9 minute read
Hertfordshire Global
By John Woodruffe Head of International Trade and Policy
With lockdown easing, the pandemic hopefully beginning to calm and Ministers being positive about our recovery, we can begin to look at helping companies to both recover and expand, particularly in exporting. This we see as key to aiding economic recovery and ensuring Hertfordshire remains the vibrant county we all know it is.
However, the BCC research, makes sobering reading with over a quarter of manufacturing exporters stating a decrease in sales and many do feel that the aftereffects of the withdrawal from the EU, including more red tape and EU companies believing things are more difficult now, are to blame. Though there is nothing we can directly do regarding changing the current rules, we can help in many other ways. In what will be a busy month, we are designating November as International Trade Month.
The Department for International Trade (DIT) has developed the Export Academy, comprising of a series of 10 modules, along with some bonus workshops, to guide exporters towards developing and implementing an export action plan. The modules are all free and delivered via webinars. Topics include: • Research, • Movement of money, • Pricing strategy and • Understanding customs procedures We have teamed up with DIT to promote the next series commencing 27 September. Although it is recommended, if you can, to watch the modules live, if you are unable to do so a link can be provided to enable you to catch up at a later stage. The modules will finish in October. Once this series is complete, we will invite all the companies who participated to a roundtable discussion, via webinar, on 16 November. DIT representatives will be present along with one of their Export Champions, to discuss how we can further assist you in developing your exporting. In addition to the Academy modules, we are planning webinars with representatives from various Commonwealth countries to help promote the many trade opportunities that exist. These will be held over two days, 23 and 30 November, to cover the vast time zones. We will have speakers from many of the countries to give an overview of their current needs and how to go about exporting to them, followed by Q&A.
We are really looking forward to presenting these events and hope to see as many of you as possible at them. Let’s get Herts exporting! johnwoodruffe@hertschamber.com Begin your export journey and unlock your company’s international potential with Export Academy. This fully funded programme of exclusive content will guide you through the fundamentals of exporting, leaving you with an immediately implementable export action plan. Why Export?
Global trade is growing and changing rapidly and UK businesses are superbly placed to take advantage of the opportunities presented. Evidence shows that businesses which export, experience higher growth, productivity and are more likely to innovate. Not only do companies who begin selling internationally increase their customer pool, they also become more economically resilient to market downturns.
About Export Academy
The Export Academy programme gives small and medium sized businesses the knowledge and expertise to export. Led by experts at the Department for International Trade and a range of external specialists, this course is has been tailored to help companies overcome common challenges that businesses may face when they first start to export. The programme is comprised of 8 core modules including:
• Market Research • Export Procedures and Routes to Market • Pricing Strategy • Understanding International Commercial Terms • Understanding Custom Procedures, Tariffs and
Export Controls • Movement of Money
These core modules will be repeated across the programme, so if you are not able to make one session you will be able to join it later in the programme. There will also be bonus webinars on topics such as; Create a Commercial Invoice that works, Optimise your Social Media for International Reach, Raising Finance, Selling on Amazon Japan and so much more. Businesses that complete the 8 core modules will leave with a completed export action plan to take their business to international customers.
Who is the programme for?
Suitable for companies focused on either goods or services, this programme is an unmissable opportunity for companies who want to make exporting part of their business growth plan and pro-actively sell internationally. Whether you are new to exporting, have your first order from an international client or are new to an exporting role, this programme will provide you with the knowledge and confidence to begin your company’s journey into international markets.
Dates Until 31st March 2022 Organised by The Department for International Trade in the East of England, West Midlands and East Midlands For more information contacts us T: +44 (0) 300 365 1000 E: exportacademy@mobile.trade.gov.uk Register at https://www.events.great.gov.uk/ ehome/index.php?eventid=200209668&
BCC Research: Nearly 3 in 4 Exporters Report No Sales Growth in Q2
• Proportion of UK exporters reporting increased export sales (27%) rises from Q1, but proportion reporting decreased sales (28%) remains historically high • Manufacturing exporters were more likely to see rising sales than exporting services firms • B2C services exporters more likely to see sales fall, but neither B2C nor B2B seeing significant sales growth • Respondents cited issues with UK-EU TCA as a major barrier to growing overseas sales
The British Chambers of Commerce’s Trade Confidence Outlook for Q2 has shown that exporters still face significant issues after a historically weak Q1.
The survey of more than 2,800 UK exporters revealed that the percentage of firms reporting increased export sales had risen to 27%, a 7-point rise from the previous quarter. The percentage of businesses reporting decreased export sales fell to 28%, down from 41%, however this remains a historically high proportion. 45% reported no change in their export sales. The percentage balance data shows that the proportion of firms reporting increased export sales has recovered slightly, after taking a downward turn in Q1. The balance of manufacturers reporting increased overseas sales was up to +8% from -9%, while the balance of services firms reporting increases rose to -7% from -26%. See graph. Overall, 35% of manufacturing exporters surveyed reported increased overseas sales in Q2, with 27% reporting a decrease and 39% reporting no change.
Consumer-facing exporters more likely to report decreased export sales
The breakdown of services between B2B and B2C exporters reveals that a considerably larger proportion of B2C exporters are seeing a fall in overseas sales - 38% of B2C exporters surveyed reported a decrease in export sales, in comparison to 21% of B2B firms. The proportion reporting increased sales though was similar between B2B and B2C, 23% and 22% respectively, for B2B this represents an 11-point fall from 34% reporting increased sales in Q1. While 55% of B2B firms reported sales staying constant in comparison to 40% of B2C businesses. It should be noted that these numbers come on the back of historically high proportions of both B2B and B2C firms reporting decreased sales in the previous quarter, 31% and 51% respectively. Across a number of metrics, including domestic sales, confidence and expectation of workforce growth exporters were more likely than non-exporters to report rises. This ties with historical data showing exporters as more likely to display confidence as they push into new markets or develop new products. Given that the recovery in overseas sales continues to lag domestic sales by a significant margin, it can be seen that despite being dynamic businesses exporters are still struggling to grow sales in the face of the issues currently affecting trade. Respondents cited issues arising from Brexit as the main cause of difficulties with export sales in the quarter. Many pointed to ongoing issues with the TCA, increased red tape or costs and losing EU based clients or customers to the perception that trade was now simply too difficult or complex. Responding to the findings, Head of Trade Policy at the British Chambers of Commerce, William Bain said: “Six months into the new trading relationship, more than a quarter of goods exporting firms are experiencing continued falls in sales to EU customers. This is a historically high number. “Our exporters are among the best problem solvers and innovators in our economy, and yet our data demonstrates that they are still struggling mightily to resolve the issues that they currently face. “As the UK and EU economies open up, we urge both sides to address the key pressures upon exporters - the red tape around import VAT and the new portals, paperwork and checks for agri-food exports, consistency of approach on customs rules and checks, looming deadlines on CE-marked goods, and the restrictions on labour mobility and service provision. “It’s clear the TCA needs to be built upon and applied in ways which cut the current red tape costs and burdens on EU exports. We must solve these issues so that exports can become a driving force in our recover from the pandemic.”
Legal Property Experts
in association with Penman Sedgwick LLP
Claire Miller – Partner, Head of Property
Commercial leases Subletting: key issues
Subletting (also known as underletting) might be an option worth considering if you find you have more space than you need at the moment, with many staff still working remotely and ongoing challenges which are putting pressure on the bottom line.
If your lease allows this (and note that the landlord’s prior written consent will almost certainly be required), the key issues to consider are: • Can you sublet part, so that you can stay in occupation of the reminder of your premises, or are you only able to sublet whole? • Check the restrictions in your lease carefully: you must not deviate from these (even in a side agreement) and you can expect these to control matters such as: - the level of rent that you can charge your subtenant - rent review provisions, including the review dates - service charge - dealings with the sublease (e.g. assignment, further subletting) - permitted use - exclusion of the subtenant’s rights of security of tenure - the form of the sublease itself • Length of term: it is essential that the sublease will expire before your own lease expires otherwise it will take effect as an assignment of your lease (subject to certain exceptions), even if that is not what you intended • Costs: subletting can be expensive, as your landlord will require you to cover their professional costs (which may include managing agents’ costs and/or surveyors’ costs as well as legal costs), and the costs of any superior landlord and/or any mortgagees whose consent is also required. Added to your own legal costs, the bills can mount up… • Don’t forget to serve formal notice of the grant of the sublease on your landlord after completion and pay the notification fee due, as required by your lease • And…. make sure you keep all the original documents relating to the sublease safely for the whole of the sublease term: you will need them for tax purposes and/or if you have to take enforcement action
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