CHAMBER NEWS
QES highlights growing cash flow concerns
Brexit doubt is stifling business, the results of the latest survey by this award-winning Chamber have confirmed. Companies are suffering cash flow
problems and have lost confidence to invest in premises, plant and people. According to the first Quarterly
Economic Survey of 2019, cash flow concerns are at their worst since the end of the financial crisis in 2012. Stockpiling in preparation for an
unruly Brexit and businesses ‘stretching’ supplier payment schedules to shore up their own position as doubt and uncertainty continue were cited as two main drivers of worsening cash flow. Scott Knowles, Chief Executive
at the Chamber, said: “Unlike 2012, the figures here are not related to access to finance but, instead, are directly attributable to Brexit preparedness and the knock-on impact this is having on business. “There is undoubtedly a level of
stockpiling affecting cash flow, with an inevitable knock-on effect on payments as businesses seek to secure their own positions.
‘Unlike 2012, the figures here are not related to access to finance but, instead, are directly attributable to Brexit preparedness’
“Cash flow issues might also be
part of the story behind decreased levels of investment intentions. While an understandable and rational reaction from business, this runs counter to UK Government’s plans to boost business investment and grow UK productivity.” The Q1 QES found a net score
of only 18% of firms reporting intentions to invest in training, the lowest score since immediately after the Brexit referendum in 2016. Scott said: “A key difference
between then and now are the drivers of that score. After the referendum, the key factors pulling down the overall score were concerned with confidence and investment, both of which took a short-term hit. “In the latest survey, the main
drivers behind the lower score are reported as actual sales, orders and
cash flow for both domestic and overseas activity – making this less about sentiment and more about actual activity levels.” The Q1 2019 QES results
compound a slowdown seen in Q4 of 2018 and appear across all economic markers in the survey, resulting in a fall in the Chamber’s State of the Economy Index to its lowest level since the aftermath of the financial crash in 2012. “The fact that these problems
are of a political rather than structural nature does potentially offer some relief,” said Scott. “In a scenario where we have a
swift resolution to Brexit – or at least a clear and predictable path to a resolution – we could see cash flow and investment return to normal levels, with growing confidence following. However, if we experience
continued uncertainty, this may
Scott Knowles
exacerbate what is already a significant problem for SMEs. “In worst case scenarios, long-
term struggles with cash flow could start to see some organisations struggle with viability and some of their frustrations turn to genuine anguish as real-world impacts of political bickering start to bite,” he added.
A champion for disability confidence
East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire) has achieved elevated status as a Disability Confident employer. Having already achieved level 2
in the Government-led scheme last year, the Chamber was formally recognised as a Disability Confident Leader, the highest grade, recently. The Disability Confident scheme supports employers to make the most of the talents of disabled people.
As a Disability Confident Leader,
the Chamber has had to demonstrate that it meets all the criteria of the scheme, is taking action to recruit, retain and support disabled people, has had its self-assessment validated and provided evidence of its commitment. Director of Resources Lucy
Robinson said: “In continuing our Disability Confident journey, we are ensuring that disabled people and those with long-term health
conditions have the opportunities to fulfil their potential and realise their aspirations. “We have also pledged to
influence and support members and the wider business community to sign up to the Disability Confident scheme.” The Chamber has undertaken to
continuously review and update its practices relating to employing people with disabilities, and to facilitate sharing good practice through its forum activity. Donna Bharmal, a member of
the Employment Services team, based in Nottingham, assisted Lucy in elevating the Chamber’s status. She said: “After working on this
for the past six months, we are really proud to have been recognised in this way. It showcases the work we are doing to be a leading employer in this area.” At the end of March, at a
Jobcentre Plus-run Disability Confident event in Nottingham,
30 business network May 2019
Lucy Robinson
Lilian Greenwood, MP for Nottingham South, presented the Chamber with a certificate showing its elevated status and a logo for use across all platforms. Disability Confident Leader status lasts three years.
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