Britain could be talking itself into recession, the UK’s second largest Chamber of Commerce said this morning.

The warning from East Midlands Chamber* follows various recent reports citing Brexit as the primary cause of failing business confidence and, in one case, a significant fall in corporate profits in the second quarter – of which only one week was post-EU Referendum.

This morning, the National Institute of Economic and Social Research (NIESR) called on the Bank of England’s Monetary Policy Committee to cut the base interest rate tomorrow from 0.5% to 0.25% with a view to dropping it to 0.1% later in the year.

It also called on the Government to cut taxes and increase spending to avoid economic growth falling to only 1% next year.

Scott Knowles, Chief Executive of East Midlands Chamber, said: “The Chamber has been neutral on Brexit throughout, but we believe that the messages being given to the global business community at the moment are all wrong.

“Until Article 50 is triggered we remain part of the EU, with all that it entails, and nothing changes. Even after Article 50 is triggered nothing is going to change overnight and probably not for several years.

“GDP for the second quarter of 2016 was up on the first quarter despite the uncertainty of the EU Referendum. It was up 2.2% year-on-year and up 7.7% compared with 2008. High Street sales for the second quarter were up on the first quarter and year-on-year. And despite its warnings of ‘technical recession’ in 2017, even the NIESR has said export sales have increased as a result of the weaker pound.

“Chambers across England, Wales and Northern Ireland, carried out a snapshot survey of members and found that, by and large, confidence remains high, with over half of the respondents saying they thought leaving the EU would bring no change or positive change to their business and over half of businesses saying they have not revised their recruitment or investment plans or have no intention of doing so. In the East Midlands businesses were split roughly 50:50 over future growth prospects.

“There was a lot of pressure on the Bank of England to cut the base rate from 0.5% to 0.25% last month. It resisted, thereby sending a message to the world that it had confidence in UK plc. Although we think a cut in the rate is likely tomorrow, we would urge the Monetary Policy Committee to make only cautious moves so that the message sent out is one of confidence and that Britain remains open for business.”

Chesterfield-based Mitchells Chartered Accountants and Business Advisers says small businesses should consider using the new Pokémon Go phenomenon to boost their business this summer.

Since being launched in the Apple App Store, it has turned areas of the region into Pokémon hotspots, attracting hundreds of people Pokémon hunting with the app.
Part of the game involves walking to ‘Pokéstops’ – checkpoints that correlate with real life places and businesses that give in-game items and where in-app purchases can be used to buy and use items known as ‘lures’ that attract rarer Pokémon.

Laura Pain, Head of Small Business at Mitchells explained: “Our offices are based in the centre of Chesterfield and we see people every day walking up and down Saltergate hunting for Pokémon. There’s a great opportunity for small businesses to use the Pokémon Go phenomenon to their benefit.

“Shops, cafes and restaurants in Chesterfield can offer discounts and incentives for players to walk into their premises, while other businesses can use their social media accounts to join in the online conversation. It’s a great opportunity for small businesses to engage with customers during the quieter summer months.”

For businesses that want to get make the most of Pokémon Go, Laura offers the following tips:

1. Use Lures – In Pokémon Go, there are things called lures. These can be obtained through levelling up or buying them through the online store and can be used at the millions of ‘Pokéstops’ around the world to bring more Pokémon to the area. Businesses have already been using these to attract people to cafés and stores and, sure enough, it’s working. A restaurant in London tried the method and ended up increasing revenues by 26%.

2. Talk about it on social media – We all know what a powerful tool social media can be, so use it to interact with your customers on a slightly more personal level than usual. Ask them what different types of Pokémon they’ve caught and get conversation flowing, it could lead to a visit into the store. Another idea that has been working well is to simply ask for a picture of a Pokémon being caught in your restaurant, café, or shop in order to receive a discount on the next purchase.

3. Talk to your staff about it – It is always good to build relationships with staff and discussing the current trends can be a great way to do so. Just asking your staff about what Pokémon they caught at the weekend can lead to a surprisingly lengthy conversation and you will soon find yourself getting to know your colleagues a lot better.