Research starts to gather NE business views on racial inclusion

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One of the most comprehensive pieces of research into attitudes towards race and inclusion in North East businesses has been launched.

The survey is being carried out on behalf of the Race, Ethnicity and Discrimination (RED) Commission, established by North East England Chamber of Commerce.

It will identify barriers and promote positive examples of good practices to encourage diversity and inclusion with the aim of helping companies achieve increased economic performance and profitability. The introduction of new talent and skills by encouraging diversity is known to have a beneficial overall impact on business and society.

The RED Commission is chaired by Nagma Ebanks-Beni, MBE (Prima Cheese). She said: “If we want our region to succeed within the changing social and economic landscape of our region, then we must encourage everyone to be able to reach their potential, regardless of the colour of their skin or religion. Existing research regularly shows the lack of opportunities available to Black, Asian and Ethnic Minority individuals, as well as a distinct lack of career progression opportunities for people from these communities.

Since it was established in Autumn last year the RED Commission has set out a detailed programme of work to help identify, explore, and encourage inclusive and diverse workforces in the North East.

Its priorities are to gather data through the research, actively promote diversity and encourage more awareness of its benefits and how to tackle workplace discrimination.

The commission’s activities will also culminate in detailed guidance for businesses and organisations. This information will show how to proactively recruit and encourage development of people from different ethnic backgrounds for the combined economic and social benefit of individuals and businesses alike.

Nagma Ebanks-Beni MBE said: “We need our companies to reflect our society, at all levels, and currently that is not the case. There are very few entrepreneurs, board members or senior leaders who are from diverse backgrounds in terms of their race, religion and ethnicity. We are missing out on valuable talent and this commission is determined to ensure everyone can develop and progress in their career, no matter the colour of their skin or their religious beliefs”.

Amanda Adeola, Partner of Chamber member BHP Law said: “I encourage all North East business leaders to fill in this Commission’s survey so we can get a clear picture of what we can do, as a region, to encourage more diversity and inclusion, which will offer genuine opportunity to all.

“It is extremely important we look at our businesses and make sure they are aware of, and prepared to deliver, the support to all members of our society, no matter what their ethnicity or heritage may be.  Everyone needs to feel welcome and valued in our business communities to be able to contribute positively.

“The results of the survey will be interesting and if there are challenges identified, we must commit to tackle these collectively for the combined benefit of our region.  We see few people from different heritages represented within senior roles in the North East. I hope the findings help to identify why this is the case and what support people of all ethnicities really need to be able to really blaze a trail.”

The results of the survey will be published in the summer and anyone wishing to take part can do so by emailing [email protected] or following this link.

Government commitment needed to help NE out of tier 3

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Many regions across the country are emerging from national lockdown into loosened restrictions. In those areas, friends and families can see each other once again and businesses can reopen, albeit with limitations. With the North East continuing to see high Covid-19 case rates, however, we’re entering Tier 3 and our 11th week of heightened restrictions. 

It’s bleak news for all of us hoping for a bit of Christmas cheer, but especially for our region’s beleaguered businesses. Undoubtedly, the North East will do what it does best and pull together to drive down cases and make sure we exit Tier 3 as quickly as possible – but while we’re putting the work in, we need to see the same commitment from Government.

Since the 9th September, the Test and Trace system has only reached 58% of people exposed to the virus in the worst hit areas. The Government’s offer of mass-testing for all areas in Tier 3 is something the North East should snap up. It is no coincidence that Liverpool’s rates of infection have dropped so significantly since mass-testing was implemented. Nevertheless, once mass testing has done its job and driven down case rates, it will be up to the core Test and Trace system to make sure we can keep the virus suppressed. Without improvement, we risk being trapped in a perpetual cycle of lockdowns, until a vaccine has time to take effect. 

Then there’s the question Matt Hancock pondered last week. Why do British people ‘soldier on’ and go into work when we’re not well? Although some might put it down to work ethic, the more obvious answer is because the UK has the lowest mandatory sick pay of all industrialised OECD nations as a proportion of earnings. Although the Government did introduce the £500 Test and Trace Support Payment, it is estimated that only one in eight workers qualify for the grant.

If Government wants workers to self-isolate and stop the spread, it needs to plug these gaps and extend Statutory Sick Pay generosity.

Finally, with the run-up to Christmas usually a time of festivities and the emptying of wallets, the coming weeks will be tough for businesses in the North East. Especially considering it was announced last week that areas with the tightest restrictions, like the North East, will receive no more business support than those in Tier 1 or 2. Without more financial support in place for our region’s economy, any attempt to ‘level up’ the North East will fall at the first hurdle. 

Need for Brexit clarity is urgent

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Julie Underwood, director of international trade, North East England Chamber of Commerce Journal column

We organised a whole series of Brexit events last week to help our North East business community be as informed as possible about arrangements for leaving the EU.

The response was fantastic with over 800 people attending 12 webinars, with expert speakers from the UK and Europe, sharing their knowledge.

At the Chamber we have campaigned for a good Brexit deal and during the various sessions it was made very clear our businesses are equally passionate about keeping positive trading relationships with the EU.

There are, however, a number of barriers to having a seamless transition to our trading relationship.

One of the key hurdles is the lack of clarity on future rules and regulations. We really need to see specific details on a whole range of issues to ensure our companies can prepare in a timely way. There is just over a month to go. To say the information is extremely urgent is an understatement.

We have such a strong and long-standing trading relationship with our European neighbours, any barriers will impact on us far more than the rest of the UK. In fact the EU is by far our biggest marketplace, generally standing at 59%.

At the Chamber we know our members have tried to prepare for Brexit and many stockpiled goods twice now, in order to be ready for any difficulties at the borders. These plans were then put in disarray due to the Brexit date slipping and then the Covid pandemic damaging cash flow still further.

Our Brexit webinars highlighted a number of concerns including arrangements for businesses to access and easily link to the Government’s IT trade border systems. The Government sites may be ready but we need reassurance that companies can also find the necessary forms and information.

The date for leaving the European market of 1 January is almost a false friend. It may seem as if when we get there all will be well as the deadline has come and that will be that.

Unfortunately 1 January is just the start of the changes and it may take a few months of hard work before companies are fully at ease with their new trading arrangements. I hope this is not the case but fear it may well be due the complexity of the new systems that will be needed, and in place, both for imports and exports.

Chamber comment on North East’s Tier 3 placement

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Jonathan Walker, director of policy, North East England Chamber of Commerce said:

“This announcement that we will be in tier 3 will be further blow for businesses which have been under restrictions now for a substantial length of time. They must continue to receive the necessary assistance to help mitigate the cumulative impact of these measures.

“We encourage everyone in the North East to really pull together to ensure we exit tier 3 as quickly as possible and to support their local businesses through this difficult time. It has never been more important for us to work as a region to get our Covid rate down, both for our public health and our economy.

“It is also vital we get clarity on how we will move into a lower tier and what will need to be achieved.”

Chamber Says Spending Review A Missed Opportunity

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Jonathan Walker, policy director, North East England Chamber of Commerce said: “The Chancellor’s speech had been billed as the next step in the Government’s ‘levelling up’ agenda at challenging time for our regional economy. While we acknowledge the pressure on public finances, the statement was a missed opportunity to restore confidence and many announcements were poorly targeted and too short-term in their scope.

“On the face of it, a Levelling Up Fund sounds good, but is far too small in scale and ambition to be effective. The Government’s own documents recognise the particular impact Covid has had on northern regions but we fear £4bn won’t go very far if spread across the country. The lack of targeted funding is disappointing at a time when the Chancellor is at pains to stress how little money there is to go around

“Our region needs a long-term commitment to address decades of under-investment, rather than short term fixes which must be delivered during this Parliament.

“In contrast, the reform to the Treasury’s ‘Green Book’ funding rules is something we have long campaigned for and should, if implemented correctly, help to shift the balance of infrastructure spending in the long term.

“Since the Brexit referendum we have constantly asked what will replace EU funding which has been so beneficial to our region over many years. We welcome the reference to the UK Shared Prosperity Fund which will replace it. However as with other elements of this Statement, we lack reassurance it will be effectively targeted, based on regional need, or that it will be delivered swiftly.

“The accompanying Infrastructure Strategy similarly is a missed opportunity to make some big ambitious announcements to address regional imbalances as it contained little in the way of new schemes.

Chamber urges Government to tackle Covid impact on women

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A powerful forum of North East businesswomen has written to Government urging it to act on challenges arising from the pandemic which are affecting women disproportionately.

North East England Chamber of Commerce’s Women’s Leadership Forum’s chair Alix Bolton (Northumbrian Water) said: “The economic impact of Covid has the potential to entrench inequalities in society. We need to use the recovery as an opportunity to tackle gender inequalities and increase the number of female-led businesses and start-ups. If we allow Covid to increase gender inequalities in the North East, then the levelling up agenda has failed.”

The letter highlighted women’s employment problems compared to men,including a higher likelihood of losing their jobs, drops in working hours, impacts of childcare during lockdowns and an increase in domestic abuse. It also set out the starkstatistics showing the damaging reality of temporary contracts and reduced hours. Data showed there was a decrease in women’s working hours even before the economic crisis which is now likely to be further entrenched through Covid.

Statistics highlighted in the letter also outline domestic abuse worsened over lockdown. A report from women’s aid has shown that one-fifth of survivors had said that they had tried to leave during the pandemic but were been unable to access housing or refuge space. The Chamber believes in order to protect women a longer-term funding strategy is needed to ensure charities can reach people and that women have access to housing and refuge space.

Download a copy of the letter.

Chamber comment on Prime Minister’s statement

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Jonathan Walker, director of policy, North East England Chamber of Commerce said:

“The Prime Minister’s statement today and recent good news on vaccine development raise hopes of a future beyond the current crisis, but without further detail many businesses in the North East are unable to plan beyond next Wednesday.

“Substantial questions remain unanswered, the most important of which is which new rules will apply to our region? The answer to this must be provided swiftly and be supported by robust evidence. We also want to see Government commit to working closely with local authorities to navigate effectively and quickly down through the allotted tiers.

“It is essential for business support to be sustained and Government must be open to applying further measures if and when required, as well as delivering a functioning Test and Trace system, which will continue to be vital over the coming months.”

‘2020 hasn’t exactly been the best year…’

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I’m going to buck the trend and say that 2020 hasn’t exactly been the best year.

This time last year we were looking forward to/dreading (delete as appropriate) a general election, with talk of ‘getting Brexit done’ and ‘levelling up’.

Fast forward 12 months and Brexit isn’t done, nor do we feel particularly levelled up.

Pandemic, lockdowns and social distancing have all slipped into everyday parlance while our business community has grappled with some of the most challenging and bizarre economic circumstances in living memory.

Maybe, just maybe, there is some light at the end of the tunnel following positive news around a Covid vaccine.

For the time being however, we’ve got to accept that things will still be tough. We’re in the middle of our final economic survey of the year and I don’t think I’m giving anything away when I predict the results won’t be full of good news.

But as with every dark period there are always some positive stories to tell and some hope that better days are around the corner.

Just last week we finally saw the green light given to the new arena and conference centre on Gateshead quays; a missing link in our region’s offer which will put us alongside, and hopefully ahead of, other UK cities when it comes to attracting major events.

In the south of our region, redevelopment along the Tees continues with big new investments to support further growth of the port and to cement its place as a hub for green technologies.

Businesses themselves have also adapted remarkably to the crisis, showing ingenuity and innovation. Take Tharsus in Blyth, who won global attention for their Bump product which enabled the London Marathon to go ahead earlier this year.

Listing these things is not an attempt to ignore how tough the winter is going to be for so many of our businesses. We’re continuing to fight for support and recognition for the hardest hit sectors such as hospitality, culture and aviation.

But it provides at least a small amount of comfort to know that the region hasn’t come to a standstill because of the pandemic. We still see a great appetite for growth and networking such as the Chamber Showcase @ NE Expo next week.

We’ve got to harness the North East’s appetite for reinventing itself to give confidence and encouragement to businesses to stick with it and pay their part in building a stronger, fairer and more resilient economy in years to come.

Government green recovery announcement

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The Government today have announced a 10 point plan for the UK transitioning to a greener economy.

The plan is positive but we need more detail from Government on how we will achieve these targets in the years ahead, a longer-term investment plan with a 10 year investment plan through to 2030 is needed to help businesses plan and to create a skills strategy around green jobs. The £4bn allocation announced today is a start but we will need to see further investment to make these targets a reality.

The plan includes the phasing out sales of new petrol and diesel cars and vans by 2030 with a transition towards electric vehicles and investment in public transport and active travel. In terms of energy by 2030 the plan looks to quadruple the power produced by offshore wind , have five gigawatts of low carbon hydrogen production and remove 10 million tonnes of carbon dioxide through carbon capture technology. The Government have also offered support for research projects into zero emission planes and ships.

The Government have said that by 2023 all new homes will need to be warmed without using gas heating, there is also a target to install 600,000 heat pumps in homes every year by 2028.The green homes grant will also be extended for a year giving homeowners vouchers to help cover the cost of making their homes more energy efficient.

Hydrogen and Offshore wind are key sectors for the North East, support to grow these sectors in the region will help the UK to reach our net zero targets as well as creating new jobs and allowing the North East to contribute to the UK’s economic recovery.

The North East can also play a key role in the transition away from petrol and diesel cars. To reach their target the Government have said they will invest £1.3bn investment in electric vehicle charging points, provide £582 million in grants for electric vehicle buyers and £500m for battery manufacture in the Midlands and North East England.

Investment in battery manufacturing in the North East along with investment in electric vehicle charging infrastructure is welcome. However, currently fewer than 1% of cars on UK roads are powered entirely by electricity, we will need a more detailed plan on the transition away from petrol and diesel cars including further investment in charging infrastructure and how to make electric vehicles affordable for buyers in order for targets to be reached. The £1.3 billion investment in charging points will not be enough to create a charging network across the UK, we will need longer term investment to make charging points accessible and enable people to transition to electric vehicles.

The Government also needs to work with the automotive industry on this transition, the North East has the potential to be a world leader in manufacturing electric vehicles but the automotive sector needs to be consulted and supported to help them take advantage of any new opportunities.

In terms of housing more funding is needed to create quality energy efficient housing. A recent report by IPPR and the Northern Housing consortium has recommended a 10 year investment plan from Government with an annual investment of £1.18bn investment in decarbonising the North’s social housing stock, this could create 77,000 direct jobs and help to reduce fuel poverty.

We also need to see how the planning system will work with the transition towards a greener economy, in order to reach these targets, there will need to be local support for changes.

North East England Chamber of Commerce comment on trade statistics

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Trade statistics released today highlight the challenges UK exporters have faced and continue to face in 2020, as Britain’s short-lived trade surplus ended. In September 2020, UK imports increased by £3.6bn to £49.2bn while exports flatlined at £48.5bn – a monthly deficit of £600m. This 8.0% increase in imports can likely be sourced to an increase in demand as we continued to live in loosened COVID-19 restrictions. The statistics for November 2020, when released, will likely show a dip in imports but not quite as drastic as we saw over summer.

The third quarter of 2020 (July-September) saw a similar story, with growing imports outstripping export growth. Imports grew £17.3bn (14.0%) on the previous quarter to reach a total of £140.5bn, whereas UK exports grew only £13.8bn (10.6%) to £144.7bn. This left a total trade surplus, excluding precious metals, of £4.2bn – a decrease of £3.4bn on the second quarter of 2020.

UK service exports, the longstanding backbone of the national economy actually fell by £0.3bn while imports grew £0.7bn highlighting that while business conditions have improved from the middle of the first lockdown, firms across the whole range of the economy still face significant challenges.

A significant portion of quarterly trade growth has come from an increase in machinery & transport and manufacturing products imports and exports. As COVID restrictions loosened, the demand for road vehicles has rebounded. Imports and exports of road vehicles increased £5.4bn and £4.7bn respectively in Q3 2020 as dealerships reopened. Exports of road vehicles to non-EU nations increased by 171.8% (£3.1bn), while exports to EU countries increased 114% (£1.7bn). In September 2020 there were 328,041 new car registrations in the UK. This is 4.4% below the same month in 2019, but a marked improvement from the May 2020 low point where registrations were 89% below the previous May.

When we look at the annual statistics (September 2019 – September 2020) we begin to see the extend to which COVID-19 has impacted international trade. UK exports in the 12 months to September 2020 were worth £602.4bn, a decrease of £75.1bn or 11.1%. Imports paint a similar picture with a total value in the same period of £597.2bn, a fall of £111bn or 15.7%. This left the total trade balance for the year at £5.2bn.

As UK exporters still face significant challenges to return to pre-COVID levels of activity, it is important to acknowledge the additional challenges they are set to face. The second lockdown in November is likely to take a toll on both importers and exporters and when it ends businesses will have less than a month until the end of the transition period. Government must be realistic about its expectations of importers and exporters, who have already faced the toughest year in living memory, and their ability to adapt to huge changes in the trading relations between the UK and the EU without severe disturbances. Government’s first priority when it comes to international trade must be to secure a deal with the EU that supports traders and minimises disturbances, and then provide the financial support and guidance that businesses will need as we move into 2021.