minister Michael Gove seeking action for businesses and urgent discussions to help firms prepare.

BCC Director General Adam Marshall said:

“With just 98 days to go, business communities face the triple threat of a resurgent Coronavirus, receding government support schemes, and a disorderly end to the transition period.

“Significant unanswered questions remain for businesses, and despite recent public information campaigns, base levels of preparedness are low. Many firms say they’ve heard talk of deadlines and cliff edges before, and others are still grappling with fundamental challenges as a result of the pandemic and have little cash or information with which to plan.

“While we recognise that some of the questions facing businesses are subject to ongoing negotiations between the government and the EU, other matters are within the UK’s own hands. The government must ramp up engagement with business urgently – to the levels seen prior to previous ‘no deal’ deadlines – to ensure that the real-world issues facing firms get tackled immediately.

“The ‘Check, Change, Go’ campaign gives the impression that Brexit-related changes are like getting an MOT – whereas the reality is that for many businesses, they’re more akin to planning a moon landing. Businesses need honest communication about the complexity of the changes they face – and stronger encouragement to act.”

The “winter economy plan” includes:

Job Support Scheme

• Businesses will have the option of keeping employees in a job on shorter hours, rather than making them redundant.
• Workers must work a third of their usual hours, paid by their employer as normal.
• For the time they are not working, the government will pay a third of their usual pay, and the employer will pay a third of their usual pay.
• The scheme will be targeted at businesses that need it most – all small and medium-sized firms – but only for big companies if turnover has fallen by a third.
• The scheme will run for six months starting in November.
• Firms can claim both the jobs support scheme and the jobs retention bonus.
• A grant for self-employed workers will be extended on similar terms.

VAT Deferral

• Businesses who deferred their VAT will no longer have to pay a lump sum at the end of March next year. They will have the option of splitting it into smaller, interest free payments over the course of 11 months.
• Any of the millions of self-assessed income taxpayers who need extra help can also now extend their outstanding tax bill over 12 months from January.
• The Government has also extended the 15 percent VAT cut for the tourism and hospitality sectors to the end of March next year

Bounce Back Loans

• The application deadline for all coronavirus loan schemes – including the future fund – has been extended to 30 November.
• Struggling businesses can choose for interest only or up to six months suspended payments with no credit rating impact.

Pay as you Grow

• More than one million businesses that have borrowed under the Bounce Back Loan Scheme will be offered the choice of more time and greater flexibility for their repayments.
• Lenders have been enabled to offer CBILS borrowers more time to make their repayments where needed.

Self Employment Income Support Scheme

• The Self-Employment Income Support Scheme extension will support viable traders who are facing reduced demand over the winter months, covering 20 percent of average monthly trading profits via a government grant (extended to 30 April, 2021)

Despite the disruption to the business calendar caused by Covid19, the show will go on and Staffordshire Chambers Business Awards ceremony, originally scheduled to take place in July, will now take place at a glitzy virtual ceremony on 19th November with a celebrity host.

This is a fantastic opportunity to let the business community know that your business has come through lockdown and how you are positively embracing the challenges ahead and capitalising on new opportunities.

A special Chambers Awards platform is now live and will remain open for entries until 5pm on Friday 9th October after which judging will commence. We are grateful to main sponsor HSBC and all our other sponsors for their generous support of the awards.

All the categories and sponsors are listed at the easy to use portal where you can apply for as many categories as you like: https://staffordshirechambers.awardsplatform.com/ For more information email: awards@staffordshirechambers.co.uk

The Chambers has only ever been as good as its members whose enthusiasm and drive give us the focus and the mandate to carry out our mission of being the complete business support and representative body for business in Staffordshire.

We are looking for active, influential members who would like to take their involvement to the next level by joining Chamber’s council, board of directors, or one of the local area boards for Stafford and the Staffordshire Moorlands.

Serving on our council, board of directors or a local area board is a great way to keep abreast of what is going on in business and the wider economy. As a businessperson you can get directly involved and influence by representing the views of businesses in your community right up to the highest level.

In addition, you will make new contacts within your peer group and forge valuable business connections.

We welcome applications from all business people from all backgrounds from self-employed to large businesses in any sector.

If you are interested in becoming a council or board member, or would like to chat about what is involved please contact Vicki Hardie vicki.hardie@staffordshirechambers.co.uk

If you want to talk to us about any business issues, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002.

It cannot have escaped your notice that the government have launched the Kickstart Scheme which provides 100 percent funding to employers to create job placements for 16 to 24-year olds.

This £2 billion fund was set up to create hundreds of thousands of high-quality 6-month work placements aimed at those aged 16 to 24 who are on Universal Credit and are deemed to be at risk of long-term unemployment.

The benefit of upskilling this generation of workers is priceless as we look to recovery from the pandemic and to making the Staffordshire economy fit for the challenges and opportunities that lie ahead.

The job placements are designed to support the participants to develop the skills and experience they need to find work after completing the scheme. Hopefully, many participants will prove their worth and become valued employees of their host companies.

Funding is available for 100 percent of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions. There is also £1,500 per job placement available for setup costs, support and training.

To help you fully understand the Kickstart Scheme and its associated benefits we are hosting a webinar at 11am on Thursday 17 September.

The webinar, presented by the Chamber’s project manager Tom Nadin will explian how the scheme works, what types of jobs are on offer, how to apply for a placement and will explain the funding model. You can book on the webinar here: https://bit.ly/2ZlhYTg

If you are interested in a Kickstart placement and can’t attend the seminar you can contact us at kickstart@staffordshirechambers.co.uk

If you want to talk to us about any business issues, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002.

With Rob Lawley – Head of International Trade at the Chambers.

Our borders are changing, the rules of the game are shifting, and traders need to build or reset their customs processes.

From 31 December 2020, the number of customs declarations made by traders is forecast to increase from 55 million to well over 300 million every year. Businesses that import or export goods will need to complete a lot more administration when clearing goods through UK Customs in Great Britain and Northern Ireland. Staffordshire businesses who import/ export will need to get up to speed quickly to comply with the new customs declaration requirements.

To help with this there is a brand-new service, ChamberCustoms is a customs advisory, training and brokerage service operated by the British Chambers of Commerce (BCC) which will help exporters do just that.

It is different from other brokerage services in that it harnesses the reach, expertise, and knowledge of the British Chamber network to offer a fast, reliable, and compliant service. All with the aim of helping our businesses maintain their competitive edge.

Staffordshire Chambers of Commerce is proud to be part of ChamberCustoms which is the only customs broker in the country to offer a ‘one stop shop’. We have direct links to all sea, air, rail and road ports and terminals in the UK. Businesses have enough to do operating in these unusual times which is why ChamberCustoms has been designed to help you stay in control whilst we do the hard work.

To find out more about Customs Declarations call 01782 202222 and speak to one of our team who can make Customs Declarations on your behalf. Alternatively click here https://www.chambercustoms.co.uk to visit the ChamberCustoms website.

If you want to talk to us about any business issues, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002.

The Kickstart Scheme provides funding to employers to create job placements for 16 to 24 year olds.

The government has introduced a new Kickstart Scheme in Great Britain, a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16 to 24 who are on Universal Credit and are deemed to be at risk of long term unemployment.

You can use the Kickstart Scheme to create new 6-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment. The job placements should support the participants to develop the skills and experience they need to find work after completing the scheme.

Funding is available for 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions. There is also £1,500 per job placement available for setup costs, support and training.

Application must be for a minimum of 30 job placements. However, if you are unable to offer this many job placements, Staffordshire Chambers of Commerce can act as an intermediary to apply on behalf on a number of businesses.