Commenting on the Home Affairs Committee’s report on immigration policy, published today, Jane Gratton, Head of Business Environment and Skills at the British Chambers of Commerce (BCC), said:

“The BCC has long campaigned for an immigration policy that supports business and the economy, so we welcome the Home Affairs Committee raising these issues.

“With unemployment at an all-time low, job vacancies remaining unfilled and businesses facing pervasive skills shortages, it makes no sense to cut-off an important supply of skills and labour. Businesses are not deliberately targeting non-UK workers, nor are they failing to train the UK workforce, but over half of firms we surveyed told us they would be affected in some way should there be any future restrictions on the rights of EEA nationals to work in the UK.

“Foreign students are crucial to the success of universities and surrounding business communities, but the majority do not stay in the UK once their studies are finished so including them in the immigration statistics is misguided.

“The UK should be striving to attract the brightest talent from around the world, so it’s crucial that our immigration policy reflects this.”

The British Chambers of Commerce is happy to announce an early-bird offer on tickets to this year’s Annual Conference, and a special Virgin Train deal for members of Accredited Chambers of Commerce.

An early-bird discount for tickets to the BCC’s Annual Conference 2018 is available, the reduced price of £119+ VAT will be on offer until midnight on 26th January.

The theme for this year’s Conference will be the future of UK business – including the Future of Work, the Future of UK Trade, and Diversity in Business. The event also falls on International Women’s Day, and this will form a theme throughout the day. The day will include panel debates and inspiring keynote speeches from senior politicians, business leaders and opinion formers.

The BCC is also pleased to announce that members of Accredited Chambers of Commerce can take advantage of a discount when travelling to the conference. Virgin Trains is offering 20% off first anytime single and return tickets along the East Coast route, by signing up to Railblazers. For information on utilising the promo code, please contact your local Chamber.

Faye Busby, Director Business Development at the British Chambers of Commerce (BCC), said:
“The BCC Annual Conference is a fantastic opportunity to bring the diverse and dynamic membership of the Chamber Network together. We’re delighted to be able to offer Chamber businesses a discount on their tickets and transport to the event, and hope to see as many members as possible on the day.”

Commenting on the news that the UK government and the European Commission have reached a deal to conclude the first phase of the Brexit negotiations, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“Businesses will be breathing a sigh of relief that ‘sufficient progress’ has been achieved. After the noise and political brinksmanship of recent days, news of a breakthrough in the negotiations will be warmly welcomed by companies across the UK.

“Business will particularly cheer the mutual commitment to a transition period to support business confidence and trade, and will want the details confirmed swiftly in the new year when negotiators move on to the big questions around our future trade relationship with the EU.

“For business, a swift start to trade talks is crucial to upcoming investment and growth decisions. Companies all across the UK want absolute clarity on the long-term deal being sought, and want government to work closely with business experts to ensure that the details are right.

“Businesses want answers on what leaving the EU will mean for regulation, customs, hiring, standards, tariffs and taxes. The job of the UK government and the European Commission now is to provide those answers – and do everything in their power to ensure vibrant cross-border trade between the UK and EU countries can continue.”

On the question of citizens’ rights, and the status of EU employees in UK firms, Dr Marshall added:

“The biggest priority for many firms since the EU referendum has been to get clarity and security for their European employees, whose contribution to business success across the UK is hugely valued. We are delighted that they, as well as UK citizens living and working in the EU, now have more clarity and can plan their future with greater confidence.”

The British Chambers of Commerce (BCC) today (Thursday) releases the results of its survey, in partnership with American Express, which finds the majority of businesses expect the fall in sterling to increase their costs.

The survey of over 1,300 businesses found that 63% of businesses expect their costs to increase in the next 12 months as a result of the devaluation in sterling, including a quarter (24%) who expect costs to rise significantly. In comparison, only 6% of firms expect their costs to decrease.

Over 70% of manufacturers (73%) and business-to-consumer firms (71%) anticipate costs increases, compared to 55% of business-to-business firms, according to the results.

The survey also found that many businesses trading abroad are leaving themselves exposed to currency fluctuations, with nearly half (46%) of UK firms not taking proactive steps to manage currency risk. Smaller firms are less likely than their larger counterparts to be managing risk (44% of firms with 1-9 employees, compared to 70% of those with 50-249). Manufacturers have the highest proportion of businesses managing currency risk (76%), compared to B2C (57%) and B2B (39%).

The findings of the survey highlight the extent to which the depreciation in sterling is expected to compound the price pressures on firms, underlining the need to ease the domestic cost of doing business. There is also a clear need for more support and information for exporting businesses on the importance of managing currency risk.

Other key findings in the survey are:
• The most common forms of managing currency risk are invoicing in sterling (27%), opening foreign currency accounts (15%), and waiting for an advantageous rate and buying using the spot market (15%)
• Less than a quarter (24%) of businesses say they have a complete understanding of the types of international payment methods available, with 23% saying somewhat and 13% none at all
• The biggest challenges businesses face in making or receiving international payments are delays (21%), bad or misleading exchange rates (16%) and hidden fees (16%)
Dr Adam Marshall, Director General at the British Chambers of Commerce (BCC), said:

“Weak sterling reflects the current climate of political uncertainty and lack of clarity on the Brexit process. A clear and firm strategy from government about the nature of the UK’s future trading relationship with the EU would go a long way to reassure and stabilise markets.
“While businesses await answers on Brexit, and a return to a stronger currency, they must take the necessary steps to prepare for potential risks. It’s concerning to see the proportion of UK companies not actively managing currency risk. For those trading internationally, it makes good business sense to explore the options available to insure against currency fluctuations.
“Companies are clearly feeling price pressure from the depreciation in sterling. The government made a crucial first step in the Budget with action on business rates, but further steps need to be taken on the upfront cost of doing business, so that firms can mitigate currency pressures and grow their business.”

Karen Penney, Vice President & General Manager, Global Commercial Payments and Small Business Services UK, said:

“Whilst managing currency fluctuations can seem daunting, technology is rapidly lowering these barriers, helping to streamline the payment process and granting added layers of security to businesses. At American Express we know that simple currency tools such as forward contracts can effectively protect a business from exchange rate volatility by guaranteeing a fixed rate. Not only will this protect margins, it will enable more accurate forecasting and budgeting. With the right tools and resources, businesses can unlock growth opportunities both at home and abroad.”

View the full infographic here.

The British Chambers of Commerce, in partnership with DHL, today (Thursday) publishes its latest Quarterly International Trade Outlook, based on survey and documentation data from UK exporters.

The Outlook shows considerable price pressures amongst exporting businesses – but exporters are absorbing the impact for the moment thanks to stronger sales and orders.

The BCC/DHL Trade Confidence Index, which measures the volume of trade documentation issued by accredited Chambers of Commerce for goods shipments, rose by 2.25% on the quarter, and stands at the third highest level on record.

The survey, based on the responses of over 3,300 exporters, shows that in the manufacturing sector, exporters are enjoying strong sales and orders in foreign markets, and are also reporting improvements in domestic sales and orders.

The results of the survey indicate the price pressure from the cost of raw materials is high across the board for exporters (86% in manufacturing, 42% in services). 68% of exporting manufacturers consider exchange rates as a concern to their business.

Exporters are also more likely to have tried recruiting in the last three months. However, firms across the UK economy are struggling to find the right skills, with 70% of manufacturers and 57% of services firms reporting recruitment difficulties.

The findings suggest that the fall in sterling is increasing price pressure for businesses across the economy, but particularly in manufacturing. However, many of those businesses that export have been able to offset the fall in sterling thanks to timely improvements in sales and orders, both overseas and at home.

Key findings from the report:

• The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, rose by 2.25% on the quarter. The Index now stands at 126.51 – up 4% on Q3 2016 – and stands at the third highest level since records began in 2004
• 44% of exporting manufacturers and 30% of exporting service firms reported increased export sales in Q3. 41% of exporting manufacturers and 26% of exporting service firms reported increased export orders
• 41% of exporting manufacturers reported that domestic sales had increased, and 38% domestic orders increased in Q3 2017
• 39% of exporting manufacturers expect their prices to rise. Of these firms, 86% cited raw materials as a cost pressure
• 68% of exporting manufacturers cite exchange rates as a concern to their business, and 49% in the services sector
• 33% of exporting manufacturers and 31% of exporting services firms view inflation as a concern to their business

Commenting on the findings, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“While it’s encouraging to see many exporters reporting improved performance on the back of rising demand in key markets, including the Eurozone, price pressures remain a real cloud on the horizon for UK firms.

“The depreciation of sterling has undoubtedly benefited some firms, but has ratcheted costs up significantly for others. Taken together with higher domestic costs facing businesses, a tipping point may soon be reached for some firms – with consequences for investment, recruitment and trade.

“Many exporters are also being hampered by issues in the domestic business environment, most notably the widening gap between business skills needs and the pool of available labour. Trading businesses in some areas now say that there is a generalised labour shortage in their area, which could put a brake on their overseas activity if it is not addressed. This is a sobering reminder that the focus needs to be on the fundamentals here at home, as well as the high politics of Brexit and global trade policy.”

Ian Wilson, CEO DHL Express UK and Ireland, said:

“Now is an interesting time to be part of the UK’s export industry. Whilst it remains shrouded in uncertainty about what Brexit will look like and the implications for UK businesses large and small, those businesses are demonstrating a defiantly positive export performance.

“The world is now more connected than it ever has been, and this report shows that UK businesses are embracing this connectivity, despite the lack of clarity about what lies ahead. We must ensure that businesses remain able to meet international demand and, in doing so, keep the UK at the forefront of buyers’ minds when shopping cross border.”

Ahead of the Chancellor’s Autumn Budget on November 22, the British Chambers of Commerce (BCC) is urging the government to take immediate action to halt the expected 3.9% increase in business rates valuations next year, as part of a bold Budget that seeks to boost the UK’s productivity.

The UK’s leading business group, which represents almost 75,000 companies employing almost six million people in every region and nation of the UK, calls on the Chancellor to take action now to get the UK economy ready for when the country leaves the European Union.

The BCC proposes pausing the Corporation Tax roadmap, with the tax remaining at 19% until after Brexit – with the resulting revenue ring-fenced to help ease the burden of up-front taxes and costs that hit business cash flow and undermine investment.

The BCC calls on the government to take bold action across three key areas, to help businesses deal with the challenges and opportunities that Brexit provides, kickstart a productivity surge, and ensure that the domestic economy is in the best possible position on day one of leaving the EU:

• Tackling the upfront cost of doing business – pledging not to introduce any more input taxes and other significant costs, abandoning the annual uprating of business rates for the next two years, and removing plant and machinery from business rates valuations.
• Incentivise business investment during the Brexit process – through the introduction of a ‘Brexit Special’ Annual Investment Allowance, temporarily increasing the limit to £1 million.
• Fixing the fundamentals – committing to ensuring complete voice coverage on mobiles by 2020, and kickstarting infrastructure projects vital to our economic future, from Northern Powerhouse rail and Crossrail 2, to bringing forward investment in the road network.

Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“At a critical moment for the UK economy, the Chancellor must be bold – and deliver a big budget that prioritises economic confidence and investment.

“The best possible Brexit deal won’t be worth the paper it’s written on if conditions for growth aren’t right here at home. The Chancellor has a unique chance to move the dial on growth and productivity now, leaving the UK in a position to succeed over the long term. Action to slash the up-front costs faced by business, to incentivise investment, and to improve mobile coverage and infrastructure would lead to a real boost to productivity, wages and trade.

“A Budget that prioritises goodies and giveaways rather than future-proofing the economy would be a dereliction of duty by the government as a whole.”

On business rates:

“It would be unconscionable for the government to use September’s inflation figures to slam businesses with a huge rise in rates, particularly when they already face spiralling up-front costs. A failure to act would hit the high street, manufacturers and others hard – and undermine the sort of investment we need to boost productivity.”

On investment:

“Too many companies are playing a wait-and-see game at the moment. We need a big, bold incentive to get more firms investing – particularly ahead of the Brexit transition.”

On infrastructure:

“A sugar hit for voters would quickly fade, but the protein boost provided by increased investment in infrastructure and digital connectivity would be felt for decades. Ramping up infrastructure investment across all regions and nations of the UK, and getting long-planned projects off the drawing board, gives a huge boost to business confidence and creates both jobs and business opportunities.”

As the Conservative Party Conference continues today (Monday) in Manchester, the British Chambers of Commerce has called on the governing party to demonstrate competence and coherence – not division and disorganisation – in the interests of the UK’s economic well-being.

The leading business organisation – which represents tens of thousands of UK companies employing nearly six million people – has flagged on-going business concerns over the public disagreements within the Cabinet around the Brexit process, as well as an insufficient focus on supporting the domestic economy, as areas for immediate attention.

BCC Director General Adam Marshall has called on the Prime Minister and her party to shore up business confidence by ensuring that Brexit negotiations deliver a comprehensive transition period and pragmatic trade talks by the end of 2017, and by increasing attention to the many domestic issues that hold back business appetite for investment and risk.

Speaking from Manchester, BCC Director General Adam Marshall said:

“Businesspeople across Britain are growing impatient with division and disorganisation at the heart of the party of government, and have made it very clear that they expect competence and coherence from ministers as we move into a critical period for the economy.

“Public disagreements between Cabinet ministers in recent weeks have only served to undermine business confidence, not just on Brexit negotiations, but also on the many issues where firms need to see clear action from government closer to home. Action to cut the up-front cost of doing business, build key infrastructure, help firms plug increasing skills gaps, and to support investment and risk-taking must be front and centre on the government’s agenda.

“On Brexit, businesses are clear that they want a comprehensive transition period, lasting at least three years, and pragmatic discussions on the future trading relationship between the UK and the EU firmed up by the end of 2017. They will judge the government’s progress on Brexit by this yardstick – not by public speeches or pronouncements – and will take investment and hiring decisions accordingly.”

On the occasion of the visit of a high-level Finnish business delegation to London, the British Chambers of Commerce (BCC), and the Finnish Chambers of Commerce (Kauppakamari) are today (14 September 2017) jointly calling for UK and EU negotiators to minimise trade barriers – and prioritise shared economic ties beyond Brexit.

There are strong commercial links between the UK and Finland: the UK imports £2.6bn of goods and services from Finland, and exports £2.7bn of goods and services to the country.

Science and Innovation are areas of very active cooperation between the two countries, with the UK and Finland working closely together on life sciences, digital, and low carbon technologies. There are a number of partnerships between the two countries, many of which are facilitated by the EU Horizon 2020 strategy.

The future of these projects, the long-term ease of trading between the UK and Finland, as well as the future status of Finnish nationals in Britain and British nationals in Finland, are all questions where British and Finnish businesses want negotiators to deliver clarity as soon as possible.

Dr Adam Marshall, Director General of the British Chambers of Commerce, said:
“As we welcome our Finnish colleagues to London, the vibrant trade links between our countries are yet another reminder of the importance of reducing any possible future trade barriers between the UK and the EU.

“Businesses want to minimise the risk to free-flowing trade with partners like Finland, and to avoid the creation of artificial new barriers that stop companies collaborating across boundaries. The on-going Brexit negotiations must seek to provide businesses with clear answers on practical issues including customs procedures, health and safety checks, and tax rules – and guarantee the status of nationals resident on either side.

“The links between innovative British and Finnish businesses are an important reminder that the Brexit negotiations must also deliver a framework for future collaboration between the UK and the EU on science and innovation.”

Dr Risto Penttilä, CEO of Finland Chamber of Commerce, said:
“The UK has been one of Finland’s strongest allies in promoting free trade and pragmatic reforms in the EU. The objective of the Brexit negotiations must be a European wide market that includes the UK, Switzerland and the EEA countries.

“Brexit must not lead to new obstacles or increased costs for companies from the UK, Finland or other EU countries. The UK is one of our most important trading partners, and a strong British economy will benefit both Europe and Finland.

“The Brexit process has reached a point where committed political leadership is needed both in the UK and the EU. Businesses, as well as citizens, need a clear roadmap for the years to come to ensure a smooth transition.”

Commenting on the announcements on HS2 made by the Department for Transport, Jane Gratton, Head of Business Environment at the British Chambers of Commerce (BCC), said:

“The HS2 project is intended to boost the infrastructure capacity of the UK as a whole so business communities will welcome this clarity on the routes, but will want to see action begin on all phases as soon as possible.

“Construction of the routes will spur welcome investment and job creation, many in skilled positions. As well as clear benefits for those businesses who win the contracts, many other firms across their supply chains will also feel the positive knock-on effects.

“HS2 will add much-need capacity to the UK’s rail network, improving connectivity across the country which is crucial for businesses looking to reach new markets, customers and labour supply.”

Richard Wright, Executive Director of Sheffield Chamber of Commerce, comments on the announcement on the route for Phase 2:

“Today’s decision is the best outcome for the region, and should bolster investment into Sheffield. We’re pleased to see the Department for Transport connect the objectives of HS2 with Transport for the North, and the choice to link the city centres is a sensible one. It’s good that the decision has now been made but there is plenty of work still to be done between now and 2033 to maximise the potential of this project.”

In its response to the Low Pay Commission Consultation, the British Chambers of Commerce calls for a cautious approach to setting the National Living Wage (NLW) but one which will help low paid workers deal with the consequences of inflation without pricing people out of jobs.

The leading business organisation has recommended an increase of 2.7% in the National Living Wage to compensate for the rise in inflation.

The BCC has recommended a cautious approach to rises in the NLW to reflect the costs and pressures faced by employers and increasing uncertainty in the economy.

With firms facing mounting pressures from existing policies such as pensions auto-enrolment, the Apprenticeship Levy, and the Immigration Skills Charge, many are struggling to absorb the rising cost of employment. The latest rise in the NLW in April 2017 increased wage bills further for businesses across a range of sectors, with the need to maintain wage differentials multiplying costs for employers.

Jane Gratton, Head of Business Environment and Skills Policy at the British Chambers of Commerce (BCC), said:
“The BCC has recommended an increase in the National Living Wage to help low paid workers manage inflationary pressures which are eroding their spending power.

“Setting the National Living Wage must be done cautiously, comprehensively taking into account economic circumstances, so that people are not priced out of jobs. The Government’s current policy was set before the EU referendum and so does not reflect the uncertainty caused by Brexit.

“Businesses are already facing high costs when it comes to employing staff – including the Apprenticeship Levy, pensions auto-enrolment and skills charges. The rise in the National Living Wage in April this year, brought a further increase in wage bills for business across a wide range of sectors, with the need to retain wage differentials multiplying their costs further.”