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WE MUST ALL WORK TOGETHER TO GET THE BEST FOR NORFOLK

5 Jul 2010

There's no disguising the fact that the past few years have been tough for businesses in Norfolk...

There's no disguising the fact that the past few years have been tough for businesses in Norfolk. 
 
Falling order books, difficulties getting finance, and a slump in consumer confidence have brought real stress to the county's economy. 
 
The evidence is clear to see, with a big upswing in company insolvencies, a sharp rise in redundancy notifications and higher unemployment. 
 
Added to this, there has been a considerable amount of belt tightening by companies and their employees. Wage cuts helped limit the number of redundancies, and provided the emergency medicine to keep many firms afloat, but have stretched the finances of thousands of families across Norfolk. 
 
Compare that with the period we will look back on as the time of plenty. 
 
A time between 2003 and 2007 when business news was positive and graphs of economists all pointed to a brighter and more prosperous future. 
 
I remember attending presentations from the chief economist of the Royal Bank of Scotland on his annual visits to Norwich where bold predictions were made of the UK's continued and sustained economic growth, and of the performance of his own bank. 
 
How things have changed. The charts are all pointing down instead of up and his own bank got in a spot of bother. 
 
These days the bank, which you and I now own, prefers to be known as NatWest. 
 
But are we on the road to recovery? Over the past few months Norfolk's businesses have begun to show some positive signs, of that there is little doubt. 
 
Unemployment has started to reduce, orders are returning, and confidence is returning. 
 
However things are still pretty sticky for many firms. 
 
Earlier this week at the Norfolk Show I met the regional director of one of the major banks. He told me that for many companies in Norfolk, the recovery may have stalled. 
 
Sales have not picked up as some had hoped, and cash remains tight, although he did assure me his bank was still committed to lending, just that firms did not want to take on the risk of more debt. 
 
Add this to the huge challenges faced by the public sector, there is absolutely no doubt that the next few years will be tough for everyone in Norfolk. 
 
One thing we know for sure is that there will be no cash handouts to ease us through the pain. The money isn't there. 
 
It means that infrastructure projects that we have worked so hard to build a case for will be harder to achieve. 
 
Instead we are looking at a period of sustained self-help, of the people of Norfolk working together to solve their own problems. 
 
The Government's decision to abolish regional development agencies and devolve power to local areas provides an opportunity for Norfolk as a county to work together more closely. 
 
It offers a chance for different groups within the county to tackle the big issues and big challenges we face. 
 
These issues, like tackling our low wage, low skilled economy, existed before the recession and remain key challenges. 
 
And we're going to have to tackle them with less cash. 
 
The days of landmark building projects like the £32m that was pumped into Ipswich's Waterfront by the East of England Development Agency are definitely over. 
 
Instead we need to look at more innovative ways of helping the private sector grow. 
 
We need a business environment in Norfolk in which small businesses can thrive, win more customers, grow and take on more staff. 
 
That is why it was disappointing that the Government chose not to include Norfolk in its new stimulus package for small businesses. 
 
Businesses that set up in the next couple of years will be exempt from paying the first £5,000 in National Insurance contributions on their first 10 employees. 
It's a neat proposal and one which will undoubtedly help free up much-needed cash for start-up businesses. 
 
Trouble is that it does not apply to businesses in the East of England and the South East. 
 
That's because new business start up rates across the Greater South East are much higher than other regions and the Government felt other areas needed the help more. 
 
Unfortunately Norfolk loses out. Here new business start-up rates are the lowest in the East of England and below the national average, and the scheme would have been helpful. 
 
It's the price we have paid for being attached to better performing areas such as a Hertfordshire and Bedfordshire. 
 
The same applies with the recently announced cuts to regional development agencies. 
 
The East of England has had a bigger cut than its Northern counterparts because its economy overall is better performing than other parts of the country, leaving Norfolk worse off than other parts of the country with better performing economies, towns like Cheltenham and Swindon. 
 
The Government's decision to devolve decision making to sub-regional areas like Norfolk should give the county the opportunity to argue its corner more effectively, with our economic challenges no longer masked by better performing areas such as Hertfordshire and Bedfordshire. 
 
The Government's creation of a £1bn fund to promote regional enterprise, is a chance for Norfolk to get its fair share of the cake, provided we can speak with one clear voice. 
 
We need to ensure that we are eligible for this support and make the strongest possible case. 
 
The challenge, of course, will be getting our voice heard above other areas. Rest assured they will be arguing their corner - we need to ensure we argue ours. 
 
The key to this will be for Norfolk to focus on specific targets and coordinated action. 
 
Whether it is dualling the A11, improving skills levels, or boosting rural broadband, Norfolk needs to work together for the common good. 
 
Working together, we stand a chance of maximizing the opportunities now presented by the Government. 
 
And with the total amount of funding available smaller than ever, it is crucial Norfolk 's voice is heard loud and clear. 
 
Chris Starkie is chief executive of economic development partnership Shaping Norfolk's Future 
www.shapingnorfolksfuture.org.uk 
 
ENDS

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