December - Somerset Chamber of Commerce

More documents

Recommendations

Info

British Chamber of Commerce BCC: Borrowing will exceed OBR forecast by around £15bn BC: Unlocking house building will boost growth, but government must go further Public sector net borrowing in October 2012 was £8.6bn, compared with £5.9bn in October 2011 Commenting on the speech by the Deputy Prime minster on housing, Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC), said: Commenting on the public sector finances for October 2012, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: “The public sector borrowing figures were much worse than expected in October. Excluding special factors, total borrowing so far this financial year was more than £7bn higher than in the same period of 2011. Unless there are distinct improvements over the next few months, borrowing for the entire financial year could exceed the OBR’s budget forecast by around £15bn. This unwelcome news will only put more pressure on the Chancellor as he prepares for his Autumn Statement in early December. “Despite the announcement that interest payments for the gilts purchased under the QE scheme would be transferred from the Bank of England to the Treasury, the deficit will still take a few years longer than expected to reduce. “To maintain credibility, the government must persevere with a realistic plan to reduce the deficit over the medium term. But there is also a risk that if weak growth continues, borrowing could overshoot even further, which could in turn threaten the UK’s credit rating. The government should look to make cuts in areas such as welfare reform, pensions and the size of the civil service to ensure that the structural deficit is gradually reduced. We will also be looking to the Chancellor to announce measures in his Autumn Statement that will boost growth and enhance the productive capacity of the UK.” “In our submission to the Chancellor ahead of the Autumn Statement next month, the BCC called for a new fund to unblock stalled developments, so the government’s pledge to provide £225m is a welcome step in the right direction. Addressing this shortfall is essential for growth, with the slump in construction output a major factor behind the negative growth that we saw in 2011 and early 2012. Not only will this investment boost the economy by creating thousands of jobs in the house building sector, it will also benefit a large number of UK-based firms and suppliers. “But unblocking stalled sites alone is not enough. We would challenge the government to be more ambitious and increase the Homes and Communities Agency’s (HCA) target by a further 100,000 homes by 2015, which would provide a substantial return in economic growth. Research* shows that investing in house building has a multiplier effect, with each pound invested creating £2.09 of economic output. The government must seize this opportunity and build the homes needed for a sustainable future, and a lasting economic recovery.” www.britishchambers.org.uk 4
The Energy Bill The Energy Bill – What might it mean for Somerset businesses? The recently published Energy Bill puts in place measures to attract the £110 billion investment which is needed to replace current generating capacity and upgrade the national grid by 2020, and to cope with a rising demand for electricity. The Bill, which has been developed by the Department of Energy & Climate Change (DECC), includes provisions for: Contracts for Difference – long-term instruments to provide stable and predictable incentives for companies to invest in low-carbon generation; Investment Instruments – long-term instruments to enable early investment in advance of the CfD regime coming into force; Capacity Market – to ensure the security of electricity supply; Conflicts of Interest and Contingency Arrangements – to ensure the institution which will deliver these schemes is fit for purpose; Renewables Transitional – transition arrangements for investments under the renewables obligation scheme, and Emissions Performance Standard – to limit carbon dioxide emissions from new fossil fuel power stations. Furthermore the Bill looks at an alternative payment model for contracts through what is now known as Electricity Market Reform (EMR). In addition to EMR, the Energy Bill will also improve regulatory certainty by ensuring that Government policy and Ofgem are aligned. Chief Executive of the Somerset Chamber, Rupert Cox commented: “While this is quite a complicated Bill for businesses to comprehend, it does address some of our concerns about energy security, consistent supply and assurances on cost. In the short term costs look likely to rise as the Bill allows generating companies to garner an additional £7.6b from customers by 2020 to be ring fenced for investment in low carbon energy generation”. For those in Somerset keeping an eye on the Hinkley Point C development, Government now appear to have given comfort to EDF Energy (and other energy investors and suppliers) on what can be charged for electricity in the future through the EMR which will help them make their final investment decisions on whether or not to build Hinkley C. EDF Energy’s Chief Executive, Vincent de Rivaz commenting: "The introduction of the Energy Bill is a very positive step," but suggesting that they needed to see the detail of the proposals before commenting further. EDF Energy’s Chief Executive Vincent de Rivaz SOURCE: WWW.DECC.GOV.UK Join the Somerset Chamber of Commerce Membership offers support and advice to help you increase your profits and also helps the Chamber increase its influence. Membership includes: Effective business lobbying and representation at local, regional and national levels through accreditation to the British Chambers of Commerce and membership of the South West Chambers of Commerce. A range of FREE services provided through the British Chambers of Commerce. Access to nine exclusive Chamber offers from national and local Premier Providers. Business Networking events with the opportunity to network with up to 2,000 Chamber Members from across Somerset and throughout the South West. Informative seminars to share knowledge and best practice including Meet-the-Buyer events. Initial FREE publicity for new Members in Chamber News and on the website www.somerset-chamber.co.uk. For more details please call 01823 444924, email manager@somerset-chamber.co.uk or visit www.somerset-chamber.co.uk. 5
Page 1 and 2: Chamber REPRESENTING AND WORKING FO
Page 3: Supporting the Growth of the Somers
Page 7 and 8: Wellington Business Association Wel
Page 9 and 10: Project News Somerset Chamber and E
Page 11 and 12: Member’s News New office for Yeov
Page 13 and 14: An Educated Somerset £400 million
Page 15 and 16: Somerset Business Awards Top Somers
Page 17 and 18: Somerset Business Awards THE RUNNER
Page 19 and 20: Next Events Christmas Nibbles Date:

December - Somerset Chamber of Commerce

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?