Income at the North East England Chamber of Commerce took a hit from the Government’s decision to take its international trade work in-house, accounts show.
The network of the British Chambers of Commerce supported the Government’s work on international trade, but in 2022 it was decided to return the delivery of international trade support in-house – and the Department for International Trade has now been replaced by the Department for Business and Trade.
Commenting on the move, Chamber chairman John Marshall said: “First, we had to say farewell to more than 30 colleagues who were transferred to the Department for International Trade. They were integral to the Chamber and did wonderful work in supporting businesses trading internationally from the North East.
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“The end of the contract also had a real impact on our income. We will see the full effect of that in 2023, the first full year in which the Chamber will receive no income from the delivery of that service. Whilst disappointing, the Government’s decision on this wasn’t a complete surprise, and some plans had been put in place to cope with this eventuality.”
His comments come in the accounts for 2022 which show the Chamber’s turnover dropped from £4.75m in 2021 to £3.76m, while the previous year’s operating profit of £270,000 was converted to a loss of £35,000. However, total reserves topped £4.572m, only slightly down on the previous year’s £4.59m.
While membership numbers dropped slightly from 2,221 to 2,163, membership subscriptions increased from £1.7m to £1.758m. The Chamber said the number of new members increased from 2021, while the number of member resignations in 2022 remained very similar to the previous year.
It said the membership reduction had been driven by SMEs being affected by a challenging business landscape and an increase in business closures. Meanwhile, it saw corporate and international memberships grow by 17% and 7% respectively year-on-year and partner memberships also grew. Medium and large membership held steady.
Events and awards are now “a positive area of income growth” for the Chamber, the accounts said, with events and associate sponsorship up 54% to £43,000 and award sponsorship up 63% to £49,000.
Separate reports by the chairman, president and chief executive of the Chamber paint a picture of rising optimism in the region, while also repeating the crucial need for skills investment.
John McCabe, Chamber CEO, signalled how the Chamber recognises its need to remain agile and responsive to a changing economic landscape post-pandemic, with a focus on training and international trade as well as other areas.
He said: “I’m under no illusion of the scale of the challenge before us but I’m hugely optimistic for this region’s future if we can all keep our eye on the prize.”
Meanwhile, Chamber president Andrew Haigh said he was confident for the future.
He added: “The last year or so has certainly seen many highs and lows and for a while it felt like we moved from one major once-in-a-decade (or even a lifetime) event to another. While life is still far from settled, I’m confident we’re now on the right track and most importantly, the North East has started to raise its aspirations for the future. There is a sense of excitement, of potential and of possibility about business in the region. These may be challenging times, but those are the times when this region delivers!”
